SHENZHEN, China, March 31 Reuters China39;s Huawei Technologies Co Ltd HWT.UL said net profit slumped last year, as the tech conglomerate boosted research and development spending and grappled with increases in materials costs.

But revenue climbed 0.9, in line with a company prediction, suggesting that Huawei has reached some level of stability after successive rounds of U.S. export controls hammered its once mighty smartphone business.

It posted net profit of 35.6 billion yuan 5.2 billion, down roughly twothirds from 2021 when profit was helped by the sale of its Honor midrange smartphone business. The decline was, however, still severe even when compared to 2020 a drop of 44.

In 2022, a challenging external environment and nonmarket factors continued to take a toll on Huawei39;s operations, Eric Xu, Huawei39;s rotating chairman, said in a statement.

In 2023 and the coming years, sustainable survival and development will remain a strategic focus for Huawei. Plum blossoms tend to grow sweeter from a harsh winter39;s freeze. Today, Huawei is like a plum blossom, he said.

Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of U.S. export controls since 2019, restricting its supply of chips and chipdesign tools from U.S. companies.

Washington has said Huawei represents a national security risk a charge that the company denies. Tensions with the U.S. also saw Meng Wanzhou, CFO and daughter of the company39;s founder,…