• - Huawei Financial Report since 2020 - 3.8% growth despite US sanctions

    Huawei Financial Report since 2020 - 3.8% growth despite US sanctions

    4 Days, 9 Hours ago

    Tags:  Statistics  -  Financial-Report  -  Huawei

    Huawei's annual report for 2020 has been released while the figures announced are in line with forecasts and indicate "slight growth". According to the report, the Chinese company's sales revenue last year was 891.4 billion yuan ($ 136.7 billion) and its net profit was 64.6 billion yuan ($ 9.9 billion), an increase of 3.8% and 3.2%, respectively. Compared to last year. Meanwhile, US sanctions against Huawei have been in place since 2019, and the Trump administration has put the Chinese company under the most intense pressure since its inception.  �

    In this regard and according to the findings of this report, the quarterly revenue of Huawei Technologies has decreased for the first time and has forced the company's executives to deal with the harmful effects. US policy shifts focus on smartphone manufacturing and shifts to other areas of technology.

    Huawei, once a major competitor to giants such as Apple and Samsung Electronics, is closing the quarter. It ended 2020 with 220.1 billion yuan ($ 33.5 billion) in revenue, down 11 percent from the 3.7 percent growth in the quarter ending September and a 23 percent increase in the second quarter of 2020, a very disappointing statistic. Huawei's financial results, audited by the Dutch company KPMG, show that the company's annual revenue from the country of origin accounts for 66% of its total revenue. Formed in 2020. In fact, Huawei's wireless business has grown significantly thanks to its aggressive supply in China. The company's partner operators have also introduced fifth-generation technology with the utmost power in Europe, the Middle East and Africa. It should also be noted that orders for fifth-generation network stations and strong sales of mobile devices in the first half of 2020 have helped Huawei grow revenue and sales throughout the past year, despite a difficult second half. �

    Now Huawei seems to be going through the most difficult year of its operation; The year the Trump administration enacted regulations and bans that barred the sale of the company's handsets, and then virtually halted the production of advanced chips and tools needed for fifth-generation networks. Of course, the change in management of the White House has not changed much in the case of the Chinese giant, and the Biden government has so far shown no sign of its willingness to ease the pressure of sanctions. Therefore, Huawei co-founder Ren Zhengfei has put forward plans to divert the company to other markets such as smart farming, healthcare and electric cars. He hopes Huawei will be able to make an impact in these markets and gain a foothold in vehicles, smart homes and workplaces.

    As Ken Hu, the current president, "Huawei's global supply chain, on which we rely heavily, is completely disrupted," said the company's board of directors, one of the three most influential figures in the company's structure. "I do not know who will benefit from this situation, but the industry will definitely suffer a lot." In his view, market participants need to improve the semiconductor supply chain around the world to address the existing shortages, as the current situation threatens not only Huawei but all manufacturers. � Ken Hu, chairman of Huawei's board of directors

    According to Hu, the company's cash flow has weakened over the past year; Because Huawei lost access to US technology in September last year, it increased its inventory and parts to meet the new conditions. Prior to the embargo, Huawei used to buy about $ 10 billion to $ 20 billion a year from US suppliers of parts, and other trading partners are now unable to make up for the shortfalls caused by the suspension.

    Hu added that Huawei's consumer electronics division, which still accounts for more than half of the company's total revenue, has failed to meet its sales targets. According to the IDC research institute, the supply of Huawei smartphones during the last quarter of last year fell by 42%, leaving the company behind competitors such as Apple, Samsung and some Chinese manufacturers such as Xiaomi and Oppo. Of course, Huawei has continued to produce flagship smartphones and other consumer electronics, such as high-powered wearables, as it grew 65 percent last year.

    US sanctions also hit Huawei It also decided to sell the Honor sub-brand to a Chinese government-sponsored consortium. The company said in its annual report released on Wednesday that it had received 10 billion yuan from buyers for the deal; But the deal has been delayed due to the COVID-19 epidemic, which will eventually end in full this summer. Technology giants such as Apple, Dubai Inc. and Xiaomi have been introduced to design, manufacture and assemble vehicles. Of course, the company's executives have denied their desire to produce an independent car under the Huawei brand; But apparently, according to the latest reports, collaborations between the Chinese giant and several manufacturers are underway to test the car technologies and the interaction between the driver and the car. In addition, Huawei's infotainment tools have already been seen in some car models, such as the Mercedes-Benz. The company has also partnered with some industry activists to develop smart car systems, and the first model is expected to be unveiled in Shanghai in April. Huawei also plans to reach out to mobile industry giants such as Apple. Claim for fifth-generation wireless network patents to generate a lucrative source of revenue by demonstrating its pioneering position in the global 5G network market. In the near future, it will negotiate with Apple and Samsung over licensing rates to exercise their rights, with a commitment to earn less than competitors such as Qualcomm, Ericsson and Nokia. According to Huawei's approved plan, the company should receive $ 1.2 billion to $ 1.3 billion in patents and licensing between 2019 and 2021, although the share of fifth-generation technology in this is not clear.

    Source: Huawei

    Labels: huawei, financial, report, since, 2020, 3.8%, growth, despite, sanctions

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