“In 2021, despite all the trials and tribulations, we worked hard to create tangible value for our customers and local communities. We enhanced the quality and efficiency of our operations, and expect to round off the year with a total revenue of 634 billion yuan.
This past year, our carrier business remained stable, our enterprise business experienced solid growth, and our device business expanded swiftly into new business domains. We worked more closely with our customers and partners, and our global operations are business as usual. Our transformation initiatives and strategic investments have progressed in good order, and our overall performance was in line with our forecasts.
2021 was all hands on deck. Every member of the Huawei team worked hard to fulfill our business commitments, ensuring supply continuity and secure network operations. Each office faced its own set of unique challenges. In Kuwait, temperatures soared above 50 degrees Celsius this summer, making delivery impossible during the day. The team had to be on site by 4:00 AM to escape the heat. When travel to the Philippines was disrupted by COVID-19, our engineers chartered flights to remote islands where delivery was next to impossible. They would hop between islands on pump and crab boats, installing base stations along the way. During the 2020 Tokyo Summer Olympics, our engineers would walk from venue to venue, carrying more than ten kilograms of tools each, testing all equipment to ensure smooth communications. In Malawi, the field team earned recognition for helping our customers overcome operational difficulties in the middle of mosquito tornadoes.
Our team also jumped into action to turn the company’s vision into reality. You supported flood control in Henan Province and you rolled up your sleeves to work in coal mines and ports. You pushed the limits of algorithms, and did everything in your power to ensure business continuity.
The harder you strike flint, the brighter the spark. On behalf of the company’s Board of Directors, I salute every member of the Huawei team for your dedication, and offer my sincere gratitude to our customers, partners, and consumers for their unwavering trust and support. I would also like to take this opportunity to thank the families of all Huawei employees for your ongoing support throughout these challenging times.
The digital economy has become a major engine of global economic growth. Green and low-carbon technologies have become new drivers for sustainable development. This combination of digital transformation and green development presents the information and communication technology industry with incredible new opportunities. At the same time, an unpredictable business environment, the politicization of technology, and a growing deglobalization movement all present serious challenges. Against this backdrop, we need to stick to our strategy and respond rationally to external forces that are beyond our control.
A changing external environment won’t cause us to change our ideals or aspirations. As a tech company, one of our greatest social responsibilities is exploring the future. We will spare no effort as we probe the endless frontiers of science and technology. We will join forces with people from the world to break through engineering bottlenecks and limits in basic theory. We are committed to bringing ICT technology to each and every industry, to creating new value by helping them go digital, intelligent, and green, and to helping them cut their energy consumption and go low-carbon. We will help all people benefit from technological progress.
In terms of strategy, we will continue our focus on ICT infrastructure and smart devices. While leveraging the strengths of our broader platform, we are breaking new ground with domain-specific subsidiaries and integrated teams to shorten management chains, responding more nimbly to our customers’ needs, and creating greater business and social value than ever before. Within Huawei, our integrated teams focus on identifying the right technologies for their respective industries. When facing customers, they work closely with partners to explore the right solutions for practical challenges. Our goal is to take care of all the complicated stuff on our end, leaving our customers with simplicity itself.
2022 will come with its fair share of challenges, but we will keep working closely with our global partners to overcome the difficulties we face, improve business performance, and strengthen our foundations. We will continue investing in the future and creating value for our customers and partners. In the end we will not only survive, but do so sustainably.
Create value for customers and improve business performance. We will work with carrier and enterprise customers as well as partners around the world to build simple, green, and intelligent ICT infrastructure that helps all industries go digital. We will deeply integrate ICT technology with operational scenarios in key industries and work with our partners to meet a diverse range of customer needs. In terms of smart devices, we will continue focusing on what we do best and delivering high quality, while expanding more into scenario- and ecosystem-based development to deliver a truly unmatched experience. By integrating digital and power electronics technologies, our Digital Power business will develop clean energy and help traditional energy sectors go digital to build a better, greener future for all. HUAWEI Cloud will innovate nonstop alongside partners and developers to provide our customers with stable, reliable, secure, and trustworthy cloud services. By focusing on ICT technologies, our intelligent automotive solution business aims to become a preferred provider of new components for intelligent vehicles, and help vehicle OEMs build better cars and boost sales. By continuously creating new value for customers, we are confident that we will improve business performance and weather these difficult times. As Heinrich Heine once wrote, “Spring will bring you back again what the winter’s taken from you.”
Collaborate for shared success, build an open ecosystem, and grow with partners. We will build a software ecosystem centered on EulerOS for digital infrastructure and a device ecosystem centered on HarmonyOS. These two ecosystems will adhere to an open source strategy, allowing all software developers to use them, contribute to them, and benefit from them, thus building a fully connected, intelligent world. We will continue to build and contribute to online developer communities as well as brick-and-mortar innovation centers. Our goal is two-fold: to deliver scenario-based solutions based on our customers’ unique requirements and to support developers in their efforts to provide consumers with an innovative experience. We will continue promoting and safeguarding unified global technical standards. We will provide our channel partners with long-term incentives and support. We will also proactively support and develop high-quality suppliers worldwide so we can move forward together. Huawei can succeed only when our customers and partners succeed.
Create social value, enhance security and trustworthiness, and improve the business environment. We support the digital transformation of industries, promote the development of small- and medium-sized enterprises, and enable more people to benefit from digital technologies. We want to keep workers in coal mines safe, improve work environments at ports, and make it possible for iron and steel workers to wear business suits on the plant floor. We are helping local communities cultivate digital talent through initiatives like Seeds for the Future, ICT academies, and Women in Tech. We are facilitating green and sustainable development and protecting the natural environment through intelligent and low-carbon technologies. We are enhancing security, trustworthiness, and privacy protection at each stage of our products’ lifecycles, and advocating for global collaboration and unified security standards. We will continue communicating openly with government and media stakeholders to build trust and understanding.
Continue strategic investment and develop future-oriented capabilities. We need to focus on our core business and move away from the periphery, ensuring strategic investment to maintain our long-term competitiveness. We will increase investment in HarmonyOS and EulerOS to develop the software foundations of the digital world and provide people with new alternatives. We will also increase our investment in core digital power technologies and move forward with a dual-wheel strategy where we develop clean energy solutions while facilitating the digitalization of traditional energy. Cutting costs won’t pave the way to sustainable survival. Only through strategic investment can we grow stronger and build a future for ourselves.
Promote organizational transformation and strengthen our customer-facing teams. Huawei only exists to serve its customers. We can’t decide who chooses to work with us, but we will always wholeheartedly serve the customers who do. The goal of our organizational transformation efforts is to better serve our customers. By delegating decision-making authority to field offices, we want to make full use of our massive platform to better support the operations of elite teams, keeping them inspired to do what they do best. In 2022, we will fully implement the Contract Reviews and Conclusions at Rep Offices Transformation, giving rep offices operational autonomy. After that, we will begin exploring integrated business transformations in our rep offices around the globe. Moving forward, we will continue to stress the importance of entry-level experience, successful field experience, and successful overseas experience for HQ positions, in order to encourage more managers and experts to go out to the field and serve our customers. We need to double down on improving customer satisfaction. We can’t just depend on customer goodwill and support. We need to repay them with innovative products and top-quality services.
Attract outstanding global talent and unleash the potential of our existing teams. We will organize world-class contests to attract top talent from around the world and grow our teams in key domains like software, algorithms, and computing power. As always, we encourage ambitious employees to dig deep into science and dive headfirst into uncertain domains. We encourage top performers to go out to the field and solve specific technical and business issues. Our incentive policies will be oriented towards the fulfillment of responsibilities, but heroes won’t be chosen solely based on success or failure. We will nurture an open organizational climate and promote a diverse culture. We will also leverage senior industry experts to cultivate outstanding young people. Managers and experts should sit down more often with new employees – have some coffee, chat, and broaden their horizons. We will optimize the operations of our expert committees and delegate decision-making authority to experts so that they can create more value during field operations. We will maintain the stability of professional teams, allowing dedicated, long-time professionals to continue contributing to the company. We will continue creating value for customers and obtaining reasonable value. We will offer top talent top pay, continue to innovate and make breakthroughs, and contribute even more to the communities where we live and work.
As always, we will continue to value dedication. That includes looking after employees who take up challenging jobs, especially in hardship regions outside China, by improving their working and living conditions, supporting healthy work-life balance, and ensuring that they’re taken care of both physically and mentally.
The road ahead is long and hard. As long as we press ahead, we will reach our destination. With unwavering effort, we will build a promising future. Choosing Huawei is choosing a path. The road we’re on is bumpy, but rewarding. With no way back, success is our only way forward. Let’s work with our customers and partners to bring digital to every person, home and organization for a fully connected, intelligent world.
Again, thank you all for your hard work and dedication. Happy New Year!”