We can see that Huawei's operating cash flow reached 59.7 billion RMB, up 69.4% from last year. Maintain a very good cash-to-income ratio. By the end of 20021,the balance of cash and short-term investments totaled 4163 billion yuan, up 16.5% year-on-year. Nowadays, many large enterprises live by borrowing money, and there is no internal source of development. Huawei has done too much in this regard.
Huawei's business continues to be suppressed by the United States.
This mainly refers to the sanctions imposed by western countries on Huawei chips. Huawei sold its subsidiary glory at the end of 2020 because it was no longer able to produce new chips independently developed. Since then, Huawei's mobile phone shipments have also fallen out of the top five in China. At the same time, the limitations of the chip are not limited to mobile phones, but also include Huawei's routers and network switching products, which used to be the focus of annual income.
Huawei's 5G service has encountered a bottleneck.
Huawei has already laid out its own 5G project at the beginning of 20 18, and adopted the strategy of going hand in hand at home and abroad. The initial effect was remarkable, but with the development of Sino-US contradiction and trade war, Huawei's overseas market business also encountered bottlenecks, and many projects that had been signed before were forced to cancel the contract halfway under the pressure of the United States. At the same time, the domestic 5G market has been initially established in 2020, because there is no better corresponding application scenario. Therefore, the application and promotion of 5G has also been greatly limited. All these have affected the promotion and sales of Huawei products.
The continuing impact of an epidemic
The global epidemic has entered its third year, and its influence has penetrated into everyone's life. Because economic activities have been greatly suppressed, the ultimate transmission is the gradual decline of personal consumption and enterprise production input. This also directly affects the complete industrial structure of production-sales-reproduction. As a technology manufacturing enterprise, Huawei is also a part of it, and it can't escape the influence of this objective factor.
Of course, Huawei is prepared for the current decline in revenue, as can be seen from the following three points:
First, Huawei now holds a large amount of cash flow, which is the confidence to move forward in a difficult situation.
We can see that Huawei's operating cash flow reached 59.7 billion RMB, up 69.4% from last year. Maintain a very good cash-to-income ratio. By the end of 20021,the balance of cash and short-term investments totaled 4163 billion yuan, up 16.5% year-on-year. Nowadays, many large enterprises live by borrowing money, and there is no internal source of development. Huawei has done too much in this regard.
Second, increase investment in research and development, and never forget to attract outstanding talents to join the enterprise.
According to the data of R&D investment in 20 12-202 1 this decade, in 20 13.2% of Huawei's total revenue, in 20021,its R&D investment accounted for 22.4% of the total revenue. Huawei's investment in R&D ranks second in the world. It is this R&D capability that ensures that Huawei can still take out decent products and continue to occupy the market even if it is blocked everywhere. At the same time, Huawei's annual salary of 700,000 per capita is still a place that outstanding students yearn for. The talented juvenile class established by Huawei provides stamina for the sustainable development of the enterprise. In addition, it seems that Huawei reduced its sales expenses by 654.38 billion yuan in 20021,and put all the money saved into research and development, that is, all the good steel was used in the cutting edge.