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This is strongest growth Huawei has recorded since 2019, when the company was hit with US restrictions accusing the company of being a national security risk.
After a couple of years of underwhelming earnings figures thanks to US restrictions on its devices, Chinese tech giant Huawei has sprung back into action by more than doubling its net profit last year.
In its latest earnings report published today (29 March), the telecoms and consumer electronics company said that its financial performance in 2023 was solid, generating more than 700bn yuan in revenue and 87bn yuan in net profits.
While there was growth in most of its major product offerings, cloud and automotives performed particularly well. Huawei’s cloud computing business sales generated more than 55bn yuan for the company – up nearly 22pc year-on-year – while its intelligent automotive solution business amassed 4.7bn yuan – up a whopping 128pc over 2022.
Ken Hu, rotating chair at Huawei, said that the Shenzhen-headquartered company’s performance last year was in line with forecasts.
“We’ve been through a lot over the past few years,” he went on. “But through one challenge after another, we’ve managed to grow. The trust and support of our customers, partners and friends around the world is what helped us keep going, keep surviving and keep growing.”
Good innings on home turf
Huawei is known for its propensity to spend a huge chunk of its revenue on research and development as the company looks to be a major playing in emerging areas of tech such as advanced 5G. It invested 164.7bn yuan into R&D last year – nearly a quarter of its revenue.
In 2019, the Chinese company was hit with US restrictions accusing it of being a national security risk – a stance that has persisted. In China, the company has undergone a resurrection of sorts after launching its Mate 60 smartphone in the market – creeping into some of Apple’s market share.
Hu said that a “new journey” now awaits the company in 2024. “We will create greater value for our customers and society by driving open innovation, building thriving ecosystems and succeeding through quality.”
In October, the company appointed Calvin Lan to become the new head of its Irish operations, replacing Tony Yangxu, who held the position of Ireland CEO for more than three years.
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