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Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

Although there are many strong private enterprises in the mainland, such as Alibaba, Tencent, JD.com, etc., there are really few qualified to be called "national enterprises". However, Huawei is a company that has been recognized by the majority of the people and is known as the representative of the Chinese national enterprises.

The reason for this is because Huawei has made great contributions to the development of the mainland. As a technology company, Huawei has strong strength in the field of intelligent digital products such as network communications and mobile phones. In today's 5G era, Huawei has become the global "5G leader", injecting impetus into the rise of mainland science and technology that cannot be ignored. In this case, Huawei, which has made a reputation for mainland science and technology, has naturally become the common pride of everyone.

Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

But at the same time, Huawei's rapid rise has also attracted external pressure on itself. With the intervention of the United States, Huawei's semiconductor supply chain is completely broken, and high-end chips are only supported by previous inventories.

For Huawei's consumer business, such a blow is undoubtedly devastating. Due to the lack of cores, Huawei's high-end flagship models cannot be produced at all. In terms of supplier business, Huawei has also been excluded from the 5G construction process in many countries because of the virtual equipment security problems. Both major businesses have been seriously hit, and Huawei has undoubtedly ushered in the biggest difficulty in history.

According to Huawei's financial report data, its total revenue in 2021 was 636.8 billion yuan, down 28.6% year-on-year. You know, since Huawei began to publish financial data in 2006, revenue has been rising. The first time there was a decline of so high, it can be seen how much Huawei has been hit.

Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

Huawei, which once ranked in the top three in global mobile phone shipments, has now fallen out of the top five. And according to the data, Huawei's employee scale in 2021 has been reduced by more than 2,000 people.

All of the above data show that Huawei is in a difficult situation, but what is surprising is that in this case, Huawei's net profit data last year did not fall but rose, and the increase was amazingly high. What's going on here? Let's take a look at it together.

According to the data, Huawei's total net profit last year reached 113.7 billion yuan, an increase of 75.9%. If Huawei's revenue also maintains a rising trend, this situation is understandable. But Huawei's revenue and net profit data last year completely showed two extremes, which is a bit strange.

Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

It is reported that the reason why Huawei's net profit data rose sharply last year was mainly due to the sale of two major subsidiaries of Glory and Super Great Change. This can also be seen from Huawei's financial report data that the net profit of up to 57.431 billion yuan comes from part of the transaction payment, which is undoubtedly the profit from the sale of subsidiaries.

Among them, the sale of glory can be said to account for the majority. Although Honor was previously only a subsidiary of Huawei, its influence is also very huge. According to the data, the shipment volume of honor mobile phones in 2020 is as high as more than 70 million units, which is also considered to be "top-notch" among domestic mobile phone brands in the mainland. For such a subsidiary with great development potential, Huawei will certainly not choose to sell it in the past.

Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

However, today is different from the past, considering Huawei's current difficult situation, the sale of Honor Company can not only be exchanged for considerable cash flow, alleviating the current "urgent need", but also to a certain extent, it can save Huawei's chip resources and production capacity, so that some of its high-end models will not be completely out of production.

In summary, Huawei achieved a sharp increase in net profit through the sale of subsidiaries last year, but this year it is estimated that it will not be able to avoid the decline. For Huawei, the biggest key to getting out of this difficulty is to independently master the core technology of the chip. At present, Huawei is constantly putting this into practice, and strives to no longer be subject to others in the future.

Huawei's revenue fell, but its net profit soared by 75.9%! What the hell is going on?

Finally, let's wish Huawei to achieve "chip self-improvement" as soon as possible and bloom more dazzling in the global technology market.

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