China News Agency, Beijing, March 31 (Reporter Liu Yuying) Huawei released its 2019 annual report on the 31st. Despite pressure from the United States, Huawei will continue to grow in 2019.
The report shows that in 2019, Huawei achieved global sales revenue of 858.8 billion yuan (RMB, the same below), a year-on-year increase of 19.1%, a net profit of 62.7 billion yuan, and cash flow from operating activities of 91.4 billion yuan, a year-on-year increase of 22.4%.
In 2019, Huawei provided mobile Internet services to more than 40 million people in remote areas in more than 50 countries and regions, achieving sales revenue of 296.7 billion yuan, an increase of 3.8% year-on-year.
Huawei's enterprise business helps digital transformation of industry customers, creating a digital world base. Realized sales revenue of 89.7 billion yuan, an increase of 8.6% year-on-year.
Consumer business maintained steady growth, with shipments of more than 240 million smartphones, and consumer-centric full-scenario smart ecological layouts such as PCs, tablets, smart wearables, and smart screens further improved, with sales revenue of 467.3 billion yuan, a year-on-year increase. Up 34%.
Xu Zhijun, Huawei ’s rotating chairman, said in response to media questions that after the implementation of the US “Entity List” on May 16 last year, Huawei needs to work harder on research and development to make up for “holes”. There is also a need to restructure the supply chain. Therefore, Huawei's net profit margin in 2019 is lower than the previous two years. "We take survival as our first goal," Xu Zhijun said.
In terms of technological innovation and research, Huawei's R & D expenses in 2019 reached 131.7 billion yuan, accounting for 15.3% of the annual sales revenue. In the past ten years, the total investment in R & D has exceeded 600 billion yuan.
Overseas sales of Huawei mobile phones also declined. "Huawei ’s overseas revenue share has fallen, which is related to Google's no longer providing GMS services after May 16 last year. The overseas revenue of consumer business is affected by about $ 10 billion," said Xu Zhijun. Huawei launched its own HMS service, but expected Google Apps can be listed on Huawei's mobile app store.
For 2020, Xu Zhijun said that there are still a large number of spare parts reserves to meet customer needs. In addition to the supply chain challenges in 2020, the global economic recession, financial turmoil, and slowing demand caused by the new crown epidemic are new challenges that have not been predicted. 2020 will be a "difficult year" for Huawei. (Finish)