Home » Business » Huawei’s 2023 Annual Report: Revenue Tops 700 Billion Yuan, R&D Investment Key to Success

Huawei’s 2023 Annual Report: Revenue Tops 700 Billion Yuan, R&D Investment Key to Success

Huawei’s main data in 2023

Smart car solution business enters scale delivery stage

Huawei’s revenue in 2023 will be 704.2 billion yuan

Nearly a quarter is invested in R&D

◎Reporter Tang Yanfei

On March 29, Huawei released its 2023 annual report. The overall operating situation is in line with expectations: the annual operating income was 704.2 billion yuan and the net profit was 87 billion yuan. Among them, the ICT infrastructure business remained stable, the terminal business performed in line with expectations, the cloud computing and digital energy businesses achieved good growth, and the smart car solution business began to enter the large-scale delivery stage.

At the same time, Huawei attaches great importance to research and innovation. In 2023, its R&D investment will reach 164.7 billion yuan, accounting for 23.4% of its annual revenue. The cumulative investment in R&D expenses in the past ten years has exceeded 1.11 trillion yuan.

Hu Houkun, Huawei’s rotating chairman, said: “The overall operating performance of the group in 2023 is in line with expectations. In the past few years, Huawei has experienced many tests and has continued to grow amidst challenges. It is the trust and support of customers, partners and all sectors of society that have helped Huawei Survive and thrive.”

Revenue will exceed 700 billion yuan in 2023

On March 29, Huawei’s 2023 annual report news announcement revealed that it achieved operating income of 704.2 billion yuan, a year-on-year increase of 9.63%, and net profit of 87 billion yuan, a year-on-year increase of 144.38%.

Previously, Hu Houkun, Huawei’s rotating chairman, revealed in his 2024 New Year’s speech that Huawei’s operations have basically returned to normal, with sales revenue exceeding 700 billion yuan last year.

Huawei said that its ICT infrastructure business remained stable, its terminal business performed in line with expectations, its cloud computing and digital energy businesses achieved good growth, and its smart car solution business began to enter the large-scale delivery stage.

Specifically, in 2023, Huawei’s ICT infrastructure business achieved sales revenue of 362 billion yuan, a year-on-year increase of 2.3%; the terminal business achieved sales revenue of 251.5 billion yuan, a year-on-year increase of 17.3%; the cloud computing business achieved sales revenue of 55.3 billion yuan, a year-on-year increase 21.9%; the digital energy business achieved sales revenue of 52.6 billion yuan, a year-on-year increase of 3.5%; the smart car solutions business achieved sales revenue of 4.7 billion yuan, a year-on-year increase of 128.1%.

Hu Houkun also said in the annual report: “In the field of ICT infrastructure, we work hand in hand with operator customers to continue to release the value of 5G network investment and steadily promote the commercialization process of 5G-A. We target NA, commercial and distribution categories. The characteristics of different markets provide differentiated products, product portfolios and industry solutions for government and enterprise customers. In the terminal field, Mate 60 mobile phones and Hongmeng Ecosystem have received widespread attention. Huawei Cloud released innovations such as Pangu Model 3.0 and Shengteng AI cloud services Products serve as the ‘cloud base’ and ‘enabler’ for industry digitization. Huawei Digital Energy insists on using digital technology to promote green and low-carbon development of society, and has made significant progress in smart photovoltaics, liquid-cooled overcharging, etc. Huawei’s smart driving, smart Cockpit and other component solutions are widely used in more car companies.”

Ten-year research and development expenses exceed 1.1 trillion yuan

Facing the future, Huawei stated that it will continue to invest in open innovation and promote technological progress and industrial upgrading.

Huawei insists on investing more than 10% of its sales revenue into research and development every year. In 2023, R&D expenses will be 164.7 billion yuan, accounting for 23.4% of annual revenue. Despite the pressure from the external environment, Huawei still has not reduced its R&D investment, ensuring its strong technological strength. The annual report revealed that the cumulative investment in research and development expenses in the past ten years exceeded 1.11 trillion yuan.

As of December 31, 2023, Huawei had approximately 114,000 R&D employees, accounting for 55% of the total number of employees.

Huawei cloud business grows rapidly

Currently, the global AI craze has made the importance of computing power increasingly prominent, and the market demand for cloud computing industry has surged. Huawei’s cloud business has experienced rapid growth. In 2023, its cloud computing business will achieve sales revenue of 55.3 billion yuan, a year-on-year increase of 21.9%.

In 2023, Huawei Cloud will continue to innovate and its global business will maintain rapid growth. As of the end of December 2023, Huawei Cloud has covered 30 geographical regions and 84 availability zones around the world, providing services to customers in more than 170 countries and regions.

In China, Huawei Cloud is deeply involved in the digitalization of the industry, serving more than 800 government cloud projects, cooperating with more than 160 cities to build “one city, one cloud”; serving the six major state-owned banks, 12 joint-stock commercial banks, Top 5 insurance institutions, etc.

Huawei Cloud continues to invest in R&D and innovation, opening up Huawei’s technology accumulation and product solutions in the ICT field over more than 30 years, using system innovation to build the best cloud base in the intelligent era; creating data governance, AI development, digital content, software development, and hardware development Five major production lines make innovation within reach and accelerate the digitalization and intelligence of the industry.

In 2023, Huawei Cloud released the distributed QingTian architecture, breaking the boundaries of computing power, storage and network, realizing a new generation of multi-computing power peer-to-peer fully interconnected architecture, and creating a future-oriented all-cloud infrastructure.

In 2023, Huawei released Pangu Big Model 3.0, creating large models and capability sets for industries such as finance, government affairs, manufacturing, mining, meteorology, railways, automobiles, and medical care. It combines industry knowledge with large model capabilities to help promote intelligence in thousands of industries. Upgrading.

Huawei Cloud will also launch the Shengteng AI cloud service in 2023, and release distributed database GaussDB, more than 20 software development tools, CraftArts hardware development production line and other products to accelerate the digitalization and intelligence of the industry.

2024-03-29 23:21:46
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