Huawei says it’s out of ‘crisis mode,’ but revenue flat

HONG KONG (AP) — Chinese tech giant Huawei said it is out of “crisis mode” after years of U.S. restrictions dampened its overseas sales even as its 2022 revenue failed to grow from a year earlier.

“U.S. restrictions are now our new normal, and we have resumed business as usual,” Huawei’s current chairman Xu Zhijun said in a New Year’s message released on Friday.

China’s first global tech brand, Huawei Technologies Co Ltd, has struggled since then — with U.S. President Donald Trump blocking Huawei’s access to U.S. processor chips and other technology in 2019, citing that it might facilitate Chinese espionage .

Huawei has denied allegations it could pose a security risk.

Huawei’s 2022 unaudited revenue is expected to be 636.9 billion yuan ($91.6 billion) — little changed from a year earlier and in line with earlier estimates.

Xu said in the message that the company’s telecom network business maintained “steady growth” and that the decline in its equipment division – mainly phones – had abated.

He also said the company’s cloud business has seen “rapid growth.”

Huawei did not release more detailed business financial figures or the company’s overall profits.

For the coming year, Xu pledged to maintain Huawei’s heavy investment in research and development, saying its cloud business needed to be the “foundation” to drive growth.

He mentioned the pandemic only in passing, praising the company’s “front-line employees outside of China — who, despite the adverse effects of COVID-19, have stood their ground to serve our customers…”

Xu’s message made no mention of the recent abrupt end to strict virus controls or the coronavirus outbreak currently sweeping China and other countries.

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