On the afternoon of March 28, Huawei held the 2021 annual report press conference, and Guo Ping, Huawei's rotating chairman, attended the event and delivered a speech to share the company's future strategic planning. In addition, Meng Wanzhou, Huawei's chief financial officer, who made his public debut after returning home, also attended the event to explain last year's results.
Revenue fell by nearly 30%, and profit increased by more than 70%.
Huawei's 2021 results. Image source official press conference
According to the report, in 2021, Huawei's overall operation was stable, achieving global sales revenue of 636.8 billion yuan and net profit of 113.7 billion yuan, an increase of 75.9% year-on-year. Facing the future, Huawei will continue to increase its R&D investment, reaching RMB142.7 billion in R&D in 2021, accounting for 22.4% of its annual revenue, and its cumulative R&D investment in the past decade will exceed RMB845 billion.
"We're getting smaller, but our profitability and cash flow acquisition capabilities are increasing, and the company's ability to cope with uncertainty is increasing," said Meng Wanzhou, Huawei's chief financial officer.
Huawei CFO Meng Wanzhou explained the 2021 results. The image source is broadcast live
Guo Ping, rotating chairman of Huawei, said: "The company's overall operating situation is in line with expectations, the operator business performance is stable, the enterprise business is growing steadily, the terminal business is developing rapidly in new industries, and the ecological construction has entered the fast lane. "Thanks to the improvement in the profitability of the main business, Huawei's operating cash flow has increased significantly in 2021, reaching 59.7 billion yuan; the asset-liability ratio has been reduced to 57.8%, and the resilience and resilience of the overall financial structure are strengthening."
Guo Ping, huawei's rotating chairman, delivered a speech. The image source is broadcast live
Regarding the report card handed over by Huawei, Jiang Han, a senior researcher at Pangu Think Tank, believes that "from the overall point of view, Huawei's revenue has declined relatively, but the growth of profit level is good, which means that the entire business development has a strong stability." In addition, for Huawei's continuous high R & D investment, Jiang Han said, "Huawei has always been a very good enterprise in the field of Chinese patents, and in the process of development, R&D advantages have become the main driving force for its development." Under such circumstances, Huawei continuously enhances its influence in the patent market through large investment in research and development, so as to further establish its own advantages in the field of rules and standards, which is of great positive significance for Huawei's long-term development. ”
"Continue to survive in 2022"
It is understood that in 2021, Huawei will achieve sales revenue of 281.5 billion yuan in the field of operator business. Huawei has helped global operators deploy leading 5G networks, and according to third-party reports, Huawei has built the best user experience of 5G networks in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia. Together with operators and partners, Huawei has signed more than 3,000 commercial contracts for 5G industry applications, and 5G has been commercialized on a large scale in manufacturing, mining, steel, ports, and medical care.
Under the wave of digital transformation, Huawei's enterprise business achieved rapid growth, achieving sales revenue of 102.4 billion yuan. For key industries such as government, transportation, finance, energy, and manufacturing, Huawei released 11 scenario-based solutions and established legions such as coal mines, smart highways, customs, and ports to integrate resources and efficiently serve customers. More than 700 cities and 267 Fortune Global 500 companies have chosen Huawei for digital transformation, and the number of service and operation partners has grown to more than 6,000.
In the past year, Huawei has adhered to the concept of openness, collaboration, and altruism, and focused on building a prosperous Euler, Shengsi, and Hongmeng ecosystems, and more than 8 million developers have adopted Huawei's open platform, open source software, and rich development tools to explore innovative business scenarios and business models.
"In 2021, we survived, and we will continue to survive in 2022, and we will rely on strengthening investment in research and development to solve the problem of survival and development in the future." Guo Ping said: "Huawei will move forward in the direction of digitalization, intelligence, and low carbon, relying on the three elements of talent, scientific research and innovation spirit, continuing to increase investment, and striving to reconstruct the technical base of basic theory, architecture and software to build long-term competitiveness." ”
For Huawei's future development, Jiang Han said that Huawei's development in the cloud market, wearable devices and other fields has very big advantages, which can help Huawei find more profit growth points. Because the mobile phone market is subject to chips, there are still large uncertainties. It must be admitted that Huawei is still in a relatively difficult transition period, but in the long run, Huawei should be in a relatively good market development trend, and there is a lot of room for diversified market development.
Aoyi news reporter Feng Xiaohui