Huawei’s operating cash flow dropped by more than half last year as US sanctions hampered the Chinese technology group’s ability to obtain important components.

The company generated Rmb35.2bn in cash flow from operations in 2020, down 61.5 per cent from a year earlier, even as revenue grew slightly by 3.8 per cent, Huawei said on Wednesday. “Cash flow is indeed a little lower than last year. That is mainly because of the increasing expenditure on the supply and R&D increased, and limitation on materials,” Ken Hu, rotating chair, told reporters and analysts.

That brings the company’s operating cash flow margin down to 3.95 per cent, while its operating cash flow is its lowest since 2013, when revenue was less than a third of the Rmb891bn reported for 2020.