Huawei released its 2021 annual report yesterday (March 28). According to the report, Huawei achieved global sales revenue of 636.8 billion yuan, a decrease of 254.6 billion yuan from 2020. Among them, the operator business achieved sales revenue of 281.5 billion yuan, the consumer business achieved sales revenue of 243.4 billion yuan, and the enterprise business achieved sales revenue of 102.4 billion yuan. Net profit for the full year was RMB113.7 billion, up 75.9% year-on-year. Huawei's R&D investment in 2021 reached 142.7 billion yuan, accounting for 22.4% of the annual revenue. In 2021, Huawei's operating cash flow increased significantly, reaching 59.7 billion yuan, and the asset-liability ratio decreased to 57.8%.
Guo Ping, huawei's rotating chairman, and Vice Chairman and CFO Meng Wanzhou attended the 2021 performance briefing, which was also Meng Wanzhou's first public appearance after returning to China. Talking about the decline in revenue, Meng Wanzhou said that there are three main reasons, one is that it has encountered multiple rounds of sanctions from the United States, and Huawei's mobile phone, PC and other businesses have been under great pressure; second, China's 5G construction has been basically completed in 2020, so the customer demand for 5G business has decreased; third, the impact of the epidemic, Huawei is also under pressure under the epidemic. In 2021, Huawei's operating cash flow increased significantly, reaching 59.7 billion yuan, and the asset-liability ratio fell to 57.8%. 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. ”
Guo Ping, huawei's rotating chairman, gave answers to several important questions:
Mobile phone business and chip problems, Huawei's annual report pointed out that in 2021, the cumulative shipment volume of Huawei's P series exceeded 100 million units, and the global nova users exceeded 190 million. As for whether it will build a chip factory to solve the problem of chip supply, Guo Ping said that chip supply cuts have a great impact on Huawei's mobile phone business, but the continuity of ToB business is still guaranteed. In addition, he said that Huawei will invest in three reconstructions in the future, using stacking, area for performance, and using less advanced processes to make Huawei's products competitive. Guo Ping said that solving the chip problem is a complex and long process, which requires patience, and in the future, our chip solution may use a multi-core structure to improve chip performance. In terms of consumer business, Huawei will focus on expanding new areas such as wearables and whole house intelligence.
By the end of 2021, the number of Huawei devices equipped with harmonyOS operating system has exceeded 220 million, and Guo Ping said that Hongmeng OS currently has no plans to develop overseas. CCTV Financial reported that this year's Hongmeng 3.0 will also be launched soon.
In terms of operator business, according to third-party reports, in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia, huawei's 5G network user experience is the best. 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.
In the auto business, Guo Ping once again reiterated that Huawei does not build cars. Guo Ping said that Huawei insists on not building cars and helps 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 terms of talents, for the question of whether Huawei will lay off employees under difficult circumstances, Guo Ping said that scientific research and innovation are the basis for Huawei's survival, and will continue to increase the absorption of talents, especially top talents. He revealed that Huawei recruited 26,000 fresh graduates last year and the year before, of which more than 300 were talented teenagers. In 2022, it plans to recruit more than 10,000 fresh graduates. Guo Ping said, "Only excellent talents can solve Huawei's current difficulties." According to the financial report, Huawei currently has about 195,000 employees, which is 2,000 fewer than the number of employees in 2020. Huawei's salary, salary and other benefits in 2021 will reach 137.1 billion yuan, a simple average, the average annual salary of employees is 703,000 yuan.
Finally, in the face of the "survival problem", Meng Wanzhou said: "For Huawei in 2021, we may have passed through the 'black barrier area' of this disaster. Guo Ping also concluded, "In 2021, we survived. "But Huawei still has to fight for survival, there are many difficulties to overcome, but no matter how big the difficulties, we must unswervingly increase investment, so that Huawei has a future." The problems we face have not yet been solved, and Huawei will continue to survive and seek development in 2022. ”
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