Huawei reported minimum 3-year profit growth

US, WASHINGTON (ORDO NEWS) — Huawei Technologies reported a minimum three-year profit growth due to weak foreign sales amid a strengthened US campaign to limit the global expansion of the Chinese telecommunications company due to security concerns.

Huawei’s net profit for 2019 was 62.7 billion yuan ($ 8.9 billion), up 5.6% from a 25 percent jump a year earlier.

The operator business, which includes equipment for 5G mobile networks, increased sales by only 3.8%.

Washington last year accused Huawei of a threat to national security and added it to the list of companies that do not have access to US components and technologies.

Senior Trump administration officials have agreed on new measures to curb global chip shipments for Huawei, sources familiar with the situation said last week.

The US believes that the Chinese government can use Huawei equipment for espionage. The company denies the allegations.

“We will need to further adapt to the restrictions imposed by the (blacklisted) Entity List, while solving the problem of the consequences of the ongoing COVID-19 pandemic,” said Liang Hua, chairman of the board of directors of Huawei, published on the company’s website.

Total revenue grew 19% to 858.8 billion yuan, driven by a 34 percent increase in sales of the consumer segment, including smartphones.

The company’s revenue grew mainly due to China, where sales increased 36.2% to 506.7 billion yuan. At the same time, revenue in the Asia-Pacific region, excluding China, fell by 13.9%, while in Europe and the Middle East, sales grew by only 0.7%.

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