Electronic income

Huawei’s net profit up despite US sanctions

HUAWEI Investment & Holding Co., Ltd., a global provider of information and communication technology (ICT) infrastructure and smart devices, said on Monday that its net profit increased last year despite the sanctions imposed by the United States and the slowdown in demand for 5G in China.

The company’s net profit rose 75.9% year-on-year to $17.8 billion in 2021, even as its revenue fell 29% to $99.9 billion from $139.9 billion. dollars in 2020.

Jun Zhang, director of Huawei Asia-Pacific’s public relations department, said that although the US restrictions had a huge impact on Huawei, its core ICT infrastructure business remained stable “thanks to the trust of our customers”. .

“New business segments like digital energy and cloud have developed rapidly, and its ecosystem development efforts have entered the fast lane,” he told Philippine media in an interview after the conference. March 28 press release. “In the context of accelerating digital transformation, there is strong market demand for innovative digital solutions and high-quality vendors,” he added.

US President Joseph R. Biden, Jr. signed legislation in November aimed at preventing companies like Huawei deemed security threats from receiving new equipment licenses from US regulators.

The tech company has been on the United States‘ “non-entity” list since 2019, which prevents American companies from selling products to the Chinese mobile phone giant without permission.

Huawei’s ability to “survive and thrive” in the future depends on continued investment in development, its rotating chairman Guo Ping said.

“Our fight to survive is not over yet,” Guo told international media at the conference. “No matter what happens to us, we will continue to invest. It’s the only way forward.

Among the company’s 2021 initiatives are the launch of 11 scenario-based solutions for industries such as transportation, manufacturing and finance; the launch of more than 50 scenario-based cloud services through its expertise as a service (EaaS); and the launch of more than 30 intelligent automotive components for automotive OEMs (Original Equipment Manufacturers).

Huawei also announced on Monday that it is focusing on three key areas of R&D (research and development): system architecture, software improvement and the study of fundamental theories.

The company’s R&D spending was $22.4 billion in 2021, or 22.4% of its revenue.

Huawei is also investing in cultivating ICT talent. In Southeast Asia, the company plans to invest $50 million over the next few years to develop 500,000 digital talents, including 100,000 in Indonesia.

In the Philippines, its global flagship CSR Seeds for the Future program has helped more than 200 students improve their knowledge and appreciation of the ICT sector. Its Huawei Scholarship Program has also provided financial aid to 22 scholars from the country’s top five universities.

“We will continue to invest [digital] talents and R&D to ensure our long-term innovation,” said Meng Wanzhou, CFO of Huawei. — Patricia B. Mirasol