"In 2021, we survived. In 2022, we must continue to seek survival and development. Huawei rotating chairman Guo Ping said.
On March 28, Huawei released its 2021 annual report. According to the report, Huawei's overall operation in 2021 is 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.
Meng Wanzhou, vice chairman of Huawei and CFO, made his debut after returning to China and attended the annual report conference. "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," she said. ”
Huawei pointed out in its annual report that Huawei insists on not building cars and helps customers build and sell good cars. Red Star Capital Bureau noted that Yu Chengdong, CEO of Huawei's intelligent car solution, has proposed that Huawei will challenge the sales target of 300,000 vehicles per year in 2022. Why did Huawei, which insists on not building cars, set sales targets for cars?
In the whole year, the sales revenue was 636.8 billion yuan
Net profit was 113.7 billion yuan
According to Huawei's annual report, Huawei's total assets increased from 858.661 billion yuan (RMB) in 2020 to 982.971 billion yuan in 2021. For the whole year of 2021, the company achieved sales revenue of 636.8 billion yuan, down 28.6% year-on-year; net profit of 113.7 billion yuan, an increase of 75.9% year-on-year. The company's operating cash flow reached 59.670 billion yuan, an increase of 69.4% year-on-year; the asset-liability ratio fell from 62.3% in 2020 to 57.8%.
Meng Wanzhou, vice chairman and CFO of Huawei, who made his first public appearance after returning to China, said that 2021 is the third year of Huawei's "load-bearing", and Huawei's development is more stable and resilient.
Huawei's annual report pointed out that the decline in sales revenue was mainly due to the impact of the decline in consumer business revenue, while the increase in net profit was mainly due to the income from the sale of some businesses, the improvement of operating quality, and the optimization of product structure.
Meng Wanzhou said at the Huawei annual report press conference that the company's revenue decline during the period is mainly due to three factors: first, the multiple rounds of sanctions imposed by the United States on Huawei have put Huawei's mobile phone and other businesses under great pressure; second, China's 5G construction is not so much demand; third, under the epidemic, enterprises have pressure, and Huawei is the same.
By business, Huawei's operator business revenue reached 281.469 billion yuan in 2021, down 7% year-on-year. According to the annual report, Huawei, together with operators and partners, has signed more than 3,000 commercial contracts for 5G industry applications.
Consumer revenue was RMB243.431 billion, down 49.6% year-on-year. However, the press conference pointed out that Huawei equipment equipped with HarmonyOS exceeded 220 million units, making it the world's fastest growing mobile terminal operating system.
Enterprise business revenue reached 102.444 billion yuan, an increase of 2.1% year-on-year; other business revenue was 9.463 billion yuan, an increase of 72.3% year-on-year.
By region, China remains Huawei's main market, with revenue of 413.299 billion yuan, down 30.9% year-on-year; revenue from EMEA was 131.467 billion yuan, down 27.3% year-on-year; revenue from the Asia-Pacific region was 53.675 billion yuan, down 16.7% year-on-year; revenue from the Americas was 29.225 billion yuan, down 26.3% year-on-year; and revenue from other regions was 9.141 billion yuan, an increase of 8.40% year-on-year.
Research and development expenses reached 142.7 billion yuan
It plans to recruit 10,000 fresh graduates in 2022
In terms of expenditure, Huawei's expenses during the period in 2021 totaled 246.827 billion yuan, and the expense rate during the period was 38.8%, up 10.2 percentage points year-on-year.
Among them, the expenditure on research and development expenses was 142.666 billion yuan, accounting for about 22.4% of the annual revenue, up 6.5 percentage points. In the past decade, Huawei has invested more than 845 billion yuan in R&D expenses. In 2021, Huawei will employ about 107,000 people engaged in research and development, accounting for about 54.8% of the company's total number. According to Guo Ping, Huawei's rotating chairman, at present, Huawei's R&D investment ranks second among global enterprises.
The sales management expense was 104.161 billion yuan, which was about 9.3 billion yuan lower than that in 2020; the sales management expense ratio was 16.4%, an increase of 3.7 percentage points.
The annual report also disclosed that Huawei's employee expenses in 2021 were 164.538 billion yuan. At the press conference, Guo Ping said that in the two years from 2020 to 2021, Huawei has recruited about 26,000 fresh graduates, of which more than 300 are "genius teenagers" defined by Huawei. In 2022, Huawei plans to recruit more than 10,000 fresh graduates.
Guo Ping said: "Only excellent talents can solve Huawei's current situation and make Huawei further develop. ”
Focus on HUAWEI CLOUD and digital energy
There are still difficulties in obtaining advanced chips
Huawei's cloud computing business is also a key business mentioned in Huawei's annual report. In 2021, HUAWEI CLOUD launched four new regions, and so far has operated 65 zones in 27 geographic regions around the world with partners, covering more than 170 countries and regions around the world.
Meng Wanzhou said at the press conference that HUAWEI CLOUD's revenue in 2021 will be 20.1 billion yuan, an increase of 34% year-on-year, ranking fifth in the global IaaS market. In 2022, Huawei will accelerate the deployment of global data centers and networks around a cloud strategy.
In terms of digital energy, Guo Ping said that Huawei has continued to innovate around clean power generation, energy digitalization, transportation electrification, green ICT energy infrastructure, and integrated smart energy, and has worked with customers and partners around the world to build a low-carbon society, accumulatively helping customers achieve 482.9 billion kWh of green power generation, save about 14.2 billion kWh of electricity, and reduce carbon dioxide emissions by nearly 230 million tons.
Guo Ping also responded to the chip problem at the press conference. Guo Ping said that solving the chip problem is a complex and long process that requires patience, and Huawei's chip solutions in the future may use multi-core structures to improve chip performance.
But Guo Ping also admitted that the UNITED STATES sanctions for many years have brought great difficulties to Huawei, especially Huawei's mobile phone business, because mobile phone chips need to have strong computing power, low power consumption and small size of the demand, Huawei still has difficulties in obtaining. While actively discussing the sustainable development of mobile phones with relevant parties, Huawei is also exploring the possibility of development in wearable and other fields, the company's wearable watch bracelet has more than 100 million users, and the company will look for new development opportunities in several new areas.
Mention again "insist on not building cars"
More than 30 smart car parts have been listed
Huawei also pointed out in its annual report that Huawei insists on not building cars. Guo Ping also said at the press conference that Huawei reiterated that it does not build cars, and Huawei should use huawei's accumulated technology for more than 30 years to deeply integrate with the automotive industry to help car companies build and sell good cars. Huawei has built 7 smart car solutions and has listed more than 30 smart car parts.
Red Star Capital Bureau noted that at the beginning of 2021, Yu Chengdong, CEO of Huawei's intelligent car solution, proposed that Huawei would challenge the sales target of 300,000 vehicles per year in 2022.
Huawei does not build cars, how to achieve the goal of 300,000 cars? The answer is to cooperate deeply with other new energy vehicle brands to provide Huawei ecosystems such as vehicle and machine systems.
Red Star Capital Bureau combed and found that the new energy vehicle brands that belong to the "Huawei system" in the strict sense mainly include:
With Beiqi Blue Valley (600733. SH) co-branded with Arctic ARCFOX and HI;
With Changan Automobile (000625. SZ) in collaboration with CATL (300750.SZ) to create Avita;
With Xiaokang shares (601127. SH) and AITO, which is also working with Xiaokang, is considered to be a substitute for Cyrus.
Specifically, in 2021, Beiqi Blue Valley and Huawei signed a comprehensive business deepening cooperation agreement, the model of cooperation between the two sides is the Polar Fox Alpha S Huawei HI version, the pre-price of 388,900 yuan, this model is the first full-stack car equipped with Huawei's intelligent car solutions, but also the first mass production model equipped with Huawei Hongmeng OS system and Huawei's high-end automatic driving ADS system. However, since its stunning debut in April 2021, the model has not made substantial progress for a whole year.
Looking at Avita again, in May 2021, Changan Automobile announced that Avita Technology operates independently and develops independently, and works with Changan Automobile, Huawei, and CATL to create an intelligent electric connected vehicle platform (CHN). In November 2021, the first model, the Avita 11, was unveiled. In March 2022, Avita completed the application for a new car from the Ministry of Industry and Information Technology. It is reported that the new car will be officially released at the Beijing Auto Show this year, and the delivery will begin in the third quarter.
The Xilis SF5 is the first Smart Choice automobile product launched by Xiaokang co., Ltd. and Huawei, which was officially unveiled at the Shanghai International Auto Show on April 19, 2021, priced at 216,800-246,800 yuan. It sold in Huawei's online and offline channels, and within a week of launch, the number of orders exceeded 6,000. However, the Cyrus SF5 has not sold as much as expected since then, and public data shows that from January to November 2021, the total sales of the Cyrus SF5 were only 7,080 units.
On December 23, 2021, Huawei released the first model of AITO, the Inquisitive M5. At the beginning of 2022, Cyrus was exposed to stop selling Cyrus SF5 online and offline, and publicity, exhibition cars, and LOGOs all became AITO questions.
On January 5, the official Weibo of Xilis released a letter to the users of Xilis SF5, saying that Xilis SF5 would continue to accept user orders and gave a compensation plan to the first owner. Subsequently, SF5 was launched again, and the official website of Cyrus can also be booked. Xiaokang shares said that AITO Q&I is a new high-end smart car brand of Cyris under Xiaokang Co., Ltd., and Q&E M5 is the first model of the AITO brand. From the manufacture of the M5 to the entire value chain of the user car, Xilix is responsible for the development, manufacturing, delivery, service and creation of a pleasant car experience throughout the life cycle. Huawei is deeply involved in product definition, quality control, and channel sales.
However, consumers said that the problem of the Cyrus SF5 has been solved in the M5, and no one will buy the Cyrus SF5 at all, and this model has died in name only.
Red Star News reporter Wu Danruo Tao Yueyang
Responsible editor Ren Zhijiang
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