Huawei released its 2021 Annual Report and revealed that the company has maintained solid operations over the past year. Huawei posted revenue of CNY 636.8 billion in 2021, and net profit of CNY113.7 billion, up 75.9% YoY.
The company's R&D expenditure reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, bringing the total R&D expenditure over the last 10 years to more than CNY845 billion. Going forward, the company also plans to continue to increase investment in research.
"Overall, our performance is in line with predictions. Our operator's business remains stable, our company's business is experiencing steady growth, and our consumer business is growing rapidly in new territories. In addition, we are on a fast track to ecosystem development," Guo said. Ping, Rotating Chairman Huawei.
Thanks to the increased profitability of its primary business, the company's cash flow from operating activities will increase significantly in 2021, by CNY59.7 billion. Its liability ratio also dropped to 57.8%, and its overall financial structure became more resilient as well as flexible.
By 2021, Huawei's carrier business has generated revenue of CNY281.5 billion and helped operators around the world implement the leading 5G network. Third -party testing found that the 5G network Huawei has built for customers in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia, has provided the best user experience.
Working with operators and partners, Huawei has signed more than 3,000 commercial contracts for 5G industrial applications. 5G applications can currently be seen to have been used for large-scale commercial in sectors such as manufacturing, mining, iron & steel mills, ports, and hospitals.
Thanks to the continuous trend of digital transformation, Huawei's corporate business is also growing rapidly, generating revenue of CNY102.4 billion over 2021. Last year, Huawei launched 11 scenario-based solutions for key sectors such as government, transportation, finance, energy, and manufacturing.
The Company also formed various specialized teams, including the Coal Mining Team, the Smart Roads Team, and the Customs & Ports Team, as well as to combine resources in a more efficient way in serving the needs of its customers. More than 700 cities and 267 companies in the world, based on the Fortune Global 500 have chosen Huawei as their digital transformation partner and Huawei now works with more than 6,000 service and operational partners worldwide.
Huawei's consumer business focuses on the wants and needs of consumers, who further build a global ecosystem for a smart and connected era, as part of the company's Seamless AI Life strategy for consumers around the world. The business has posted revenue of CNY243.4 billion in 2021 and continues to experience steady sales growth on wearables, smart screens, true wireless stereo earbuds (TWS), and Huawei Mobile Services (HMS).
In particular, the smart wearable and smart screen segments both also experienced growth of more than 30% year on year. In total, HarmonyOS has been used on more than 220 million Huawei devices by 2021, becoming the fastest -growing mobile device operating system in the world.
For the past year, Huawei has also focused on building the openEuler, MindSpore, and HarmonyOS ecosystems based on the principles of open collaboration and shared growth. More than eight million developers currently use Huawei's open platforms, open source software, and development tools to explore new business scenarios and business models.
Guo stressed, "Going forward, Huawei will continue to drive digitalization, smart transformation, and low carbon. Relying on talent, scientific research, and the spirit of innovation, we will continue to increase investment to reshape our paradigm for fundamental theory, architecture, and software. , and build our long -term competitiveness. "
Huawei's Commitment to Southeast Asia, Including Indonesia
Responding to questions from the media about Huawei's contribution to the digital transformation of Southeast Asia, especially Indonesia, Guo said that the momentum of digital transformation in Southeast Asia is very strong. According to the Southeast Asia Digital Economy Report 2021, the market value of the digital economy is expected to reach US $ 1 trillion by 2030. It sees great prospects and needs for digital transformation in the ASEAN region. M
"Through continuous investment and innovation in connectivity, computing, and devices, Huawei will help Southeast Asian countries capitalize on digital industry development opportunities by leveraging technologies such as 5G, AI, and cloud computing. Huawei is guided by the" Asia Pacific, for Asia Pacific "and supports Asia Pacific as a major contributor to realizing its digital vision," Guo said.
He said Indonesia is the largest digital economy in the ASEAN region. Gui admitted that he was very impressed and appreciated that last year Luhut (Binsar Panjaitan), the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia visited Huawei's Headquarters. They discussed in depth ICT infrastructure opportunities, digital transformation, 5G networks, Cloud and the development of new National Capitals.
Indonesia has a unique potential for the development of high -tech industries. Huawei will fully support the development of Indonesia's ICT infrastructure and digital transformation, especially 5G and cloud infrastructure, as well as smart cities in the new capital.
"In 2021, Huawei will also provide the first 4G network for one million villagers in the remote region of West Papua. Huawei will also continue to nurture digital talent for the Asia-Pacific region. For the Asia-Pacific region, Huawei will invest USD 50 million for the development of 500,000 digital talent "In Indonesia, Huawei aims to train 100,000 local talents and 1,000 ICT instructors within five years. In the last two years, we have achieved more than half of our goals through training partnerships such as the ASEAN Academy," Guo concluded.