Chinese telecoms giant Huawei has increased its spending on research and development (R&D), and hired additional staff, in an attempt to stabilize its business during a very turbulent 2022.
During the company’s earnings briefing in Shenzhen, earlier this week, the company’s rotating chairs, Meng Wanzhou, and Eric Xu, said the company’s goal for 2022 was “sustainable survival and development” as it sought to expand and “optimize” its business portfolio.
Huawei’s portfolio now includes ICT infrastructure, smart devices, cloud, digital power and intelligent automotive services.
“Solid” finances
When it comes to finances, however, Wanzhou said the business is “solid, with strong resilience and flexibility”.
That being said, Wanzhou announced R&D investment rising 13.2% year-on-year, hitting a record high of $23.5 billion in 2022. That’s 25.1% of total revenue (compared to 22.4% a year before), she added. The company also brought in additional staff to its R&D department, bringing its headcount up 6.2%, to 114,000. Now, R&D personnel takes up more than half of its entire workforce (207,000).
At the same time, net profit went down 68.7% year-on-year, reaching $5.1 billion. It is, however, worth mentioning that in 2021, Huawei sold its Honor sub-brand. No official figures were released, although the media were reporting that Huawei raked in $15.2 billion in the deal.
Revenue was flat at $93.4 billion.
Huawei’s enterprise business grew by almost a third (30%), hitting $19.37 billion, while its consumer business dropped 11.9%, to $31.2 billion.
Xu explained that the biggest challenge before Huawei last year pertained to non-market factors, hinting that the sanctions, Covid-19 pandemic, and the Russo-Ukrainian conflict, took its toll on the firm.
“While we have considerable pressure ahead of us, we have what it takes to come out of the other end,” Xu said.
Via: MobileWorldLive (opens in new tab)
