Huawei records profit plunge

Huawei records profit plunge

Huawei reported a plunge in profits in its 2022 financial year blaming “external environments and non-market factors”, and that 2023 will be a “crucial” year for the vendor’s “sustainable survival and development”.

In a statement, Huawei rotating chairman Eric Xu said: “In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei's operations", said Eric Xu, Huawei's Rotating Chairman, at the company's annual report press conference.

"In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers. We also went to great lengths to grow the harvest – generating a steady stream of revenue to sustain our survival and lay the groundwork for future development."

Incoming rotating chair and CFO Meng Wanzhou (pictured) added “despite substantial pressure in 2022” the results were in line with forecast.

Xu also added that the vendor has “considerable pressure” ahead of it in 2023, but remained confident the vendor will push through by maintaining its stance on investing in R&D.

“We are confident in our ability to rise above any challenge that comes our way, laying a solid foundation for sustainable survival and development," he said.

Profit for the vendor fell 68.7% to CNY35.6 billion (US$5.2 billion), and revenue was flat at CNY642.3 billion.

Revenue in its enterprise unit grew 30% to CNY133.2 billion. The carrier business saw flat revenue at CNY284 billion, and consumer dropped 11.9% to CNY214.5 billion.

Capex was CNY161.5 billion in 2022, representing 25.1% of overall revenue and bringing its total R&D expenditure over the past 10 years to over CNY977.3 billion.

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