According to Huawei’s official website, at 4 pm on March 31, Huawei Investment Holdings Co., Ltd. will release its 2020 annual report. Huawei’s rotating chairman Hu Houkun will interpret the main points of the annual report and the company’s strategy.

Huawei released its 2020 annual report today. The report shows that performance growth has slowed down, but it has basically met business expectations. Among them, sales revenue is RMB 891.4 billion, a year-on-year increase of 3.8%, and net profit is RMB 64.6 billion, a year-on-year increase of 3.2%.

In 2020, in the field of operator business, during the epidemic, Huawei helped stabilize 1,500 operator networks in more than 170 countries and regions around the world to meet people’s needs for online office, online education, and online purchase of daily necessities during social isolation. Huawei works with operators to build the best experience network, and cooperates with operators to implement more than 3,000 5G innovation projects in more than 20 industries such as coal mines, steel, ports, and manufacturing.

Huawei’s enterprise business strengthens the creation of scenario-based innovative solutions, builds a digital ecosystem of symbiosis, co-creation and sharing, and creates new value in the industry with customers and partners. During the epidemic, Huawei Cloud AI assisted diagnosis and other solutions were used to provide technology and experience to many countries and regions to overcome the difficulties. Huawei and its partners provide more than 50 million students with Huawei Cloud-based primary and secondary education cloud platform services to help distance education.

The consumer business continues to adhere to the “1+8+N” full-scene smart life strategy, with HarmonyOS and HMS ecology as the core drive and service capabilities, and centering on the five major areas of smart office, sports health, smart home, smart travel, and audio-visual entertainment Life scenes, to create a full-scenario smart life experience for consumers.

Hu Houkun, Huawei’s rotating chairman, said: “This year, we have not been afraid of hardships and will continue to create value for customers with innovative ICT technology, help global science and technology fight the epidemic, economic development and social progress, improve business quality, and achieve annual business performance. Basically meet expectations. We will continue to open cooperation with customers and partners to promote the sustainable development of society, economy and environment.”


By zhiwo

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6 months ago

At last year’s financial report press conference, Mr. Xu said: “I hope that there will be another financial report annual meeting next year.” Apart from other things, a company can resist the full suppression of another sovereign country year after year. It is not easy in itself to survive. Fortunately, Huawei survived another year. So this annual Huawei financial report annual meeting came as scheduled. The first is the company’s overall business development. It has maintained an overall range of growth, but its profits have declined. The reasons for the profit growth come from two aspects: First, the overall business demand has risen; although the impact of the new crown epidemic last year has continued to this day, the demand for remote office, remote education, and remote meetings is growing rapidly. This demand for networks has stimulated the development of Huawei’s ICT. The second is the regional dimension; under the test of the new crown epidemic, among the world’s major economies, only China has achieved positive growth, and factories have already resumed work and production; and due to the continuous investment of the Chinese government in the field of infrastructure, The rapid development of 5G infrastructure. More and more companies choose to go digital, and related businesses, including Huawei cloud services, have also seen rapid growth. Therefore, the performance of the China region is very impressive. Then there is the interpretation of the decline in the profit rate. First of all, Huawei has always been a long-distance runner. Huawei does not pursue short-term high interest rate returns. The second reason is the increase in expenditure; the first reason is that it has been affected by the new crown epidemic, which has increased the stability and maintenance of the entire supply chain; the second reason is to deal with the unfavorable factors caused by US sanctions and more geopolitics in the future Huawei will further increase the proportion of R&D investment in 2020, while further broadening its layout in the industry chain and purchasing corresponding components to cope with possible changes in the future. Then there is the consumer business that everyone cares about very much, which is closer to everyone’s life, and it is also the department where everyone can get close to Huawei products. In this extremely unfair business environment, Huawei’s CBG, which is what we call the consumer terminal business, still contributes 54.2% of the revenue to the entire Huawei Group. This is actually not easy. After being sanctioned by the United States, Huawei not only fell into the trouble of chip foundry, but was also forced to slow down in the global exchange of advanced technology. The CBG business is the first to bear the brunt. Aside from the difficult decision of Honor to be sold, let’s take a certain terminal product as an example. It was originally scheduled to be released in the near future, but due to the continuous changes in the objective environment, the release time has been adjusted repeatedly. Whenever they talked about their own products, the person in charge of this product line seemed to be “difficult to make peace” and called out unfairness. What we should pay attention to is that this financial report is about the overall situation in 2020, and in 2020, Huawei’s “Crossing the River” plan once made Huawei’s domestic mobile phone market share soar to about 50%. This is also the key to the continued growth of Huawei’s consumer business. However, under the latest sanctions in September, Huawei’s consumer business, especially its mobile phone business, suffered a more severe blow. By the first quarter of this year, Huawei’s mobile phone sales have shown a significant decline. This is not stated in the financial report, and it is foreseeable that next year’s consumer business will experience a greater decline. As everyone knows, HiSilicon’s chip business has encountered considerable difficulties. Huawei’s small partners also frankly said that in addition to adapting to the company’s grand development strategy, the development of the Hongmeng operating system has another important reason-to provide consumers including Huawei. Other departments, including the user terminal, extend more preparation time. Therefore, in the financial report, I pay more attention to the development of the software part. Take the development of HMS business as an example. At present, the number of APPs connected to HMS is about 120,000, and the progress is relatively fast. On the Hongmeng system side, more equipment equipped with the Hongmeng system is under development. Whether this strategy can be effective depends on its subsequent performance. Of course, the sale of Honor was also included in this report, and Honor business (an important brand and component of the Group’s consumer business) was all sold to Shenzhen Zhixin. The original group subsidiary Glory Terminal Co., Ltd. (“Glory Terminal” 100% equity) was changed to Shenzhen Zhixin on November 17, 2020. The sales deposit received by the Group this year of RMB 10,000 million is included in the consolidated statement of financial position “Other liabilities” and listed investment activities in the consolidated cash flow statement. Zhao Ming, who was originally an alternate director, also resigned in November 2020. Then in the field of car and machine, in the words of President Hu in this press conference “Huawei, as an ICT company, does not get involved in the smart car industry. It seems a bit outdated.” But according to Huawei’s official statement, the company will not be involved in the vehicle manufacturing industry for at least five years. Of course, Huawei I said before that I didn’t make a TV, and later I made a smart screen. You don’t know if a smart cockpit will come out in the future. This is not accurate. (Big shh~Say Enter BU, Huawei will be in 2020 In the smart car solution business, three measures including standard construction, ecological construction, and platform-based capacity building have been completed. Therefore, Huawei still has a fairly in-depth layout for the automotive industry. Finally, I will say an easter egg: some time ago, I went The process of visiting a certain project in the Huawei base. In the evening, I drank and bragged with my friends from Huawei. After three rounds of wine, everyone had almost the same drink. When I was full of food and drink, I asked him badly, “Can Huawei survive? “” He gave me a blank look. “Dancing photos, people follow the tricks, and the one who needs to work overtime is indispensable.” I then asked him, how to solve the chip problem? Can’t imagine the other side of the network? He is bad. He didn’t point his nose to scold me, and gave me a blank look, “Who are you swearing at?” Then he paused and asked me to give him another beer. I gave him a can of Kirin, and he continued. “Chips do have difficulties, but no matter how great the difficulty is, it is still difficult. As long as it does not break the laws of physics, let the black become white, and the dead become alive. We can still grit our teeth to solve it.” As for the time issue, let the people in the software department buy some time first. Two years are always going to be won.” He grumbled his last sip, staring at the logo and muttering: “I am Holding a sigh of breath, I’m not convinced. Why do people who are serious about R&D have to be so involved? It’s because the Pacific Police has the final say? Bad, he sent me back to Anpu in the end. The fortresses were all broken from the inside, and finally defeated Huawei. It will definitely not be a hegemonic government like the United States, but Huawei itself. Just like the wireless communication of the gods back then Motorola, the originator of Huawei, made serious directional errors on key strategic decision-making issues, instead of dying for other reasons. In the face of US sanctions, Huawei needs to keep its organization open, only as a person looking for directions. Together with those who are looking for a direction, it is possible to go in the right direction. At least so far, Huawei still has a strong strategic determination and a clear development direction. With the intensification of sanctions, global semiconductor supply is difficult, and the new crown epidemic is global There is no complete stop within the range The trend of domestic 5G construction is gradually decreasing… The second half of this year to the first half of next year will be the most difficult year for Huawei. There is no hardest, only harder. I can only hope that Huawei will develop better.

6 months ago

Yesterday, I roughly looked at Huawei’s 2020 financial report. Let me start with the conclusion: The overall situation is better than expected, but the future situation is still very serious. 1. In general, although revenue has increased, operating profit and operating cash flow have both declined. In 2020, Huawei’s revenue will exceed 890 billion, a year-on-year increase of 3.8%. There is still growth in difficult times, and it is indeed not easy. However, in the past few years, Huawei has experienced double-digit growth. The current growth rate of 3.8% shows that the impact of sanctions is indeed great. Moreover, operating profit and profit margin have both declined, with operating profit margin down 11% year-on-year, and operating profit down 6.9% year-on-year. Operating cash flow plummeted by 61.5% year-on-year. The main reason given in the financial report was the continued increase in investment in cloud, research and development, etc., the increase in depreciation and amortization, and the decrease in accounts payable. The most critical issue is that the United States further tightened sanctions and cut off Huawei’s advanced manufacturing process in September, which basically only affected the fourth quarter. In general, revenue and net profit are still growing, which is better than expected. Operating profit and operating cash flow have declined, which is basically in line with expectations, and even performed better than expected. However, considering that the most severe sanctions only started in the fourth quarter of 2020, and the first three quarters were still growing, this result also shows that Chrysanthemum Factory was hit hard in the fourth quarter. However, the financial report also shows Huawei’s determination to persevere and struggle: In 2020, R&D expenses accounted for 15.9% of revenue, higher than 15.3% in 2019; total R&D expenses reached more than 140 billion yuan, a year-on-year increase of 7.8%; in such a difficult situation At the moment, Huawei’s R&D is still improving both in absolute value and R&D intensity! I have to say that this is indeed the style of Chrysanthemum Factory. 2. In terms of business category, corporate business is growing rapidly, but the most important consumer business will be under great pressure next year. Huawei’s business will mainly consist of three major segments: operator business, enterprise business, and consumer business. In 2020, operator business revenues will increase by 0.2% year-on-year; there is nothing to say in this regard. Operators’ business is mainly base stations, and the space in this area is relatively limited. Coupled with the obstruction of some overseas countries, it is very good to be able to maintain stability. In 2020, corporate business revenue will grow by 23% year-on-year; corporate business is undoubtedly the biggest bright spot. Although Huawei Cloud rises early and catches up late, the growth rate has been very fast in the past two years. Considering the gradual implementation of cloud computing and digital transformation, there is still a lot of room for growth in enterprise business in the future. In 2020, consumer business revenue will increase by 3.3% year-on-year; now, the consumer business accounts for half of Huawei’s total revenue, surpassing the sum of enterprise business and operator business. Today’s consumer business performance also reflects the impact of sanctions. Even if Kirin 9000’s chip inventory is enough for the P50 series, it is the limit to support Mate50 and Mate X3 at most. Even if the domestic semiconductor industry builds a production line that goes to A, the market competitiveness of early cost, yield, and performance will inevitably not be ideal. At that time, the consumer business of Chrysanthemum Factory will inevitably be greatly restricted. Again, the most difficult moment has just begun. Huawei’s financial report next year will be ugly without accident. 3. Geographically, domestic revenue has increased year-on-year, and overseas decline is better than expected. In 2020, Huawei’s domestic revenue has increased by 15.4 year-on-year, accounting for 65.6% of total revenue; overseas revenue has generally declined, accounting for total revenue There has also been a decline. However, overall, the decline in overseas revenue was better than expected: the Americas experienced the worst year-on-year decline, with a decline of 24.5%. There is no way to do this, and everyone understands it. Europe, Africa, and the Middle East saw a year-on-year decline in the second place, with a decrease of 12.2%. Under the influence of multiple unfavorable factors such as the epidemic, sanctions, and Google’s cut off GMS, Europe and other regions have only experienced a decline of more than ten percent, which is far better than expected. After all, when Google cut off GMS, many people believed that Chrysanthemum Factory’s overseas business would completely die. The Asia-Pacific region saw the least decline, with a decrease of 8.7%. I personally think that this is also due to the radiation of China’s economy. On the whole, the performance of overseas markets is much better than expected, and the HMS team really deserves the name of “Heroes of Battle of Songhu”. But I have to say that if we want to return to the state where overseas revenue was greater than domestic revenue before the sanctions, it might not be possible in the short term. In general, this heavy financial report is hard-won, but there are more difficulties and obstacles in the future. Most of the 2021 financial report will be ugly, and it is uncertain whether the amount of R&D investment and salary level can maintain the level of 2020. But from behind the hard numbers in the financial report, we can feel the determination of Juchang not to admit defeat. Finally, let’s quote an ancient poem: The mountains are digging out with thousands of hammers, and the fire is burning like a wait. Don’t be afraid of being crushed, you must stay innocent in the world.

6 months ago

A certain business engaged in has been defined as low-quality income by some local tyrants because of its low gross sales. Since the beginning of last year, other businesses have been suppressed too much, and it is difficult to find a short-term breakthrough point, and there is a faint trend of being righted, which can be seen in the difficulties. To be honest, the consumer business, which accounted for half of the revenue, only went out of food in Q4 last year, and had limited impact on last year’s annual report. This year’s Q1 mobile phones have become others. If there is no breakthrough, this year’s annual report may be ugly. “The goal is to survive, and the annual report will be issued next year” is not a joke.

6 months ago

Starlight does not ask the passer-by. On April 4, 2013, Mr. Pierucci, the global head of Alstom’s boiler department, was taken away by the FBI waiting at the New York Airport as soon as he got off the plane. Alstom is the pride of French industry, and its business involves infrastructure fields such as rail transit and power equipment (including but not limited to nuclear power). In the following year, country A took away three Alstom executives one after another. At the end of 2014, Alstom had to plead guilty to the U.S. Department of Justice and claim a fine of $772 million. In order to pay the fine, Alstom had to sell itself, and the object happened to be its old rival General Electric. Even more coincidentally, after the sale agreement was negotiated, Alstom’s executives were never arrested again. Today, this law of the weak and the strong is also taking effect at Huawei, but the difference is that Country A may never get what it covets. Turning from positive to negative, it’s close at hand. The growth rate of sales revenue has slowed down sharply. From 2016 to 2019, it has grown at a level of 100 billion for four consecutive years, and it was only 32.6 billion last year. The ban on broken cores only came into effect on September 15 last year, and the power is evident. It is optimistic to estimate that the basic disk can be kept stable. First, the 2B chip inventory is sufficient, and the second is the support of domestic new infrastructure demand. The consumer business, which grew by 3.3% last year, was a soft landing brought about by chip inventory. The ban continues, and it is inevitable to turn from positive to negative. Enterprise business is an aspect of looking for opportunities in crisis. Sending Big Mouth to cloud BU should have this consideration. However, because of the public cloud, the enterprise cloud market is still developing, and the growth rate is considerable but the net value is limited, which is not enough to offset the decline in consumer business. Huawei’s efforts in the fields of car, HM OS, and smart home are also a manifestation of seeking opportunities in crisis. What is more obvious is that in markets other than China, revenue is declining. Europe, the Middle East, and Africa, which are important ticket warehouses, have experienced double-digit declines. The first reason is the coercion and temptation of country A to other countries. The operator’s business either keeps Huawei out of the door or has rounds of discussions. In short, there are fewer landing contracts. The second reason is that 1+8 equipment is out of stock, and consumer business income is declining. Third, there are some influences from GMS. The double-digit growth in China shows that everyone is good. In fact, the direction of Huawei’s business is strategically consistent with the country’s preparations for internal circulation. Mr. Ren once set a rule for Huawei to invest 10% of its revenue in R&D every year. In the last year of hard sanctions, R&D accounted for 15.9%, reaching 141.89 billion, which is more than the sum of the four BATJs. It may just become stronger when you encounter it.

6 months ago

It seems that Huawei is really going to transform a software manufacturer. In the “Speech of the Rotating Chairman”, Hu Houkun said, “In order to support the company’s strategic implementation and the needs of the digital transformation of the industry, we must focus on complementing and improving software capabilities, vigorously improving the level of the software team, introducing architects, and generating our own Architect.” Since May 19, the United States has formally sanctioned Huawei. It has been almost two years. In the past two years, Huawei has released two annual reports. The data in these two annual reports are actually not so ugly, and they have all been realized. 2 years have passed, and everyone’s attention to Huawei has dropped a lot. It seems that the sanctions have not had a very serious impact on Huawei. In fact, otherwise, the US sanctions on Huawei can really be seen in the financial report. The result is this year’s annual report. Huawei has released its 20-year report and achieved revenue growth, but is it not optimistic in 21 years? Xu Xi’s video 349 Why is it playing? Because of the three rounds of sanctions imposed by the United States on Huawei, the first two rounds did not have a particularly serious impact on Huawei. Huawei was able to resist first, but the third round of sanctions completely cut off Huawei’s chip supply. Without the chips, Huawei’s terminals It’s really time for life and death. However, due to Huawei’s large inventory, the sales volume of Huawei’s mobile phones in the third quarter approached its peak of 50%. After a quarter of consumption, it is very likely that the inventory of Huawei’s mobile phones in the first quarter of 2021 will basically be too. The consumption is almost the same, and there is no need to wait for Huawei to release the 2021 annual report. I am afraid that when the semi-annual report is released, the annual report data will be very ugly. According to the 2019 annual report, Huawei’s consumer business revenue is 467.3 billion yuan, accounting for 54.4% of total revenue. In 2020, consumer business revenue is 482.9 billion yuan, accounting for 54.18% of total revenue. It seems that consumption is under US sanctions. Consumer business does not seem to have been greatly affected, but in 2019, the growth rate of consumer business was 34%, and in 2020, the growth rate of consumer business dropped sharply to 3.3%. In the past, we said that mobile phones were just a sideline business of Huawei. In fact, Huawei mobile phones have long become Huawei’s main business. In the consumer business, more than 90% of the revenue comes from mobile phones. If Huawei mobile phones continue to be unable to obtain chips, When Huawei releases the 2021 annual report, it is very likely that the operating income of the entire Huawei company will have a very large decline. Looking at regional revenue, except for China and Asia-Pacific, Huawei’s revenue is declining, and the decline in the Americas is as high as 24.5%. If it were not for the rapid growth of domestic revenue, the revenue growth rate might be 0 or a few. It’s negative. Huawei’s mobile phone sales are declining rapidly, and foreign revenue is also declining, but the IOT business has grown to a greater extent. The two offset part of the two. The revenue decline of the entire group may be about 30%. In other words, according to 2020 With a revenue of 891.4 billion yuan, Huawei’s revenue in 2021 may be around 620 billion yuan. 2021 is a crucial year for Huawei. I will give you a vaccination in advance. Don’t be surprised when Huawei’s annual report is released.

6 months ago

It is amazing that Huawei can achieve this result. Due to the US chip sanctions, Huawei has reluctantly transferred its glory, and Huawei’s mobile phone shipments have been greatly impacted, but the 2020 performance is still rising. Enterprise business has grown rapidly, operator business has remained stable, and consumer business has slowed down. China’s revenue accounted for 65.6%, Europe, the Middle East and Africa accounted for 20.3%, Asia Pacific accounted for 7.2%, and the Americas accounted for 4.4%. Although Huawei has achieved increased revenue in 20 years of business, it is expected that it will encounter many difficulties this year, and we hope that it will be difficult soon.

6 months ago

When the 2019 annual report was released last year, Xu Zhijun joked that we will strive to survive and issue the annual report next year. Time flies, one year has passed, and the 2020 annual report has arrived as scheduled. Huawei has survived this year. Judging from the data in the annual report, it is not too bad at least. But I believe that many people can see from the gradual slowdown of year-on-year net profit growth that the power of the iron fist from the largest and most advanced empire on the planet is gradually acting on the giant technology ship of Huawei, which accounted for Huawei in 19 years. CBG, which has more than 50% of the group’s total revenue, has obviously been on the verge of being precarious since the complete implementation of the most prohibitive order in the history of September last year. Although Huawei has successively released a number of high-end terminal products such as the Mate40 series and Mate X2, due to the well-known chip problem, the products are very popular, but the objective reality that it can’t be popular is very sigh. To be able to continue depends on the inertia of the market and channels on the one hand, and on the other hand, we really have to thank the consumers for their support. However, this situation of close to exhaustion will show no signs of relief in the foreseeable future. Of course, Huawei itself has not given up resistance. Being prepared for danger in times of peace may be the cultural gene at the bottom of Huawei’s enterprise. With Yu Chengdong concurrently serving as the president of Huawei Cloud and Computing BU, he also started cooperation with many car companies, and even won it not long ago. The authorization of payment licenses, all signs indicate that Huawei is undergoing a series of soft transformations, and they are really struggling to survive. I believe that in 2021, Huawei’s annual report figures will be even more ugly, and there may even be losses. Human resources policies will also face unprecedented pressures. The mobile phone business may truly be stagnant. However, Huawei, the clumsy elephant, is still not. Will give up dancing. How long you can live is how long you will win.

6 months ago

There is nothing to say except shock. As we all know, Huawei has been sanctioned. Some people don’t understand why Huawei was sanctioned, and some people even pretend to be confused. The “mistake” made by Huawei is the same as the “mistake” made by Xinjiang Cotton. It is so good that it controls industry standards and pricing power and touches the interests of Wall Street capitalists. Although Huawei is a non-listed company, the company issues bonds in multiple markets, so it will regularly disclose its financial reports. Before 2018, the company only disclosed annual reports, and after 2018, it began to disclose quarterly reports. 1. Annual report status On March 31, Huawei released its 2020 annual report. The report showed that the growth rate of performance has slowed down, but it has basically met business expectations, of which sales revenue was RMB 891.4 billion, a year-on-year increase of 3.8%, and net profit was RMB 64.6 billion. , An increase of 3.2% year-on-year. The cover of Huawei’s annual report has a somewhat implied meaning of “Starlight does not ask travellers”. The starry sky on the screen is the Milky Way, Scorpio and Mars. Whether in Western mythology or Eastern mythology, Mars represents war. For Huawei, this is a war. Judging from the financial report, the company has indeed encountered unprecedented pressure. Affected by the sanctions, Huawei has experienced a decline in operating profit for the first time in five years. However, net profit has increased. Mr. Xingkong is most interested in the company’s consumer business. Surprisingly, the company’s consumer business (mainly mobile phones) is still growing! Benefiting from the continuous implementation of 5G projects, the company’s corporate business has increased significantly. For example, Huawei’s 5G industrial Internet business scenario for mines and China Mobile Unicom; and the scenario of 5G industrial robots in cooperation with home appliance companies… From a regional perspective, the domestic business growth rate is 15.4%, but overseas business is seriously damaged. 2. 5G Progress 2020 is the first year of 5G. Unlike ordinary users, the application of 5G was first developed on the enterprise side. Huawei listed several cases in the annual report, so I won’t repeat them one by one. 3. A few highlights 1. Whose Huawei is it? Every year, Huawei separately introduces Huawei’s internal governance structure in its annual report. This form of “virtual” shares of employees may be bludgeoned or black, but Huawei’s structure has proved indestructible. Huawei is not an enterprise that belongs to one person (capitalist). It belongs to employees. This may be the root of Huawei’s strength! If Huawei falls, the industry will lose such a benchmark. On the one hand, it will lack the industry’s standard control power and price setting power; on the other hand, there will be less benchmarking for workers. According to the standard of Fubao 996. That’s why they hate Huawei so much! 2. Chips Seeking truth from facts, Huawei’s annual report is a bit watery. Because there is no mention of the chip crisis throughout the article, although several chip products based on 5nm technology are introduced, as we all know, these products are likely to be “out of print”. 3. Hongmeng Hongmeng is very controversial. On some social media, a little bit of praise for Hongmeng will be attacked by many people. However, in fact, from PPT to 1.0 to 2.0, countless developers have joined the development of Hongmeng. In fact, the Chinese tradition is pragmatism. Putting aside the cloak of propaganda, as long as this thing can be used, it is likely to be used well in the future, then it can be used. According to the company’s annual report, more than 120 well-known application vendors such as, Baidu, Youku, and iFLYTEK have begun to innovate based on HarmonyOS; more than 20 hardware vendors, including Midea, Joyoung, and Boss, have joined the HarmonyOS hardware ecosystem. Launched a variety of home appliances equipped with HarmonyOS. Give some time, give some free time, Hongmeng may give us a surprise. 4. The new 5G super blade station solution for blade base stations, which perfectly integrates 5G AAU and passive antennas, realizes the integrated deployment of 2G/3G/4G and 5G AAU, which can help operators save about 50% of the sky space and improve Hanging height improves the 5G coverage effect. Both China Telecom and China Unicom have deployed 5G super blade stations commercially, ensuring good 5G signal coverage and high capacity, and bringing the ultimate 5G experience to users. In Switzerland, the 5G super blade station solution perfectly solves the problem of the extremely limited space of the Sunrise site, greatly reduces the cost of new poles, and accelerates the commercial deployment of Sunrise 5G. 5. Build a car? In 2020, the global auto market sales fell due to the impact of the epidemic, but the sales of new energy vehicles were eye-catching: China’s new energy vehicle sales reached 1.367 million, an increase of 10.9%; European new energy vehicle sales were 1.25 million, an increase of 45%. When Lei Jun announced to build a car, many people could not help but ask, does Huawei build a car? Xingkong Jun believes that Huawei will eventually build a car, but in the early stage, it will realize the integration of intelligent driving, intelligent cockpit, intelligent networking, and computing and communication architecture through the form of opening up the upstream and downstream industrial chains. Most car companies do not have the ability to build intelligent Internet of Vehicles. As Internet software giants, Tencent and Baidu are a bit too “soft”, while Joyson Electronics is a bit too “hard”. Huawei has the ability to undertake the perfect integration of software and hardware. When all of this is familiar to heart, Huawei may build a car by itself. 6. R&D expenditure exceeds 140 billion, which is almost equivalent to the sum of the top 10 A-share R&D expenditures. They are: China Construction, China Railway Construction, China Railway, China National Petroleum Corporation, SAIC, China Communications Construction, ZTE Corporation, CRRC, China Power Construction, China Metallurgical Corporation. 7. Labor Salary In 2020, Mr. Xingkong found that many companies have cut their salaries. Understandable to a certain extent. However, Huawei’s annual report shows that it has raised wages again. From 134.9 billion yuan to 139.1 billion yuan, the per capita annual salary is about 800,000 yuan. Of course, many people look down on the average per capita. We can’t get more detailed employee compensation data, such as a more representative median, but judging from Huawei’s school recruitment and voices on the Internet, while many keyboard heroes are “speaking in good faith”, the vast majority of Huawei employees are I am still very satisfied with my income.

6 months ago

Let’s start with a summary: to maintain growth under the pressure of sanctions, and the growth rate slows down, the key to 2021 chip supply. 1. Revenue of 891.4 billion, an increase of 3.8% compared to the 858.8 billion in 2019, and a significant slowdown compared to the 19.1% growth in 2019. The main reason is that the growth of consumer business revenue has slowed due to sanctions. 2. Net profit was 54.3 billion, an increase of 2.7%, and profit growth has also slowed since 2018. Because of sanctions, the supply chain had to be replaced, which greatly increased costs. 3. By business: Operators increased by 0.2%, basically the same. Although the terminal has completed 5G handover, the cost of 5G use is high, the lack of killer applications, consumer perception is weak, and the willingness to consume is weak. At the same time, the construction cost of operators is high. 5G construction fell short of expectations. The business growth of enterprises is fast, but the scale is relatively small. The consumer business grew by 3.8%, which also slowed down. Due to the gradual manifestation of the effect of sanctions, the decline in the mobile phone business in 2021 may be further pressured. The official statement is: The consumer business has not met our expectations. Because of the impact of chip supply, mobile phones are declining. 8 and N of 1+8+N have achieved a good growth rate of 65%, and the two are offset, and the growth rate is 3.3%. 4. Sub-regions: The rapid growth in China, and the decline in all overseas regions, should be due to the sharp decline in overseas consumer business income caused by sanctions and GMS services. Chairman Hu also answered several key questions: HiSilicon’s business is still continuing (non-stop research and development); the key depends on the recovery of the semiconductor industry chain; and adherence to the positioning of auto parts suppliers. The bulk of Huawei’s revenue lies in the consumer business, and the key to the consumer business lies in 1+8+N 1: mobile phones. At present, in addition to the HiSilicon Kirin processor, other parts and accessories Huawei can basically achieve de-A. So the key lies in whether the chip supply can be restored. There are two possibilities: can TSMC and Samsung resume foundry? (5nm, 7nm advanced manufacturing process is required) Is it possible to open up the purchase of Qualcomm and MediaTek chips? Forecast: The sanctions policy has not seen a loosening trend in the short term; it will take at least 5 years for the domestic OEM advanced technology to be applied to Kirin; at present, the industry’s consumer-grade and automotive-grade production capacity is very tight, and there is no additional capacity at all. All foundries have gradually increased their prices. Chip supply recovery may be small and inventory is exhausted. 2021 is a year of real pressure for mobile phones. Possible solutions: increase the promotion of 8+N business and hedge against the decline in mobile phone revenue; cloud service growth; advancement of automobile business, and even car manufacturing. Therefore, Mr. Yu is responsible for both cloud services and automotive business. In short: if the chip supply problem can be solved, it will take off again; if it can’t be solved, relying on other business growth, the optimistic estimate of 2021 revenue will rise slightly or remain the same, and the conservative estimate will decline.

6 months ago

Overall growth has slowed down, and chips are still a problem. Compared with the net profit growth in Huawei’s annual report last year, the net profit growth has slowed significantly. Although a year-on-year increase of 3.2%, chip sanctions have resulted in less contribution from the mobile consumer business. Other businesses may have a trend of overtaking, whether it is the education resources of cooperation with operators or the 1+8+N” full-scenario smart life strategy, they are the most competitive places nowadays, and they cooperate with Huawei Hongmeng in various fields. Actively “make money.” Although the supply of chips is temporarily unavailable, through the acquisition of patent fees and cooperation between enterprises, this hole may be filled in 2021 or it depends on the supply of chips.

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