In 2022, Huawei had reported revenues of CNY 642.3 billion, also flat versus 2021
Chinese vendor Huawei reported revenues of CNY132.1 billion ($19.1 billion) in the first quarter of this year, up 0.8% compared to the year-ago period, the company said in a release.
Huawei’s net profit margin declined from 4.3% to 2.3% in the period, chiefly due to an increase in R&D spending. Huawei also noted its business results in the first quarter of 2023 were in line with forecast.
The vendor did not disclose net profit or break down revenue by business group.
In 2022, Huawei reported a net profit of CNY35.6 billion, a decline of 68.7% year-on-year. Huawei noted that the figure for 2021 included one-off gains from the sale of its Honor sub-brand.
Huawei had also reported annual revenues of CNY642.3 billion, flat year-on-year.
Huawei had increased its investment in R&D and expanded its R&D staff last year as part of its efforts to stabilize its business amid the ongoing sanctions imposed by the U.S. government
Huawei’s current rotating chairwoman and CFO Meng Wanzhou said the vendor’s R&D investment increased 13.2% year-on-year to CNY161.5 billion in 2022, representing 25.1% of total revenue. In 2021, R&D investment in 2021 had accounted for 22.4% of total revenues. The executive also said that R&D staff increased 6.2% to 114,000.
Meng recently noted that Huawei will accelerate investments in the digitalization space, particularly in areas including connectivity, computing storage and cloud.
By 2026, Huawei expects that spending on global digital transformation will reach $3.4 trillion.
Meng also highlighted that Huawei is enabling productivity and efficiency improvements across industries such as mining, healthcare, ports and transportation, among others. The vendor has already inked partnerships with nearly 200 power enterprises worldwide and already provided digital services for more than 20 leading oil and gas enterprises and 800 mining enterprises, she added.
Huawei and its partners have developed and released over 100 digital transformation standards for the smart city, finance, electric power, highway, aviation and healthcare industries. By the end of 2022, over 700 cities and 267 Fortune Global 500 companies worldwide had selected Huawei as their partner for digital transformation.