Chinese telecoms giant Huawei on Monday reported record profit for 2021 despite being heavily hit by US sanctions.

The Chinese telecom company has been caught in the crosshairs of the US-China trade and technology standoff, with the administration of former President Donald Trump moving to cripple it over cybersecurity and espionage concerns.

Chief financial officer Meng Wanzhou, also the daughter of CEO and founder Ren Zhengfei, appeared at a news conference in Shenzhen to publish the company’s annual results for the first time since being held in Canada in 2018 on a US warrant.

Huawei posted a net profit of 113.7 billion yuan (€16.2bn) last year, a rise of 76 per cent on-year, but revenue slumped by around 29 per cent as it grappled with US sanctions aimed at blocking access to key technology and supplies.“Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty,” Meng said in a statement Monday.

The company attributes its profitability to “improved product portfolios and more efficient internal operations”, with a rise in net profit margin even with gains from the sale of its budget phone brand Honor excluded.

Huawei, a supplier of telecom networking gear and smartphone brand, has been struggling since Trump in 2018 launched a campaign to contain the company.Smartphone sales stalled after the US cut Huawei off from key parts and barred it from using Google’s Android services.

Last year Huawei logged 243 billion yuan in consumer business sales – almost 50 per cent down from 2020.

Huawei has tried to shore up other parts of its business, refocusing on the Chinese market and diversifying to encompass enterprise and cloud computing, along with other business segments related to 5G networks

Huawei has instead tried to shore up other parts of its business, refocusing on the Chinese market and diversifying to encompass enterprise and cloud computing, along with other business segments related to 5G networks.