Source: China Fund News
Meng Wanzhou made his first public appearance after returning to China, releasing Huawei's 2021 financial report! Huawei held a 2021 business financial report press conference at its headquarters in Shenzhen on the afternoon of the 28th, and the financial report was summarized in one sentence: less income, more money earned. In 2021, Huawei's revenue was 636.8 billion yuan, down 28.6% year-on-year, and net profit was 113.7 billion yuan, up 75.9% year-on-year.
It is worth noting that this is the first public appearance of Meng Wanzhou, vice chairman of Huawei and CFO, after returning to China last year. In addition, Guo Ping, huawei's rotating chairman, also attended the press conference.
Meng Wanzhou "went home" for six months: "Only by working hard not to be absent can we catch up with the changes in the motherland"
Meng Wanzhou said at the press conference, "The last time I participated in the Huawei financial report conference was 4 years ago, in the past 4 years, the world has changed a lot, the motherland has also changed a lot, in the months of returning to China, I have been working hard to learn and keep up with these changes." ”
In the subsequent media Q&A session, when asked how Meng Wanzhou felt after returning to China for 6 months, Meng Wanzhou used a Chinese saying to say: "One day in the Cave, the world has been a thousand years, go home for six months, I only have to work hard not to be absent, in order to catch up with the changes in the motherland." ”
Annual revenue of 636.8 billion yuan, profit increased to 113.7 billion yuan, an increase of 75.9% year-on-year
Back to Huawei's performance.
Huawei's 2021 annual report shows that in 2021, Huawei will earn less and make more money.
Specifically, global sales revenue was RMB636.8 billion, down 28.6% year-on-year, and net profit was RMB113.7 billion, up 75.9% year-on-year.
Guo Ping, rotating chairman of Huawei, pointed out: "The company's overall operating situation is in line with expectations, the performance of operator business 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. ”
Meng Wanzhou said at Huawei's 2021 annual results conference that the company's revenue decline during the period was mainly due to three factors:
First, Huawei's mobile phone and other businesses have been greatly under pressure;
Second, China's 5G construction is not so much demand;
Third, enterprises are under pressure under the epidemic, and Huawei is the same.
By sector, in 2021, Huawei achieved sales revenue of RMB281.5 billion in the carrier business sector, down 7% year-on-year. 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 RMB102.4 billion, an increase of 2.1% year-on-year. 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.
The terminal business adheres to the consumer-centric approach, builds a global ecosystem of intelligent connection of all things and billions of connections, and brings global consumers an all-scenario smart life experience, and the consumer business achieves sales revenue of 243.4 billion yuan, down nearly 50% year-on-year. Smart wearables, smart screens, TWS headsets and consumer cloud services all continued to grow, with wearables and smart screen business revenue increasing by more than 30% year-on-year. With more than 220 million Huawei devices equipped with HarmonyOS, it is the fastest growing mobile terminal operating system in the world.
In response to relevant questions, he pointed out that in the past, time was a more difficult time for Huawei, and now, Huawei has passed through the "black barrier area".
Meng Wanzhou: The scale has become smaller, but profitability and cash flow acquisition capacity are increasing
Thanks to the improvement in the profitability of its main business, Huawei's operating cash flow has increased significantly in 2021, reaching 59.7 billion yuan, and the asset-liability ratio has been reduced to 57.8%, and the resilience and resilience of the overall financial structure are strengthening.
In this regard, Meng Wanzhou said: "Our scale has become smaller, but our profitability and cash flow acquisition capabilities are increasing, and the company's ability to cope with uncertainty is constantly improving." ”
R&D investment of 142.7 billion yuan hit a record high Meng Wanzhou: The biggest wealth is not on the statement
Meng Wanzhou said that the biggest wealth is not on the statement. "Huawei's real value lies in the fact that long-term investment in research and development, the R&D capabilities, R&D teams, and R&D platforms that have been precipitated and accumulated are the core of Huawei's long-term and sustainable competitiveness."
Specifically, in 2021, Huawei will continue to increase its R&D investment, reaching 142.7 billion yuan in R&D in 2021, accounting for 22.4% of its annual revenue, and the cumulative R&D expenditure in the past decade will exceed 845 billion yuan.
In 2021, there will be approximately 107,000 people engaged in research and development, accounting for about 54.8% of the company's total workforce.
As of December 31, 2021, Huawei holds more than 45,000 valid licensed patents worldwide (more than 110,000)
Guo Ping pointed out in the annual report that the more difficult the period, the more attention is paid to the investment in the future. In 2021, both R&D expenses and expense ratios are at their highest levels in nearly a decade. At present, Huawei's R&D investment ranks second among global enterprises.
Guo Ping said that in the past two years, 26,000 fresh graduates have been recruited, of which more than 300 have been defined by Huawei as "talented teenagers". It plans to recruit 10,000 fresh graduates in 2022.
He said that no matter how great the difficulties, we must unswervingly increase investment so that we can have a future.
Guo Ping: Huawei insists on not building cars, helping customers build good cars, and has listed more than 30 smart car parts
Huawei rotating chairman Guo Ping said: Huawei is now facing difficulties that advanced technology is not available, we want to survive, we must increase strategic investment, in the single point of technology leadership encounters difficulties, and actively seek system breakthroughs.
Guo Ping said that Huawei will continue to promote three reconstructions: theoretical breakthroughs, architectural reconstructions, and software remodeling. In terms of basic theory, it explores the theoretical essence of computing and communication, breaks through the bottleneck of industrial evolution; in terms of architecture design, it does not rely on single point optimization to promote the construction of the overall competitiveness of the system; software, rooted in software core capabilities, reconstruct the core basic software stack.
Guo Ping said that Huawei is also undergoing a new round of industrial transfer to adapt to the current exploration trend of digital intelligence. For example, Guo Ping said, in terms of digital energy, the integration of digital technology and power electronics technology to promote carbon neutrality; sports health, to meet the surge in demand for scientific movement and active health. Guo Ping also stressed that Huawei does not build cars, but helps car companies build good cars, sell good cars, and work with partners to accelerate the intelligence of the automotive industry.
When talking about the smart car business, Guo Ping said that Huawei insists on not building cars and helping customers build and sell good cars. He revealed that Huawei's smart auto parts business has listed more than 30 smart auto parts, and in the past year, it has developed more than 300 industrial chain partners.
In addition, in the past year, Huawei has adhered to the concept of openness, collaboration, and altruism, and focused on creating a prosperous Euler, Shengsi, and Hongmeng ecosystems, and more than 8 million developers have used Huawei's open platform, open source software, and rich development tools to explore innovative business scenarios and business models.
Including more than 220 million Huawei devices equipped with HarmonyOS, HarmonyOS Connect has more than 1,900 ecological partners, more than 4,500 Hongmeng Zhilian certified product categories, and the number of new product shipments exceeded 115 million units in 2021.
At the same time, HMS, the world's third largest mobile application ecosystem, is booming, with HMS's global applications increasing by 147% year-on-year and distributing more than 432 billion applications worldwide.
Relying on the ICT infrastructure technology advantages of end-pipe cloud collaboration, accelerating the construction of a symbiotic and shared digital ecosystem, and helping the digital transformation of all walks of life, more than 700 cities and 267 Fortune Global 500 companies have chosen Huawei as a digital transformation partner, and more than 30,000 Huawei enterprise market partners.
As the world's fastest growing mainstream cloud service provider, HUAWEI CLOUD continues to enable thousands of industries, launching more than 220 cloud services and more than 210 solutions, aggregating more than 30,000 partners around the world, developing 2.6 million developers, and listing more than 6,100 applications in the cloud market.
Guo Ping stressed: "Huawei will move forward in the direction of digitalization, intelligence, and low carbon, rely on the three elements of talent, scientific research, and innovation spirit, continue to increase investment, and strive to reconstruct the technical base of basic theory, architecture, and software to build long-term competitiveness." ”
The average annual salary is 703,000 yuan
According to the annual report, Huawei currently has about 195,000 employees, which is 2,000 fewer than the number of employees in 2020. The business covers more than 170 countries and regions, serving more than 3 billion people worldwide.
Huawei's salary, salary and other benefits in 2021 will reach 137.1 billion yuan.
On average, the average employee's average annual salary is 703,000, and the average monthly salary is 58,600.
2022 also requires survival and development
Guo Ping said that in 2021, Huawei survived. Huawei continues to win the recognition of customers and the industry in terms of product strength and innovation. However, the problems faced by Huawei have not been completely solved, and it will continue to "survive and seek development" in 2022.