Huawei released its 2021 Annual Report on March 28th, revealing that the company had maintained solid operations throughout the past year. 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’s R&D expenditure reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, and bringing its total R&D expenditure over the past 10 years to over CNY845 billion. Moving forward, the company also plans to continuously increase investment in R&D.
Huawei said, the performance was overall in line with forecast, its carrier business remained stable, enterprise business experienced steady growth, and consumer business quickly expanded into new domains. In addition, the company embarked on a fast track of ecosystem development.”
Meng Wanzhou, Huawei’s CFO, spoke at the event, “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.” Thanks 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. Its liability ratio also dropped to 57.8%, and its overall financial structure has become more resilient and flexible.