Huawei Technologies reported modest once-a-year earnings progress for 2020 as overseas revenues declined because of to disruption brought on by the pandemic and the firm’s placement on a US export blacklist.

Net earnings for 2020 arrived in at sixty four.6 billion yuan (A$twelve.9 billion), up 3.2 per cent, compared to progress of 5.6 per cent a 12 months earlier.

Huawei was place on an export blacklist by former US President Donald Trump in 2019 and barred from accessing important technologies of US origin, affecting its capacity to design and style its individual chips and source components from outside the house sellers.

The ban place Huawei’s handset business beneath huge tension, with the organization promoting off its funds smartphone device to a consortium of brokers and sellers in November 2020 to keep it alive.

“More than the previous 12 months we have held potent in the face of adversity,” Ken Hu, Huawei’s rotating chairman, mentioned at an occasion at the firm’s headquarters in Shenzhen.

“In 2020 we saw a slowdown in the progress amount and lifetime was not uncomplicated for us. The US limitations have impacted our customer business, in particular our cell cellular phone business.”

However Huawei reported that its customer business, which features smartphones, introduced in 482.9 billion yuan, up 3.3 per cent 12 months on 12 months, and accounted for in excess of half of the firm’s earnings.

Though Hu did not specify how a lot smartphone earnings declined, he mentioned its drop was offset by a sixty five per cent increase in income from related products these types of as smartwatches and laptops, and other products.

The organization is confident that it will keep a primary situation in the sector and that the organization has ample stockpiles of provides to meet customers’ requirements.

The firm’s provider business, which features 5G network machines, introduced in 302.6 billion yuan, an raise of just .2{36a394957233d72e39ae9c6059652940c987f134ee85c6741bc5f1e7246491e6} a 12 months earlier.

Huawei’s progress was pushed by its property sector, with earnings in China up by 15.4 per cent to 584.9 billion yuan.

Its business declined just about everywhere else, with revenues down twelve.2 per cent to one hundred eighty.eight billion yuan in Europe, the Center East and Africa, down eight.7 per cent to sixty four.4 billion yuan in the rest of Asia, and down 24.5 per cent to 39.6 billion yuan from the Americas.

Hu mentioned he could not say clearly how a lot of the decline was because of to the pandemic’s effect or from geopolitical variables, but mentioned he was confident that overseas income would impove in 2021.

Huawei is privately held, but in the latest a long time it has released once-a-year outcomes audited by US agency KPMG in a bid for transparency.

Income from the firm’s business phase soared 23 per cent 12 months on 12 months to 100.3 billion yuan, though it nevertheless tends to make the smallest in earnings of the 3 business groups.

The organization invested 141.9 billion yuan in R&D expending in 2020, up from 131.7 billion yuan a 12 months earlier.

Huawei’s income stream from operating things to do was 35.2 billion yuan, down by 61.5 per cent on a 12 months earlier. This was because of to the enhanced expenditure on stockpiling provides last 12 months and because of to enhanced R&D expending, mentioned Hu.