HUAWEI generates increased revenue in 2022 (CNY 642.3 billion), invests CNY 161.5 billion in R&D

Tech giant HUAWEI recently revealed its 2022 Annual Report showing positive numbers last year.

Eric Xu, Huawei's Rotating Chairman

HUAWEI to further invest in R&D

HUAWEI said that it has had steady operations throughout 2022. The company generated CNY 642.3 billion (around PHP 5.1 trillion) in revenue and CNY 35.6 billion (around PHP 282.5 billion) in net profit during the period. The group also invested CNY 161.5 billion (around PHP 1.28 trillion) in R&D last year, equivalent to 25.1 percent of its revenue.

Over the past 10 years, HUAWEI's R&D expenditure has totaled to more than CNY 977.3 billion.

HUAWEI's revenue rose from 0.9 percent in 2022. Its enterprise business revenues in 2022 grew 30 percent.

Note: The 2022 closing exchange rate is USD 1.00 = CNY 6.9533

In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei's operations, said Eric Xu, Huawei's Rotating Chairman, at the company's annual report press conference. In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers. We also went to great lengths to grow the harvest – generating a steady stream of revenue to sustain our survival and lay the groundwork for future development.

Also present at the event was Sabrina Meng, HUAWEI's CFO. She noted, 

Despite substantial pressure in 2022, our overall business results were in line with forecast. At the end of 2022, our liability ratio was 58.9% and our net cash balance was CNY176.3 billion. In addition, our balance of total assets reached one trillion yuan, largely composed of current assets such as cash, short-term investments, and operating assets. Our financial position remains solid, with strong resilience and flexibility. In 2022, our total R&D spend was CNY161.5 billion, representing 25.1% of our total revenue – among the highest in Huawei's history. In times of pressure, we press on – with confidence.

HUAWEI's revenue in its carrier, enterprise, and consumer businesses was CNY 284 billion, CNY 133.2 billion, and CNY 214.5 billion, respectively.

 Sabrina Meng, HUAWEI CFO

HUAWEI said that it has continued to open up its platform capabilities across HarmonyOS, Kunpeng, Ascend, and cloud portfolio, focusing on improving developer experience as well as enabling and supporting its ecosystem partners on all fronts for further growth. 

Currently, HUAWEI works with more than nine (9) million developers and over 40,000 ecosystem partners to fuel ecosystem-based innovation and create greater value for its customers.

This 2023, HUAWEI is confident in its ability to rise above any challenge for sustainable survival and development.

2023 will be crucial to Huawei's sustainable survival and development, Xu noted. Plum blossoms tend to grow sweeter from a harsh winter's freeze. Today, Huawei is like a plum blossom. While it's true that we have considerable pressure ahead of us, we have what it takes to come out the other end – with opportunities to grow, a resilient business portfolio, a unique competitive edge, the enduring trust of our customers and partners, and the courage to invest heavily in R&D. We are confident in our ability to rise above any challenge that comes our way, laying a solid foundation for sustainable survival and development.

In the Philippines, the company has been in the country for 20 years. Apart from helping in building the digital journey of the country, it has also helped in cultivating ICT talents.

One of its ways to do that is the "Seeds for the Future" program. It is Huawei's global CSR flagship program launched in 2008 seeking to develop local ICT talent, enhance knowledge transfer, help participants better understand the ICT sector and stimulate their interest in it, and promote and encourage participation in building a digital community. It has been in the country for 8 years and more than 220 students have joined the program.

Jeziel Aijeleth Ramos, one of the Filipino students who joined the HUAWEI Seeds program in 2022, was selected as one of the Ten (10) Seeds for the Future Global Ambassadors, also the first one in the Philippines. 

The company also has the HUAWEI ICT Academy. It is a non-profit program globally that serves as a bridge between companies and colleges to help build a talent ecosystem for the ICT industry. In PH, HUAWEI has partnered with almost 70 universities and established ICT academies.

In times of pressure, we press on – with confidence, HUAWEI said.

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