Embattled telecoms equipment maker Huawei Technologies’ net profit increased by over 75% in 2021 despite the company recording its first-ever drop in revenue, due in part to US sanctions against the firm. The company cited a steady increase in profitability and one-off gains from separating its budget smartphone line and a server business as the reason for the increase in profit, reports Nikkei Asia.
“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,” Huawei CFO Meng Wanzhou said at a news conference held to deliver the company’s annual report.
Meng attributed the revenue decline in part to a US clampdown pressuring the company’s smartphone and PC businesses. China’s maturing 5G infrastructure deployment and fallout from the coronavirus pandemic, meanwhile, has slowed the growth of Huawei’s telecom business, according to the CFO.