The profits of the Chinese technology giant Huawei fell 69% last year, the company reported on Friday, explaining that US sanctions and global economic uncertainty played a role.
The company generated 35.6 billion yuan ($5.2 billion) in net profit in 2022, a 68.7% drop from the record profit of 113.7 billion yuan in the previous year.
“In 2022, the challenging external environment and non-market factors took their toll on Huawei’s operations,” Huawei rotating chairman Eric Xu told a news conference.
Huawei is trying to diversify its sources of revenue after US sanctions hurt businesses in telecommunications equipment and smartphones.
Its 5G system has been blocked in key markets such as the United States, the United Kingdom and Japan, due to security fears.
Huawei denies the accusations that the use of its networks implies a risk of espionage by China.
But the company, once the world’s biggest smartphone maker, has seen sales slump sharply after the United States banned access to key components and barred it from using Google’s Android operating system.
