On March 28, Chinese telecom giant Huawei released its 2021 annual report with positive results in its overall operations. The company achieved a global sales revenue of CNY 636.8 billion and a net profit of CNY 113.7 billion, up 75.9% year-on-year.
In the future, Huawei is expected to continue increasing its R&D investment, reaching RMB 142.7 billion in 2021, accounting for 22.4% of annual revenue. The company also has spent more than CNY 845 billion on R&D cumulatively over ten years.
The Huawei leadership emphasized that the company's overall operations are in line with expectations, with stable performance in the carrier business and achieved solid growth in the enterprise business. The company has seen a rapid development of new industries in the terminal business and ecological construction is in progress.
Huawei's CFO Meng Wanzhou indicated Huawei's profitability and cash flow acquisition capabilities are increasing, and the company's ability to cope with uncertainty is improving. In this case, Huawei's operating cash flow has increased significantly to CNY 59.7 billion in 2021 and the overall financial structure is strengthening its resilience and elasticity.
The company also achieved a sales revenue of over CNY 281 billion in the carrier business segment in 2021, as one of the world leaders in 5G networks. There are a total of 13 countries, including Switzerland, Germany, Finland, South Korea, and Saudi Arabia, that use Huawei's 5G services. On par with other operators and partners, Huawei has signed more than 3,000 commercial contracts for 5G industry applications to expand more application scenarios, such as manufacturing, mining, healthcare, and other industries.
Under the wave of digital transformation, Huawei's enterprise business achieved rapid growth, realizing sales revenue of RMB 102.4 billion. For key industries such as government, transportation, finance, energy, and manufacturing, Huawei has released 11 scenario-based solutions and established legions for coal mines, smart highways, customs, and ports to integrate resources to efficiently serve customers. More than 700 cities and 267 Fortune 500 companies worldwide have chosen Huawei for digital transformation, and the number of service and operation partners has grown to more than 6,000.