Despite being banned by countries around the world, Huawei will continue to make money in 2020, with a net profit of 64.6 billion yuan, but its growth in markets outside of China has stagnated. In 2020, China is the only region where Huawei’s revenue will grow.
From a numerical point of view, revenue from China increased by 15.4% to 585 billion yuan. At the same time, revenues in Europe, the Middle East and Africa (EMEA), the Asia-Pacific region, and the Americas all fell 8.7% to nearly 25%.
Huawei explained in its annual report that losing its smart devices’ access to the Android ecosystem is the biggest cause of these revenue declines.
When the US Department of Commerce added Huawei to its list of entities two years ago, the company lost support for Android because it believed that Huawei’s activities were contrary to US national security or foreign policy interests.
When a company enters the “entity list”, unless the U.S. company has been approved by the U.S. government, the U.S. company will be prohibited from transferring technology to it.
Huawei’s annual operating profit also fell for the first time in five years, reaching 72.5 billion yuan by 2020-Huawei achieved 73 billion yuan and nearly 78 billion yuan in profits in 2018 and 2019, respectively-but net profit continued to remain small The growth was due to lower operating costs during the year.
As the Chinese internet giant continues to pass US sanctions in other prohibitions (such as in Australia, Sweden, and the UK), Huawei attributes its continued net profit to its consumer and carrier businesses to maintain the stability of the Chinese market.
Huawei wrote in its 2020 annual report that the annual revenue of consumer and telecom businesses reached 483 billion yuan and 302.6 billion yuan respectively, which were relatively flat compared with the previous year.
Rotating chairman Hu Houkun said that due to the ban in Washington, Huawei has sold its glory sub-brand to Shenzhen Zhixin New Information Technology Co., Ltd. The COVID-19 pandemic, but won’t be completed until June 30.
He said: “The resurgence of COVID-19 and geopolitical uncertainty will bring ongoing challenges to the global society.”
The company added that its corporate business has increased its efforts to develop new products for the company, and its revenue has increased by 23% year-on-year to RMB 100 billion.
Hu Jintao also wrote the company’s outlook for 2021 in the annual report and predicted that the company will continue to be in a complex and volatile global environment.