Huawei's profits plunge 68.7%

On March 31, Huawei released its 2022 annual report. The report showed that Huawei’s net profit last year was 35.6 billion yuan, a plunge of 68.7%!

Rotating Chairman Xu Zhijun said: "Looking back on 2022, the severe external environment and non-market factors will continue to affect the company's operations. Amid the storm, we continue to run, working hard to ensure business continuity and ensure support and services to customers; we I also work hard to harvest more food so that I can survive and lay the foundation for future development.”

Meng Wanzhou, Huawei's chief financial officer, said: "In 2022, Huawei's operations will still face greater pressure, and overall, its operating results are in line with expectations. At the end of 2022, Huawei's asset-liability ratio was 58.9%, and its net cash balance was 176.3 billion yuan, nearly 176.3 billion yuan. Among the total assets of RMB 1 trillion, highly liquid assets such as cash, short-term investments, and operating assets constitute the main part of the assets. The financial position remains stable and has strong resilience and flexibility. In 2022, the total R&D expenses will be 161.5 billion yuan. , the R&D expense rate is 25.1%, which is at a historically high level.

Looking at specific businesses, in 2022, Huawei's carrier business will achieve sales revenue of 284 billion yuan, Huawei's enterprise business will achieve sales revenue of 133.2 billion yuan, and its terminal business will achieve sales revenue of 214.5 billion yuan.

Among the key businesses, digital energy revenue is 50.8 billion yuan, cloud computing business is 453 yuan, and smart car solution parts business is 2.1 billion yuan.

华为始终坚持与生态伙伴共同成长，基于开放、协作、利他、共赢的理念，持续开放鸿蒙、鲲鹏、昇腾、云服务等平台能力，优化开发者体验，全方位赋能和支持生态伙伴，与900多万开发者、4万多生态伙伴一起释放生态创造力，共同为客户创造更大价值。

Xu Zhijun emphasized: "2023 is a critical year for Huawei's survival and development. Today's Huawei is like plum blossoms. The plum blossoms are fragrant because they have experienced the severe cold. The pressure we face is undoubtedly huge, but we have also grown. Opportunities, the resilience of our industrial portfolio, our differentiated advantages, the trust of our customers and partners, and the courage to invest aggressively, we are confident that we can overcome hardships and achieve sustained survival and development.”