Huawei, the Chinese technology giant, reported a 69% drop in profits last year, which the company attributes in part to sanctions imposed by the United States and global economic uncertainty. The company generated 35.6 billion yuan in net profit in 2022, a significant decline from the previous year’s record 113.7 billion yuan profit.
Huawei’s outgoing rotating chairman, Eric Xu, stated that the difficult external environment and non-market factors have affected the company’s operations.
Huawei is looking to diversify its revenue sources after sanctions imposed by the United States affected its telecom equipment and smartphone businesses. The blocking of its 5G system in key markets such as the US, UK, and Japan has further worsened the situation.
The company has seen a sharp drop in sales after the US vetoed access to key components and banned it from using Google’s Android operating system.
Meng Wanzhou, the daughter of the company’s founder, will take over as Huawei’s rotating chairman for six months starting Saturday. Meng was detained in Vancouver in December 2018 at Washington’s request on charges of “bank fraud.” The US-imposed restrictions are “our new normal,” according to Meng, but the company is persevering with confidence.
Huawei has sought to focus on the cloud services sector, as well as expand its device offerings, including smartwatches, and has boosted its presence in the automotive sector as a parts supplier. The company did not provide details on its net profit or separate data on the performance of its various divisions. Huawei is not publicly traded, so its accounting is not subject to the same audits as companies listed on the stock market.