On the afternoon of March 28, Huawei held a global press conference for its 2021 annual report, which lasted nearly 90 minutes.
The conference was mainly hosted by two people, namely Guo Ping, Huawei's rotating chairman, and Meng Wanzhou, Huawei's CFO.
Guo Ping mainly answered Huawei's strategic direction content, and Meng Wanzhou mainly shared Huawei's financial data last year.
This article will extract the main content of the conference to share with you, so that you can easily understand the latest trends of Huawei.
First, what is Huawei's performance in 2021?
According to Meng Wanzhou, Huawei's revenue in 2021 is 636.8 billion yuan, a decrease of 254.5 billion yuan compared with 2020, a sharp decrease of 28.6% year-on-year.
Don't look at Huawei's revenue decline so much, but Huawei's net profit has increased against the trend to 113.7 billion yuan, an increase of 49.1 billion yuan compared with 2020, up 75.9% year-on-year.
Why is Huawei's net profit increased by 49.1 billion yuan while reducing revenue by 254.5 billion yuan? Isn't that a bit unreasonable?
In fact, we ignore the reality that Huawei sold glory at the end of 2020. After selling Glory, Huawei's consumer business dropped to 243.4 billion yuan, compared with 482.9 billion yuan in 2020, sales revenue is close to the waist.
Huawei's consumer business decline in 2021 is already comparable to the decline in Huawei's performance in 2021, so this part is the reason for the sharp decline in Huawei's performance.
In addition, Huawei's 5G overseas business has been frustrated, and the domestic 5G has been basically stable, and the growth rate will be relatively small. The epidemic is also a factor that cannot be ignored, and Huawei has also been affected.
The main reason for the rise in net profit is the sale of Honor by Huawei, which may have accounted for more than 50%. Meng Wanzhou said that in addition to this part of the revenue, Huawei's net profit margin has risen by adjusting its business structure and improving management efficiency.
In terms of cash flow, Huawei had 59.7 billion yuan on its books, an increase of 69.4% year-on-year. Cash flow is the lifeblood of a business, and as long as cash flow continues, the business is still full of hope. At the same time, Huawei has also reduced its debt ratio.
On the whole, Huawei's financial report data is good and bad, at least it has obtained the best results under the same encounter!
Meng Wanzhou also said that although Huawei's scale has become smaller, the company's ability to face uncertainty is increasing, and Huawei has passed through the "black barrier area".
Second, in which areas is Huawei growing steadily?
It is understood that although Huawei's performance in the consumer business has fallen sharply, the company has achieved good results in the field of smart wear, with an increase of more than 30% year-on-year. A total of 220 million Huawei devices worldwide are equipped with the Hongmeng system, which is the fastest growing operating system.
In addition, HUAWEI's cloud business also developed rapidly, with revenue reaching 20.1 billion yuan, an increase of 34% year-on-year. One on a global scale became one of the top five in the world. The cloud services that preceded HUAWEI CLOUD were Amazon Cloud, Microsoft Cloud, Alibaba Cloud, and Google Cloud.
Third, does Huawei build a car?
Some media have always questioned Huawei's car manufacturing, because with Huawei's current scientific research strength, it is fully capable of creating a new energy vehicle.
Guo Ping responded that the company will not build cars, huawei will only use its own technology accumulation to help car companies build cars well and sell cars well.
At present, Huawei has cooperated with about 30 models, including: Beiqi Blue Valley, Changan Automobile, Xiaokang Shares, etc.
Why doesn't Huawei build a car? Obviously, Huawei has stronger strength, which is a question worth thinking about.
Huawei's goal is clear, and it wants to be Microsoft in the automotive field. This is what Huawei is best at, and it is also an area where Huawei has the lowest cost of trial and error relatively.
Suppose Huawei builds its own cars, how can the system be sold to other car companies?
What Huawei has to do now is to win steadily, not to take risks. There are already many companies that have been discouraged by entering the field of new energy vehicles.
In addition, car manufacturing will definitely encounter a shortage of chips. Huawei's biggest fear is also the chip shortage, if it were not for the chip shortage, Huawei's performance in 2021 would not have dropped so much.
Fourth, how does Huawei view the chip problem?
Guo Ping said that chip shortage is a long-term, complex problem, and it is not wise to blindly repeat development. Under the current circumstances, Huawei is willing to see other manufacturers participate, bypass the problem of advanced technology, and seek systematic breakthroughs.
In other words, Huawei is ready for a continuous lack of advanced chips in the future, and what Huawei can do is improve the user experience.
So will Huawei build its own chip factory? Guo Ping's answer is NO. Because advanced chips are mainly used in mobile phones, this will only affect the consumer business, and will have little impact on the company's To B business.
5. What is Huawei's recruitment plan?
In fact, yesterday a reporter asked about Huawei's layoffs, but Guo Ping did not answer positively, but introduced the future recruitment of Huawei.
Guo Ping pointed out that it is not money that can help Huawei, but top talents. In the past two years, Huawei has recruited 26,000 fresh graduates and more than 300 talented teenagers. More than 10,000 new graduates will be recruited in 2022.
Therefore, if you are a technology talent who graduated from a prestigious university and want to seek a high income, you can pay attention to Huawei's recruitment window this year!
Overall, Huawei has experienced confusion when it encountered difficulties, but it has now found a new direction for growth. Huawei's life is like a cat, there are nine lives, even if Huawei uses up one life, there are already 8 lives can live better.
This is the best of times, but also a worst of times, with the integration of capital thinking and innovative models, the whole world is your stage!
In the new business world, there are no eliminated industries, only eliminated products and outdated business models, and all commercial competition in the future will focus on product innovation and model innovation.
A company or a boss, if the shortage of innovation ability is doomed to lose in advance, remember that there is no innovation, where there is imagination!