China’s Huawei Technologies saw its fastest growth in four years in 2023, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from US sanctions.
Revenue rose 9.63 per cent from a year earlier to 704.2
billion yuan (S$131.4 billion), with the consumer business contributing most to
that figure, growing 17.3 per cent to 251.5 billion yuan.
While Huawei did not break down the consumer figure, the
segment includes its handset business, which saw a renaissance last year as the
company returned to the mainstream 5G smartphones market with the Mate 60,
apparently overcoming US restrictions.
From 2019, the US has restricted Huawei’s access to US
technology, accusing the company of being a security risk, which Huawei denies.
Last year marked the third consecutive year of growth for
the company, after revenue plummeted by almost a third in 2021 when Huawei
started to exhaust chip reserves, though revenue remains below its 2020 peak of
891.3 billion yuan.
Huawei was relatively muted about its achievement, doing
away with the press conference and launch event it has held every year at least
since the US restrictions began.
In a press release, rotating chairman Ken Hu said the
results were in line with forecasts.
“We’ve been through a lot over the past few years. But
through one challenge after another, we’ve managed to grow.”
At a launch event last year, Meng Wangzhou, Huawei’s chief
financial officer and the daughter of the company’s founder, announced that
Huawei was no longer in crisis mode.
Net profit in 2023 rose by 144.5 per cent to 87 billion
yuan, with the net profit margin more than doubling on a year earlier to 12.35
per cent.
Some of that came from ongoing payment from the sale of the
Honor smartphone brand, which Huawei sold in November 2020, a company
spokesperson said.
While the company’s core ICT infrastructure business
remained stable, its cloud business grew by more than a fifth, generating
revenue of 55.3 billion yuan.
Huawei’s four-year-old smart car software and components
business also saw major growth albeit from a lower comparison base, up 128.1
per cent year on year to 4.7 billion yuan.
Last year Huawei announced it would spin off the smart car
unit into a new company.
Earlier this month, Richard Yu, the managing director and
chairman of Huawei’s smart car solutions, announced the unit would likely turn
a profit from April after losing billions of yuan in the past year, local media
reported. REUTERS
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