(Yicai Global) April 1 -- Huawei Technologies, the world's top telecoms equipment maker, reported its smallest increase in annual profit in three years due to a US trade ban and the firm's chairman warned that this year's focus is on survival.

Net profit rose 5.6 percent to CNY62.7 billion (USD8.83 billion) in the year ended Dec. 31, the Shenzhen-based company said in an earnings report yesterday. Profit jumped 25 percent in 2018 and 28 percent in 2017. Revenue increased 19.1 percent to CNY858.8 billion last year.

It will be impossible to maintain that profit margin this year, Rotating Chairman Xu Zhijun said at the earnings press conference. This year is set to be the most difficult year yet for Huawei and survival is its primary goal, he added.

The firm's supply chain has been severely tested since it was placed on the US Bureau of Industry and Security's so-called Entity List last May, which bars US companies from buying its products and from selling it their hardware and software.

The trade ban has meant that key apps, such as Google's Play Store, Google Maps and Youtube, are no longer accessible on the latest Huawei phones. The downgrade in user experience has slashed the firm's consumer sales revenue by at least USD10 billion since May, Xu said.

The company's immediate focus is to ensure the safety of its employees and to meet the coronavirus epidemic control requirements of the government and its customers, Xu added. At this stage, it is not possible to clearly evaluate this year's business goals and predict performance targets.

Huawei spent CNY131.7 billion (USD18.5 billion) on research and development in 2019, accounting for 15.3 percent of its yearly sales revenue. The firm has invested more than CNY600 billion in R&D over the past decade.

The firm shipped over 240 million smartphones last year, leading to a 34 percent jump in sales income to CNY467.3 billion (USD65.8 billion), according to the report. Cloud and artificial intelligence services rose to become the firm's fourth-largest business group, but Huawei did not disclose its revenue for the year.

Operator business revenue was up 3.8 percent year on year to CNY296.7 billion. Its business sales earnings grew 8.6 percent to CNY89.7 billion while income from consumer sales maintained a steady growth.

Editors: Xu Wei, Kim Taylor