Huawei’s Net Profit Soars by 144.38% in 2023! Behind the Scenes, It’s Not That Simple

According to Huawei’s annual report for 2023, the company achieved global sales revenue of 704.2 billion yuan, a year-on-year increase of 9.64%, with a net profit of 87 billion yuan, skyrocketing by 144.38% compared to the previous year.

Huawei stated that the overall operating performance in 2023 met expectations.

Looking at specific business performance, in 2023, Huawei’s ICT infrastructure business achieved sales revenue of 362 billion yuan, a year-on-year increase of 2.3%; the terminal business achieved sales revenue of 251.5 billion yuan, a year-on-year increase of 17.3%; the cloud computing business achieved sales revenue of 55.3 billion yuan, a year-on-year increase of 21.9%; the digital energy business achieved sales revenue of 52.6 billion yuan, a year-on-year increase of 3.5%; and the smart car solutions business achieved sales revenue of 4.7 billion yuan, a significant increase of 128.1% year-on-year.

Overall, in 2023, Huawei’s ICT infrastructure business remained steady, the terminal business performed as expected, cloud computing and digital energy businesses achieved good growth, and the smart car solutions business began to enter the scale delivery stage, with revenue growing rapidly.

Huawei’s rotating chairman, Hu Houkun, said, “The overall operating performance of the group in 2023 met expectations. Over the past few years, Huawei has experienced numerous tests and continued to grow amidst challenges. It is the trust and support of customers, partners, and all sectors of society that have helped Huawei survive and develop.”

It is worth noting that although Huawei’s net profit in 2023 increased by 144.38% year-on-year, this profit growth did not come from core business operations, as overall revenue only increased by 9.67%.

According to Huawei’s financial report, the company’s research and development investment reached 164.7 billion yuan in 2023, accounting for 23.4% of the annual revenue. The cumulative R&D expenditure over the past decade has exceeded 1.11 trillion yuan.

Looking ahead, Huawei stated that it will continue to invest in open innovation, promote technological progress, and upgrade industries. It will adhere to the management policy of “winning by quality” and make quality a core competitive advantage.

Targeting 9.5 million developers and 46,000 ecosystem partners, Huawei will adhere to the concept of “openness and altruism,” focus on building ICT core technologies and complex hardware and software platform capabilities, accelerate the development of open platform capabilities, and achieve mutual benefits with ecosystem partners.

Hu Houkun emphasized, “In 2024, a new journey has begun. We will adhere to open innovation, flourish the ecosystem, win by quality, and create greater value for customers and society! Thanks to every fellow traveler, on the road ahead, let’s create extraordinary things together and build an intelligent world of interconnected everything!”