Revenue is expected to fall by nearly 30% in 2021, and Huawei's goal for the coming year is to "survive"

On the last day of 2021, Huawei handed over the annual report card.

On December 31, Guo Ping, Huawei's rotating chairman, delivered a 2022 New Year's speech, in which he mentioned that in 2021, Huawei withstood severe tests and is expected to achieve sales revenue of about 634 billion yuan for the whole year, that is, 178.2 billion yuan of sales revenue in the fourth quarter.

"Operators' business performance is stable, enterprise business is growing healthily, and terminal services are developing rapidly in new industries." Guo Ping said that the company's overall operating situation is in line with expectations. However, compared with the data of the same period in 2020, the decline is as high as 28.9%, which is equivalent to directly cutting off nearly 30% of the business.

It is worth noting that this is the first time in the past 5 years that Huawei's revenue has declined, and it is a "steep decline", about returning to the level of 2017 (603.6 billion) - equivalent to going backwards by 4 years.

In this regard, the industry has long expected that the mobile phone business in Huawei's consumer business has been hit hard by the impact of sanctions such as the United States, which has seriously affected performance. According to public information, since the second half of 2020, "Huawei mobile phones have no chips", and had to be stripped of Glory in November of that year. At the same time, Huawei's mobile phone shipments have also fallen off a cliff.

According to data from market research agency Counterpoint, in the 2021 Q3 domestic smartphone sales share ranking, Huawei fell to sixth, accounting for only 8%. At the same time, the third quarter global mobile phone shipment report released by the research agency IDC shows that there is no longer Huawei's position in the top five.

In addition to mobile phones, the greater impact is undoubtedly Huawei's HiSilicon chip. According to the global smartphone chip shipments in the third quarter of 2021 released by market research agency Counterpoint, Huawei's HiSilicon chip market share is only 2%, compared with 13% last year.

However, as Guo Ping said in his New Year's speech, Huawei "will not change its ideals and pursuits because of changes in the external environment." "In 2021, Huawei will attack in many ways to expand new business space.

First of all, products such as wearable devices and smart screens in Huawei's terminal business have grown rapidly. Huawei's official data shows that as of September 2021, Huawei's smart wearable device shipments ranked first in the country, and the cumulative global shipment volume has exceeded 80 million. As of now, Huawei has served more than 320 million users worldwide, and Huawei's sports and health app has reached 83 million monthly active users worldwide.

At the same time, Huawei's digital energy business has sprung up. The digital energy company, which was officially established at the beginning of this year, has become one of the new main forces to "fight food" for Huawei. At present, Huawei's digital energy products are in a leading position in the industry, with the world's market share of smart photovoltaic inverters first, upS power supply China market share first, and modular data center China market share first. In October this year, Huawei also won the world's largest energy storage project so far , the 1300MWh energy storage project in Saudi Arabia's Red Sea New City.

In addition, Huawei's smart car business has also exploded in full swing. In April this year, with the launch of the public road test video of the BAIC Polar Fox Alpha S car equipped with Huawei's autonomous driving solution, Huawei officially entered the field of intelligent vehicles. Soon, Huawei and Xiaokang released the Celis SF5 equipped with Huawei's DriveONE three-in-one electric drive system; on December 23, the AITO Q&I M5 equipped with the Hongmeng intelligent cockpit was officially released.

Looking forward to 2022, Guo Ping said that Huawei still faces a series of challenges, "to produce more grain, strengthen the foundation, continue to invest in the future, and 'survive and survive with quality' by creating value for customers and partners." ”

At the strategic level, Huawei has sacrificed its industrial subsidiary and legion strategy: adhere to the focus on ICT infrastructure and intelligent terminals, while maintaining the advantages of the large platform, shorten the management chain, quickly meet customer needs, and create commercial and social value through the pilot operation of industrial subsidiaries and legions.

Specific to the business level, smart terminals adhere to high quality, strengthen the long board, to the scenario, ecological development, to provide consumers with a high-quality experience; digital energy industry, the integration of digital technology and power electronics technology, the development of qingyuan and energy digitalization; HUAWEI CLOUD partners and developers to provide customers with stable, reliable, safe and trustworthy, continuous innovation of cloud services; intelligent car solution business focus on ICT technology, do a good job of incremental component suppliers, to help car companies build good cars, sell good cars.

In addition, adhere to win-win cooperation and build an open ecosystem. Huawei emphasizes that it will build a software ecosystem for digital infrastructure around "Euler" and build an ecosystem for cross-multi-terminal environments based on "Hongmeng".

"Only by reducing food and clothing can not achieve high-quality survival, adhere to strategic investment, strong self-will have a future." Guo Ping said that Huawei will continue to invest strategically to build future capabilities.

(Edited by Liu Mengmeng, editor of Titanium Media App)

The following is the full text of Huawei Guo Ping's 2022 New Year's Speech, from Huawei official:

Keep going forward, the future can be expected

——2022 New Year's Message

Huawei 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.

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!

December 31, 2021