Since this year, Huawei has made frequent moves in financing.
Huawei Holdings Co., Ltd. plans to issue short-term financing bonds of RMB 18 billion for the first time in July. This is also the first time that Huawei Holdings Co., Ltd. plans to issue short-term financing bonds of RMB 30 billion without guarantee.
For the purpose of this financing, Huawei said that in order to support the development of various businesses and the implementation of key strategies, the financing will be used to supplement the working capital of the company and its subsidiaries.
On March 1, during the 2022 World Mobile Communication Conference, Huawei’s rotating chairman Guo Ping delivered a video speech saying that someone asked whether Huawei would gradually withdraw from the overseas market? “Our answer is’ no ‘. Huawei will go all out to help our customers achieve business success. We will unswervingly implement the globalization strategy in terms of standards, talents and supply chain.”
Guo Ping said that in the face of challenges, Huawei will adhere to globalization, significantly increase its strategic investment in root technology, and strive to realize the three reconstruction of basic theory, architecture and software, so as to continuously improve Huawei’s medium and long-term competitiveness and support the long-term sustainable development of ICT industry.
year of the tiger’s first 3 billion ultra short-term financing
In January and February this year, Huawei issued three phases of medium-term notes, raising a total of 11 billion yuan.
On March 7, Huawei announced again that it planned to issue 3 billion yuan of 180 day unsecured ultra short-term financing bonds. The lead underwriter was Industrial And Commercial Bank Of China Limited(601398) , the joint lead contractor was Agricultural Bank Of China Limited(601288) , the issuance date was from March 8 to 9, and the cashing date was September 6, 2022.
The announcement shows that Huawei’s main rating is AAA.
For the purpose of the raised funds, Huawei said that the company’s overall operation was stable and the financial results were in line with expectations. In order to support the development of various businesses and the implementation of key strategies, the fund-raising will be used to supplement the working capital of the company’s headquarters and its subsidiaries.
At present, China’s bond market has gradually replaced the overseas market as Huawei’s main financing place.
The Chinese reporter of the securities firm noted that before the issuance of the first bond in October 2019, Huawei mainly raised funds from Western banks, and the existing bonds were all overseas US dollar bonds, totaling US $4.5 billion (RMB 28.439 billion), and there was no subsequent increase.
After the attempt to issue bonds to China in 2019, “one issue cannot be received”. In January and February this year, Huawei has successively issued three medium-term notes, with the amounts of 4 billion yuan, 3 billion yuan and 4 billion yuan respectively, totaling 11 billion yuan.
By the end of February this year, the total amount of domestic bonds of Huawei had reached 34 billion yuan, which has exceeded the total amount of overseas bonds of Huawei.
For China’s bond financing, Huawei previously said publicly that the bond market in China has developed rapidly. At present, the market capacity is the second in the world, and bond financing has become one of the important financing channels in China. The company opens the domestic bond market through domestic bond issuance, which will further enrich financing channels and optimize the overall financing layout.
Huawei promises that the funds raised through subsequent issuance will be used for the production and operation activities of enterprises that meet the requirements of national laws, regulations and policies, and will not be used for long-term investment, real estate investment, financial management and various equity investments.
is significantly increasing strategic investment in root technology
On March 1, during the 2022 World Mobile Communication Conference, Guo Ping, chairman in office of Huawei, revealed the latest developments of Huawei to the outside world through the video keynote speech “up, light up the future”.
Guo Ping said in a video speech that someone asked whether Huawei would gradually withdraw from the overseas market? “Our answer is’ no ‘. Huawei will go all out to help our customers achieve business success. We will unswervingly implement the globalization strategy in terms of standards, talents and supply chain.”
Today’s world is facing two important topics: digitization and carbon neutralization, which have a far-reaching impact on the future of ICT.
Guo Ping said that in the face of challenges, Huawei will adhere to globalization, significantly increase its strategic investment in root technology, and strive to realize the three reconstruction of basic theory, architecture and software, so as to continuously improve Huawei’s medium and long-term competitiveness and support the long-term sustainable development of ICT industry.
According to the data, from 2018 to 2020, Huawei’s consolidated operating revenue reached 715192 billion yuan, 849646 billion yuan and 882877 billion yuan, with a year-on-year increase of 19.5%, 18.8% and 3.91% respectively. From 2018 to 2020, the average annual compound growth rate reached 11.11%.
With the continuous expansion of the company’s business scale, Huawei’s operating costs and R & D expenditure also increased accordingly. From 2018 to 2020, the company’s cash expenditure on consolidated operating activities was 778238 billion yuan, 939346 billion yuan and 1019805 billion yuan respectively, and the R & D expenditure was 101475 billion yuan, 131466 billion yuan and 141951 billion yuan respectively.
On the last day of 2021, Guo Ping, Huawei’s rotating chairman, revealed in his new year’s speech that Huawei is expected to achieve sales revenue of about 634 billion yuan in 2021. Guo Ping said that among them, the business performance of operators is stable, the enterprise business is growing healthily, and the terminal business is developing rapidly Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) .
Compared with the data of the same period in 2020, the sales revenue in this year was 891.4 billion yuan, a year-on-year decline of 28.9% in 2021. Under multiple rounds of external sanctions, Huawei has been under great pressure.
Despite the great difficulties, Huawei has maintained its strategic determination in the face of adversity and adhered to its strategic investment in the future.
“High quality survival cannot be achieved only by saving food and clothing. Only by adhering to strategic investment and strengthening ourselves can we have a future.” Guo Ping said.
According to the data disclosure, in the past two years, under the challenge of performance, Huawei has maintained the scale of R & D investment at more than 100 billion yuan.
