Page 51 - SAMENA Trends - March-April 2022

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Huawei Profit Hits Record High Despite Revenue
Slide

its troubled Consumer Business Group
(including devices) dropped 49.5 per cent
year-on-year to CNY243.4 billion due to
trade restrictions. Apart from smartphones
and tablets, revenue from wearables and
smart screens increased 30.3 per cent.
Turnover from its carrier group (including
operator networks) declined 6.9 per cent
to CNY281.5 billion, with 50 per cent of
sales generated by markets outside China.
Enterprise revenue inched up 2.1 per cent
to CNY102.4 billion, with cloud revenue
growing 34 per cent year-on-year to
CNY20.1 billion. Domestic sales fell 30.9
per cent to CNY413.3 billion, accounting
for 64.9 per cent of total company sales,
unchanged from 2020. R&D spending
in 2021 rose 2.8 per cent to CNY142.7
billion, accounting for 22.4 per cent of total
Huawei registered its highest annual profit one-off extraordinary gains, while revenue revenue, up from 15.9 per cent in 2020.
ever in 2021 due mainly to one-off gains plunged 28.6 per cent to CNY636.8 billion,
from the sale of its Honor sub-brand and as its operations were hit by the sanctions.
other businesses, but overall revenue The company stated that excluding the
dropped sharply as consumer business extraordinary gains, the company’s main
sales were cut by half. In an online earnings business posted a year-on-year increase in
call, rotating chairman Guo Ping (pictured) net profit margin. CFO Meng Wanzhou said
put on a brave face and pointed to the on the call that despite the revenue decline,
positives, insisting its performance was “our ability to make a profit and generate
in line with forecasts but acknowledged cash flows is increasing, and we are more
it has plenty of challenges ahead in 2022. capable of dealing with uncertainty.” It was
“We will continue our fight for survival,” Meng Wanzhou’s first media appearance
he declared. Guo said its ability to thrive since her September release from three
relies on its continued investment in R&D. years of house arrest in Canada. Meng
“We are doubling down on our efforts in attributed the improved margins to moves
basic science. Since Huawei is unable to to adjust its product mix and improve
access certain advanced technology due its supply chain planning, enabling it to
to US trade sanctions, he said it must shorten the cycle from order to revenue.
boost its strategic investments. Net profit Moves to improve operational efficiency
last year jumped 75.9 per cent from 2020 drove a CNY10 billion drop in selling and
to CNY113.7 billion ($17.8 billion) due to administrative expenses. Revenue from

Huawei's ICT Talent Program Launched in Bangladesh with Roadshows

Huawei has kicked off its Seeds for the Future, a flagship CSR sities this month, and recently two were held at the University of
(Corporate social responsibility) program for Bangladeshi stu- Dhaka and the Islamic University of Technology. "Huawei believes
dents, the Chinese telecom giant said recently. Starting from April, in empowering and facilitating the youth. That's why, we have dif-
the company said the registration is open and interested students ferent programs meant to help the youth gather knowledge and
can register free of cost by contacting their university depart- develop ICT-related skills," said Li Zongsheng, board member of
ments. Seeds For The Future is Huawei's flagship CSR program to Huawei Bangladesh (Technologies) Ltd. "Seeds for the Future is
develop ICT (information and communication technology) talent. one such program. I believe a great number of students will enroll
The program's Bangladesh version was first launched in 2014. in this program this year since this year's edition will be equally
Also, roadshows are being arranged at the participating univer- exciting and enlightening for the participants," he said.
51 MARCH-APRIL 2022