Huawei's resilience in challenging times: 2022 financial results reveal consistent growth

Oman Thursday 06/April/2023 16:53 PM
By: Times News Service
Huawei's resilience in challenging times: 2022 financial results reveal consistent growth

Huawei released its 2022 Annual Results indicating that the company has maintained steady operations and its performance was in line with the forecast. The technology major’s revenue remained stable and grew slightly, having generated USD92.37 billion in revenue and USD5.12 billion in net profits. Huawei continues to strengthen investment in R&D, with an annual expenditure of USD23.22 billion in 2022, representing 25.1% of the company's annual revenue and bringing its total R&D expenditure over the past 10 years to more than USD 140.55 billion.

These financial indicators show that Huawei's consumer business is stabilizing while its ICT infrastructure business continues to expand steadily. The digital power sector and Huawei Cloud both experienced rapid development, which raised the components' competitiveness and user-friendliness. By aiding in the digital transformation of various industries, Huawei has been able to sustain growth. It has done this by utilizing its robust and resilient business portfolio to lay the groundwork for the digital economy, promote green and sustainable development, and generate value for its customers, partners, and society as a whole.

"In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei's operations", said Eric Xu, Huawei's Rotating Chairman, at the company's annual report press conference. "In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers. We also went to great lengths to grow the harvest – generating a steady stream of revenue to sustain our survival and lay the groundwork for future development."

Also present at the event was Sabrina Meng, Huawei's CFO. She noted, "Despite substantial pressure in 2022, our overall business results were in line with forecast. At the end of 2022, our liability ratio was 58.9% and our net cash balance was USD25.35 billion. In addition, our balance of total assets reached 0.15 trillion USD, largely composed of current assets such as cash, short-term investments, and operating assets. Our financial position remains solid, with strong resilience and flexibility. In 2022, our total R&D spend was CNY23.22 billion, representing 25.1% of our total revenue – among the highest in Huawei's history. In times of pressure, we press on – with confidence."

In 2022, revenue from Huawei's carrier, enterprise, and consumer businesses was USD40.84 billion, USD19.15 billion, and USD30.84 billion, respectively.

Huawei is a strong proponent of growing together with its ecosystem partners, and believes that openness and collaboration lead to shared success. The company has continued to open up its platform capabilities across its HarmonyOS, Kunpeng, Ascend, and cloud portfolio, focusing on improving developer experience as well as enabling and supporting its ecosystem partners on all fronts. In the Middle East, Huawei Cloud provides intelligent twin services, such as city governance and smart healthcare, to large government and enterprise customers. In 2022, Huawei Cloud grew alongside these enterprises and partners, with the cloud customer base in the Middle East more than doubling.

In Oman, Huawei recently launched its innovative cloud services. Its long-standing partnership with Omantel continues to explore various collaboration opportunities on cloud business. As part of their strategic cooperation, Omantel and Huawei have come together to conduct market insight analysis of Cloud Business in Oman. The two companies have also joined hands to identify cutting-edge services that can boost cloud technology adoption of organizations and develop the Cloud Business Market in the country. Additionally, Huawei and Omantel have an enduring and long-lasting partnership that has delivered immense opportunities for Oman's organizations. In 2021, the two entities agreed to establish a regional ICT training center to support talent development in the country. The training center aims to advance new technologies and support achieving Oman Vision 2040, which has digital technology as a key pillar.

It is worth mentioning here that Huawei is committed to developing a skilled ICT workforce and providing more education opportunities to drive local socioeconomic development. The company’s Seeds for the Future program started in 2008 to help cultivate local ICT talent. In 2021, Huawei announced Seeds for the Future 2.0, which houses all its education, skills and talent initiatives. Using methods, such as scholarships, academic contests and online training events, the program aims to develop skilled, local ICT talent and bridge the communication between countries and cultures. By the end of 2022, Seeds for the Future 2.0 had covered more than 150 countries and regions, benefiting more than three billion people around the world. The organisation requires a minimum of 30% of female students in Seeds for the Future programs, and in many countries, including Oman; the proportion has reached 50%.

"2023 will be crucial to Huawei's sustainable survival and development," Xu noted. "Plum blossoms tend to grow sweeter from a harsh winter's freeze. Today, Huawei is like a plum blossom. While it's true that we have considerable pressure ahead of us, we have what it takes to come out the other end – with opportunities to grow, a resilient business portfolio, a unique competitive edge, the enduring trust of our customers and partners, and the courage to invest heavily in R&D. We are confident in our ability to rise above any challenge that comes our way, laying a solid foundation for sustainable survival and development."

Huawei's success can be attributed to its continued focus on building strong partnerships with its customers and suppliers, as well as its commitment to corporate social responsibility. More than 700 cities and 267 Fortune Global 500 companies worldwide have chosen Huawei as their partner for digital transformation. Huawei has developed 100+ scenario-based solutions that are adopted across more than 10 industries, with established business units (BUs), such as the Mine BU, Smart Road, Waterway & Port BU, Government Public Services Digitalization BU, Electric Power Digitalization BU, Digital Finance BU, and Rail & Aviation BU. The company aims to boost the digital economy, and create new value together for all industries. Despite the challenges faced by Huawei, the company remained resilient and continued to deliver value to its customers.

All financial statements in the 2022 Annual Report were independently audited by KPMG, an international Big Four accounting firm. To download the 2022 Annual Report, please visit

Note: The 2022 closing exchange rate is US$1.00 = CNY6.9533