China’s Huawei Technologies saw its fastest growth in four years in 2023, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from U.S. sanctions.
China's Huawei Continues Rebound
Revenue reached 704.2 billion yuan ($97.48 billion) in revenue, up 9.63% from the previous year. The consumer industry accounted for the majority of this growth, expanding 17.3% to 251.49 billion yuan.
The sector includes Huawei’s handset business, which enjoyed a resurgence last year as the firm returned to the mainstream 5G smartphone market with the Mate 60, ostensibly overcoming U.S. limitations, even if the company did not break down the consumer number.
Since 2019, the United States has imposed restrictions on Huawei’s access to American technology, citing the company’s denials of security risks.
The corporation had its third year of increase last year, following an almost three-fold decline in sales in 2021 as it began to deplete its chip stockpiles. Despite this, revenue is still below the 2020 record of 891.3 billion yuan.
Relatively quiet about the accomplishment, Huawei cancelled the annual press conference and launch party that it had been holding at least since the start of the US restrictions.
Ken Hu, the rotating chairman, stated in a news statement that the outcomes were expected.
We had experienced a great deal in the last several years. But despite these obstacles, we’ve been able to advance.”
Meng Wangzhou, the CFO of Huawei and the founder’s daughter, declared the business was no longer in crisis mode during a launch event last year.
The net profit margin increased to 12.35% in 2023, more than double from the previous year, while net profit increased by 144.5% to 87 billion yuan.
According to a corporate representative, a portion of that came from continuing payments from the November 2020 sale of Huawei’s Honour smartphone brand.
The company’s cloud business expanded by more than a fifth, bringing in 55.3 billion yuan in sales, while its core ICT infrastructure business stayed steady.
Even with a smaller comparative basis, Huawei’s four-year-old smart car software and component business showed significant growth, rising 128.1% year over year to 4.7 billion yuan.
Huawei declared last year that it will split off its smart car division into a separate business.
After losing billions of yuan over the previous year, Huawei’s smart automotive solutions chairman and managing director, Richard Yu, stated earlier this month that the company will probably start making money in April, according to local media.