Monday, April 15, 2024

Huawei’s net earnings hit $5.1 billion in 2022

Shenzhen-based tech giant Huawei Technologies posted a net profit of $5.1 billion for 2022, bringing in a 3% higher total revenue of $92 billion versus the previous operating year, driven by expanding carrier, enterprise, and consumer businesses.

Huawei rotating chairman Eric Xu

Despite facing a challenging external environment and non-market factors that continue to take a toll on its operations, Huawei rotating chairman Eric Xu says that the company is focused on maintaining business continuity and service delivery to its customers.

“Huawei would not have been able to weather such extreme difficulties without the tremendous trust and support of our customers and partners. The macro environment may be rife with uncertainty, but what we can be certain about is that digitalization and decarbonization are the way forward, and they are where future opportunities lie,” he said during his keynote.

In a disclosure, Huawei reported a 13% compound annual growth rate (CAGR) of 13% to ¥42.2 billion for its operating profit and 30% CAGR to 17.8 billion in cash flow from operating activities.

By customer group, carrier business leads at ¥284 billion with YoY growth of 0.9%, followed by consumer business at ¥214.4 billion and enterprise business at ¥133.1 billion.

By industry, Huawei saw the most growth in ICT Infrastructure with a total revenue of ¥354 billion, followed by consumer products at ¥214.4 billion, cloud computing services at ¥45.3 billion, energy solutions at ¥50.8 billion, and intelligent automotive solutions at ¥2 billion.

“Through years of concerted effort, we have built relatively strong competitiveness in our business domains, and we have good reason to believe we’ll maintain this edge for the foreseeable future. But given our inability to access advanced process technology, we need to keep exploring ways to further enhance the long-term competitiveness of our products and services,” Xu explained.

He also mentioned that 2023 will be crucial to the company’s sustainable survival and development, led by the commitment to double down on building the foundations for the digital economy.

As the competitions looks ahead to the forecasted trillion-dollar market of the digital economy by 2027, Huawei is looking into providing customers with the “right technology for the right scenario, at the right time and with the right model, following the shortest route to market.”

Currently, the company is working on widening its advantage against its competition by bolstering integrated innovation across the tech domains it has presence at – from processors, software, hardware, devices, networks, and cloud environments.

Huawei is also working on the optimization of network performance, energy consumption, cloud resource utilization, cloud application performance, O&M efficiency, and service capabilities to enhance user experience and create new value for customers.

“Our efforts to reshape architecture, strengthen systems engineering, and optimize design will take the competitiveness of our products to new heights. As long as we maintain a high level of business continuity and continue to deliver competitive products, we can ensure Huawei’s sustainable survival and development,” he concluded.

For its carrier business, Huawei is hinging its strategy on all-optical networks and rural network deployment products. For computing and cloud, development will revolve around Kunpeng and Ascend.

The HarmonyOS ecosystem will be front and center in the expansion of Huawei’s consumer business, while the expansion of the company’s partner programs will be under the purview of Huawei Cloud.

“The road ahead is long and hard. But no matter how bumpy that road may be, we are confident that things will gradually get back on track,” added Huawei chairman Liang Hua.

“We are confident in our ability to navigate challenges and improve the quality of our operations to ensure sustainable survival and development. We will stay the course and stick to our vision and mission, to bring digital to every person, home and organization for a fully connected, intelligent world.”

Moving forward, Huawei will be continuing its investments on research and development, and at the same time, growing its pool of partners and customers across industries. Under a newly elected board of directors, Huawei will be focusing on new corporate strategies, development directions, and value creation.


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