Huawei’s Cloud And Digital Businesses Grow 9.6%, Doubling Profit In 2023

(CTN News) – Due to U.S. sanctions, Huawei Technologies reported a doubled profit last year as its cloud and digital businesses prospered.

An improved product portfolio and strong sales helped the Shenzhen-based company report 87 billion yuan ($12 billion) in net profit. 704.2 billion yuan ($97.4 billion) was the increase in revenue from a year earlier. In a statement, rotating chairman Ken Hu said the company’s results were in line with expectations.

In recent years, we’ve gone through a lot. As we face challenges, we grow,” Hu said.

It did not specify which businesses were sold. Huawei also said it profits from “gains from the sale of some businesses.” As one of China’s first global tech brands, Huawei has been caught up in technology and security tensions.

The U.S. has prohibited U.S. companies from doing business. It has also prohibited it from selling its telecommunications equipment to U.S. consumers.

The U.S. government claims Huawei poses a national security threat. This is a claim Huawei denies.

Huawei has focused on helping industries make the transition to a digital economy in recent years. Cloud computing revenues increased almost 22% year-on-year to 55.3 billion yuan ($7.7 billion) in 2023. The company’s digital power business grew 3.5%. Automotive services sales more than doubled.

The company’s consumer unit, which sells smartphones and other devices, increased revenue by 17.3% in 2023. In 2017, Huawei launched its high-end Mate 60 smartphone line, powered by an advanced chip made jointly with China’s Semiconductor Manufacturing International Corporation (SMIC).

The company told the AP that it plans to further expand its presence in the high-end market by partnering with ecosystem partners worldwide in 2024. As a result of Mate 60 launch, speculation has arisen that China may be capable of producing 5G chips.

SMIC supplied chips in violation of U.S. sanctions, according to a U.S. legislator. Taiwan also investigated four local companies for helping Huawei with its chip development. A few of the companies offered wastewater and environmental protection services unrelated to critical technologies.

Research and development is one of biggest priorities. A quarter of its annual revenue was invested in R&D in 2023, which amounted to 164.7 billion yuan ($22.8 billion). R&D accounts for about half of Huawei’s 207,000 employees.

The Associated Press. Copyright 2024. I reserve all rights. Reproduction, broadcast, rewriting, or redistribution of this material is prohibited.

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