Huawei's Revenue Reaches 148 Trillion Won Last Year Despite US Pressure... Up 19.1%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Joselgina] Despite overt pressure from the United States last year, Chinese telecommunications equipment company Huawei recorded a 19.1% increase in sales compared to the previous year. However, the growth rate slightly slowed down from the previous year.

Huawei disclosed its 2019 annual report on the 31st. Sales increased by 19.1% year-on-year to 858.8 billion yuan (approximately 147.9712 trillion KRW), and net profit rose by 5.6% to 62.7 billion yuan. The sales growth rate was slightly below 19.5% in 2018. The net profit growth rate also fell far short of the recent five-year average (14%).

Cash flow from operating activities last year was 91.4 billion yuan, up 22.4% from a year earlier. Research and development (R&D) investment amounted to 131.7 billion yuan, accounting for 15.3% of sales.

Smartphone shipments recorded 240 million units, a 20% increase from the previous year. Huawei explained that it made significant progress in creating an uninterrupted AI life ecosystem across all devices and scenarios, including PCs, tablets, wearables, and smart screens. Last year, the consumer business division’s sales reached 467.3 billion yuan, a 34% increase from 2018.

These results are particularly notable as they were achieved amid overt pressure from the Donald Trump administration in the United States, which triggered the trade war.

Eric Xu, Huawei’s rotating chairman, who attended the earnings briefing streamed online that day, said, "2019 was a very challenging year for Huawei," and “Despite tremendous external pressure, we focused solely on creating customer value and made great efforts to earn the trust of customers and partners worldwide.” Although he did not directly mention President Trump by name, his remarks implied the difficulties faced as a target of the US-originated trade war.

He continued, “Huawei is still maintaining a solid business.” Huawei was previously blacklisted by the US in May last year on the grounds of national security threats, effectively banning transactions with US companies.