Huawei Releases 2021 Annual Report, YoY Profit up by 75.9%

Huawei released its 2021 Annual report today which reflected the company’s solid operations throughout the year. The report shows that the Chinese tech giant amassed CNY636.8 billion in revenue and CNY113.7 billion in net profits. In sum, Huawei’s total profit increased by 75.9% year-on-year.

The report ushers us into Huawei’s other key financial transactions. As per the data, the company spent CNY142.7 billion in 2021 for R&D, 22.4% of its total revenue. This amounted to the company’s total R&D expenditure over the decade to over CNY845.

Likewise, the company stresses further increasing its investment in R&D.

Guo Ping, Huawei’s Rotating Chairman, told at the press conference, “Overall, our performance was in line with forecast. Our carrier business remained stable, our enterprise business experienced steady growth, and our consumer business quickly expanded into new domains. In addition, we embarked on a fast track of ecosystem development.”

Meng Wanzhou, Huawei’s CFO also spoke at the event. She highlighted the company’s rising “ability to make a profit and generate cash flow” despite revenue decline. She was also upbeat about the company’s courage in “dealing with uncertainty.”

Huawei’s cash flow significantly increased in 2021 to CNY59.7 billion. The company has attributed it to the “enhanced profitability of its major businesses”.  Meanwhile, it was able to drop the liability ratio to 57.8% while strengthening its financial structure more resilient and flexible.

Also read: Huawei Gets Int’l Data Protection Trustmark Certification by Singapore’s IMDA

Huawei growing its 5G clout stronger

As per Huawei’s annual 2021 report, the company generated CNY281.5 billion in revenues from its telecom businesses while helping many carriers deploy 5G networks. Third-party tests have found 13 countries where Huawei gears are deployed the 5G experience has been very satisfying. These countries include Switzerland, Germany, Finland, the Netherlands, South Korea, Saudi Arabia, etc.

The report shows that Huawei has more than 3,000 commercial contracts for industrial 5G applications. These application spans manufacturing, mines, iron and steels plants, ports, and hospitals.

Due to the growth of transformation trends, Huawei also saw its enterprise business grow rapidly generating CNY102.4 billion in revenue in 2021. The company has also established multiple dedicated teams, including a Coal Mine Team, a Smart Road Team, and a Customs & Port Team, to combine resources in a way that more efficiently serves the needs of its customers.

Over 700 cities and 267 Fortune Global 500 companies have proudly preferred Huawei as their digital transformation partner. Now, Huawei is working with more than 6,000 services and operations in the world.

Check out: Huawei unveils IntelligentRAN Architecture

Growing consumer business

In the consumer business, Huawei cashed in on the consumer wants and needs helping the company build a global ecosystem for a smart and more connected era. The company is driven in this segment as part of the Seamless AI Life strategy for consumers worldwide.

In total Huawei generated CNY243.4 billion in revenue in 2021 in the consumer business. The company has seen steady growth in smart wearables, smart screens, true wireless stereos (TWS) earbuds, and Huawei Mobile Services (HMS).

Particularly, Huawei saw its wearable and smart screen segments both score over 30% Y-o-Y growth. Likewise, HarmonyOS has powered over 220 million Huawei devices as of 2021, becoming the world’s fastest-growing mobile OS.

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Working with developers

In addition, Huawei has focused on openEuler, MindSpore, and the HarmonyOS ecosystem in the past year. This enterprise is based on the principles of open collaboration and shared growth.

Huawei says it has now over eight million developers using Huawei’s open platforms, open-source software, and tools to explore new business scenarios and business models.

Guo said, “Moving forward, Huawei will advance its journey of digitalization, intelligent transformation, and low carbon. Relying on talent, scientific research, and an innovative spirit, we will continuously increase investment to reshape our paradigms for fundamental theories, architecture, and software, and build our long-term competitiveness.”

2022 will be another promising year for Huawei as it builds excellent momentum on its growing carrier and consumer growth while equally working on shared growth with developers across the world.

Which aspect of Huawei’s annual report for 2021 is most intriguing to you, consumer, carrier, or another segment? Do share in the comments below.