Huawei reports robust 2019, revenue up 19.1%, profit up 5.6%

Despite pressure from the U.S. government and growing international restrictions, Huawei reported very robust financial performance for 2019:  global sales revenue in 2019 lept to CNY858.8 billion, up 19.1% year-on-year; net profit reached CNY62.7 billion; and cash flow from operating activities topped CNY91.4 billion, up 22.4% year-on-year.

"2019 was an extraordinary year for Huawei," said Eric Xu, Huawei's Rotating Chairman. "Despite enormous outside pressure, our team forged ahead with a singular focus on creating value for our customers. We worked hard to earn their respect and trust, as well as that of our partners around the globe. Business remains solid."

Some highlights from Huawei's 2019 annual report:

• Carrier business revenue reached CNY296.7 billion, up 3.8% year-on-year.
• Enterprise business revenue reached CNY89.7 billion, up 8.6% year-on-year.
• Consumer business revenue reached CNY467.3 billion, up 34% year-on-year.
• Overall revenue in China was CNY506.7 billion, up 36.2%
• Overall revenue in EMEA was CNY206 billion, up 0.7%
• Overall revenue in Asia PAC was CNY70.5 billion, down 13.9%
• Overall revenue in the Americas was CNY52.5 billion, up 9.6%
• R&D expenditures amounted to CNY131.7 billion
• In 2019, Huawei shipped 240 million smartphones

"The external environment will only get more complicated going forward," Xu cautioned. "We need to keep enhancing the competitiveness of our products and services, promoting open innovation, and creating greater value for our customers and society at large. This is the only way we can seize the historic opportunities presented by the digital and intelligent transformation of industries, and maintain robust growth in the long run."

At the press conference, in response to a question regarding a possible tightening of restrictions of U.S.-based technology used by TSMC to produce 5G chipsets, Xu was quoted as saying "

"The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board... Why wouldn't the Chinese government ban the use of 5G chips or 5G chip-powered base stations, smartphones and other smart devices provided by American companies, for cybersecurity reasons?"