Huawei Technologies Rotating Chairman Eric Xu said 2020 would be the company's toughest and most challenging year despite a 19.1% rise in revenue and 5.6% rise in net profit on 2019. At a virtual press conference in Shenzhen, he said that 2019 was a difficult year due to political winds. “As we are subject to the US entity list throughout this year, our supply supply is depleted and can operate efficiently this year. On top of that, the coronavirus epidemic is something unexpected and we don't know how the demand is going to be due to the economic downturn," he said. On May 16, the United States added Huawei to the list of entities. "In 2020, we will everything possible to continue to survive so that we can publish our annual report next year," he said. Huawei reported a 19.1% year-over-year increase in revenue to 858.8 billion yuan (€121 billion) in 2019 from 721.2 billion yuan. yuan (€101.69) a year ago.The company's net profit rose 5,6% in yuan to 62,7 billion yuan (€8,8 billion) from 59,3 billion yuan (€8,36 .2018 billion) in 25, against an increase of 34% a year ago."Consumer activity has grown rapidly and carrier business has maintained steady growth while business growth has slowed down," Xu said. The Chinese company's consumer business, which includes smartphones, rose 467.3% in yuan terms to 65.82 billion yuan (€2019 billion) in 348.9 from 49.15 billion yuan (€240 billion) a year ago. . Huawei shipped more than 2019 million smartphones in 206, up from 5 million devices a year ago. Its carrier business, which sells basic network equipment for 3.8G cellular technologies, grew just 296.7% to 41.8 billion yuan (285.8 billion US dollars) from 40.26 billion yuan (€5 billion) because it has been unable to acquire parts. and Software from the US or sell its products. In the U.S. The United States, Australia, Japan and New Zealand have blocked all Huawei equipment from providing XNUMXG networks.
US Flea Ban Can Have Catastrophic Impact
The telecom giant's 5G revenue last year was more than €3 billion, Xu said, as many countries have not deployed cellular technology on a large scale. The Trump administration plans to change regulations on the foreign direct goods rule to block Huawei Technologies from delivering chips and apply for the US license before supplying Huawei to companies like Taiwan Semiconductor Manufacturing Company (TSMC), the largest global contract with a chipmaker and a major chipmaker for the HiSilicon unit of Huawei, Apple and Qualcomm. In this regard, Xu said that the Chinese government was not going to stand by and see Huawei killed on the chopping block. "I think China will also take countermeasures. If the US chip ban happens, we and other Chinese companies can buy chipsets from Samsung and other companies in Japan. Even in the long run, Huawei has been denied access to chip manufacturing, but I think many Chinese companies will work on manufacturing their own chipsets," he said. If the United States changes its foreign direct product rule, he said it would destroy the global tech ecosystem, but he didn't think that was true. “If the Chinese government also takes countermeasures, you can imagine what kind of impact it would have on the industry. We hope that the global industry can work together, focus on challenges and deliver reliable products,” he said. He doesn't see any short-term impact on production, as its production facilities were generally restored after they shut down in China due to coronavirus. However, he said that if the pandemic outside of China cannot be contained, the company could face a long-term impact on its supply chain. "This will cause long-term challenges and uncertainty as to whether Huawei can continue to supply the market if component supply shortages occur," Xu said. Huawei invested 131.700 billion yuan, or 15,3% of its turnover, in R&D in 2019, up from 101.500 billion yuan, registering an increase of 29,7% year-over-year in 2019. "Huawei patents they increased by 16,243 in 2019 to more than 85,000 worldwide. 54% of its 2019 patents were issued in Europe and the United States. In 2019, 11.096 patents were granted outside of China," Xu said.