Huawei, the Chinese technology giant, has released its 2023 annual report, showcasing a robust performance amidst global sanctions and economic challenges. The company’s net profit surged by 144.3% to 87 billion yuan (approximately 12.6 billion USD), driven by strong growth in its car business unit (Car BU) and a turnaround in the terminal business.
Revenue Growth and Profitability
Despite facing sanctions, Huawei achieved a global revenue of 704.2 billion yuan (approximately 100 billion USD), marking a 9.6% increase year-on-year. The impressive growth was attributed to the doubling of Car BU revenue and a return to positive growth in the terminal business.
The company’s terminal business, which includes smartphones and consumer electronics, experienced a decline in the previous years. However, with the return of麒麟芯片 and the successful launch of the Mate series, the terminal business has now returned to positive growth.
Car BU: A Major Growth Driver
The Car BU emerged as a significant growth driver for Huawei, with revenue growing by an impressive 128.1%. Huawei has been actively involved in the automotive industry for several years, and the Car BU now has a team of over 7,000 people and has shipped more than 3 million components.
Huawei’s smart car solutions, including intelligent driving, intelligent cabin, and intelligent vehicle control, have gained a competitive edge in the market. The company has also launched high-level intelligent driving systems and upgraded its intelligent cabin solutions, which have been integrated into several strategic partnership vehicles.
Terminal Business: A Turnaround Story
The terminal business, which includes smartphones and consumer electronics, had been facing challenges in recent years. However, with the return of麒麟芯片 and the successful launch of the Mate series, the terminal business has now returned to positive growth.
Huawei has also been focusing on the development of the HarmonyOS operating system, which has seen significant growth in the number of devices connected to the platform. As of the end of 2023, over 800 million devices were connected to HarmonyOS.
ICT Infrastructure and AI Chip Business
Huawei’s ICT infrastructure business remains a major pillar of its operations, contributing 362 billion yuan (approximately 51.5 billion USD) in revenue, representing over half of the total revenue. The company has also been making significant progress in the AI chip business, with its latest AI chip, Ascend, achieving commercial success.
Conclusion
Huawei’s 2023 annual report highlights the company’s resilience and ability to innovate amidst global challenges. The strong performance of its Car BU and terminal business, along with its continued focus on ICT infrastructure and AI chip development, positions Huawei well for future growth and success.
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