Huawei, the # telecom network maker in the world, has revealed more details about its financial performance for 2021.
Huawei has achieved revenue of CNY636.8 billion (–28.6 percent) and net profit of CNY113.7 billion (+75.9 percent) during 2021.
Huawei’s R&D expenditure reached CNY142.7 billion in 2021, representing 22.4 percent of its total revenue, and bringing its total R&D expenditure over the past 10 years to over CNY845 billion.
ALSO READ: Huawei annual report for 2021
Guo Ping, Huawei’s Rotating Chairman, said in a news statement: “Performance was in line with forecast. Carrier business remained stable, enterprise business experienced steady growth, and consumer business quickly expanded into new domains.”
Huawei revenue in 2021
Carrier business CNY281.5 bn (–7 percent)
Enterprise business CNY102.4 bn (–49.6 percent)
Consumer business CNY243.4 bn (+21.1 percent)
Main regions
China CNY413.3 bn (–30.9 percent)
EMEA CNY131.5 bn (–27.3 percent)
Asia Pacific CNY53.7 bn (–16.7 percent)
Americas CNY29.2 bn (–26.3 percent)
Meng Wanzhou, Huawei’s CFO, 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.”
Thanks to the enhanced profitability of its major businesses, 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 percent, and its overall financial structure has become more resilient and flexible, Meng Wanzhou said.
The U.S. sanctions, together with the coronavirus, have weighed on Huawei, prompting it to sell its mid-range handset division, Honor, in November 2020. Huawei received its first payment for the deal in March 2021. Huawei also sold its x86 server division around the same time, Reuters news report said.
In 2021, Huawei’s carrier business generated CNY281.5 billion in revenue. 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.
Huawei’s enterprise business generated CNY102.4 billion in revenue in 2021.
Over 700 cities and 267 Fortune Global 500 companies have chosen Huawei as digital transformation partner and Huawei now works with more than 6,000 service and operation partners.
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).
Huawei’s smart wearable and smart screen segments both saw 30 percent+ 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.
HarmonyOS has been deployed on more than 220 million Huawei devices. More than 4,500 products from over 1,900 ecosystem partners have joined HarmonyOS Connect. In 2021, over 115 million new HarmonyOS Connect devices were shipped.
Over eight million developers are currently using Huawei’s open platforms, open-source software, and development tools to explore new business scenarios and business models.
