Through arduous efforts and unremitting efforts, Huawei has demonstrated its tenacious vitality despite hardships and setbacks.
On April 30, Huawei Investment Holding Co., Ltd. announced its operating results for the first quarter of 2024. According to the data, in the first quarter of 2024, Huawei's operating income was about 178.45 billion yuan, a year-on-year increase of 36.66%, and the net profit attributable to the parent company was about 19.65 billion yuan, a year-on-year increase of about 564%, and the net profit margin reached 11%, a significant increase of 8.7 percentage points from 2.3% in the same period last year.
Huawei's report card has hit the best level in the past five years, which seems to indicate that Huawei has been resurrected.
Huawei's revenue in the first quarter of this year is close to the level of 2020, ending the sluggish trend in the first quarter of the past two years, and the net profit has reached the highest level in the past five years, achieving a strong recovery, while the net profit margin has also returned to above 10%.
Why was Huawei able to run wild in the first quarter of this year?
The two-wheel drive of "smart phone + smart car" has become the two major weapons for Huawei's strong comeback.
High-end mobile phones help Huawei return to the first place
In terms of smartphones, Huawei has made frequent efforts since last year and has achieved good results.
At the end of August last year, Huawei's high-end flagship mobile phone Mate 60 became popular, the mobile phone is equipped with Kirin chips, with 5G network Internet speed, strong scientific and technological strength and excellent performance. Since its release, the Mate 60 series has been in short supply and the market has gained popularity, which has greatly boosted Huawei's smartphone sales.
In addition, at the beginning of this year, the Huawei nova 12 was launched, and the phone also performed well, pushing Huawei to regain the domestic smartphone sales throne together with the Mate 60 series.
According to Canalys data, in the first quarter of this year, Huawei shipped 11.7 million units in China's smartphone market, up 72.1% year-on-year, making it the fastest-growing manufacturer, with a market share of 17% (+7 percentage points), ranking first among all smartphone manufacturers.
After 13 quarters of ups and downs, Huawei has finally returned to the top spot in China's smartphone market.
Mate 60 and nova 12 are both high-end products, Mate60 series price starts at 5499 yuan, nova 12 The lowest price is also close to 3000 yuan, both of which have strong premium ability, driving Huawei's gross profit margin in the first quarter of this year to increase by 3.91 percentage points year-on-year to 50.27%, which significantly promoted the growth of Huawei's profits.
Based on the strong growth of new models, market research agency TechInsights predicts that Huawei's smartphone shipments in China will exceed 50 million units in 2024, and its market share will increase significantly from 12% in 2023 to 19% in 2024, and regain the top position in the Chinese market.
The smart car business exploded, and a turnaround is in sight
Huawei's Internet of Things (IoT), autonomous driving and other technologies are first-class in China, and in order to take a share of the booming new energy vehicle market in China, Huawei has put a lot of energy into the smart car track, and has gained a lot.
Huawei's 2023 annual report shows that since its establishment in 2019, Huawei has invested more than 30 billion yuan in R&D and 7,000 R&D personnel. Jin Yuzhi, CEO of Huawei's Intelligent Vehicle Solution BU, said: "Huawei's vehicle BU is currently in a period of rapid growth, with more than 3 million sets of smart components shipped in 2023, 7 strategic cooperation models on the market, and more than 300 upstream and downstream partners in the industry chain. ”
Huawei has carried out in-depth cooperation with Celis (601127.SH), and the Wenjie brand under Sailis wears a halo and stands out in the domestic new energy vehicle market.
In the first quarter of 2024, with the outstanding sales data of the M7 in the market, Wenjie successfully topped the sales ranking of new domestic car-making forces. According to the data, in the first quarter of this year, the cumulative sales of Wenjie reached 85,800 units, a year-on-year increase of more than 600%, becoming the fastest year-on-year growth brand among all new car-making forces. This achievement has also enabled Wenjie to surpass the ideal (02015.HK) (LI.US), and the ideal, which has been at the peak of the new car-making force in recent years, can only be relegated to second.
The rapid growth of sales has had a positive impact on Huawei's operating performance. Yu Chengdong, former CEO of Huawei's Device BG, could not hide his joy, describing Wenjie as a product that brought Huawei's smart car business back to life.
Yu Chengdong said in March this year that Huawei's smart car business has completed a turnaround in the first three months of 2024, and the car BU is close to the edge of breakeven, and it is expected to turn losses into profits from April to achieve benign positive development.
It is worth mentioning that Huawei recently released an internal personnel adjustment document, announcing that Yu Chengdong will serve as the chairman of the terminal BG, and He Gang, the former chief operating officer of the Huawei terminal BG, will take over as the CEO of the Huawei terminal BG.
Author: Far away