STORY: Huawei saw profits slump last year.

They dropped around around two-thirds to $5.2 billion.

The tech giant was hit by rising costs for raw materials.

It also boosted its spending on research and development over the period.

U.S. restrictions remain a challenge too.

Since 2019, Washington has limited the supply of chips and chip-making tools to the firm.

That’s over allegations that Huawei colludes with Chinese spies and poses a risk to national security.

The company strongly denies all such allegations.

Revenue did rise over the course of the year, but remained far short of 2019’s record levels.

Sales to the public were the weak spot, with consumer electronics revenue down almost 12%.

The U.S. restrictions have hammered its once mighty smartphone division.

Revenue from sales in the enterprise unit, by contrast, jumped almost a third.

Overall, however, Huawei said the results marked its exit from crisis mode.

The firm says it’s making good progress on replacing parts affected by sanctions.