Guide
The annual Huawei Global Analyst Conference is undoubtedly one of the best opportunities for the outside world to get up close and personal with the company. At the event on April 26, Hu Houkun, Huawei's rotating chairman, not only brought a blockbuster speech on the company's future development, but also answered key questions such as survival, mobile phones, automobiles, meta-universes, and chips in the Q&A session.
The annual Huawei Global Analyst Conference is undoubtedly one of the best opportunities for the outside world to get up close and personal with the company. At the event on April 26, Hu Houkun, Huawei's rotating chairman, not only brought a blockbuster speech on the company's future development, but also answered key questions such as survival, mobile phones, automobiles, meta-universes, and chips in the Q&A session.
Hu Houkun said that Huawei currently encounters many difficulties, and will make efforts to ensure quality, steady operation and investment in the future to "survive with quality". He once again reiterated that Huawei does not build cars, but helps car companies build and sell good cars, and introduced the progress in the field of solutions and ecology.
For the metaverse of the recent fire, Hu Houkun believes that the future value of the metaverse is not only on the toC side, but also on the B side, and the value on the toB side is likely to be greater and should be paid enough attention. In addition, he stressed that although facing a shortage of chips, Huawei does not currently have its own chip factory.
The following is the QA transcript of the Hu Houkun Analyst Conference:
1. Shenzhen Business Daily: This year, Huawei put forward the goal of "surviving with quality", in order to achieve this goal, what areas will it focus on? What do you think is the biggest problem you are facing right now?
Hu Houkun: This year, our entire company's business policy is indeed centered on "letting the company live with quality". From last year's operating data, it can be seen that the difficulties faced in the past have not been reduced this year, and the changes in the external environment have brought more difficulties, such as geopolitical conflicts, the global epidemic has not disappeared, global inflation is coming, the price of commodities is rising, and exchange rate fluctuations may occur... These are the serious challenges encountered this year in the operating environment. In this case, Huawei believes that we must first survive, but we must improve the quality of survival. There are a few perspectives to share with you:
The first "quality of life" is that Huawei wants to ensure the quality of the products and solutions it provides to its customers. The competitiveness of products and solutions cannot decline, the continuity of services cannot be problematic, Huawei will take a lot of measures in this regard, in the past two years, we have done a good job in this regard, and customers are generally satisfied. Of course, in the current situation, we pay more attention to the voice of the customer. So in recent years, we have invested more resources in customer satisfaction management than in the past, hoping to know the problems encountered by customers at any time. Now the whole environment is like this, Huawei has difficulties, in fact, customers also have difficulties, and need to work with customers to find difficulties and solve problems at any time.
The second "quality of life" is reflected in Huawei's steady operation. As an enterprise, everything is empty, no matter how beautiful our imagination of the future is, nor how great the management is, Huawei must first achieve stable operation to survive. Here are a few points to pay special attention to:
The whole company is currently paying special attention to the quality of the transaction. As I have just said, we are now facing various external difficulties, which are all kinds of visible and invisible traps that we may encounter in our business activities, which pose new challenges to our ability to operate in the new situation. Frankly speaking, we are also currently encountering a lot of problems, we have to manage the quality of our transactions, for some low-quality transactions we will give up.
Huawei's entire business portfolio is now more diversified than in the past. With a relatively diversified business portfolio focused on the large ICT sector, we also require each business unit to do a solid job in sound operation. Now the structure of the business will be more diverse than in the past, in this architecture, we require each business itself to focus, to achieve quality development, if not to achieve quality development will eventually face the situation of being shut down.
The third "quality of life". Facing the future, we will continue to invest in innovation. We will continue to invest in talent, provide sufficient funds and resources to ensure that we optimize the innovation path, and through these measures, we can make our investment today more qualitative in future development.
2. People's Post and Telegraph reporter: Huawei has repeatedly proposed to continue to innovate and lead the industry, previously proposed 5.5G for wireless, and today Mr. Hu put forward 5.5G for fixed networks, what considerations did Huawei put forward these development visions? What is the significance and value of the development of Huawei's ICT industry?
Hu Houkun: We propose two 5.5Gs based on our belief that the demand for connectivity in the development of society is endless, and innovation in the field of connectivity should also be endless. In the past, there was a wrong way of saying that the connection is a sunset industry, but at Huawei, we don't agree with this at all, we think it is a sunrise industry. Speaking of two 5.5Gs, the first one we proposed in the wireless field was raised by Wang Tao at the MBBF of the mobile communication forum in Shanghai two years ago, and this issue is the most authoritative for him.
Wang Tao: As Mr. Hu said, the connection industry is not a sunset industry, but a sunrise industry, and the connection is the foundation of the intelligent world. Over the past three decades, mobile communications have been evolving at the pace of a decade-old generation. The field of communication mainly includes fixed communication and mobile communication, and the field of communication is generationd every ten years. Around 2020, mobile communications entered the 5G era, and 6G will wait at least until after 2030; then, in the next decade, technology cannot stand still, it should continue to evolve and develop; two years ago, when our 5G just began to deploy on a large scale, we proposed to define a roadmap for technology evolution in the process of 5G to 6G with the industry.
At present, 5G has been rapidly developed around the world, so far, more than 200 operators around the world have commercialized 5G, and the number of 5G users has reached more than 700 million. In this commercial process, we have also found that 5G itself still has many defects, such as speed, including upstream, downstream, etc. in many scenarios can not meet the demand, latency can not meet the requirements of some services, has not been able to truly support high-quality service experience requirements. In addition, the support capabilities of the Internet of Things also need to be improved. That's why we're calling on the industry to come together to define 5.5G. 5.5G For consumers, one of the most direct experience improvements is that by 2025, 5G technology can achieve a downward peak rate of 10 Gbps and an upstream rate of 1 Gbps.
Similarly, in the field of fixed networks, it was also 2 years ago that ETSI led and the joint industry defined the intergenerational of fixed networks, and at that time, it also borrowed the concept of mobile communications, called F5G. However, the development of new services in the past two years, including the process of the epidemic, has made us deeply aware that there is still a lot of room for improvement in the broadband quality and service experience of the current home, and in the home environment, the access rate of WiFi is low and unstable, and it is impossible to provide a seamless and high-quality user experience.
As a major supplier and a leader in the field of communications, Huawei has an unshirkable responsibility to continue to promote the continuous evolution of the fixed communications field. So we are also proposing the same evolutionary pace as mobile communications, and by 2025, we hope that fixed-line networks will also evolve to F5.5G. The biggest feature of F5.5G is to achieve 10 Gbps anywhere in the home broadband scenario, and 10 Gbps anywhere in the fixed network field refers to the average rate, and its peak rate must be further pushed up to 50G to achieve 10 Gbps anywhere. And this 10G is up and down to reach 10G, which can greatly improve our user experience in the broadband field.
Of course, we put forward this new industry vision, which requires the whole society and many companies, including device suppliers, equipment providers, operators, industrial organizations, etc. to work together to achieve 5.5G in both mobile communications and fixed communications around 2025 and create a better life for us.
3. Xinhua News Agency: Just now Mr. Hu focused on the HUAWEI CLOUD business in his speech, and we have obviously seen the growth of HUAWEI CLOUD business from last year's annual report, and we want to know what the next layout and direction of this business is.
Hu Houkun: Regarding HUAWEI CLOUD, first of all, for this business, we are still satisfied with the rapid growth of the past two years. On the one hand, its market share, such as the IaaS market share, currently ranks second in China and fifth in the world, which is a significant improvement over the past few years. On the other hand, we believe that a very important foundation for the business development of the cloud is the development of the ecosystem. In the past few years, the HUAWEI CLOUD ecosystem has also made great progress, and I have a few numbers to share with you, for example, we are now in the world, HUAWEI CLOUD has gathered more than 30,000 partners, there are now more than 2.6 million developers around HUAWEI CLOUD to do application development, and our cloud market has now listed more than 6,000 applications. Of course, this is what we have achieved. But at the same time, we must also be soberly aware that Huawei is still in the stage of trying to climb the slope in the cloud business. Compared with the world's leading cloud service providers, or even the domestic leading cloud service providers, we still need to narrow the gap in terms of market share and the competitiveness of cloud service providers' products.
This year, our cloud services team proposed the concept of "everything is service": infrastructure as a service, technology as a service and experience as a service, and we believe that their business strategy should be in the right direction. Taking the Chinese market as an example, we believe that a big change is now taking place in the country, that is, the digitization of thousands of industries is advancing at a speed faster than we imagined. The digitization of thousands of industries has actually brought very good development opportunities for the development of cloud business, especially public cloud business. Since large and small enterprises have to do digital transformation, so everyone's acceptance of cloud services is much greater than in the past, which means that we don't need to spend so much time to persuade customers how good the cloud is, everyone knows that the cloud is good. Now that everyone's needs are deeper and clearer, the next question is how to get to the cloud, how to use the cloud well, and the customers who generate these needs are often manufacturing enterprises or transportation companies like Huawei, which is what we usually call "traditional industries".
The application scenarios of these enterprises are different, and the production mode of each enterprise is different, so to help them get to the cloud and use the cloud well, they need very strong service capabilities, and this service capability is precisely Huawei's strength. Because everyone knows: First, Huawei itself has gone through the road of digital transformation for so many years, we are also using the cloud, we are also going to the cloud, we know where the difficulties are here. Again, Huawei has been doing To B business, doing more than thirty years, we know how to do To B business, our organization has been perfected, our capabilities have been built after so many years, so our HUAWEI CLOUD team is very keenly aware of such changes, this year put forward the concept of "everything is service", we think it is appropriate.
Under the strategy of "everything is serviced", we have seen many gratifying changes, and customers have become easier, more and more comfortable to use HUAWEI CLOUD services. For example, technology as a service, the tianjin port just introduced using AI development tools on HUAWEI CLOUD is a typical example. In terms of technology as a service, the First Affiliated Hospital of Xi'an Jiaotong University uses the Pangu Drug Molecular Model on HUAWEI CLOUD to do the research and development of a new broad-spectrum innovative drug, and the research and development time is shortened from the initial years to several months, which allows us to see the effect it brings. In addition, the experience-as-a-service we propose is to precipitate Huawei's own digital transformation experience, including the excellent experience of our customers and industry partners, to HUAWEI CLOUD in the form of aPaaS. These developments give us confidence in the next step of HUAWEI CLOUD's business.
4. Sullivan reporter: I also learned about the situation from your explanation, I would like to ask you what the prospects of Huawei's consumer business are? In view of the gap in the decline of consumer business, what strategy will Huawei use next to make up for it?
Hu Houkun: Our mobile phone business has declined significantly in the past two years, and everyone knows the reasons. For a business, no matter how big the challenge is, we always have to learn to manage this crisis. And crisis is both a threat and an opportunity. In the terminal business, although there has been a great decline in mobile phones, we can look at the terminal business with a new perspective. We found that the business of the terminal is not only the mobile phone, we now propose the hardware "1 +8 + N" plus software ecology to build a full-scene, intelligent experience, it has become a clear strategy for terminal business.
In the last year, our strategy initially worked. On the one hand, our "+8 products", such as wearables, watches, bracelets, as well as our speakers, smart screens, tablets, these devices have a good increase in shipments.
On the other hand, in terms of software ecology, our Hongmeng ecosystem has also developed well, and Huawei devices equipped with HarmonyOS have exceeded 220 million. Hongmeng Zhilian already has more than 1900 ecological partners. In addition, in 2021, the shipment volume of our new ecological equipment exceeded 100 million units. All of this makes us full of confidence in the future development of Hongmeng Ecology.
We have expanded the strategy of hardware plus software ecology to five major scenarios to create an intelligent user experience, including smart office, sports and health, smart home, smart travel, and audio-visual entertainment. Therefore, you can expect that in the future, we will continue to see us launch more excellent products, and we will also experience Huawei and our ecological partners to present more and better intelligent services to everyone.
I also want to take advantage of this opportunity today to preview to you, 2 days later, on April 28th, we will hold a folding screen flagship machine and our full-scene new product conference, and welcome everyone to pay attention to and visit!
5. "Main Station" reporter: How is Huawei's intelligent car business developing so far? Is it possible that the sales target of the previous online transmission will be completed this year? Will new cars be released this year?
Hu Houkun: The car is a question that everyone can't get around in everyone's attention to Huawei, first answer your last question about whether there will be a new car release this year, I want to say that there will definitely be, whether it is through huawei's smart selection mode or HUAWEI Inside mode, our partners have new models released, so stay tuned!
In addition, you just asked whether the sales target of Huawei's smart car this year can be achieved, in fact, this question does not need me to answer, Yu Chengdong has already answered. Of course, I think that the goals proposed by Huawei, even if they cannot be achieved, I hope that everyone can have more tolerance and understanding. Because after all, we are engaged in the car-related industry or a newcomer, we have to learn a lot of things, and may even make mistakes, which is inevitable, I hope you will be more tolerant.
I also want to report the latest situation of Huawei's current car business in combination with your question, which is also of concern to everyone. First of all, after so many years of groping, we now have a clearer understanding of the smart car parts business, the trends in our market and our opportunities. The so-called industry trend, we have seen more and more clearly, the automotive industry or travel industry it has indeed come to a key time inflection point, everyone often says the "four modernizations": electrification, intelligence, networking, sharing, in fact, has become a clearer and clearer future direction. Behind this "four modernizations" means that such a huge industry as automobiles, or a more huge industry such as travel, is entering a period of transformation, and in the process of this transformation, there is no doubt that digital technology and power electronics technology are definitely key enabling technologies.
Therefore, whether Huawei is in ICT technology or power electronics technology, we have accumulated a lot of technological innovation in the past three decades, such as network, computing, operating system, cloud, power electronics We have a lot of accumulation, so we call heroes useful. These technologies that we have accumulated in the past and are doing now will certainly be able to create value in the transformation process of the entire automotive industry in the future. Based on this understanding, we have further clarified how Huawei will develop in the future of this industry and what our strategy is, which is also familiar to everyone. Huawei does not build cars, our positioning is the supplier of smart car components, what we have to do is to gather our ICT capabilities, based on several key solutions, to help car companies, including traditional car companies, including new car manufacturers, to help them build good cars. At the same time, we are also fully open to the consumer-facing channels that we have formed over the past few years, which can help car companies that are willing to cooperate with us to sell good cars. Therefore, our positioning and strategy are also more clear.
Based on this positioning and business strategy, we will do a few things well, and here we will report to you. First, we focus on several key subsystems to create competitive solutions, including intelligent electric, intelligent driving, intelligent cockpit, intelligent networking, and intelligent vehicle cloud services. Based on such a solution, the second key work we have to do is to openly cooperate with the upstream and downstream partners of the industrial chain. For example, we are based on an open intelligent car digital platform, an autonomous driving platform, and a smart cockpit platform based on HarmonyOS to cooperate with partners in the upstream and downstream of the industry chain. At present, we have cooperated with more than 300 companies. On the other hand, we are also actively cooperating with automakers (including traditional automakers and new car manufacturers) in different ways, including cooperation at the subsystem level or at the specific component level, as well as more in-depth cooperation based on the HUAWEIInside model. And, of course, there's Huawei Smart. Therefore, you can see that now we are deeply cooperating with us, such as BAIC Polar Fox, Avita, GAC, and Xiaokang Xilis, all of which have gradually released or listed new models. We also believe that with the gradual development of the smart electric vehicle market, our positioning and choice of models will also be understood and recognized by more and more upstream and downstream partners.
6. Singapore Reporter: During the epidemic, Huawei helped the Asia-Pacific region to promote digital transformation, such as the new 5G hospital in Thailand and a series of digital transformation initiatives in the Asia-Pacific region. What is the progress? What are the future plans for digital transformation in the region?
Hu Houkun: The Asia-Pacific region is one of Huawei's most important markets besides China, and it is characterized by its large scale, large population and unbalanced economic development. But on the other hand, it has also shown a very active feature in the development of digitalization. I'm familiar with the Asia-Pacific region myself, so I'd like to talk to you about the digitalization of the Asia-Pacific region and what Huawei can do in the process. Strictly speaking, the Asia-Pacific region has both economically developed regions and a large number of developing countries, which makes everyone's needs in digitalization and the problems and challenges they face are not the same.
From my observations, I feel that the digitalization of Asia-Pacific has several characteristics:
The first is that for the vast majority of Asia-Pacific countries, the government's national strategy on digitalization is relatively advanced and very clear. For example, Thailand has "Digital Hub", Indonesia has "Digital Indonesia", and South Korea has a digital new deal "Digtal New Deal", and some national strategies to guide the development of digitalization in local countries. At the same time, we also believe that in the Asia-Pacific region, there are several common ways to promote the process of digitalization, the first is to build a strong digital infrastructure or greatly improve the level of local digital infrastructure. We see that in the Asia-Pacific region, there are not only economically developed countries, but also many countries with rapid economic development, such as Thailand, Indonesia, etc., which are directly due to the rapid development of digital infrastructure, such as 5G, broadband, and data centers. In terms of infrastructure in the Asia-Pacific region, on the one hand, we must help the host country build infrastructure, especially the wireless, fixed broadband network we just mentioned, and the data center. We've also invested heavily in helping local governments, operators, and businesses get the most out of these digital infrastructures.
The second key to digitalization in the Asia-Pacific region is to start adhering to a low-carbon development strategy now. From Huawei's point of view, we are actively promoting our green site solutions this year to help our customers build more green sites, which can help operators achieve emission reductions.
The third point that I would like to emphasize in particular is that the Asia-Pacific region has an important starting point in the process of promoting the digitization process, that is, to spend great efforts to grasp the cultivation of ICT talents, and an important feature of the Asia-Pacific region is that the age structure of the population is younger than that of Europe and the United States, so when doing this work, the Asia-Pacific region has its own advantages. To accelerate the development of ICT talents in the Asia-Pacific region, I believe it is inseparable from the joint efforts of the government, enterprises and society. For Huawei, because we are an ICT company that has been rooted in the Asia-Pacific region for a long time, we will do what we can do. For example, in terms of ICT talent training, Huawei has a plan, that is, through Huawei's ASEAN Academy and the "Seeds of the Future" program, it plans to train another 500,000 ICT talents in the Asia-Pacific region in the next five years. In addition, we hope to be able to help countries in the Asia-Pacific region in the empowerment of ICT start-ups. So we launched a special project called SPARK, and our plan is to invest $100 million over three years to help the Asia-Pacific region build a more active and healthy entrepreneurial ecosystem. Over the past many years, Huawei has taken deep root in the Asia-Pacific region, and we have established very deep feelings and business cooperation with the governments, operators, and customers of most countries, so we will continue to fulfill our commitments in the Asia-Pacific region in the future and truly help the Asia-Pacific region to do a good job in digital transformation.
7. Southern Daily: I would like to ask about the meta-universe of the recent fire, we know that many companies have released products and solutions in the field of meta-universe, how does Huawei understand the topic of meta-universe? Will we have a presence in the relevant product and solution areas?
Hu Houkun: The metaverse is indeed a very hot topic, but it is also a particularly big topic. It has a lot to discuss, and today, due to time, I can only pick a direction that I may have a little understanding of myself to exchange views with you. First of all, from a global point of view, the metacosm should still be in a period of hype, of course, this is also very normal, any new technical concept, etc., will go through such a stage when it is introduced to the market. Huawei is a technology company, for us, the more in this lively hype stage we have to be calm, what we have to do is to try to grasp the essence behind it as much as possible through the current hustle and bustle. By grasping these essences, we are better prepared.
If I talk about the nature of the metacosm, I also have a few immature views. First, I think the essence of the metacosm is fusion, and this fusion means the fusion of the physical and digital worlds. This convergence also means the digitization of the physical world and the realization of the digital world. This kind of integration is of practical significance, such as the digitization of the physical world, we through 3D modeling simulation, digital twins, virtual and real fusion and other technologies, in fact, it is possible to help us find the optimization of the physical world in the digital world. In addition, in the digital world, in a lower cost and more efficient way, we can optimize the operation of the physical world, for example, we can imagine the simulation training of autonomous driving in the future, the simulation of smart factories and the digital twins of smart cities, which may be the embodiment of such a fusion method.
Second, the future value of the metaverse is not only on the To C side, the value on the To B side is likely to be even greater. Especially at the moment, when people talk about the metaverse, they are basically talking about some applications of To C such as games and education. I personally believe that the value of the future development of the metaverse on the To B side should be given enough attention. When it comes to Huawei's technology strategy, I think it may be too early to say a complete strategy, but for a technology company like us, we need to calmly judge its future development and prepare step by step. And I believe that because Huawei focuses on a relatively wide range of technologies, the metaverse may have a lot of things we can do in the future, whether from connection, to computing, to the cloud, and even to the terminal, this aspect is a technical expert, and I also asked him to talk about his views on the metaverse.
Wang Tao: As Mr. Hu said, the metacosm is likely to be still in the hype period of the industry, and I can't talk about being an expert in this area, but let me talk about it, Huawei's various industries are now in order to come to the metacosm, we can unite the industry to jointly promote the construction of a real, immersive, interactive virtual digital world, around the metacosm Huawei industry in all aspects of the layout, simply to report to you.
Generally speaking, the metaverse that everyone says may involve a seven-layer model, but in fact, this seven-layer model includes infrastructure, terminals, decentralized services, as well as spatial computing, creation platforms, application platforms and content. For Huawei, Huawei is making our contribution to the development of the metacosm around the ICT infrastructure, cloud services and intelligent terminals that we have long focused on.
First of all, at the infrastructure layer, the development of the metaverse requires the full integration of the digital world and the physical world, so that it will put forward higher requirements for the delay of real-time interaction and the uplink and downstream bandwidth of communication, and a large number of renderings also require greater computing power and more diversified computing power. For example, we propose to define 5.5G, and redefine the computing architecture, etc., to some extent, to prepare for the arrival of the metaverse. At the terminal level, Huawei mainly conducts research and development and investment in mobile phones, glasses, wearable devices, including haptic devices, and other aspects. For example, we have built XR hardware, as well as solutions such as 3D spatial audio and video, as well as river maps for city-level AR scenes, which have made great progress. In the application and creation platform, we are mainly based on HUAWEI CLOUD planning and layout, just now Mr. Hu mentioned HUAWEI CLOUD MetaStudio in his speech, in fact, it is to build a digital content production line, for the digital world to continuously create more creative content, which is also a good solution for us to support the development of the meta-universe in the future.
In any case, the metaverse is still in the early stage of development, Huawei will actively prepare for the accumulation of technology in all aspects, we are willing to explore with the upstream and downstream of the industry to find out how the metacosm can better serve the various scenarios of whether it is To C or To B, and we also look forward to bringing more contributions and value to our lives and work in the future.
8. Japan Broadcasting Association NHK: My question is about chips, in order to solve the problem of chip supply chain, does Huawei have its own chip factory? Are there any long-term plans for the future of chip supply security? Can Huawei's recent patented 3D stacking technology ease the pressure of facing U.S. sanctions?
Hu Houkun: First of all, although Huawei is now facing a shortage of chips, we are not building our own chip factory at present, and we still believe that the division of labor in the industry has its requirements.
Wang Tao: The problem of chips may not have been a problem in the past, but in recent years, due to geopolitical competition and the epidemic, the global unified industrial chain on which we originally lived has been broken. In the past, the public did not need to pay attention to chips at all, and now it has become a problem that the general public is worried about. However, what we see is a chip, the industrial chain behind it is very long, it involves chip design, manufacturing, packaging, testing and other links, in order to support these links, the upstream also involves equipment, machines, materials and other longer chains, in such a long chain, any company in the world, including Huawei, can not solve this problem by themselves.
Therefore, the problem of chips to be completely solved, the whole industry chain upstream and downstream of the joint efforts. And to a certain extent, we can only better solve this problem by relying on a globally unified supply chain. If for one reason or another, one-sided decoupling and splitting may not be conducive to the development of our global ICT industry, which will only cause industrial regression and cost increase, and there has been a global "lack of core" and a sharp rise in prices, and finally these costs will be passed on to consumers. But on the other hand, in fact, we also see that it may also bring some positive impact, in recent years, due to the shortage of chips, so that various countries around the world, including China, have increased investment in various chains of semiconductor manufacturing. We have also seen that whether in China or in many regions abroad, everyone's ability in all aspects of the semiconductor manufacturing chain has been improved, production capacity has also been improved, and the localization production line has also made rapid breakthroughs. We believe that the shortage of chips throughout the supply chain may be alleviated within a few years, and we also look forward to the success of these companies, and naturally Huawei's problem will be solved."
But I also understand that recently some friends, customers, and partners have paid attention to Huawei and supported Huawei, worrying about whether Huawei's products will lag behind in this situation. As Mr. Hu just introduced, I am responsible for product research and development and R&D investment management in the ICT field. I can tell our customers and our partners with more certainty, in fact, Huawei's innovation is three-dimensional, all-round, in other words, Huawei is using the method of system engineering to develop products, in the recent annual report conference Guo mentioned that Huawei uses a variety of ways to achieve the reconstruction of basic theory, software reconstruction, hardware reconstruction, we design a product, often from the system architecture, algorithms, software, optical devices, RF technology and other aspects to reconstruct a leading product, Therefore, we are confident that we will continue to maintain the leading position of our main products in the coming years and continue to create value for our customers.
Specific to the specific patent mentioned by Mr. Reporter from NHK, the patent was applied for by Huawei in 2019, the technology involved in the patent is more common in the industry, Huawei has many years of accumulation in this regard, we are based on chip 3D stacking, 3D packaging or chiplet technology, to achieve the most advanced chip or system in the case of the process is relatively not so leading. Of course, we have accumulated a lot of technology and innovation, so we are confident that we will always provide leading products and solutions to serve our customers and partners.