Hi and welcome back to the channel
if you haven't been here before my name's Lee
and i run this channel with my son Oli
we are based here in Shenzhen in China
we create a varying amount and type of different content
so have a look i'm sure some of it may interest you
today we're going to talk about Huawei
i often follow Huawei. It's been a little while since I've done a video.
in the last few days they had their press conference
to talk about their annual results
and i'm going to show you in this video
how they have not only countered these sanctions
that were imposed on them by the U.S.
but they've continued to grow and increase their business
let's get into the video and find out a little more
The press conference was held on the 28th of March
and it was conducted by Guoping, the rotating chairman
and also Mengwanzhou, who's the chief financial officer
it was lovely to see Miss Meng back in SZ after her house arrest in Canada
she was released late last year and it was lovely to see her yet again
presenting the financial results at the Huawei press conference
first of all let's take a look at the headline figures
as you can see from this data
the overall revenue was down by 28.6% to 636.8 billion yuan
however and this is probably the most important thing
the net profit was up by 75% year on year to 113.7 billion
In the UK, we have a saying that
turnover is vanity and profit is sanity, so we feel
you know profit is much more important than turnover
and Huawei have achieved this increase in profit
by making themselves more efficient
this has not only led to a higher profit margin
but it's also increased their cash flow
so now let's have a look at Huawei's different business units
and how they performed in 2021.
so first of all we have huawei's carrier business
and this maintains solid performance
and interestingly more than 50% of the revenue for the carrier business
was from markets outside of China
and test results have shown that
5g networks built by huawei for customers in 13 different countries including
Switzerland Germany Finland the Netherlands South Korea & Saudi Arabia
provided the best user experience
and by working with carriers and partners, Huawei assigned
more than 3000 commercial contracts for industrial 5G applications
In 2021, 5G saw large-scale commercial deployment in many industries
including manufacturing, mining, steel, port, chemical, cement,
power grid & health care
and being here in China I've been able to see for myself
how quickly Huawei have helped the major Chinese carriers
roll out of 5G infrastructure
although 5g is important for consumers
i think the bigger picture is where Huawei have helped
industries become more efficient using 5G and AI
and we've seen this across many sectors
and one i would like to highlight is the ports
China operates 6 out of 10 of the world's most efficient ports
and that has been made possible by Huawei's implementation
of 5G and AI solutions
and also due to continuing digital transformation trends
Huawei's enterprise business also grew rapidly
generating 102.4 billion in revenue in 2021
and in the past year huawei launched 11 scenario-based solutions for
key sectors such as government, transportation, finance, energy & manufacturing
and the company have established multiple dedicated teams
including a coal mine team, a smart road team and a customs & port team
to combine resources in a way that more effectively
serves the needs of its customers
over 700 cities and 267 fortune global 500 companies have chosen Huawei
as their digital transformation partner
and Huawei now works with more than 6000 service
and operation partners around the world
as i mentioned earlier
Huawei have been under sanction from the U.S. for a number of years now
this is meant that they can't get access to the latest cutting-edge chips
this has made quite a dent in their consumer business
especially to mobile phone handsets
but what Huawei have done to bolster their consumer business is
they focus more on wearables and also smart screens
which don't require the latest cutting-edge chips
and as we can see from the chart
that business has increased by more than 30 percent
due to Huawei's concentration on the wearables market
they have now become the world leader in wearables
shipping more than 100 million devices to date
Huawei's health app now has more than 83m monthly active users worldwide
i actually own one of the huawei smart wearable devices
it's the GT watch and i actually think it's an absolutely cool device
i can not only monitor all my health statistics on it
using the health app but i can also pay for things using Alipay
and i can also use it to access the metro system
because they have an app
that combines the metro payment system with their wearable
So i don't even have to take my phone out my pocket
i can just use it to get on and off the metro system
we've talked about the financials now let's talk about
what Huawei considers to be one of the most important parts of its business
and that is research and development
as you can see from the chart
Huawei spent 142.7 billion yuan in 2021 which is 22.4% of its total revenue
and a 10 year high and between 2012 and 2021
Huawei has spent a total of 845.6 billion yuan on R&D investment
Huawei R&D investment is given a higher priority than shareholder returns
like many western companies will give a much higher priority to shareholder returns
but Huawei doesn't do that, Huawei invests in R&D
because it knows that is what will keep it on the leading edge of technology
and as a result of that R&D spend, Huawei have a total of
110000 patents in 45000 patent families
In 2021, they rank number 1 for patents in China and in the EU
and fifth in the U.S.
many people think Huawei as a Chinese company
but in fact that is not strictly true
Huawei are a very international company
they have a total of around 195000 employees
and 107000 which is almost 55 percent of those are staff
involved in R&D in over 80 research and development labs around the world
and they also have partnerships with many universities
in many countries around the world
Each year, Huawei invests more than 20 billion yuan in basic research
and as part of Huawei's R&D effort
they also see the benefit of investing in people
and something that Guoping said at the press conference
i found very interesting and that was
talent scientific research and innovative spirits
are the three critical elements for Huawei's future
and he also talked about an army of PHDs
over the last two years, he mentioned that Huawei have recruited
26000 fresh graduates
and over 300 of those have been what has been defined as top minds
and in the coming 12 months
Huawei anticipates employing another 10000 graduates
so if you have a PHD or a master's degree
it might be worth giving Huawei a call
as they were voted 8th in the list of Forbes best employers for 2021
so in conclusion i'd just like to share with you
something that miss Meng said in answer to a question
that was asked by Xinhua news agency at the press conference
in 2021, we may have stepped out of the blackout zone of this calamity
this wouldn't have been possible without the hard work of every HW employee
despite the lingering pressure we've been under over the past 3 years
our teams have become more united than ever
and their strategy has become clearer.
looking to the future we will invest even more in talent and R&D
this concentrated ongoing investment
will help us maintain our ability to innovate
and we will work with our partners to continually provide high quality
and higher value products and service to our customers over the long term
i think that sums up in a nutshell Huawei investing in R&D and people
and i think any business that invests in R&D and people
and puts the people and investment before shareholders
will inevitably be successful
i personally like to wish Huawei every success in the future
i do hope you enjoyed this video
i hope it's given you a little bit more insight into Huawei
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but as always for now take care