Huawei released its 2021 Annual Report today, revealing that the company had 
maintained solid operations throughout the past year. As per the report, Huawei 
achieved CNY636.8 billion in revenue in 2021, and CNY113.7 billion in net 
profits, an increase of 75.9% year-on-year. The company's R&D expenditure 
reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, and 
bringing its total R&D expenditure over the past 10 years to over CNY845 
billion. Moving forward, the company also plans to continuously increase 
investment in R&D.

Guo Ping, Huawei's Rotating Chairman, stated at the press conference, "Overall, 
our performance was in line with forecast. Our carrier business remained 
stable, our enterprise business experienced steady growth, and our consumer 
business quickly expanded into new domains. In addition, we embarked on a fast 
track of ecosystem development."

Meng Wanzhou, Huawei's CFO, also spoke at the event, "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%, and its overall financial structure has 
become more resilient and flexible.

In 2021, Huawei's carrier business generated CNY281.5 billion in revenue and 
helped carriers around the world deploy leading 5G networks. 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. These kinds of 5G applications are currently 
seeing large-scale commercial use in sectors like manufacturing, mines, iron & 
steel plants, ports, and hospitals.

Thanks to continuing digital transformation trends, Huawei's enterprise 
business also grew rapidly, generating CNY102.4 billion in revenue during 2021. 
In the past year, Huawei launched 11 scenario-based solutions for key sectors 
such as government, transportation, finance, energy, and manufacturing. The 
company also established multiple dedicated teams, including a Coal Mine Team, 
a Smart Road Team, and a Customs & Port Team, to combine resources in a way 
that more efficiently serves the needs of its customers. Over 700 cities and 
267 Fortune Global 500 companies have chosen Huawei as their digital 
transformation partner and Huawei now works with more than 6,000 service and 
operation partners around the world.

Huawei's consumer business zeroed in on consumer wants and needs, further 
building out the global ecosystem for a smart, all-connected era, as part of 
the company's Seamless AI Life strategy for consumers around the world. This 
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). In particular, the smart 
wearable and smart screen segments both saw 30%+ 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.

During the past year, Huawei also focused on building out its openEuler, 
MindSpore, and HarmonyOS ecosystems based on the principles of open 
collaboration and shared growth. 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.

Guo stressed, "Moving forward, Huawei will advance its journey of 
digitalization, intelligent transformation, and low carbon. Relying on talent, 
scientific research, and an innovative spirit, we will continuously increase 
investment to reshape our paradigms for fundamental theories, architecture, and 
software, and build our long-term competitiveness."

All financial statements in the 2021 Annual Report were independently audited 
by KPMG, an international Big Four accounting firm. To download the 2021 Annual 
Report, please visit https://www.huawei.com/en/annual-report/2021.

Note: The 2021 closing exchange rate is USD1.00 = CNY6.3753

Source: Huawei