Monday, March 28, 2022

Huawei reports 2021 revenue of CNY142.7 billion, down 28%

Huawei reported 2021 revenue of CNY636.8 billion (US$99.885 billion), down 28.6% compared to CNY891,368 in 2021.

Net profit for amounted to CNY113.7 billion, an increase of 75.9% year-on-year. 

Revenue for Huawei's Carrier Business dropped 7%, while its Enterprise Business revenues rose 2%.

Regionally, sales in its home market of China fell 31% as carrier completed 5G deployments. Sales in dropped in other geographies as well, with EMEA down 27%, Asia-Pacific down 16.7%, and Americas down 26.3%

Total borrowing rose 23.5% to CNY175.10 billion (US$27.46 billion).

Guo Ping, Huawei's Rotating Chairman: "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: "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." 

Some 2021 highlights:

  • 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. 
  • Huawei's carrier business generated CNY281.5 billion in revenues. 
  • By working with carriers and partners, Huawei has signed more than 3,000 commercial contracts for industrial 5G applications. 
  • Huawei's enterprise business generated 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.
  • Huawei's consumer business generated CNY243.4 billion in revenue in 2021 and continued to see steady sales growth in smart wearables, smart screens, true wireless stereo (TWS) earbuds, and Huawei Mobile Services (HMS). In particular, the smart wearable and smart screen segments both saw 30%+ year-on-year growth. In total, HarmonyOS was used in over 220 million Huawei devices as of 2021, becoming the world's fastest growing mobile device operating system.
  • Huawei Cloud has now launched more than 220 cloud services and 210 solutions, and attracted over 30,000 partners and 2.6 million developers worldwide. More than 6,100 applications are now available on the Huawei Cloud Marketplace.

The 192-page report in English is posted online:

Huawei's revenue continues to decline but company remains profitable

 Huawei reported revenue of CNY455.8 billion (approximately US$71.32 billion) for the first three quarters of 2021. The reported net profit margin was 10.2%. No further details were released.

The reported revenue represents a drop of approximately 38% compared with the first nine months of 2020.

"Overall performance was in line with forecast," said Guo Ping, Huawei's Rotating Chairman. "While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work."

Huawei's first half 2021 revenue drops 29% yoy - shift to enterprise

Huawei released the following business results for the first half of 2021:

In H1, Huawei generated CNY320.4 billion (approximately US$49.4 billion) in revenue, down 29.4% yoy, with its net profit margin reaching 9.8%.

  • Carrier business revenue: CNY136.9 billion, down 14.2% yoy 
  • Enterprise business revenue: CNY42.9 billion, up 36.3% yoy
  • Consumer business revenue: CNY135.7 billion, down 46.9% yoy

"We've set our strategic goals for the next five years," said Eric Xu, Huawei's Rotating Chairman. "Our aim is to survive, and to do so sustainably. We'll do this by creating practical value for our customers and partners. Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily."

Xu continued, "These have been challenging times, and all of our employees have been pushing forward with extraordinary determination and strength. I want to thank every single member of the Huawei team for their incredible effort. Going forward, we continue to believe deeply in the power of digital technology to provide fresh solutions to the problems the world is facing right now. We will keep on innovating to help build a low-carbon, intelligent world."