Business

AMMAN – Chinese technology company Huawei ranked ninth on Brand Finance’s list of the world’s top 10 most valuable brands in 2022. 

“It is a testament to the brand's sustained recognition and influence in global markets,” said Huawei Vice President of Global Communication Karl Song.

During a media round table on Monday, Song said that the company had maintained “solid operations” throughout the past year.

Song added that Huawei achieved $99.9 billion in revenue in 2021, and $17.8 billion in net profits, an increase of 75.9 per cent year-on-year. 

The company’s R&D expenditure reached around $22.38 billion in 2021, representing 22.4 per cent of its total revenue, and bringing its total R&D expenditure over the past 10 years to over $132.5 billion. 

Song added that the company also plans to continuously increase investment in R&D.

According to Song, in 2021, Huawei generated a net profit of $17.8 billion with a net margin of 17.9 per cent. Cash flow from operating activities grew by 69.4 per cent, and the company now has “plenty of cash on hand”, he said. 

Song added that Huawei’s liability ratio dropped from 62.3 per cent in 2020 to 57.8 per cent in 2021, further improving the capital structure.

“Last year, Huawei's carrier business remained stable,” Song added.

He stated that Huawei has worked with carriers and partners around the world to advance over 3,000 industrial 5G applications, and provided the best 5G user experience in 13 countries, including Switzerland, Germany, Finland, Holland, South Korea and Saudi Arabia. 

“Our enterprise business experienced steady growth,” said Song.

He noted that Huawei launched 11 scenario-based solutions for key sectors such as transportation, finance and energy. As well as established multiple integrated teams, including a Coal Mine Team, a Smart Road Team, and a Customs and Port Team.

Song stated that Huawei continued to see steady sales growth in smart wearable’s, smart screens, and Huawei Mobile Services throughout the year. In total, HarmonyOS was used on over 220 million Huawei devices and has attracted 1,900 eco-system partners.

Song stated that Huawei, along with their partners, have supported the digital transformation of more than 20 industries, including ports, manufacturing, coal mining, steel production, and chemicals. “To date, we have signed more than 3,000 commercial contracts for industrial 5G applications worldwide,” he said.

“We've also integrated digital, power electronics, energy storage, and heat technologies to more effectively manage watts with bits,” Song noted.

He added that Huawei aims at helping customers conserve energy and cut emissions. 

By the end of 2021, Huawei’s digital power solutions had helped customers generate 482.9 billion kilowatt-hours of green power and save 14.2 billion kilowatt-hours of electricity, Song said.

These efforts have resulted in a reduction of 230 million tonnes of CO2 emissions, the equivalent of planting 320 million trees, he added.

WARSAW — Poland on Wednesday urged the EU to tax Russian energy imports and said it planned to end its own purchases this year, calling dependence on Moscow a "stupidity".

The EU has so far avoided following the United States in banning Russian oil and gas, with Germany opposed as it relies heavily on supplies from the country.

"We don't want this dependence, but others use these raw materials, without worrying about the cruel war, the Russian aggression against Ukraine and blackmail," Polish Prime Minister Mateusz Morawiecki said at a press conference.

"We can no longer return to this stupidity, this bad and criminal policy which turned [countries] dependent on Russia," he said.

Morawiecki said it was crucial to "take this blackmail tool, this war tool away from Putin" as Russia used proceeds from energy exports to "build a war arsenal and be able to attack its neighbours".

The EU has announced plans to slash its imports of Russian gas by two-thirds this year.

Around 40 per cent of the EU's gas supplies came from Russia last year.

Before the Ukraine war, Germany imported 55 per cent of its natural gas from Russia, half its coal and around 35 per cent of its oil.

Morawiecki said an EU tax was necessary because Germany and other European countries were unwilling to stop buying Russian energy products, which tended to be cheaper, and the levy would "equalise energy prices in all of the European Union".

"Today I call on the European Commission to establish a tax on Russian hydrocarbons so that commerce and economic rules in the single European market can function in an equitable manner," Morawiecki said.

"I will strongly push for this idea in the European Union so that the situation is equitable from the point of view of market competition," he said.

The prime minister said Poland was hoping to wean itself off Russian oil and gas by the end of the year.

Morawiecki said legislation proposed by the government to ban Russian coal imports could come into force in April or May.

Climate Minister Anna Moskwa said Poland was technically ready to give up Russian sources of energy thanks to its network of pipelines and storage facilities.

Germany, meanwhile, raised the alert level under its emergency gas plan on Wednesday as fears rose that Russia could cut off supplies if Western countries refused to make payments in rubles.

AMMAN — The value of investment agreements and announcements secured on day two, Monday, at the Global Entrepreneurship Congress (GEC) in Riyadh reached almost $8 billion.

Announcements on the second day included $3.2 billion from the Small and Medium Enterprises Bank to finance new businesses, according to a statement from the organisers.

Saudi Arabia’s Ministry of Investment also announced licensing for international companies to enter the country’s domestic market, along with investments estimated at almost $1 billion.

Monsha’at, Saudi Arabia’s General Authority for Small and Medium-Sized Enterprises, signed a cooperation agreement with Al Rajhi Bank worth $533 million, and another agreement with the same bank to launch point-of-sale and fleet financing products.

Meanwhile Monsha’at signed cooperation agreements with the Saudi National Bank, one to support innovation worth $700,000, and another on financing products worth $266 million.

Governor of Monsha’at, Saleh Ibrahim Alrasheed, said: “We’ve had yet another successful day bringing forward investment for entrepreneurs at GEC to help nurture Saudi Arabia’s economy.”

“GEC 2022 marks the entrepreneurial rise of the Middle East, and of Saudi Arabia’s potential as an innovation hub for the region,” he added.

Monshaat signed an agreement with the Saudi Organisation for Auditors and Accountants and THIQAH Company to provide advice to entrepreneurs and launch the new "Etkal" platform.

The Ministry of Investment signed memoranda of understanding with SDAIA to support and encourage the SMEs and entrepreneurs. The Prince Sultan bin Abdulaziz Fund for Development signed a cooperation agreement to launch a business accelerator in the Eastern Province, and provide training programmes and workshops through Monshaat.

Albilad Bank signed an agreement to provide financing products in total of $520 Million. Also, the Arab National Bank launched a credit card for SMEs and other financial products and programs worth some $293 million.

This year’s GEC is being co-hosted in Riyadh by Monsha’at and the Global Entrepreneurship Network (GEN) under the slogan “Rethink, Reboot, Regenerate".

NEW YORK — FedEx founder Frederick Smith will step down as chief executive after some five decades atop the transport behemoth, the company said on Monday.

FedEx, which grew under Smith from a modest operation in the US state of Tennessee into a global titan with some 570,000 employees, announced Chief Operating Officer Raj Subramaniam will take the company's helm.

The transition will take place on June 1, with Smith, 77, becoming executive chairman and Subramaniam ascending to president and CEO.

Smith first devised the idea for Federal Express — which adopted FedEx as its brand name in 1994 — while an undergraduate at Yale University, identifying urgent shipments as an economic imperative. 

"Smith named the company Federal Express because he believed the patriotic meaning associated with the word 'federal' suggested an interest in nationwide economic activity," according to the company's official history.

"He also hoped the name would resonate with the Federal Reserve Bank, a potential customer. Although the bank denied his proposal, Smith kept the name because he thought it was memorable and would help attract public attention."

From an initial fleet of 14 small aircraft in 1973, the company now boasts hundreds of aircraft, plus a worldwide logistics network. It reported nearly $84 billion in revenues last year.

Subramaniam joined FedEx in 1991 and has held senior roles in Canada and throughout Asia and the United States.

DUBAI — Volatility on oil markets sparked by Russia's invasion of Ukraine would be worse without OPEC+, the Saudi energy minister said on Tuesday, insisting the alliance that includes Russia deserves credit.

Oil shot up to nearly $140 on supply fears after Russia sent troops into its neighbour on February 24, and the price of crude is still trading at well over $100 a barrel.

"I certainly believe that if it wasn't for OPEC+ existing, we would not be celebrating a sustainable energy market... even with today's volatility," Prince Abdulaziz Bin Salman said.

"Volatility would have even be worse if OPEC were not together and did not exist," the Saudi minister told the World Government Summit in Dubai.

The 13-member, Saudi-led Organisation of the Petroleum Exporting Countries (OPEC) has so far resisted calls to lift production further following the Russian invasion of Ukraine. OPEC+ comprises another 10 countries including Russia.

Prince Abdulaziz said OPEC, which also includes Saudi Arabia's regional foe Iran, was strictly non-political.

"When we get into the OPEC meeting room or building, everybody leaves his politics outside the door of the building, and that culture has been with us," he said.

He also warned that attacks by Yemen's Iran-backed Houthi rebels on Saudi oil facilities, including a wave of drone and missile strikes on Friday, "put into question our ability to supply the world with the necessary energy requirements".

'Trust us' 

The United Arab Emirates' Energy Minister Suhail Al Mazrouei called for "trust" from the West, rather than being told to "do this or do that".

"What we need is pragmatism, we need to look at the objective of the energy and what we are asking for, not to tell us do this or do that," Mazrouei said.

"We need their understanding that what we are doing is to the benefit of the consumers," Mazrouei added, referring to Washington, which he described as an "important partner".

"When we say this is the right way to do it, we know it from experience, so trust us."

The OPEC+ alliance plans to increase output by 400,000 barrels a day in April, the same pace as in past months, despite calls for it to accelerate production by even more.

Since launching its assault on Ukraine, Russia has been hit by a raft of Western sanctions and expelled from world organisations, including the Group of 20 major economies.

Mazrouei said that ousting any OPEC+ member from the alliance would not benefit consumers.

"Our aim is to calm the market, trying to come up with volumes as much as possible, and if we are asking anyone to leave, then we are raising the prices, then we are doing something against what the consumers want," he said.

BEIJING — Chinese telecoms giant Huawei on Monday reported record profit for 2021, defying US sanctions as executive Meng Wanzhou made her first public appearance since returning to China from Canadian custody. 

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

The results were announced in Chinese tech hub Shenzhen as Meng stepped back into the limelight for the first time since her high-profile return home after nearly three years under house arrest in Canada.

Meng, daughter of CEO and founder Ren Zhengfei, spent her years in Canada fighting extradition to the US as Washington accused her of defrauding HSBC bank by trying to hide alleged violations of US sanctions on Iran.

She returned home in September shortly after two Canadians were released from prison in China, ending a diplomatic row that poisoned ties between Beijing and Ottawa.

Huawei's revenue fell by around 29 per cent last year to 636.8 billion yuan ($100 billion), as it grappled with US sanctions aimed at blocking access to key technology and supplies.

But the slump under US sanctions appears to be slowing, and the company said its net profits hit a new record — surging 75.9 per cent on-year to 113.7 billion yuan and reflecting efforts to cut costs.

"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 Monday's statement.

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.

The company is not publicly listed and its accounts are not subject to the same audits as companies traded on the stock market.

Huawei, a supplier of telecom networking gear and smartphone brand, has been struggling since Trump launched a campaign to contain the company in 2018.

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.

Meng said on Monday that US restrictions have "significantly affected" business — especially in smartphones and personal computers, adding to pandemic pressures in dragging revenues.

Investment 

Huawei is still "carefully evaluating" the impact of sanctions on Russia after Moscow's invasion of Ukraine last month, rotating chairman Guo Ping told reporters.

Huawei has more than a dozen stores in Russia and had announced big expansion plans in 2020.

Western capitals have frozen Moscow out of the global financial system, tipping its currency into freefall and pushing the country to the verge of default.

But China — a longtime Russian ally — has refused to follow suit.

Asked if Huawei planned to build its own chip production facility, Guo told reporters that development in this area was "very complex" and "requires patience".

Under the weight of US sanctions, the tech giant has tried to shore up other parts of its business.

It has refocused on the Chinese market and diversified to encompass enterprise and cloud computing, along with other business segments related to 5G networks.

Guo said in a speech at the event that Huawei's ability to "survive and thrive" depends on ongoing investment in development.

"Our fight to survive is not over yet," Guo said.

"No matter what comes our way, we will keep investing. That is the only way forward."

The company's research and development investment was 142.7 billion yuan last year, around 22 per cent of total revenue.