Huawei released its 2020 annual report. The report shows that performance growth has slowed down, but it has basically met business expectations. Among them, sales revenue is 891.4 billion yuan, a year-on-year increase of 3.8%, and net profit is 64.6 billion yuan, a year-on-year increase of 3.2%. Cash flow from operating activities was 35.2 billion yuan, which was less than last year because of increased investment in supply, research and development, and increased reserves of some materials.
Specific to each business segment, the operator’s overall business remained stable, with revenue of 302.6 billion yuan, an increase of 0.2%; corporate business revenue was 100.3 billion yuan, an increase of 23%; consumer business revenue was 482.9 billion yuan, an increase of 3.3%.
Hu Houkun, Huawei’s rotating chairman, said that the growth rate of consumer business last year did not meet expectations. In the past, Huawei’s terminal business has been advancing with leaps and bounds, but last year due to supply problems, the sales of mobile phones were affected, and sales declined. Terminals other than mobile phones increased by 65%, partially offsetting the impact of mobile phones.
From a regional perspective, China’s revenue accounted for 65% of the world’s total revenue, the highest proportion, and an increase of 15% compared to last year.
In 2020, in the field of operator business, during the epidemic, Huawei will help 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 living supplies 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 said: “This year, we have not been afraid of hardships and continued to create value for customers with innovative ICT technology, helping global science and technology fight the epidemic, economic development and social progress, and improving the quality of operations. The annual operating results basically met expectations. We will continue to open cooperation with customers and partners to promote the sustainable development of society, economy and environment.”