Announced a company China’s Huawei reported modest annual profit growth for 2020, as overseas revenues declined due to the disruption caused by the epidemic and the company was placed on the export blacklist in the United States.
Annual net profit for 2020 was 64.6 billion yuan ($ 9.83 billion), up 3.2 percent, compared to the 5.6 percent growth in the previous year.
Huawei was blacklisted for export by former US President Donald Trump in 2019 and banned from accessing critical technology of American origin, affecting its ability to design its own chips and sourced components from outside vendors.
The ban put the Huawei phone business under tremendous pressure, as the company sold its budget smartphone unit, Honer, to a consortium of dealers and dealers in November 2020 to keep it alive.
However, Huawei reported that its consumer business, which includes smartphones, brought in 482.9 billion yuan, up 3.3 percent year-on-year, and accounted for more than half of the company’s revenue.
A Huawei spokesman said: The rise is partly due to growth in devices such as smart watches and laptops.
The company’s communications business, which includes 5G network equipment, brought in about 302.6 billion yuan, an increase of only 0.2 percent from the previous year.
Huawei’s growth was driven by its domestic market, with revenue in China increasing 15.4 percent to 584.9 billion yuan.
Its business slipped elsewhere, with revenues falling 12.2 percent to 180.8 billion yuan in Europe, the Middle East and Africa.
It decreased by 8.7 percent to 64.4 billion yuan in the rest of Asia, and by 24.5 percent to 39.6 billion yuan from the Americas.
Revenue from the company’s enterprise sector rose 23 percent year-on-year to 100.3 billion yuan, although it still generated the smallest revenues for the three business groups.
The company invested 141.9 billion yuan in research and development in 2020, up from 131.7 billion yuan the previous year.
Huawei’s cash flow from operating activities reached 35.2 billion yuan, down 61.5 percent from the previous year.