Huawei 2021 profit leaps 76 percent on asset sales

Huawei 2021 profit leaps 76 percent on asset sales

Revenue dips 29 percent.

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Huawei Technologies reported asset sale gains helped lift profit 76 percent in 2021, turning in its first set of results under chief financial officer Meng Wanzhou since she returned to China last year after nearly three years' detention in Canada.

In its biggest-ever annual gain, net profit rose to 113.7 billion yuan (US$17.8 billion), the smartphone, telecom equipment and computer giant said.

Last year's surge, from just 3.2 percent growth in 2020, marked the impact of asset sales in the wake of US sanctions and weaker domestic consumer demand amid the Covid-19 pandemic.

But revenue skidded 29 percent to 636.8 billion yuan, in line with Huawei's previous forecast in December.

"Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty," said Meng, speaking at a livestreamed event from the company's Shenzhen headquarters.

Guo Ping, currently holding the rotating post of chairman at Huawei, said the performance was in line with its forecasts.

The US sanctions, together with Covid-19, have weighed on Huawei, prompting it to sell its mid-range handset division, Honor, in November 2020.

The company received its first payment for the deal in March 2021.

Huawei also sold its x86 server division around the same time.

In the years since it came under US sanctions, the company has ramped up research and development in fields such as green power and autonomous driving.

It has also ramped up sales of its existing range of consumer hardware products.

Revenue for wearable devices and smart screens grew 30 percent, year-on-year, Huawei said.

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