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Huawei releases 2021 Annual Report: chalks significant gains

BY: graphic.com.gh
 Guo Ping, Huawei's Rotating Chairman, speaking at the press conference
Guo Ping, Huawei's Rotating Chairman, speaking at the press conference

Huawei released its 2021 Annual Report today [April 14, 2022], revealing that the company has maintained solid operations throughout the past year. 

As per the report, Huawei achieved CNY636.8 billion (99,88bn USD) in revenue in 2021, and CNY113.7 billion (17,84bn USD) in net profits, an increase of 75.9% year-on-year.

The company's R&D expenditure reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, and bringing its total R&D expenditure over the past 10 years to over CNY845 billion. Moving forward, the company also plans to continuously increase investment in R&D.

Guo Ping, Huawei's Rotating Chairman, stated at the press conference that "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, who also spoke at the event said, "Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty."

The company's cash flow from operating activities dramatically increased in 2021, amounting to CNY59.7 billion. Its liability ratio also dropped to 57.8%, and its overall financial structure has become more resilient and flexible.

In 2021, Huawei's carrier business generated CNY281.5 billion in revenue and helped carriers around the world deploy leading 5G networks. Third-party test results have found that 5G networks built by Huawei for customers in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia, provide the best user experience.

By working with carriers and partners, Huawei has signed more than 3,000 commercial contracts for industrial 5G applications. These kinds of 5G applications are currently seeing large-scale commercial use in sectors like manufacturing, mines, iron & steel plants, ports, and hospitals.

Huawei's enterprise business also grew rapidly, generating CNY102.4 billion in revenue during 2021. In the past year, Huawei launched 11 scenario-based solutions for key sectors such as government, transportation, finance, energy, and manufacturing.