Industry events. Recently, Huawei released its 2021 annual report. The company's annual revenue reached 636807 billion yuan, a year-on-year decrease of 28.6%, mainly due to the impact of the decline in consumer business income. The net profit was 113718 billion yuan (the net profit margin was 17.9%), with a year-on-year increase of 75.9%. The increase was mainly due to the income from the sale of some businesses, the improvement of business quality and the optimization of product structure (including 60.797 billion yuan of other net income and expenditure in 2021 and 692 million yuan in 2020). The three main businesses were as follows: the operator business achieved a revenue of 281469 billion yuan, a year-on-year decrease of 7.0%; Enterprise business realized RMB 10.444 billion, a year-on-year increase of 2.1%; Consumer business achieved 243431, a year-on-year decrease of 49.6%, and the overall operating performance was in line with expectations.
The three major businesses of global operation are developing well, and ICT technology expands new opportunities for digitization. By the end of 2021, in terms of operator business, Huawei had signed more than 3000 5g industry application commercial contracts, supported telecom operations in more than 100 countries and regions, laid out more than 60 fully integrated core networks, and the 5g penetration rate exceeded 20% (China, South Korea, Switzerland, Kuwait and other countries); In terms of energy conservation and emission reduction, it helped global operators save about 84.2 billion kwh of electricity and reduce about 40 million tons of carbon dioxide emissions. In terms of government and enterprise business, Huawei explored the prospect and future of industry digital transformation from three aspects: scene, mode and ecology. In 2021, Huawei released 11 scene solutions for more than 10 key industries such as government, transportation, finance, energy and manufacturing, covering more than 100 scene solutions, and became a digital transformation partner of 267 Fortune 500 enterprises in more than 700 cities in the world. In terms of consumer business, the "1 + 8 + n" strategy leads the continuous innovation of five scenarios and creates the whole scene intelligent life of all things Zhilian. Following smart wear, smart screen and other products, harmonyos has successively landed in categories such as mobile phones, tablets and car cockpits. By 2021, Huawei had more than 220 million devices equipped with harmonyos, becoming the fastest-growing mobile terminal operating system in the world, with more than 730 million monthly live users worldwide.
Continue to take root in basic research, improve core competitiveness and promote the rapid development of industrial innovation. The company continued to strengthen R & D investment and promote the reconstruction of basic theory, architecture and software. In terms of theoretical reconstruction, the company continues to explore theories and technologies such as new generation MIMO and wireless AI, and continues to make breakthroughs. In terms of architecture reconstruction, photoelectric fusion technology is introduced to solve the problems of wireless UHF, Super bandwidth and ultra-high speed, and break through the process bottleneck faced by future chips. In terms of software reconfiguration, harmonyos and Euler give more effective play to the computing potential of diversified hardware, and mindspire framework helps scientists and engineers greatly improve development efficiency. The company's R & D investment was 142.7 billion in 2021, accounting for 22.4% of the sales revenue. The amount and rate of R & D expenses are at the highest level in recent ten years. The company's high R & D investment is expected to further enhance the company's core competitiveness.
The leading business of main equipment continues to expand, and the industrial chain is expected to usher in a double rise in performance and valuation. 5g application and the new infrastructure of "computing from the east to the west" are the key directions of communication exceeding expectations in the future. Valuation first and then fundamentals are expected to rise. Suggestions to focus on subdivideareas and targets: the light module of the cosmic infrastructure of the meta universe: the light module of the infrastructure of the meta universe: the light module of the infrastructure of the meta universe: the light module of the infrastructure of the meta universe: the 3 Zuming Bean Products Co.Ltd(003030) 303030303030303030303030 (2) as a long-term configuration direction, it also needs to focus on.
Risk tip: the business transformation is less than expected, the innovative business model has not been formed, the 5g commercial promotion is less than expected, and the uncertainty risk of Sino US technology friction.
