During the past few hours Huawei, the Chinese tech giant, presented its financial results for 2021 and, for the first time in the company’s history, there was a decline in overall revenue. Let’s take a look at the data the company shared in this annual insight into its business.
Huawei presents financial results for 2021
Those that emerged from what is shared by Huawei at its annual profit conference, it’s a scenario that in some ways wasn’t difficult to predict. The company is in fact rather burdened by sanctions and production problems, which have affected its overall revenues for this 2021, a difficult year in many respects.
In particular, Huawei ha earned 636.8 billion yuan in 2021, a share that represents a decrease of 28.5% compared to the previous year; a significant percentage, if we consider the business of a multinational of the size of the Shenzhen giant, it is no coincidence that this is the first decline since Huawei made its results public in 2002.
That said, it seems that in terms of actual profits, the company is doing very well, since last year it recorded a 75% increase to 113.7 billion yuan. Speaking during the conference, Meng Wanzhou, CFO of Huwei explained that: “The results are in line with our forecasts. Despite the decline in revenue in 2021, our ability to make profits and generate cash flows is improving and we are now able to better address uncertainty and invest in the future ”.
Hauwei does not stop
Despite these statements, it is difficult not to notice the many problems that the comrade is facing, from the slowdowns in the supply chain to the sanctions received. The revenues deriving from smartphone in fact, they fell to 243.4 billion yuan, half compared to last year, while the business division lost 7% of its overall value.
However, Huawei has made it clear that it does not intend to give up, despite all this. The multinational has indeed stated that it will continue to make strong investments as far as technological innovation is concerned, without forgetting the search for talents to improve its production of cutting-edge devices.
Part of Huawei’s decline in 2021 is likely to be attributed to the sale of its subsidiary Honor, a leader in the low-cost smartphone sector, and it will be interesting to see where the company goes to compensate for the absence of this important part of its business.