China’s Huawei Technologies Co Ltd (HWT.UL) said it was “out of crisis mode” as it posted a small increase in annual revenue, adding it was making headway with replacing components affected by sanctions thanks to the billions it is spending on research.
The tech conglomerate’s revenue climbed 0.9%, in line with a company forecast, suggesting it has reached some level of stability after successive rounds of U.S. export controls since 2019 hammered its once mighty smartphone business.
But it posted net profit of 35.6 billion yuan ($5.18 billion), down some two-thirds from 2021 when profit was helped by the sale of its Honor mid-range smartphone business. The decline was, however, still severe even when compared with 2020 – a drop of 44%.
Top executives of the major supplier of equipment used in 5G telecommunications networks spoke at a news conference about how they had been pushed to “a fatal impasse” and “fought their way out” after Washington restricted its supply of chips and chip-design tools from U.S. companies.
“2022 is the year that we pulled ourselves out of crisis mode. We’re back to business as normal,” said Chief Financial Officer Meng Wanzhou, daughter of the company’s founder.
The U.S. has said Huawei represents a security risk, which it denies. Tension with the U.S. saw Meng detained for three years in Canada over alleged efforts to cover up attempts by Huawei-linked companies to sell equipment to Iran in breach of U.S. sanctions.
Charges against Meng were dismissed and she returned to China in 2021. Huawei rotates its chairperson every six months and Meng is set to take up the position on Saturday.
