The business anticipates that it will operate until 2022, bringing in CNY642.3 billion in revenue and CNY35.6 billion in online profits. Huawei says it will continue to grow its R&D spending, bringing its total over the previous ten years to more than CNY977.3 billion in 2022 with an annual investment of CNY161.5 billion—representing 25.1% of the company’s revenues.
Its net profit for the year was 35.6 billion yuan ($5.2 billion), down 68.7% from 2021, despite pressure from the pandemic, U.S. sanctions, higher commodity costs, more R&D spending, and a decline in the company’s consumer business, which mostly sells smartphones. With the sale of Honor, its low-cost smartphone division, Huawei made a higher-than-average profit of 113.7 billion yuan ($16.6 billion) in 2021.
Eric Xu, Huawei’s rotating chairman, said during a press conference for the company’s annual report that a challenging external environment and non-market factors continued to have an effect on the company’s operations in 2022. “Despite the hurricane, we carried on with business as usual and did everything in our power to support our customers. We also made great efforts to improve the harvest in order to assure our survival and lay the groundwork for future development.
After the significant damage that US-led sanctions caused to its telecom equipment and smartphone operations, Huawei has taken steps to diversify its sources of income.
The company has persisted in expanding its platform capabilities through its HarmonyOS, Kunpeng, Ascend, and cloud portfolios, with a focus on improving the developer experience and enabling and assisting its environment partners on all fronts. In order to support environmentally-based innovation and provide more value for its customers, Huawei currently collaborates with over 40,000 environmental partners and over 9 million developers.
According to Xu, 2023 may be important for Huawei’s survival and expansion. “Plum flower sweetness tends to increase in a cold, severe winter. At now, Huawei looks like a plum blossom. Even if we are under a lot of pressure, we have what it takes to thrive because of our growth prospects, steady business portfolio, completely unique competitive edge, the belief of our clients and partners, and courage to spend a lot of money on R&D. We have faith in our ability to succeed in whatever task set before us and lay the groundwork for our long-term survival and expansion.”
Additionally present was Sabrina Meng, Huawei’s CFO. She said, “Our overall business performance in 2022 were in line with predictions,” while under a lot of pressure. At the end of 2022, our liabilities ratio was 58.9% and we had CNY176.3 billion in net cash. The total value of our assets also reached one trillion yuan, with the vast bulk of that sum consisting of current assets including cash, short-term investments, and operating assets. Our financial situation is still solid, adaptable, and remarkably resilient.
Founded in 1987, Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. We have 207,000 employees and we operate in more than 170 countries and regions, serving more than three billion people around the world.
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