Huawei's 2021 financial report shows that in 2021, Huawei achieved a total revenue of 636.8 billion yuan, down 28.6% year-on-year, but net profit increased by 75.9% year-on-year to 113.7 billion yuan.
1. Since the net profit is affected by income tax and financial income, in order to better reflect the company's operating status, operating profit is a better judgment indicator. Compared with 2020, in 2021, Huawei's operating profit increased by 67.5%, and the operating profit margin increased from 8.1% to 19.1%, an increase of 11 percentage points.
2, nearly 20% operating profit margin, is still a very high figure, much higher than Huawei's highest in the past five years of 10.2%. The main change came from other net income and expenditure. It reached 60.8 billion yuan in 2021. That accounted for more than half of the $121.4 billion operating profit.
3. In the composition of other net income and expenditure, the net income from the disposal of subsidiaries and businesses was mainly 57.4 billion yuan, which accounted for more than 94% of other net income and expenditure.
4. The sale business mainly includes the sale of mobile phone sub-brand Glory and Super Fusion Digital Technology Co., Ltd., mainly for the sale of Glory.
The sale of subsidiaries and businesses, whether this should be counted as "operating income" or listed separately, is handled differently by different companies.
5. After removing "other net income and expenditure", Huawei's "net operating profit" in 2021 was 60.615 billion yuan, while the "net operating profit" in 202 was 71.809 billion yuan, down 15.6% year-on-year in 2021.
6. Sales revenue (excluding sales subsidiaries and brands) decreased by 28.6% year-on-year, and the decline in net operating profit narrowed significantly.
7. Calculate the "net operating profit margin" (= net operating profit / sales revenue), which is 8.1% in 2020 and 9.5% in 2021. This is the second highest in the last five years. Significantly higher than 2019 and 2020, which were affected by U.S. sanctions.
8. Compare the changes in revenue segmentation in 2021 and 2020:
The main revenue change came from the consumer business, which decreased by 49.6% year-on-year in 2021, accounting for 16 percentage points. The other three revenues fell only 3.7% year-on-year. During the same period, the overall gross margin of sales increased from 36.7% in 2020 to 48.3% in 2021, an increase of 11.6 percentage points. It can be seen that compared with other businesses, the gross profit margin of the consumer business is significantly lower. The decrease in consumer revenue has driven a significant increase in Huawei's overall sales gross margin.
9. In addition, Huawei's high R&D investment (the score is apportioned to the cost) has actually pulled down the sales gross margin in 2021 to a certain extent.
10, Meng Wanzhou talked about the reasons for Huawei's revenue decline also proved this, Meng Wanzhou gave three reasons: in the past 3 years, Huawei's supply chain has continued to be under pressure, and multiple rounds of US sanctions have had a great impact on Huawei's mobile phone and PC business; China's 5G construction has been basically completed in 2020, so there is not so much customer demand in China's 5G deployment; Huawei, like many companies around the world, has also suffered the same pressure under the epidemic.
11, this can also be understood, why Huawei repeatedly made it clear that it does not build cars. Because the manufacture of vehicles occupies a lot of money, and the gross profit margin of the whole vehicle manufacturing link is much lower than that of high value-added parts.