5 thoughts on “Huawei's revenue in 2021 decreased by 28.9%compared with the previous year. What are possible reasons?”
Gail
On March 28, Huawei held a 2021 annual report conference in Shenzhen and released performance data for 2021. Among them, in 2021, Huawei achieved revenue of 636.8 billion yuan, a year -on -year decrease of 28.6%. Nearly 30%of the decline can be said to be an unprecedented phenomenon.
We can see that Huawei's operating cash flow achieved 59.7 billion yuan, an increase of 69.4%compared to last year. Maintain a very good cash income ratio. As of the end of 2021, the total amount of cash and short -term investment totaling RMB 416.3 billion, a year -on -year increase of 16.5%. In this way, many large enterprises have lived by borrowing debts, and there is no source of motivation for development inside. Huawei has done much well in this regard. Huawei's business continues to be suppressed by the United States The main sanctions on Western countries for Huawei chips. Due to the unable to reproduce new self -developed chips, Huawei sold himself at the end of 2020 at the end of 2020. The "glory" of the subsidiary of Huawei has also fallen out of the top five mobile phone shipments since then. At the same time, the limitation of the chip is not only limited to mobile phones, but also Huawei's router and network exchange products, which was also the heavy annual income. Huawei's 5G business encountered a bottleneck Huawei has launched its own 5G project in early 2018, and the strategy of gauging in the domestic and foreign countries has been followed. However, with the development of Sino -US contradictions and the development of the trade war, Huawei's overseas market business also encountered bottlenecks. Many projects that have been signed before were forced to terminate the contract midway. At the same time, the domestic 5G market has been initially built in 2020, because there are no better corresponding supporting application scenarios. Therefore, the promotion of 5G applications has also been greatly restricted. These all affect the promotion and sales of Huawei products. The continuous impact of the epidemic The epidemic situation in the world has entered the third year, and the impact of the epidemic has penetrated into each person's life. Because economic activities have been greatly suppressed, the ultimate transmission is personal consumption. And the production investment of enterprises is gradually sluggish. This also directly affects the complete industrial structure of production-sales-regeneration. Huawei is also one of them as a technology manufacturing enterprise, and it is difficult to be influenced by this objective factors. of course Huawei noodles are already prepared for the current revenue decline. We can see from the following three points:
. Huawei now holds a lot of cash flow. The confidence in the dilemma. We can see that Huawei's operating cash flow achieved 59.7 billion yuan, an increase of 69.4%compared to last year. Maintain a very good cash income ratio. As of the end of 2021, the total amount of cash and short -term investment totaling RMB 416.3 billion, a year -on -year increase of 16.5%. In this way, many large enterprises have lived by borrowing debts, and there is no source of motivation for development inside. Huawei has done much well in this regard. . Increase investment in R
1. Everyone knows that as a leader in Chinese science and technology, Huawei can be said to be the primary goal of foreign hostile forces. It is clear that Huawei will kill Huawei. The direct result is that many high -end products in Huawei are completely limited by the unable to produce or production scale, which has caused a sharp decline in its revenue. There is nothing to sell! Seeing the larger world open the APP, Huawei really has no way? The main reason for the analysis of the decline in Huawei's revenue, Yue Ming, original 2 weeks ago, followed 2021 Huawei's revenue of 600 billion yuan. It looks like a lot. Compared with other Chinese technology companies, it is definitely a giant existence. However, Huawei's revenue has decreased by more than 200 billion compared to himself. This decline in any company is very scary. Therefore, many people think that Huawei is not good, and it's going to fall? So, is this true?析 First of all, let's analyze why Huawei's revenue will decline sharply: everyone knows that as a leader in Chinese science and technology, Huawei can be said to be the primary goal of foreign hostile forces. The raw material is broken and the software is not authorized. The purpose is clear, that is, to kill Huawei. The direct result is that many high -end products in Huawei are completely limited by the unable to produce or production scale, which has caused a sharp decline in its revenue. There is nothing to sell!
2. We know the saturation of domestic construction, and Huawei started from the telecommunications business. Transmission, communication, etc. However, with the construction of decades, the basic network of communication in my country has basically taken shape, and it is difficult to have a large -scale construction demand as before. Therefore, this piece will inevitably decline. This is why Huawei produces mobile phones (people have not looked at it before, and they are disdainful to make mobile phones). After Huawei dyed the mobile phone business, it has been moisturizing for a few years, and has also entered the public's field of vision, becoming a star technology company in China (previously produced and communicated products, ordinary people did not know that Huawei was at all, let alone Huawei did to do it. What). But this also made many companies and countries jealous, and they also knew Huawei's strength, so various suppression restrictions followed. This is also one of Huawei's dilemma today.
3. Diversified development is not smooth. Now Huawei is very different from Huawei more than ten years ago. First of all, the volume is much larger. Both revenue and staff are much larger than before. Times; second, Huawei used to be mainly based on high -end communication products, and now, Huawei almost refers to various products in the information industry. The former undoubtedly allows Huawei to have a heavy burden. There are many employees and a high salary. Once the company goes downhill, it is very inertia and cannot stop the car. The latter will lead to the dispersion of various resources of the enterprise, and many subdivided products cannot generate a lot of sales and profits, and they have to lose. Even, many small and medium -sized enterprises are offended. After all, the market is so big, and you have to share a share, which makes others live.
Mainly because of the United States, especially the chip cannot be produced, the mobile phone business has declined. However, because the telecommunications business is still the world's first, the net profit is still good.
On March 28, Huawei released the 2021 annual report. The report shows that in 2021, Huawei's global sales revenue was 636.8 billion yuan, a year -on -year decrease of 28.6%, and net profit was 113.7 billion yuan, an increase of 75.9%year -on -year. Stoes in multiple rounds of sanctions and epidemics in magnesium states still put pressure on Huawei revenue. In addition, the 5G construction of operators in domestic domestic operators has been basically completed, and customer demand has also been reduced, which has also affected Huawei's revenue to a certain extent.
The business income of Huawei operator's business income was 281.5 billion yuan, a year -on -year decrease of 4%; corporate business revenue was 102.4 billion yuan, a year -on -year increase of 2%; consumer business revenue was 243.4 billion yuan, a year -on -year decrease of 46 %.
Hirly limited services such as Huawei mobile phones, tablets, PC and other chips have fallen, the growth of emerging business has increased significantly, and Huawei Cloud and Digital Energy revenue have exceeded 30%.
In a sharp decline in revenue, Huawei net profit has increased significantly, part of the reason is the income of business disposal. However, Meng said that even if the business disposal income is not considered, Huawei ’s net profit still improves." Although the scale of revenue has become smaller, Huawei ’s profitability and cash flow acquisition capacity are increasing. ","
With the development of society, the number of private enterprises in my country is increasing. There are many outstanding private enterprises, including Huawei, JD.com, BYD, DJI, etc., and private enterprises from various industries. In the 2020 Chinese private enterprises, Huawei ranked first with revenue of 858.8 billion yuan, which was also the first for Huawei for five consecutive years.
Huawei was overtaken by JD
But unfortunately, Huawei's revenue fell sharply in 2021. On March 28, Huawei held a 2021 annual report conference in Shenzhen and released performance data for 2021. In 2021, Huawei achieved revenue of 636.8 billion yuan, a year -on -year decrease of 28.6%. Nearly 30%of the decline can be said to be an unprecedented phenomenon.
. After Huawei's revenue dropped nearly 30%, it also lost the position of its largest private enterprise in China and was overtaken by JD. In 2021, Jingdong's annual revenue reached 951.6 billion yuan, an increase of 27.6%year -on -year. Become the largest private enterprise in China. As for why Huawei's revenue decline is as high as 28%? Ms. Meng Wanzhou, the chief financial officer of Huawei (CFO), gave an answer.
The reasons for Huawei's revenue plunge
First, due to the breakdown of the chip, this has led to a large decline in the revenue of Huawei mobile phone. In 2021, Huawei mobile phones fell out of the top five positions in global smartphone shipments, which also greatly affected Huawei performance. Secondly, as the construction of 5G in 2020 has been basically completed, this has also led to further reduction in demand. Finally, there is also the influence from the epidemic, which has also affected Huawei's related businesses. It is understood that this is also the first appearance of Ms. Meng Wanzhou in 2022.
Huawei welcomes 4 good news
1. Net profit rises sharply
of course, in 2021, Huawei is worried and happy. As Ms. Meng Wanzhou said: Although the scale of Huawei has become smaller, the profitability and cash flow acquisition capacity are increasing, and the ability to cope with uncertainty is constantly improving. Although Huawei's revenue declined in 2021, the net profit rose sharply, reaching 113.7 billion yuan, a year -on -year increase of 75.9%.
It we must know that the profit of Huawei in the past has never exceeded 100 billion, and the net profit of Huawei in 2020 was only 64.6 billion yuan. The net profit in 2019 was 62.7 billion, which has always maintained more than 60 billion yuan. However, in 2021, while the revenue scale fell nearly 30%, net profit can also achieve more than 70%of the skyrocketing, and he had to admire Huawei's strong performance in adversity.
What is the concept of 113.7 billion net profit a year? It is equivalent to earning 30 billion yuan per day, which is a handful of private enterprises in my country. Although JD.com surpassed Huawei's revenue in 2021, it was realized by ordinary shareholders in 2021 but lost 3.6 billion yuan. Huawei's strength can be imagined.
For the increase in net profit, Huawei said that it is mainly to sell the income of some businesses, the improvement of business quality, and the optimization of product structure. In addition, what many people do not know is that Huawei is not only a mobile phone manufacturer, but also a communication equipment company.
2, the market share of the global communication equipment in 2021
March 17, according to data released by Delloro Group, according to sales, Huawei occupied the world in 2021 global The 28.7% share of the communication equipment market increased by 7% year -on -year, ranking first in the world. In addition, Ericsson ranked second in the world with a share of 15%, and Nokia ranked third in the world with a market share of 14.9%.
This also means that Huawei's share is close to the sum of the world's second Aixin and the world's third Nokia, which can be said to be the absolute fault first. It is necessary to know that even if the Chinese market is opened, Huawei's share is still as high as 18%. From this, we can see that the field of Huawei's communication does not rely entirely on the Chinese market. Of course, China is still an extremely important market in the field of communication equipment.
3, Hongmeng's operating system or going out of the country
Secondly, we all know that due to the limited chip's disconnection, Huawei's mobile phone business is greatly affected. To this end, creating Hongmeng Ecology and Powerful Automobile Business has become a new strategy for Huawei terminals. According to the Huawei annual report, as of the end of 2021, the number of Huawei equipment equipped with the HarMonyOS operating system has exceeded 220 million, and the types of Hongmeng Zhilian certified products launched by other manufacturers have exceeded 4,500. In 2021, the number of new Hongmeng ecological equipment exceeded 100 million tower.
The Huawei's Hongmeng system is expected to go abroad. According to the Russian satellite news agency reported on the 27th, due to US sanctions, Google has stopped certifying the smartphone of the Russian BQ company operating the Android management system. The company is currently testing the Hongmeng operating system of Huawei, China. Although Huawei said: There is currently no plan to launch a mobile phone equipped with Harmonyos overseas. But it is not a clear rejection, so the hope of Hongmeng system to enter the Russian market is still very great.
4, the leading 5G network deployed around the world
In addition, from the 2021 annual report conference, we also learned that Huawei has helped global operators deploy leading 5G networks. According to a third -party report, in 13 countries including Switzerland, Germany, Finland, the Netherlands, South Korea, Saudi Arabia, the 5G network user experience undertaken by Huawei is the best. A total of more than 3,000 5G industry application contracts have been signed, including manufacturing, mining, steel, ports, medical care and other industries.
In the past 2021, Huawei is mixed. Over the years, Huawei has also been subject to human beings due to the US sanctions on Huawei. However, Huawei has never given up and always insists on independent research and development to achieve technical autonomy. This is why Huawei can continue to develop in adversity. In 2021, Huawei engaged in research and development of about 107,000, accounting for about 54.8%of the total number of companies. In this way, Huawei's investment in research and development must be worthy of our expectations in the future.
Special declaration: The above content (if there are pictures or videos, including), uploaded and published by the self -media platform "Netease" users. This platform only provides information storage services. rnrnNotice: The content above (including the pictures and videos if any) is uploaded and posted by a user of NetEase Hao, which is a social media platform and only provides storage services.
On March 28, Huawei held a 2021 annual report conference in Shenzhen and released performance data for 2021. Among them, in 2021, Huawei achieved revenue of 636.8 billion yuan, a year -on -year decrease of 28.6%. Nearly 30%of the decline can be said to be an unprecedented phenomenon.
We can see that Huawei's operating cash flow achieved 59.7 billion yuan, an increase of 69.4%compared to last year. Maintain a very good cash income ratio. As of the end of 2021, the total amount of cash and short -term investment totaling RMB 416.3 billion, a year -on -year increase of 16.5%. In this way, many large enterprises have lived by borrowing debts, and there is no source of motivation for development inside. Huawei has done much well in this regard.
Huawei's business continues to be suppressed by the United States
The main sanctions on Western countries for Huawei chips. Due to the unable to reproduce new self -developed chips, Huawei sold himself at the end of 2020 at the end of 2020. The "glory" of the subsidiary of Huawei has also fallen out of the top five mobile phone shipments since then. At the same time, the limitation of the chip is not only limited to mobile phones, but also Huawei's router and network exchange products, which was also the heavy annual income.
Huawei's 5G business encountered a bottleneck
Huawei has launched its own 5G project in early 2018, and the strategy of gauging in the domestic and foreign countries has been followed. However, with the development of Sino -US contradictions and the development of the trade war, Huawei's overseas market business also encountered bottlenecks. Many projects that have been signed before were forced to terminate the contract midway. At the same time, the domestic 5G market has been initially built in 2020, because there are no better corresponding supporting application scenarios. Therefore, the promotion of 5G applications has also been greatly restricted. These all affect the promotion and sales of Huawei products.
The continuous impact of the epidemic
The epidemic situation in the world has entered the third year, and the impact of the epidemic has penetrated into each person's life. Because economic activities have been greatly suppressed, the ultimate transmission is personal consumption. And the production investment of enterprises is gradually sluggish. This also directly affects the complete industrial structure of production-sales-regeneration. Huawei is also one of them as a technology manufacturing enterprise, and it is difficult to be influenced by this objective factors.
of course Huawei noodles are already prepared for the current revenue decline. We can see from the following three points:
. Huawei now holds a lot of cash flow. The confidence in the dilemma.
We can see that Huawei's operating cash flow achieved 59.7 billion yuan, an increase of 69.4%compared to last year. Maintain a very good cash income ratio. As of the end of 2021, the total amount of cash and short -term investment totaling RMB 416.3 billion, a year -on -year increase of 16.5%. In this way, many large enterprises have lived by borrowing debts, and there is no source of motivation for development inside. Huawei has done much well in this regard.
. Increase investment in R
1. Everyone knows that as a leader in Chinese science and technology, Huawei can be said to be the primary goal of foreign hostile forces. It is clear that Huawei will kill Huawei. The direct result is that many high -end products in Huawei are completely limited by the unable to produce or production scale, which has caused a sharp decline in its revenue. There is nothing to sell! Seeing the larger world open the APP, Huawei really has no way? The main reason for the analysis of the decline in Huawei's revenue, Yue Ming, original 2 weeks ago, followed 2021 Huawei's revenue of 600 billion yuan. It looks like a lot. Compared with other Chinese technology companies, it is definitely a giant existence. However, Huawei's revenue has decreased by more than 200 billion compared to himself. This decline in any company is very scary. Therefore, many people think that Huawei is not good, and it's going to fall? So, is this true?析 First of all, let's analyze why Huawei's revenue will decline sharply: everyone knows that as a leader in Chinese science and technology, Huawei can be said to be the primary goal of foreign hostile forces. The raw material is broken and the software is not authorized. The purpose is clear, that is, to kill Huawei. The direct result is that many high -end products in Huawei are completely limited by the unable to produce or production scale, which has caused a sharp decline in its revenue. There is nothing to sell!
2. We know the saturation of domestic construction, and Huawei started from the telecommunications business. Transmission, communication, etc. However, with the construction of decades, the basic network of communication in my country has basically taken shape, and it is difficult to have a large -scale construction demand as before. Therefore, this piece will inevitably decline. This is why Huawei produces mobile phones (people have not looked at it before, and they are disdainful to make mobile phones). After Huawei dyed the mobile phone business, it has been moisturizing for a few years, and has also entered the public's field of vision, becoming a star technology company in China (previously produced and communicated products, ordinary people did not know that Huawei was at all, let alone Huawei did to do it. What). But this also made many companies and countries jealous, and they also knew Huawei's strength, so various suppression restrictions followed. This is also one of Huawei's dilemma today.
3. Diversified development is not smooth. Now Huawei is very different from Huawei more than ten years ago. First of all, the volume is much larger. Both revenue and staff are much larger than before. Times; second, Huawei used to be mainly based on high -end communication products, and now, Huawei almost refers to various products in the information industry. The former undoubtedly allows Huawei to have a heavy burden. There are many employees and a high salary. Once the company goes downhill, it is very inertia and cannot stop the car. The latter will lead to the dispersion of various resources of the enterprise, and many subdivided products cannot generate a lot of sales and profits, and they have to lose. Even, many small and medium -sized enterprises are offended. After all, the market is so big, and you have to share a share, which makes others live.
Mainly because of the United States, especially the chip cannot be produced, the mobile phone business has declined. However, because the telecommunications business is still the world's first, the net profit is still good.
On March 28, Huawei released the 2021 annual report. The report shows that in 2021, Huawei's global sales revenue was 636.8 billion yuan, a year -on -year decrease of 28.6%, and net profit was 113.7 billion yuan, an increase of 75.9%year -on -year.
Stoes in multiple rounds of sanctions and epidemics in magnesium states still put pressure on Huawei revenue. In addition, the 5G construction of operators in domestic domestic operators has been basically completed, and customer demand has also been reduced, which has also affected Huawei's revenue to a certain extent.
The business income of Huawei operator's business income was 281.5 billion yuan, a year -on -year decrease of 4%; corporate business revenue was 102.4 billion yuan, a year -on -year increase of 2%; consumer business revenue was 243.4 billion yuan, a year -on -year decrease of 46 %.
Hirly limited services such as Huawei mobile phones, tablets, PC and other chips have fallen, the growth of emerging business has increased significantly, and Huawei Cloud and Digital Energy revenue have exceeded 30%.
In a sharp decline in revenue, Huawei net profit has increased significantly, part of the reason is the income of business disposal. However, Meng said that even if the business disposal income is not considered, Huawei ’s net profit still improves." Although the scale of revenue has become smaller, Huawei ’s profitability and cash flow acquisition capacity are increasing. ","
With the development of society, the number of private enterprises in my country is increasing. There are many outstanding private enterprises, including Huawei, JD.com, BYD, DJI, etc., and private enterprises from various industries. In the 2020 Chinese private enterprises, Huawei ranked first with revenue of 858.8 billion yuan, which was also the first for Huawei for five consecutive years.
Huawei was overtaken by JD
But unfortunately, Huawei's revenue fell sharply in 2021. On March 28, Huawei held a 2021 annual report conference in Shenzhen and released performance data for 2021. In 2021, Huawei achieved revenue of 636.8 billion yuan, a year -on -year decrease of 28.6%. Nearly 30%of the decline can be said to be an unprecedented phenomenon.
. After Huawei's revenue dropped nearly 30%, it also lost the position of its largest private enterprise in China and was overtaken by JD. In 2021, Jingdong's annual revenue reached 951.6 billion yuan, an increase of 27.6%year -on -year. Become the largest private enterprise in China. As for why Huawei's revenue decline is as high as 28%? Ms. Meng Wanzhou, the chief financial officer of Huawei (CFO), gave an answer.
The reasons for Huawei's revenue plunge
First, due to the breakdown of the chip, this has led to a large decline in the revenue of Huawei mobile phone. In 2021, Huawei mobile phones fell out of the top five positions in global smartphone shipments, which also greatly affected Huawei performance. Secondly, as the construction of 5G in 2020 has been basically completed, this has also led to further reduction in demand. Finally, there is also the influence from the epidemic, which has also affected Huawei's related businesses. It is understood that this is also the first appearance of Ms. Meng Wanzhou in 2022.
Huawei welcomes 4 good news
1. Net profit rises sharply
of course, in 2021, Huawei is worried and happy. As Ms. Meng Wanzhou said: Although the scale of Huawei has become smaller, the profitability and cash flow acquisition capacity are increasing, and the ability to cope with uncertainty is constantly improving. Although Huawei's revenue declined in 2021, the net profit rose sharply, reaching 113.7 billion yuan, a year -on -year increase of 75.9%.
It we must know that the profit of Huawei in the past has never exceeded 100 billion, and the net profit of Huawei in 2020 was only 64.6 billion yuan. The net profit in 2019 was 62.7 billion, which has always maintained more than 60 billion yuan. However, in 2021, while the revenue scale fell nearly 30%, net profit can also achieve more than 70%of the skyrocketing, and he had to admire Huawei's strong performance in adversity.
What is the concept of 113.7 billion net profit a year? It is equivalent to earning 30 billion yuan per day, which is a handful of private enterprises in my country. Although JD.com surpassed Huawei's revenue in 2021, it was realized by ordinary shareholders in 2021 but lost 3.6 billion yuan. Huawei's strength can be imagined.
For the increase in net profit, Huawei said that it is mainly to sell the income of some businesses, the improvement of business quality, and the optimization of product structure. In addition, what many people do not know is that Huawei is not only a mobile phone manufacturer, but also a communication equipment company.
2, the market share of the global communication equipment in 2021
March 17, according to data released by Delloro Group, according to sales, Huawei occupied the world in 2021 global The 28.7% share of the communication equipment market increased by 7% year -on -year, ranking first in the world. In addition, Ericsson ranked second in the world with a share of 15%, and Nokia ranked third in the world with a market share of 14.9%.
This also means that Huawei's share is close to the sum of the world's second Aixin and the world's third Nokia, which can be said to be the absolute fault first. It is necessary to know that even if the Chinese market is opened, Huawei's share is still as high as 18%. From this, we can see that the field of Huawei's communication does not rely entirely on the Chinese market. Of course, China is still an extremely important market in the field of communication equipment.
3, Hongmeng's operating system or going out of the country
Secondly, we all know that due to the limited chip's disconnection, Huawei's mobile phone business is greatly affected. To this end, creating Hongmeng Ecology and Powerful Automobile Business has become a new strategy for Huawei terminals. According to the Huawei annual report, as of the end of 2021, the number of Huawei equipment equipped with the HarMonyOS operating system has exceeded 220 million, and the types of Hongmeng Zhilian certified products launched by other manufacturers have exceeded 4,500. In 2021, the number of new Hongmeng ecological equipment exceeded 100 million tower.
The Huawei's Hongmeng system is expected to go abroad. According to the Russian satellite news agency reported on the 27th, due to US sanctions, Google has stopped certifying the smartphone of the Russian BQ company operating the Android management system. The company is currently testing the Hongmeng operating system of Huawei, China. Although Huawei said: There is currently no plan to launch a mobile phone equipped with Harmonyos overseas. But it is not a clear rejection, so the hope of Hongmeng system to enter the Russian market is still very great.
4, the leading 5G network deployed around the world
In addition, from the 2021 annual report conference, we also learned that Huawei has helped global operators deploy leading 5G networks. According to a third -party report, in 13 countries including Switzerland, Germany, Finland, the Netherlands, South Korea, Saudi Arabia, the 5G network user experience undertaken by Huawei is the best. A total of more than 3,000 5G industry application contracts have been signed, including manufacturing, mining, steel, ports, medical care and other industries.
In the past 2021, Huawei is mixed. Over the years, Huawei has also been subject to human beings due to the US sanctions on Huawei. However, Huawei has never given up and always insists on independent research and development to achieve technical autonomy. This is why Huawei can continue to develop in adversity. In 2021, Huawei engaged in research and development of about 107,000, accounting for about 54.8%of the total number of companies. In this way, Huawei's investment in research and development must be worthy of our expectations in the future.
Special declaration: The above content (if there are pictures or videos, including), uploaded and published by the self -media platform "Netease" users. This platform only provides information storage services. rnrnNotice: The content above (including the pictures and videos if any) is uploaded and posted by a user of NetEase Hao, which is a social media platform and only provides storage services.