RIYADH: China’s telecommunications company Huawei reported a 76 percent year-on-year increase in its net profits during the year 2021, achieving 114 billion yuan ($18 billion).
“Our carrier business remained stable, our enterprise business experienced steady growth, and our consumer business quickly expanded into new domains,” Guo Ping, rotating chairman, said.
The increase in profits comes despite a 28.6 percent decline in Huawei’s revenues which fell to 637 billion yuan, its annual report showed.
“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,” CFO Meng Wanzhou said.
The company’s R&D expenditure has reached 142.7 billion yuan, representing 22.4 percent of its total revenue.
This has brought the total R&D expenditure over the past 10 years to over 845 billion yuan.
“Moving forward, Huawei will advance its journey of digitalization, intelligent transformation, and low carbon,” Guo added.
“Relying on talent, scientific research, and an innovative spirit, we will continuously increase investment to reshape our paradigms for fundamental theories, architecture, and software, and build our long-term competitiveness,” he said.