32.1 C
Lagos
Friday, March 1, 2024

Huawei reports record net profit for 2021

Huawei declared a record profit for 2021 on Monday, defying US penalties, as CEO Meng Wanzhou made her first public appearance since returning to China from Canadian detention. 

The corporation has been caught in the crossfire of a trade and technological competition between the United States and China, with the government of former President Donald Trump attempting to cripple it over cybersecurity and espionage worries. 

The findings, released in the Chinese tech center Shenzhen, marked Meng’s first public appearance since her high-profile return to China after almost three years under house arrest in Canada.  

Last year, Huawei’s sales plummeted by about 29 percent to 636.8 billion yuan ($100 billion), as it battled US sanctions aimed at preventing access to vital technologies and suppliers. 

However, the recession caused by US sanctions appears to be easing, as the corporation said that net earnings had reached a new high, increasing 75.9 percent year on year to 113.7 billion yuan. 

“Despite a sales reduction in 2021, our capacity to earn a profit and produce cash flows is rising, and we are better prepared to deal with unpredictability,” Meng said in a statement on Monday.  

The business attributes its increased profitability to “better product portfolios and more efficient internal processes,” with a jump in net profit margins even after excluding earnings from the sale of its budget phone brand Honor. 

Because the corporation is not publicly traded, its accounts are not subject to the same audits as those of publicly traded companies. 

Huawei, a telecom networking equipment provider and smartphone brand, has struggled since Trump initiated a campaign to control the firm in 2018. 

Smartphone sales have stagnated after the United States cut Huawei off from critical components and prohibited it from using Google’s Android services.  

Huawei recorded 243 billion yuan in consumer business revenues last year, an almost 50% decrease from 2020. 

Instead, Huawei has sought to strengthen other aspects of its company, focusing on the Chinese market and diversifying to include corporate and cloud computing, as well as other business divisions relevant to 5G networks. 

When did Huawei come to Nigeria?

Huawei Technologies Co., Ltd. is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong, China.

It designs, develops and sells telecommunications equipment, consumer electronics and various smart devices.  

Huawei started manufacturing mobile phones in 2003 and came to Nigeria in 2005.

They are the biggest vendor of MTN, Etisalat, Airtel, Globacom, Visafone and Starcomms. 

 

Chinaza Ogbachalu
Chinaza Ogbachaluhttps://www.chinazaogbachalu.com/
My name is Chinaza Ogbachalu, and I am a writer. I have been writing news and opinion articles for five years plus and have always had a passion for storytelling. I grew up in Nigeria and graduated from the University of Port Harcourt, Nigeria, with a degree in linguistics and communication studies. I have written books that have been well-received by critics and readers alike. My work often focuses on culture and lifestyle, and I draw inspiration from my own experiences and observations of the world around me. As a news writer, I am responsible for researching and writing engaging and accurate news stories for our online audience. I have a strong passion for current events and am skilled at conducting interviews and gathering information from sources. I am grateful for the support of my readers and am constantly humbled by their enthusiasm for my work. Thank you for taking the time to learn more about me and my writing.
spot_img

Related

Uganda sued over digital ID scheme that excludes millions

Otajar John jumped at the chance to apply when...

AFC supports Africa’s economic recovery with $2 billion facility

Africa Finance Corporation (AFC) is creating a $2 billion...

FCCPC requests stop to proposed airline shutdown

The Federal Competition and Consumer Protection Commission (FCCPC) has...

OPEC: Nigeria’s crude oil output fell to 1.354 million barrels in March

According to OPEC, Nigeria's crude oil output would fall...

Number of impoverished Nigerians is expected to reach 95.1 million by 2022- World Bank

This was revealed in the bank's poverty assessment study,...
spot_img
spot_img
spot_imgspot_img