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Chinese tech giant Huawei recorded Sh500 billion ($ 5 billion) in net profits for the 2022 full year. In the period, the firm generated Sh9.3 trillion ($93 billion) in revenue, according to its 2022 Annual Report.

The report indicates that Huawei continued to strengthen investment in R&D, with an annual expenditure of Sh230 billion ($23 billion) in 2022, representing 25.1 percent of the company’s annual revenue. This brings its total R&D expenditure over the past 10 years to more than Sh14 trillion ($141.5 billion).

“In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei’s operations”, said Eric Xu, Huawei’s Rotating Chairman, at the company’s annual report press conference.

“In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers. We also went to great lengths to grow the harvest – generating a steady stream of revenue to sustain our survival and lay the groundwork for future development.”

Sabrina Meng, Huawei’s CFO, noted that despite a set of challenges, the performance was in tandem with projection.

“Despite substantial pressure in 2022, our overall business results were in line with forecast. At the end of 2022, our liability ratio was 58.9 percent and our net cash balance was Sh2.5 trillion (USD 25 billion). In addition, our balance of total assets reached one trillion yuan, largely composed of current assets such as cash, short-term investments, and operating assets,”  Meng said.

“Our financial position remains solid, with strong resilience and flexibility. In 2022, our total R&D spend was Sh2.3 trillion ($ 23 billion), representing 25.1 percent of our total revenue – among the highest in Huawei’s history. In times of pressure, we press on – with confidence.”

In 2022, revenue from Huawei’s carrier, enterprise, and consumer businesses was Sh4.1 trillion ($41 billion), Sh1.9 trillion ($19.3 billion), and Sh3.1 trillion ($31 billion), respectively.

Huawei is a strong proponent of growing together with its ecosystem partners, and believes that openness and collaboration leads to shared success. The company has continued to open up its platform capabilities across its HarmonyOS, Kunpeng, Ascend, and cloud portfolios, focusing on improving developer experience as well as enabling and supporting its ecosystem partners on all fronts. Huawei currently works with more than 9 million developers and over 40,000 ecosystem partners to fuel ecosystem-based innovation and create greater value for its customers.

“2023 will be crucial to Huawei’s sustainable survival and development.Plum blossoms tend to grow sweeter from a harsh winter’s freeze. Today, Huawei is like a plum blossom. While it’s true that we have considerable pressure ahead of us, we have what it takes to come out the other end – with opportunities to grow, a resilient business portfolio, a unique competitive edge, the enduring trust of our customers and partners, and the courage to invest heavily in R&D,” Xu noted.

“We are confident in our ability to rise above any challenge that comes our way, laying a solid foundation for sustainable survival and development.”

To download the 2022 Annual Report, please visit https://www.huawei.com/en/annual-report/2022