Business

Revenue down nearly 30%, but net profit up 78%

Recently, Huawei officially announced its Annual Report for 2021. Accordingly, Huawei achieved revenue of $ 99.88 billion in 2021 – a decrease of 28.9%, net profit reached $ 17.85 billion, an increase. 75.9% over the same period last year.

Huawei spent $22.4 billion on research and development (R&D) in the past year, accounting for 22.4% of total revenue and contributing to the total R&D expenditure over the past 10 years to more than $132.66 billion. Regarding the future view, Huawei said it will continue its strategy of increasing investment in R&D further.

In 2020, Huawei’s total revenue increased 3.8% to 135.8 billion USD, but down from the 19.1% increase in 2019. Accordingly, 2020 profit increased 3.2% to 9. $8 billion, down from the 5.6% increase in 2019.

Speaking at the press conference, Mr. Guo Ping, Rotating Chairman of Huawei identify: “Overall, Huawei’s 2021 performance is in line with the previous forecast. The telecommunications infrastructure solution business remained stable, the enterprise solution business grew, and the consumer equipment business rapidly expanded into new areas. In addition, we also embarked on the rapid development of the ecosystem“.

Ms. Meng Wanzhou, Chief Financial Officer of Huawei also added: “Despite a decline in revenue in 2021, our ability to generate profits and generate cash flow is growing, and our ability to deal with an uncertain future has increased significantly.“.

About cash flow: Thanks to improved profits in core businesses, Huawei’s operating cash flow increased strongly in 2021, reaching $9.37 billion. The ratio of liabilities decreased to 57.8%, the overall financial structure also became more flexible and sustainable.

Huawei's paradox in 2021: Revenue fell by nearly 30%, but net profit increased by 78% - Photo 1.

Ms. Manh Van Chu, Chief Financial Officer of Huawei shared about financial capacity.

Regarding telecommunications infrastructure: Huawei’s telecommunications infrastructure solutions business generated $44.19 billion in revenue and helped carriers around the world roll out leading 5G networks.

An independent third-party report shows that the 5G network built by Huawei for customers in 13 countries offers the best user experience, especially Switzerland, Germany, Finland, the Netherlands, and South Korea. and Saudi Arabia. By working with carriers and partners, Huawei has signed more than 3,000 commercial contracts for industrial 5G applications.

These 5G applications are now widely commercialized on a large scale in areas such as manufacturing, mining, iron and steel factories, seaports and hospitals.

Regarding numeric conversion arrays: Thanks to the continued explosive growth of digital transformation, Huawei’s enterprise solutions business is also growing rapidly, generating revenue of $16.08 billion in 2021.

Over the past year, Huawei has come up with 11 solutions to deal with scenarios for: Government, transportation, finance, energy and manufacturing. The company also established many specialized personnel teams, including Coal Mining Team, Smart Traffic Team, Customs and Seaport Team, to combine resources and meet customers’ needs more efficiently.

More than 700 cities and 267 Fortune Global 500 companies have chosen Huawei as their digital transformation partner. Huawei also now cooperates with more than 6,000 service and operations partners around the world.

Regarding the business of consumer equipment: Huawei focuses on the needs and desires of consumers, furthermore building a global ecosystem to create an era of smart and connected things – under the Seamless AI Life strategy – Seamless life with Huawei’s Global Consumer AI.

Huawei's paradox in 2021: Revenue fell by nearly 30%, but net profit increased by 78% - Photo 2.

Guo Ping, Huawei’s Rotating Chairman spoke at the press conference.

This segment generated revenue of $38.21 billion in 2021 and recorded steady sales growth in the smart wearables, smart displays, and wireless audio headsets. (TWS) and Huawei Mobile Services (HMS). In particular, the smart wearable and smart display segments both grew by more than 30% over the same period last year.

In total, HarmonyOS has been used on 220 million Huawei devices as of 2021, making it the world’s fastest-growing mobile operating system.

During the past year, Huawei also focused on building openEuler, MindSpore and HarmonyOS ecosystems based on the principles of open cooperation and mutual growth. More than 8 million developers are using Huawei’s open platforms, open source software and tools to build new scenarios and business models.

Sharing a vision for the future, Chairman Guo Ping emphasize: “Going forward, Huawei will continue to promote digitization, smart transformation and low carbon. With a team of talented personnel, scientific research efforts, and a relentless spirit of innovation, we will increase our investment continuously to reshape models in line with our theoretical foundation, knowledge and understanding. new architecture and software and strengthen Huawei’s long-term competitive position“.

Established in 1987, Huawei is the world’s leading supplier of ICT infrastructure and smart devices. They have more than 195,000 employees, operate in over 170 countries and regions, and serve more than 3 billion users around the world.

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