Huawei has released its 2022 Annual Report today. The company has reported steady operations throughout 2022, having generated $92.37 billion in revenue and $5.12 billion in net profits. Huawei also announced that it continues to strengthen investment in R&D, with an annual expenditure of $23.22 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 $140.55 billion.
In 2022, revenue from Huawei’s carrier, enterprise, and consumer businesses was $40.84 billion, $19.15 billion, and $30.84 billion, respectively. Huawei currently serves over 200,000 km of roads and more than 50 waterway and port customers across over 30 countries and regions, facilitating smooth mobility and logistics. In the waterway domain, the company teamed up with 20 partners to establish the Smart Port Global Innovation Lab. It also helped a Tianjin Port roll out 5G-powered L4 autonomous driving as it transformed into a safe and efficient smart port, setting first of its kind smart port successful case study to the world.
Huawei’s ICT solutions currently serve more than 2,800 medical institutions in over 90 countries and regions, over 2,500 financial institutions from more than 60 countries and regions, 130 airports and airlines worldwide, 300 urban rail lines across over 70 cities, 150,000 km of railways, 20 world-leading oil and gas companies, 130 airports and airlines worldwide, 300 urban rail lines across over 70 cities, and 20 world-leading oil and gas companies.
“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.”
Sabrina Meng, Huawei’s CFO noted at the press conference, “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 USD25.35 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 CNY23.22 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 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.
“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.”
“Huawei places technological innovation and research at the top of its agenda. Every year, Huawei invests over 10% of its sales revenue into R&D. The company ranked fourth on the EU Industrial R&D Investment Scoreboard. In 2022, the company’s R&D expenses hit a 10-year high – in terms of both amount and percentage of revenue. The total R&D expenditure equaled 25.1% of the company’s total revenue. As of December 31, 2022, 114,000 employees, representing 55.4% of Huawei’s total workforce, worked in R&D,” the company said.
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