Huawei released its 2021 Annual Report on March 28th, 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 said overall the performance was in line with forecast.

Meng Wanzhou, Huawei CFO stated, “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.” Due 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.

For business groups, in 2021, Huawei’s carrier business generated CNY281.5 billion in revenue. 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.

Huawei’s enterprise business generating CNY102.4 billion in revenue during 2021. 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 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. Huawei Rotating Chairman Guo Ping said solving the chip problem is a complicated and long process that requires patience. In the future, chip solution may adopt a multi-core structure to improve chip performance. 

Under Pressure, the company’s R&D expenditure hitting a new high, reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, ranked NO. 2 of the EU industrial R&D investment scoreboard, 54.8% of Huawei staffs worked in R&D. As released on March 28th, its total R&D expenditure over the past 10 years to over CNY845 billion, Huawei said will continue to invest heavily in research and innovation. 

Jun Zhang, Director of Huawei Asia-Pacific Public Relations Department, said during an interview with Philippine medias, through US restrictions have had a huge impact on Huawei, but despite such severe restrictions, thanks to the trust of our customers, Huawei’s main business in ICT infrastructure has remained stable while new business segments like digital power and cloud grew rapidly and its ecosystem development efforts have entered the fast lane. In the context of accelerating digital transformation, there are strong market demands for innovative digital solutions and high-quality suppliers. Asia Pacific including the Philippines are ripe with opportunities for digital transformation, and the pandemic has accelerated it. As 5G rolls out at scale, connectivity, cloud, AI, computing, and industry applications have all come together to create unprecedented opportunities for the ICT sector. Huawei will keep driving digital innovation for an inclusive Asia Pacific and leave no one behind. 

For Huawei, investment not only went to R&D, but also cultivating ICT Talents.

Seeds for the Future is Huawei’s global CSR flagship program. Launched in 2008, the program seeks 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.

According to Daniel Guo, the COO of Huawei Philippines, Seeds for the Future has been in the Philippines for 7 years, more than 200 students joined the program, some of them even became Huawei Staffs after graduated from universities. The program used to take two weeks in China and moved online during COVID, this year, the program might go hybrid as the situation is getting better.

Huawei ICT Academy, another non-profit program globally, serves as a bridge between companies and colleges, helping to build a talent ecosystem for the ICT industry. Huawei partnered with almost 60 Philippine universities and established ICT academies, over 9000 students joined the program. By the end of 2021, Huawei had presented over 550,000 certifications worldwide, including over 17,000 Huawei Certified ICT Expert (HCIE) certifications. Last year, Huawei also launched its HCIE 100 project in the country, engineers who pass the certifications will be a valuable resource for industry digitalization world.

In the Philippines, Huawei also worked together with five (5) of the top Universities for Huawei Scholarship program, which aimed to provide financial assistance to deserving students who are already in their 3rd to 5th year College Level. Huawei has sponsored 22 Scholars as of now.

Huawei Rotating Chairman Guo Ping said at the event that Huawei’s ability to “survive and thrive” depends on ongoing investment in development. “Our fight to survive is not over yet,” Guo said. “No matter what comes our way, we will keep investing. That is the only way forward.”

Existing theories and architectures are unable to support explosive growth in digital demand.

Forecasts show that over 50% of global GDP will be digitalized in 2022. As the global digital economy develops rapidly, the demand for digital products and services has exceeded expectations. Huawei’s Rotating Chairman Guo Ping explained that as Shannon’s theorem and the von Neumann architecture continue hitting severe bottlenecks, the industry must explore new theories and architectures to reshape the technological paradigm to achieve digital sustainability.

Huawei has been upholding the concept of “make technology and nature live together”, and has continued to invest in reducing carbon emissions, increasing the use of renewable energy, promoting circular economy, and guarding nature with technology. Huawei is committed to integrating digital technology and power electronics to promote the energy revolution, accelerate the digitization of energy, enable industrial upgrading in thousands of industries, and become an enabler of carbon emission reduction.

By creating synergies between IT and CT, cloud and edge, and cloud and networks, Huawei hopes to help operators go digital and intelligent and achieve new revenue growth. In Asia Pacific, for example, Huawei’s OneStorage solution has helped one operator cut TCO by 30%. 

Carbon reduction impacts the long-term vitality of the digital economy.

On carbon neutrality, Guo said, “Connectivity density and computing power determine the strength of the digital economy, but it should also maintain long-term vitality. So, we need to consider a new dimension, carbon reduction.”

Huawei currently adheres to a “More Bits, Less Watts” strategy in this area. In addition to improving its fundamental digital capabilities, Huawei has committed to making its products 2.7 times more energy efficient by making breakthroughs in areas like theories, materials, and algorithms. Huawei’s third-generation Massive MIMO products fully utilize the multi-antenna technology to improve energy efficiency by 30% compared with peer products.

As part of its efforts to create a greener and more sustainable digital world, Huawei will increase investment in sustainable green solutions, leveraging clean power generation, electric transportation, and smart energy storage, to support the Asia Pacific region’s goals of cutting carbon emissions, promoting renewable energy, and contributing to a circular economy, according to Jay Chen, Vice President of Huawei Asia Pacific. Through advances like these, the ICT industry is able to help other industries reduce their own carbon footprints. 

According to AlphaBeta, a Singapore-based strategic economic consultancy that works with governments, businesses, investors, and other institutions, their report shows that a technology-driven economy could assist in mitigating the impact of the COVID-19 pandemic and recovering the country’s economic losses.

The report states that if fully leveraged by 2030, the country can foster a digital economy that can raise PHP 5 trillion or 101 million US dollars in economic value by 2030. This is equivalent to 27% of the country’s GDP in 2020 alone.

“In Asia Pacific, for Asia Pacific’ is our commitment. At Huawei, we are working closely with carriers and partners from around the world to explore solutions that help make life better, businesses smarter, and society more inclusive. We’d also love to share how our ICT technology is helping make the world a greener, more sustainable place. Together, we can light up the future,” said Jay Chen. 

To support the digital ecosystem in Asia Pacific, Huawei in 2021 has announced that it will invest $50 million to develop 500,000 digital talents for Asia Pacific in the next 5 years, and invest USD 100 million over three years to cultivate the startup ecosystem in the region, including in the Philippines. 

MWC22 Barcelona runs from February 28 to March 3 in Barcelona, Spain. Huawei showcases its products and solutions at stand 1H50 in Fira Gran Via Hall 1. Together with global operators, industry professionals, and opinion leaders, we dive into topics such as industry trends, GUIDE to the Future, and green development to envision the future of digital networks. For more information, please visit: https://carrier.huawei.com/en/events/mwc2022.

HUAWEI CONNECT 2020 opened on September 23, 2020 in Shanghai. HUAWEI CONNECT is an annual flagship event hosted by Huawei for the global ICT industry. It is a platform where Huawei discloses its major strategies. In 2016, Huawei envisioned an intelligent world and called upon its partners worldwide to build a diverse and thriving Costa Rica-like ecosystem together. In 2017, Huawei announced its goal of becoming one of the world’s five major cloud service providers. In 2018, Huawei revealed its AI strategy, and then in 2019 its computing strategy.

In 2020, as 5G has been rolled out at scale worldwide, connectivity, cloud, AI, computing, and industry applications have all come together to create unprecedented opportunities for the ICT sector. Therefore, the focus of this year’s HUAWEI CONNECT is: Creating new value with synergy across five tech domains.

Moving forward, Huawei will focus on applying ICT technologies to industries and providing scenario-specific solutions along with its partners to help enterprises grow their businesses and help governments achieve their strategic goals of boosting the domestic industry, benefiting their constituents, and improving overall governance.

At the event, Huawei Rotating Chairman Guo Ping delivered a keynote speech, titled “Creating New Value with Synergy Across Five Tech Domains“. Guo said, “As more and more governments and enterprises go digital and embrace intelligence, the ICT sector will see incredible potential for growth. We look forward to opening this new chapter together with our partners.”

Guo shared Huawei’s leading practices in helping build smart enterprises, campuses, and cities, by integrating ICT technology with industry know-how and providing scenario-specific solutions to create value for governments and enterprises in regard to their major business systems. In the next phase, Huawei will work with its partners to apply ICT technologies to industries, helping enterprises grow their businesses and helping governments achieve their strategic goals of boosting domestic industry, benefiting their constituents, and improving overall governance.

Huawei will keep investing in the following key business domains.

In the network domain, Huawei has proposed the concept of intelligent connectivity, aiming to deliver a hyper-automated network that offers ubiquitous gigabit access and a deterministic experience and to enable intelligent upgrades of major business systems of governments and enterprises.

In the computing domain, Huawei is committed to providing diverse computing power to customers, decoupling software from hardware to adapt its compute to different processing needs, including x86 and Kunpeng.

In the cloud service domain, Huawei has established 23 regions worldwide, attracting over 1.5 million developers.

In the AI domain, Huawei aims to better integrate AI into the major business systems of governments and enterprises, using know-how and data to build the core competency of AI systems.

Connectivity, computing, cloud, and AI are a lot like electricity 100 years ago, whereas industry applications are like home appliances and industrial equipment powered by electricity.

Huawei believes that synergy across these five tech domains will not only bring Huawei opportunities. More importantly, they will present opportunities for the entire sector. Huawei hopes to grow the whole pie with its partners, enabling them to reap the most benefits from the new value chain.

Guo looked back on the three principles he proposed in 2016 for building a diverse and thriving Costa Rica-like ecosystem. He also shared three examples of how Huawei has helped three of its partners grow their business: Tech Education, Cooler Master, and CS&S. Guo noted that Huawei will continuously support its partners in their efforts to develop industry applications, boost the supply chain, and grow their own industries.

Chen Jinzu, General Manager of Shenzhen Airport Group, and Tang Shaojie, General Manager of Shenzhen Metro Group, shared their experience in building smart airport and smart metro systems. At this event, Huawei also announced its slogan for ecosystem partnership development with its outstanding partners from around the world: Innovate, Grow, and Win Together.

At the end of his speech, Guo extended an invitation to all Huawei partners, “Huawei will generate the power, and our partners can harness it. Together, we will succeed and create greater value for our customers.”

HUAWEI CONNECT 2020 is an annual flagship event hosted by Huawei for the global ICT industry and is being held in Shanghai from September 23 to 26, 2020. HUAWEI CONNECT is an open platform designed to help our customers and partners navigate these changes, share experience, and work together to create new value. At this year’s event, we will explore trends and opportunities in industry digitization; showcase advanced ICT technologies, products, and solutions; give you an insider’s look at the fruits of joint innovation; and share best practices in digital transformation. Our ultimate goal is to build an open and sound industry ecosystem that will benefit all stakeholders and create new value for all industries. For more information, please visit: https://www.huawei.com/en/events/huaweiconnect2020/