Huawei's dilemma is arguably the biggest in history, and the formulation of chip rules and tripartite agreements is aimed at Huawei and the domestic semiconductor industry. Under this almost all-round "encirclement", Huawei not only fell into the embarrassing situation of no cores available for three years, but also suffered a heavy blow from the consumer business. Despite this situation, Huawei did not choose to compromise and give up, but chose to become more courageous and unremittingly invested in research and development. After less than four years, Huawei finally launched the Mate60 series mobile phone equipped with Kirin core at the end of August. This unexpected launch shocked the entire industry, because the chip rules and the tripartite agreement were aimed at Huawei and the domestic semiconductor industry, and Huawei actually achieved a breakthrough in a short period of time. It is reported that the Kirin chip is independently developed and manufactured in China, and the localization rate of Huawei Mate60 mobile phone exceeds 95%, which can be said to be a domestic mobile phone in the true sense. This also means that the formation of the "Hua Chain" is gradually strengthening in China, and Apple's desire to "eat" in the Chinese market has also been completely shattered.
Huawei's debt problem has aroused concern from all sides. According to the financial report data released by Huawei, Huawei's liabilities in the third quarter of 2023 have reached 704.2 billion yuan. Since 2019, Huawei's revenue has increased from more than 800 billion yuan** to more than 600 billion yuan, while its liabilities have increased from 554 billion yuan to 626.7 billion yuan in 2022. Now in the Q3 quarter of 2023, the debt has exceeded 700 billion yuan. Many foreign media have said this: Huawei is starting to "play with its life"!However, Huawei's annual increase in debt is not due to problems in the capital chain, but due to Huawei's continuous investment in the HiSilicon Kirin project, HarmonyOS and 5G, as well as the expansion of its Hubble investment. So far, Huawei has invested in 50 semiconductor companies, covering multiple core areas such as chips, equipment, and EDA. Overall, although the debt is rising, this is due to the scale of Huawei's investment and expansion. Huawei is still operating well.
According to Huawei's Q3 2023 financial report data, its revenue in this quarter was 456.6 billion yuan, a year-on-year increase of 24%。The overall net profit margin for the first three quarters was 16%. It is worth mentioning that the Huawei Mate60 series only began to hit the shelves at the end of August, and it has not yet been fully opened**, according to this data, Huawei's performance in the Q4 quarter will be more optimistic. However, there is a very interesting statistic that is the net profit margin, which can reach 8% at the peak of Huawei, and then fall to around 6% after being pressured by many parties. However, now the return of Kirin chips has caused the net profit margin to soar to 16% in a short period of time. Personally, I think that Huawei must have other "side income". Judging from the agreement of Huawei's ** Honor business, this time it should have received the "batch final payment" from the receiver. Otherwise, it would be impossible for the net profit margin to increase so much when the revenue growth is not large. Huawei's tenacity and determination have enabled it to weather the difficult situation and achieve a phased victory.
Although Huawei has encountered "containment" and suppression from many parties in the field of chips and 5G, Huawei still chose the most difficult path and achieved a phased victory. The launch of Huawei Mate60 has completely broken the current predicament, and Huawei's investment in core technology is still expanding, and it will definitely be able to surpass Western countries in the future and achieve a comprehensive "breakthrough".
In the process of Huawei's rise, the leadership of Ren Zhengfei and Meng Wanzhou's father and daughter has been crucial. They have led Huawei down a difficult but promising path. As the saying goes, there is no scarred where the rough skin and thick flesh come from. In the face of many difficulties and repression, Huawei did not back down and compromised, but persevered in R&D and innovation. Huawei's efforts and determination have enabled it to continue to break through the predicament and achieve phased victories.
Summary: Huawei is facing an unprecedented predicament, and the chip rules and the tripartite agreement have dealt a huge blow to it. However, instead of giving up and compromising, Huawei has chosen to invest in R&D and innovation. In the end, Huawei successfully broke through and launched the Mate60 series mobile phones equipped with Kirin cores, completely breaking the dilemma. Although Huawei's debt continues to rise, it is due to the scale of investment and expansion of the company's territory, and the company is still operating well. Huawei's financial report data shows that Huawei's revenue and net profit margin are positive, proving that Huawei's efforts have paid off. Huawei's strong rise in the technology field is the result of the joint efforts of the team led by Ren Zhengfei and Meng Wanzhou's father and daughter. Huawei's breakthrough and phased victory demonstrate Huawei's determination and tenacity, and Huawei is expected to surpass Western countries in core technologies in the future and achieve a comprehensive "breakthrough".