2022 is considered a tough year for most businesses around the world when geopolitical conditions were unstable, the global economy was in recession. However, as Huawei’s rotating Chairman Eric Xu said on our 2022 Annual Report Press Conference “plum blossoms grow sweeter from a harsh winter’s freeze. Today, Huawei is like a plum blossom.” Despite the challenges, Huawei maintained steady operations and our performance was in line with forecast throughout 2022, having generated CNY642.3 billion in revenue and CNY35.6 billion in net profits. Huawei continues to strengthen investment in R&D, with an annual expenditure of CNY161.5 billion in 2022, representing 25.1% of the company’s annual revenue and bringing its total R&D expenditure over the past 10 years to more than CNY977.3 billion.
Huawei has maintained growth by assisting in the digital transformation of various industries. We also leveraged our strong and resilient business portfolio to build a foundation for the digital economy, drive green and sustainable development, and create value for our customers, partners, and society as a whole. We are driving the shift towards digital, intelligent, green industries, which is presenting new growth opportunities to Huawei.
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.” Moving forward, heavy investment into R&D and innovation have always been and will remain a long-term strategy for Huawei.
In 2022, revenue from Huawei’s carrier, enterprise, and consumer businesses was CNY284 billion, CNY133.2 billion, and CNY214.5 billion, respectively.
Huawei is a strong proponent of growing together with its ecosystem partners, and believes that openness and collaboration lead to shared success. The company has continued to open up its platform capabilities across its HarmonyOS, Kunpeng, Ascend, and cloud portfolio, focusing on improving developer experience as well as enabling and supporting its ecosystem partners on all fronts. Huawei currently works with more than nine million developers and over 40,000 ecosystem partners to fuel ecosystem-based innovation and create greater value for its customers.
There are More than 700 cities and 267 Fortune Global 500 companies worldwide have chosen Huawei as their partner for digital transformation.Huawei has developed 100+ scenario-based solutions that have been adopted across more than 10 industries.Huawei has also established business units (BUs) targeting different industries, such as the Mine BU, Smart Road, Waterway & Port BU, Government Public Services Digitalization BU, Electric Power Digitalization BU, Digital Finance BU, and Rail & Aviation BU. Our goal is to boost the digital economy, and create new value together for all industrie. Huawei will continue working with partners to innovate in digital infrastructure, accelerate industry digitalization, boost the digital economy, and create new value together for all industries.
In 2022, Huawei Cloud achieved rapid growth around the world, and now we are in Top 5 cloud suppliers in the world. In 2022, Huawei Cloud released KooVerse, a global cloud infrastructure that provides computing, storage, networking, and security services based on one unified architecture. KooVerse has been deployed in 29 Availability Zones (AZs) across 75 Cloud Regions, serving customers in over 170 countries and regions. In Asia Pacific, Huawei Cloud is the fastest growing mainstream public cloud provider. In November 2022, Huawei Cloud launched its Indonesia Region, marking the foundation for a digital Indonesia through industry- and sector-specific strategies.
With Digital power business, Huawei is committed to integrating digital and power electronics technologies and converging energy and information flows, in order to manage watts with bits and drive the transition towards a green and low-carbon energy industry. By the end of 2022, Huawei Digital Power had helped customers generate 695.1 billion kWh of green power and save 19.5 billion kWh of electricity. These efforts have offset 340 million tons of CO2 emissions, which is equivalent to planting 470 million trees.
Huawei’s landmarks in 2022 are significantly recognized in the Asia-Pacific market, in which Southeast Asia made a notable contribution.
In Vietnam, Huawei has accompanied our partners and for the past 25 years, and was honored to receive the Top 5 International Business – Social Listening Award from Vietnam Internet Association for having significant contribution to Vietnam’s Internet development Huawei has also dedicated to improving the quality of domestic ICT resources through Corporate Social Responsibility (CSR) activities, such as Seeds for The Future, Huawei ICT Academy. In particular, 2022 was the first year Huawei’s ICT Academy was deployed in Vietnam. We have joined hands with two University of Transportation and Communication (UTC) and University of Economics – Technology for Industries (UNETI) to develop IT capacity for teachers in Network, Cloud Computing and Security. Huawei will also collaborate with universities, academies to provide IT training for students to better prepare students before entering the labor market in in IT.
National digital transformation is one of the goals Huawei wants to support Vietnam in the future. With its ICT capabilities, Huawei is confident that we are capable of helping Vietnam quickly process digital transformation to all industries, for example, banking, financing, manufacturing, mining and port…
Huawei has been in Cambodia since 1999, committed to providing every individual and organization with the latest technologies and solutions while upholding the principle of “In Cambodia, for Cambodia”. Over the past 24 years, Huawei Cambodia has built a strong presence in carrier business, enterprise business and device business, and serving more than 80% of the country’s population. We also help the government, businesses, and industry organizations in Cambodia attain digital transformation and economic development with our extensive international R&D capabilities and effective business practices.
Additionally, we have actively contributed to the talent development of Cambodia’s digital economy as a responsible corporate citizen. To foster the development of ICT professionals, Huawei has launched a number of programs, including Open Day, Seeds for the Future, ICT Competition, and ICT Academy. Currently, Huawei is training more than 1000 students annually. An accumulative of 3,000 students joined Huawei ICT Academy program, and more than 300 of them have successfully passed the tests to become Huawei-certified engineers. Moving forward, Huawei will continue introducing leading technologies striving to become the well-trusted partner and a pioneer in Cambodia’s journey toward the digitalization of numerous industries, and make due contribution to the social and economic development particularly in the digital economy of Cambodia.
In Laos, we also have many years of operation. Laos is a landlocked country, the process of moving and transporting goods from Laos to neighboring countries faces many difficulties. For example, transporting goods from the capital Vientiane to Luang Namtha – the province bordering China, can only be taken by land from 3 to 4 days on average. Facing the above situation, in 2022, the Lao government has implemented the 1,035km China-Laos high-speed railway project from Kunming to Vientiane, optimizing the time of goods transport, fostering the development of tourism and improving people’s lives in this country. Huawei has worked closely with Lao telecommunications carriers to deploy a smart railway solution that enhances safety and security in all stages, from construction to operation. In addition, Huawei has also worked closely with Lao telecom operators to build a high-speed network along both sides of the road. At this time, the railway system provides a seamless and stable experience for passengers when working and playing on the train as well as neighboring households.
Huawei also supported Asia-Potash to build ASEAN’s first smart potash mine in Laos. After just 2 months, the Smart Mining solution eliminated the communication gap between surface and subsurface while monitoring production safety in real time. The industrial network connects strongly with high bandwidth and low latency, allowing workers on the ground to easily control mining vehicles remotely, reducing the risk of accidents in the harsh subsurface environment.
In 2023, we will continue working closely with South East Asia partners across the ecosystem. We firmly believe that, together, the future is better.