Shenzhen (China),  Hit hard by the US sanctions, Chinese conglomerate Huawei Technologies on Monday reported a 28.5 per cent dip in its revenue last year, along with a sharp downfall in its smartphone business.

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", said Meng Wanzhou, Huawei's CFO.

The company said it is "readjusting" its business portfolio to tap new digital and 5G opportunities.

Its 2021 revenue came in at $100.01 billion, down from nearly $140 billion in 2020.

Its net profits, however, jumped 75.9 per cent to $17.86 billion.

"Overall, our performance was in line with the forecast. Our carrier business remained stable, our enterprise business experienced steady growth, and our consumer business quickly expanded into new domains. In addition, we embarked on a fast track of ecosystem development," said Guo Ping, Huawei's Rotating Chairman.

Huawei has signed more than 3,000 commercial contracts for industrial 5G applications. These kinds of 5G applications are currently seeing large-scale commercial use in sectors like manufacturing, mines, iron and steel plants, ports, and hospitals.

Huawei said it continues to see steady sales growth in smart wearables, smart screens, true wireless stereo (TWS) earbuds, and Huawei Mobile Services (HMS).

In particular, the smart wearable and smart screen segments both saw more than 30 per cent year-on-year growth.

In total, HarmonyOS was used in over 220 million Huawei devices as of 2021, becoming the world's fastest growing mobile device operating system.

"Moving forward, Huawei will advance its journey of digitalization, intelligent transformation, and low carbon," said Guo.