Huawei posted a net profit of $17.8 billion for the year ended 31st December 2021, a rise of 76% on-year. However, revenue declines by 29% to $100.3 billion as it struggled with US sanctions that blocked its access to key technology and supplies.
Huawei reported $9.6 billion in additional net income in 2021 from sources it didn’t specify. Sales at its consumer arm, once China’s largest maker of smartphones, halved to just $38.3 billion, while carrier revenue slid 7% and the enterprise solutions division managed a 2% growth.
The company’s R&D expenditure reached $22.5 billion in 2021, representing 22.4% of its total revenue. This brough the company’s total R&D expenditure over the past 10 years to over $133 billion.
The company’s cash flow from operating activities increased in 2021 to $9.4 billion. Further, its liability ratio dropped to 57.8%, attributed to the enhanced profitability of its major businesses,
The technology giant was last year caught in the middle of the US-China trade and technology wars, with the administration of former President Donald Trump moving to cripple it over cybersecurity and espionage concerns.
Smartphone sales stalled after the US cut Huawei off from key parts and barred it from using Google’s Android services. Huawei has instead tried to shore up other parts of its business, refocusing on the Chinese market and diversifying to encompass enterprise and cloud computing, along with other business segments related to 5G networks.
Last year, Huawei logged $38.3 billion in consumer business sales, almost 50% down from 2020.