Huawei suffers the largest profit decline since 2014, but reports small revenue growth

Huawei’s profits fell by almost 69 percent in 2022 compared to the previous year, partly as a result of the US sanctions. This means the company has recorded its lowest profit since 2014. Nevertheless, the company managed to achieve a small growth in turnover of 0.9 percent.

According to the company’s chief financial officer Sabrina Meng, Huawei has pulled itself out of “crisis mode” in 2022. “The US sanctions are now the new normal and it is back to business as usual,” Meng said at a news conference which Reuters, among others, writes about. The Chinese company says it is making a lot of progress in replacing parts that it can no longer import from America. According to Huawei, this is the reason why its research and development department spent 13.2 percent more last year than in 2021, equivalent to around 21.63 billion euros.

The company’s net profit was in 2022 at 35.6 billion yuan, or 4.77 billion euros, while in 2021 the figure was still 15.23 billion euros. It must be said that profits in 2021 were unprecedentedly high as a result of Huawei’s sale of its subsidiary brand Honor. Still, last year’s profit was the lowest since 2014, when the company made a profit of 27.9 billion yuan, equivalent to 3.74 billion euros. Turnover in 2022 was 642.3 billion yuan, or 86.02 billion euros.

Huawei’s net profit since 2014 (source: Telecom TV)