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Huawei is expected to see its annual revenue fall by nearly 30%, and rotating chairman Guo Ping: survive with quality

On December 31, Guo Ping, Huawei's rotating chairman, released a New Year's speech entitled "Moving Forward, Looking Forward" in the Huawei Voice Community, reviewing the operation of the past year.

Guo Ping said that in 2021, Huawei withstood severe tests, strived to create value for customers and society, improved operational quality and operational efficiency, and is expected to achieve sales revenue of about 634 billion yuan for the whole year. Among them, the operator's business performance is stable, the enterprise business is growing healthily, and the terminal business is developing rapidly in new industries. Our cooperation with our customers and partners continues to deepen, our global business is functioning normally, and our transformational measures and strategic inputs are advancing in an orderly manner. The overall operating situation of the company is in line with expectations.

In contrast, Huawei's sales revenue last year was 891.4 billion yuan, down 28.9% year-on-year, of which Huawei's revenue in the fourth quarter of this year was 178.2 billion yuan, down 19% year-on-year.

For the company's future development, Guo Ping pointed out that strategically, Huawei insists on focusing on ICT infrastructure and intelligent terminals, while maintaining the advantages of the large platform, shortening the management chain, quickly meeting customer needs, and creating commercial and social value through the pilot operation of industrial subsidiaries and legions. Within the company, Legion represents the industry in finding the right technology; for customers, Legion represents Huawei to find solutions to problems with partners. Bring simplicity to customers and keep complexity to yourself.

It is reported that on October 29, Huawei held the inaugural meeting of the legion in Songshan Lake Park, and Huawei founder Ren Zhengfei and the company's executives marched for more than 300 soldiers from the coal mine corps, the smart highway corps, the customs and port corps, the smart photovoltaic corps and the data center energy corps.

Guo Ping also said that Huawei is still facing a series of challenges in 2022, and Huawei will work closely with global partners to overcome difficulties together. In the new year, we want to produce more grain, strengthen our foundations, continue to invest in the future, and "survive and survive with quality" by creating value for our customers and partners.

The following is the original text of Guo Ping's speech:

Keep going forward, the future can be expected

——2022 New Year's Message

Rotating Chairman Guo Ping

In 2021, we have withstood the severe test, strived to create value for customers and society, improved the quality of operation and operational efficiency, and are expected to achieve sales revenue of about 634 billion yuan in the whole year. Among them, the operator's business performance is stable, the enterprise business is growing healthily, and the terminal business is developing rapidly in new industries. Our cooperation with our customers and partners continues to deepen, our global business is functioning normally, and our transformational measures and strategic inputs are advancing in an orderly manner. The overall operating situation of the company is in line with expectations.

Over the past year, employees around the world have overcome challenges to deliver on their promises to our customers by fully securing equipment supply and cybersecurity. Kuwait's summer lasted 50 degrees Celsius, during the day can not deliver, Huawei people often go to work at 4 a.m.; when the Philippine epidemic is cut off, we charter flights to deliver difficult areas, take small steamers, crab boats and other means of transportation to cross the island and install equipment; during the Tokyo Olympic Games, engineers carry more than a dozen kilograms of equipment on foot to repeatedly test and ensure communications; stick to the front-line team in Malawi, the country of "mosquito tornado", to help customers solve business difficulties and gain high recognition; and rescue the Flood in Henan. By going deep into coal mines and ports, breaking through the limits of algorithms, and ensuring business continuity, Huawei employees have worked hard to practice the company's vision and mission with their own actions.

The sharper the flint is struck, the brighter the light emitted. Here, on behalf of the company's board of directors, I would like to express my high respect to all strivers and contributors, express my heartfelt thanks to all customers, governments, business partners, and consumers who trust and support Huawei, and salute the families of employees who silently support Huawei!

Looking forward to the future, the digital economy has become the main engine of global economic growth, green and low-carbon has become a new driving force for sustainable development, and the integration of industry digitalization and green will bring huge development opportunities to the information processing and communication industries; at the same time, the external environment continues to be turbulent, and the ICT industry is facing challenges such as technology politicization and globalization. We must maintain strategic determination and rationally deal with external force majeure.

We will not change our ideals and pursuits because of changes in the external environment. Exploring the future is the greatest social responsibility of technology companies, we must strive to explore the endless frontier of science and technology, open cooperation with the world, break through the limits of basic theory and engineering bottlenecks; we are also committed to applying ICT technology to thousands of industries, through digitalization, intelligent upgrading and green energy saving and emission reduction, to create incremental value for all walks of life, so that everyone benefits from technological progress.

Strategically, Huawei insists on focusing on ICT infrastructure and smart terminals, and while maintaining the advantages of a large platform, shortens the management chain, quickly meets customer needs, and creates commercial and social value through the pilot operation of industrial subsidiaries and legions. Within the company, Legion represents the industry in finding the right technology; for customers, Legion represents Huawei to find solutions to problems with partners. Bring simplicity to customers and keep complexity to yourself.

We still face a series of challenges in 2022, and we will work closely with our global partners to overcome the difficulties together. In the new year, we want to produce more grain, strengthen our foundations, continue to invest in the future, and "survive and survive with quality" by creating value for our customers and partners.

Create value for customers and produce more grain. Huawei works with global operators, government and enterprise customers, and partners to build a green, minimalist, and intelligent ICT infrastructure to help the digital transformation of the entire industry; focuses on key industries, deeply integrates ICT technology with industry scenarios, and works with partners to meet customer differentiation needs and create industry value; smart terminals adhere to high quality, strengthen long boards, develop to scenarios and ecology, and provide consumers with an excellent experience; digital energy industry, integrating digital technology and power electronics technology, and developing source and energy digitalization. Building a green and beautiful future together, HUAWEI CLOUD works with partners and developers to provide customers with stable, reliable, secure, trustworthy, and continuously innovative cloud services, and the intelligent vehicle solution business focuses on ICT technology, and is a good supplier of incremental components, helping car companies build and sell good cars. By continuing to create value for our customers, we are confident of producing more food and surviving difficult times, as Heine's verse goes: What winter takes away, spring will return.

Adhere to win-win cooperation, build an open ecosystem, and grow together with partners. Around Euler to build a digital infrastructure software ecology, based on Hongmeng to create an ecosystem for cross-multi-terminal environment, adhere to open source, open, so that all software developers to use, contribute and benefit, and jointly build a connected intelligent world; build an online developer community, offline innovation center, to create a scenario-based solution that meets customer needs, support developers to continue to provide innovative experience for consumers; continue to promote and maintain global unified technical standards; inspire and support channel partners with a long-term vision Actively support and develop global high-quality suppliers, work together and move forward hand in hand. Only if our customers and partners succeed will Huawei succeed.

Huawei is expected to see its annual revenue fall by nearly 30%, and rotating chairman Guo Ping: survive with quality

Create social value, build safety and credibility, and improve the business environment. We support the digital transformation of the industry, promote the development of small and medium-sized enterprises, make digital technology benefit more people, let coal miners have no safety worries, let dock workers have a better working environment, let steel workers "wear suits" to make steel; through future seeds, ICT academies, scientific and technological women and other actions, help local digital talents; through intelligent, low-carbon technology, help green and sustainable development, protect the natural environment. Huawei builds security, credibility, and privacy protection capabilities throughout the product lifecycle, and promotes global cooperation and unified security standards. We also continue to communicate openly with governments and the media to enhance trust and understanding.

Continuous strategic investment to build future capabilities. We must focus on the core, open up the periphery, strengthen strategic investment, maintain long-term competitiveness; increase investment in "Hongmeng + Euler", build the root of the basic software of the digital world, and provide a second choice for the world; increase investment in digital energy root technology, develop clean energy and promote the digital two-wheel drive of traditional energy... Only by reducing food and clothing can not achieve high-quality survival, adhere to strategic investment, strong self-improvement can have a future.

Promote organizational change and strengthen customer foundations. Serving customers is the only reason for Huawei's existence, we can't decide the customer's choice, but we must choose Huawei's customer service well. The goal of organizational reform is to better serve customers, move forward around the operational command, realize elite combat under the large platform, fully stimulate the vitality of the frontline, comprehensively promote the "contract in the representative office to be concluded" in 2022, realize the independent operation of the representative office, and the next stage will start the exploration of the comprehensive business reform of the representative office; solidly grasp the grass-roots experience of the organ organization, the front-line practical combat experience and overseas successful experience, and lead cadres and experts to the front line of serving customers. We must do a good job in customer satisfaction construction, we must not consume customer support and sympathy, but to double the return with innovative products and quality services.

Open to absorbing outstanding talents from all over the world and fully stimulating the potential of internal talents. Carry out top competitions, recruit talents from all over the world, supplement and enhance talents in key areas such as software, algorithms, and computing power; we encourage aspirants to devote themselves to science, explore uncertainty problems, and also encourage outstanding talents to go to the front line, solve specific technical and business problems, and be guided by responsibility results in incentive policies, but not heroes based on success or failure; create an open ideological atmosphere, promote multi-gene culture, not only to make good use of old experts in the industry, but also to cultivate outstanding young people, managers and experts should take the initiative to drink more coffee with new employees. Help them broaden their horizons; we need to optimize the operation of expert committees, so that experts have decision-making power in front-line operations and generate value in operations. It is also necessary to maintain the relative stability of the professional team and let the active and hard-working old employees continue to shine. We obtain reasonable returns by creating value for customers, give first-class talents first-class treatment, continue to innovate and break through, and contribute more to society.

We must adhere to the struggle-oriented, for the work challenges, especially in overseas hardship areas, to give more care, improve the working and living environment, reasonable work and vacation arrangements, to ensure the physical and mental health of employees.

The road is obstructed and long, and the line is coming; the line is not quitting, and the future can be expected. Choosing Huawei, we have chosen a pursuit of life, and we are taking a bumpy road that is worth fighting for. No way back is the way to victory, let us work together with customers and partners to bring the digital world to everyone, every family, every organization, build a connected intelligent world, and create a better life.

Happy New Year to all!

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