Huawei 2021 Annual Report: Solid operations, investing in the future
Huawei 2021 Annual Report: Solid operations, investing in the future
On March 28th, Huawei presented its 2021 Annual Report, confirming that the company had continued to operate successfully throughout the previous year. According to the report, Huawei earned CNY636.8 billion in revenue and CNY113.7 billion in net profits in 2021, an increase of 75.9% year over year. In 2021, the firm spent CNY142.7 billion on research and development, accounting for 22.4 percent of total revenue and bringing its total R&D investment to over CNY845 billion over the previous ten years. The corporation also intends to boost its R&D spending in the future.
Huawei stated that its carrier business remained stable, its enterprise business grew steadily, and its consumer business quickly expanded into new fields, all of which were in accordance with expectations. In addition, the company has accelerated the development of its ecosystem.
Meng Wanzhou, Huawei’s CFO, spoke at the event, “Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty.” Thanks to the enhanced profitability of its major businesses, the company’s cash flow from operating activities dramatically increased in 2021, amounting to CNY59.7 billion. Its liability ratio also dropped to 57.8%, and its overall financial structure has become more resilient and flexible.
Huawei’s carrier division produced CNY281.5 billion in revenue in 2021, and it assisted carriers all around the world in deploying cutting-edge 5G networks. According to third-party testing, Huawei’s 5G networks give the greatest user experience in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia. Huawei has signed over 3,000 commercial contracts for industrial 5G applications as a result of its collaboration with carriers and partners. Manufacturing, mining, iron and steel factories, ports, and hospitals are all using 5G technology in large-scale commercial applications right now.
Huawei’s enterprise business developed substantially as a result of ongoing digital transformation trends, achieving CNY102.4 billion in revenue in 2021. Huawei released 11 scenario-based solutions in the last year for critical industries like government, transportation, finance, energy, and manufacturing. Multiple dedicated teams, including a Coal Mine Team, a Smart Road Team, and a Customs & Port Team, were also formed to pool resources and better serve the demands of the company’s clients.
Huawei is the digital transformation partner of over 700 cities and 267 Fortune Global 500 firms around the world, and Huawei today has over 6,000 service and operation partners. According to Jun Zhang, Director of Huawei Asia Pacific Public Relations Department, forest rangers in the Philippines can get real-time sound alerts to indicate rainforest devastation via a mobile App, allowing them to take action promptly.
As part of Huawei’s Seamless AI Life strategy for consumers around the world, the company’s consumer business concentrated in on consumer wants and needs, further building out the global ecosystem for a smart, all-connected era. In 2021, this company earned CNY243.4 billion in revenue, with sales of smart wearables, smart screens, true wireless stereo (TWS) earphones, and Huawei Mobile Services continuing to expand steadily (HMS). In particular, the smart wearable and smart screen segments both saw 30%+ year-on-year growth. As of 2021, HarmonyOS was installed in over 220 million Huawei devices, making it the world’s fastest growing mobile operating system.
Huawei spent the previous year focusing on expanding its openEuler, MindSpore, and HarmonyOS ecosystems, all of which are centered on the ideals of open cooperation and shared progress. Over eight million developers are currently experimenting with new business scenarios and business models utilizing Huawei’s open platforms, open-source software, and development tools.
Huawei’s unwavering business strategy, focused on connectivity and computing and rapidly developing new businesses such as digital power and cloud, is perfectly aligned to drive the digital economy in Asia Pacific, according to Simon Lin, President of Huawei Asia Pacific. With a stable workforce, financial and business fundamentals, the highest net profit in history, and continued efforts to globalize under pressure and increase R&D investment, Huawei’s unwavering business strategy, focused on connectivity and computing and rapidly developing new businesses such as digital power and cloud, is perfectly
The company’s digitalization, intelligent transformation, and low-carbon journeys will continue. Huawei said it will continue to expand investment to redefine the paradigms for core theories, architecture, and software, and to establish long-term competitiveness, relying on people, scientific research, and an inventive attitude.
