On March 28, Huawei held a press conference for its 2021 annual report, with revenue of 636.8 billion yuan in 2021, down 28.6% year-on-year, and net profit of 113.7 billion yuan, up 75.9% year-on-year.
At the same time, Huawei's official website has updated the 2021 annual report, and small partners can go to download it by themselves. The most surprising thing is that the net profit has risen sharply, and the operating profit margin has also risen sharply. Since Huawei suffered force majeure, Huawei has actively explored revenue channels, increased revenue from patent fees, and further improved operating margins.
On the other hand, 2020 is the first year of the epidemic, and the operating profit base is relatively not so high, which is one of the reasons why Huawei's net profit has increased sharply year-on-year. Tesla's market value can reach the level of trillions of DOLLARs, a large reason is that its gross profit margin far exceeds that of many traditional car companies, which is one of the important indicators of excellent companies.
Although the net profit has risen sharply, it is an indisputable fact that the total revenue has dropped by 28.6% year-on-year, which is a major hidden danger for Huawei. Specific to each business, the consumer business fell sharply by 49.6% year-on-year. As the core of the mobile phone, Huawei's mobile phone can not use 5G, which greatly reduces the competitiveness of Huawei mobile phones.
Although Huawei's multi-screen collaboration and other software have done a relatively good job, due to the hard injury of Huawei's mobile phones in 5G, its TWS, tablet computers, laptops and other services have been greatly affected. At this stage, Huawei must vigorously strengthen the self-development of technologies such as radio frequency, and let its own mobile phones use 5G as soon as possible, so that the sales of other consumer electronics products are expected to return to the previous level.
Thankfully, Huawei's carrier business has not been so affected, only 7% year-on-year. The operator business is Huawei's basic disk, with strong technology accumulation, and it is not so easy to be replaced by foreign companies for a while. Previously, the revenue of the consumer business significantly exceeded that of the operator business. In a short period of time, Huawei's consumers may continue to shrink, and the operator's business will still support Huawei's continuous progress.
Huawei is currently vigorously developing the automotive business, Huawei's complete set of solutions has shown good competitiveness, in the car UI, interaction, assisted driving have good results, or there are more and more car companies and Huawei cooperation, Huawei's revenue in the automotive business may be greatly improved.