Huawei reported a dip in sales in 2021 due to the United States sanctions that led to the crippling of its smartphone business as well as an overhaul of its worldwide operations. However, the profit was up by 75.9 percent in the same period.
The company's CFO and chairwoman Meng Wanzhou said the US sanctions have affected the business significantly and they are trying to recover with the development of new product lines.
Huawei is the first Chinese global tech brand and is in a tense situation with the US related to security and technology. It is alleged that the company's products have security risks and possibly enable Chinese spying.
Meng was arrested in 2018 for lying to banks in Hong Kong about the dealings of Huawei in Iran which was a clear violation of the sanctions. China reciprocated by arresting two Canadians to generate pressure on Canada for her release. She was released in September 2021 following a deal to accept responsibility for the misrepresented dealing in Iran.
The sanctions were imposed in 2019 by president Donald Trump when he was in power. Huawei was barred from accessing components including processor chips and Google's maps, music and other services used in smartphones. The curbs were further tightened in 2020 with the ban on manufacturers across the world to use US technologies in making chips designed for Huawei products.
With little choice in the global market, Huawei increased its presence in the Chinese market by serving mines, hospitals and other similar customers with products that are less vulnerable to sanctions. The company said its Honor brand smartphone was developed in late 2020 with no touch of US sanctions.
The company reported revenue of 636.8 billion yuan in 2021 and it was a drop of 28.6 percent compared to that of 2020. Its profit increased in 2021 to 113.7 billion yuan.
Meng said Huawei is capable of dealing with uncertainties and they are witnessing strong overall financial resilience.
The company was founded in September 1987 by Ren Zhengfei in Shenzhen with registered capital of RMB 21,000. It is headquartered in the Chinese city of Shenzhen and the key people currently handling the company are CEO & founder Ren Zhengfei, chairman Liang Hua and CFO & chairwoman Meng Wanzhou. The company deals in various products including smartphones, tablet, fixed broadband and mobile networks, smart TV, EMUI and Harmony OS.
Huawei invests heavily in research and development. It is simultaneously working on solar power, wearable technology, intelligent vehicles and artificial intelligence.