Huawei’s profits rise, but loses revenue due to US sanctions

Huawei Technologies reported a 76% surge in net profit, in 2021, despite a fall in revenue, as the company weathers the brunt of American sanctions.

In a statement, Huawei’s chief financial officer, Meng Wanzhou, said, “Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty.”

The company’s increased profits amid declining revenues reflect efforts to shave costs and increase reliance on domestic components after being put on the Entity List by the Trump-administration.

Also read: US bans China Telecom to operate over national security concerns