Huawei's 2022 sales edge up to $98.95 billion

Huawei's Rotating Chairman Eric Xu speaks during a press conference announcing the company's annual earnings results in Shenzhen, Guangdong Province, on March 31.

By Kim Jae-heun

Chinese telecommunications giant Huawei saw sales in 2022 edge up 0.9 percent year-on-year to 642.3 billion yuan ($98.95 billion), while net profit plunged 69 percent to 35.6 billion yuan, according to the firm's 2022 annual report released on March 31.

Huawei attributed the decline in annual net profit to rising commodity prices, China's strict pandemic controls and increased research and development spending.

The firm said it had increased investment in research & development (R&D), with an annual expenditure of 161.5 billion yuan in 2022, representing 25.1 percent of the company's annual revenue and bringing its total R&D expenditure over the past 10 years to more than 977.3 billion yuan.

"In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei's operations," Huawei's Rotating Chairman Eric Xu said 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."

Huawei's CFO Sabrina Meng, who was also presented at the event, said "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 percent and our net cash balance was 176.3 billion yuan.”

“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 161.5 billion yuan, representing 25.1 percent of our total revenue ― among the highest in Huawei's history. In times of pressure, we press on with confidence,” she said.

In 2022, revenue from Huawei's carrier, enterprise, and consumer businesses was 284 billion yuan, 133.2 billion yuan, and 214.5 billion yuan, respectively.

Huawei is a strong proponent of growing together with its partners and believes that openness and collaboration lead to shared success. The company has continued to open its platform capabilities across its HarmonyOS, Kunpeng, Ascend, and cloud portfolio, focusing on improving developer experiences 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 partners to fuel innovation and create greater value for its customers.

"2023 will be crucial to Huawei's sustainable survival and development," Xu said. "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."