In a significant milestone for the tech giant, Huawei reported a net profit increase of 144.3% in 2023, with a revenue of 7042 billion yuan, marking a 9.6% growth compared to the previous year. This marks the highest revenue level in the last three years, highlighting the resilience of Huawei amidst ongoing global challenges.
Key Takeaways:
- Revenue Growth: Huawei’s total revenue reached 7042 billion yuan, an increase of 9.6% compared to the previous year, surpassing the 3-year high mark.
- Net Profit Surge: The company’s net profit soared to 870 billion yuan, marking a 144.3% increase from 2022.
- Business Performance: Terminal business and the car business unit (BU) were pivotal in driving this growth, with the car BU experiencing a revenue increase of 128.1%, and the terminal business returning to positive growth.
- Operating Profits: Huawei’s operating profits increased by 147.3% to 1044.01 billion yuan, with the company attributing the growth to scale expansion, optimized product structures, improved operational quality, and gains from the sale of certain business segments.
Terminal Business Rebound
Following a two-year decline, Huawei’s terminal business saw a resurgence, primarily due to the return of the Kirin chipset and the launch of the Mate series. This marked a significant milestone, with the terminal business experiencing a positive growth trajectory for the first time in recent years.
Car BU’s Exponential Growth
The car BU has seen a remarkable growth of 128.1% in revenue, a testament to Huawei’s strategic investments and technological advancements in the automotive sector. This growth underscores the company’s commitment to becoming a leading player in the smart mobility ecosystem.
Huawei’s Road to Recovery
Huawei’s journey towards profitability was marked by strategic pivots and innovation, especially in the face of global sanctions. The company’s ability to adapt and innovate, particularly in the development of new products and services, played a crucial role in its financial recovery.
Outlook: A New Chapter
With the launch of the HarmonyOS NEXT and the introduction of the Mate 60 series, Huawei is poised for further growth, leveraging its ecosystem and technological prowess. The company’s focus on AI and its strategic investments in the automotive sector suggest a promising future, with the potential to achieve profitability in the car BU this year.
Conclusion
Huawei’s 2023 financial report is a testament to the company’s resilience and innovation, particularly in the face of global challenges. The resurgence of its terminal business and the exponential growth of its car BU highlight Huawei’s ability to adapt and thrive in a rapidly evolving technological landscape. As Huawei continues to push boundaries in AI, automotive technology, and its core ICT infrastructure business, the company stands at the forefront of a new era in technology and innovation.
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