The Chinese multinational technology company has achieved an increase of 75.9% year-on-year and enters a fast track of ecosystem development.
Huawei Technologies Co., Ltd. released its 2021 annual report, revealing that the company maintained strong operations over the past year. According to the document, the Chinese multinational achieved revenue of 636.8 billion yuan in 2021 and 113.7 billion yuan in net profit, which represents an increase of 75.9% year-on-year. The company’s scientific research and technological development (R&D) expenditure reached 142.7 billion yuan in 2021, accounting for 22.4% of total revenue and raising the total investment in R&D over the past few years. 10 years to more than 845 billion yuan. Looking ahead, the company plans to continuously increase its investment in R&D.
Stability and solid operations
Guo Ping, Huawei’s rotating chairman, said that overall the company’s performance has been in line with forecasts. “The operator business was stable, the enterprise business experienced stable growth, and the consumer business was rapidly expanding into new areas. Additionally, we are on a fast track of ecosystem development,” he said.
For her part, Huawei CFO Meng Wanzhou explained that while revenues decreased in 2021, “the ability to earn profits and generate cash flows is increasing, and we have a better aptitude to deal with uncertainty. ”. Thanks to the higher profitability of the company’s main businesses, cash flows associated with operating activities increased dramatically in 2021 to a total of 59.7 billion yuan. In addition, the company’s asset-liability ratio decreased to 57.8%, and its financial structure has developed greater resilience and flexibility.
A better experience for users around the world
In 2021, Huawei’s carrier business generated 281.5 billion yuan in revenue and assisted carriers around the world in rolling out 5G networks.
Third-party testing has shown that the 5G networks built by Huawei for its customers in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia, offer the best user experience. Through collaboration with carriers and partners, Huawei has signed more than 3,000 commercial contracts related to industrial 5G applications. Currently, 5G applications of this type are seeing large-scale commercial use in sectors such as manufacturing, mining, iron and steel plants, ports, and hospitals.
Growth and digital transformation
Thanks to continuous digital transformation trends, Huawei’s enterprise business also saw rapid growth, with revenues of 102.4 billion yuan in 2021.
Over the past year, Huawei has introduced 11 scenario-based solutions for key industries such as government, transportation, finance, energy, and manufacturing. The company also established several specialized teams, including a coal mining team, a smart road team, and a port and customs team, with the goal of combining resources so that they can more efficiently respond to the needs of customers. Over 700 cities and 267 companies listed FortuneGlobal 500 have chosen Huawei as a partner in digital transformation, and the company currently works with more than 6,000 service and operations partners around the world.
A smart and fully connected era
Huawei’s consumer business focused on the needs and expectations of consumers and, as part of the strategy Seamless AI Life for consumers globally, continued to develop the global ecosystem to enable a fully connected and intelligent era.
In 2021, this business generated 243.4 billion yuan in revenue and continued to experience stable growth in sales of smart wearable devices, smart displays, headphones TrueWirelessStereo (TWS) and Huawei Mobile Services (HMS). In particular, the smart wearables and smart displays segments grew by more than 30% year-on-year. Total, Harmony OS It was used during 2021 in more than 220 million Huawei devices, making it the fastest growing mobile device operating system in the world.
Over the past year, Huawei has also focused its efforts on developing ecosystems. openEuler, MindSpore and HarmonyOS, that are based on the principles of open collaboration and shared growth. Today, more than eight million developers make use of open platforms, the software open source software and Huawei development tools to explore new business scenarios and business models.
“Looking forward, Huawei will continue to advance on its path of digitalization, intelligent transformation, and low carbon emissions. Based on talent, scientific research and an innovative spirit, we will continuously increase investment to reshape paradigms on fundamental theories, architecture and software, which will ultimately enable us to develop our long-term competitiveness,” Guo emphasized. Ping, rotating chairman of Huawei.
All financial statements included in the 2021 Annual Report have been externally audited by KPMG, one of the Big Four accounting firms.
To download the 2021 Annual Report, visit https://www.huawei.com/en/annual-report/2021.
Note: The closing exchange rate for 2021 is 1 USD = 6.3753 CNY.
For more information, visit Huawei online at www.huawei.com or access:
http://www.linkedin.com/company/Huawei
http://www.facebook.com/Huawei
http://www.youtube.com/Huawei
Source: Eluniverso
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