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| Moderately increased Huawei's annual profit |
Chinese company Huawei announced a slight increase in its annual profits for 2020 as income decreased abroad due to the disruption caused by the outbreak. The company is blacklisted for US exports.
Net income for the whole of 2020 will be 64.6 billion yuan (US $ 9.83 billion), an increase of 5.6% over the previous year and an increase of 3.2%.
Huawei was blacklisted for export by former US President Donald Trump in 2019 and banned from using major technologies that originated in the US, affecting the design of its own chips and sourcing from outside suppliers. Component capabilities.
The ban is placing immense pressure on the Huawei phone business as the company sold its premium budget smartphone unit to a group of dealers and sellers in November 2020 in an effort to keep it alive.
According to Huawei's report, sales of consumer businesses, including smartphones, reached 482.9 billion yuan, an increase of 3.3% over the previous year. This corresponds to more than half of the company's sales volume.
A Huawei spokesperson said: Part of the increase is due to the growth of devices such as smart watches and laptops.
The company's communications activities (including 5G network equipment) generated nearly 302.6 billion yuan, an increase of only 0.2% over the previous year.
Huawei's growth was driven by the domestic market. The revenue of the Chinese market increased 15.4% to 584.9 billion yuan.
The business expanded to other parts of the world. Sales in Europe, the Middle East and Africa decreased 12.2% to 100.8 billion CNY.
In the rest of Asia, the renminbi fell 8.7% to 64.4 billion yuan, and in America, 24.5% to 39.6 billion yuan.
The division's revenue increased 23% year-on-year to 100.3 billion yuan, although it was still the lowest in all three divisions.
In 2020, the company's investment in research and development reached 141.9 billion yuan, up from 131.7 billion yuan the previous year.
Huawei's cash flow from operating activities was 35.2 billion yuan, down 61.5% from the previous year.