[ET Net News Agency, 6 December 2018] Newswire reported that Huawei Technologies' CFO
Wanzhou Meng has been arrested in Canada in connection with violations by Huawei of U.S.
sanctions on Iran.
Credit Suisse noted that Huawei is one of the largest technology companies in China with
revenues of US$88bn in 2017 and with a net profit of US$6.9bn. China accounted for 50% of
its revenues, EMEA 27%, Americas was 11% and Asia Pacific (ex-China) accounted for 10% of
its revenues.
The research house believes that market will immediately compare this case with what
happened with ZTE (00763). Credit Suisse said if the news stories are true, the initial
step will be for a discussion to start between Huawei and the US authorities regarding a
potential resolution to the matter. Any ban on exports by US companies to Huawei is likely
to be several months away.
Given the complexity of the products that Huawei produces and the size of the revenues
of the company, its supply chain is spread throughout the world and impacts a wide range
of technology companies to varying degrees, Credit Suisse added. (KL)