Huawei has a debt of 704.2 billion yuan and a R D investment of more than 82.6 billion yuan

Mondo Technology Updated on 2024-01-31

Huawei has a debt of 704.2 billion yuan and a R&D investment of more than 82.6 billion yuan

When it comes to Huawei, many friends tend to focus on revenue, profit and market share, but in fact, R&D investment and debt are equally important, which is related to the company's debt pressure and financial risks.

In October this year, Huawei announced its financial results for the first three quarters of 2023, and soon after the industry data reappeared, foreign media commented on Huawei's beginning"Playing with life"It's over!

As we all know, under the strong pressure of the United States, Huawei's revenue has dropped from more than 900 billion yuan to more than 600 billion yuan, and it is difficult to change the status quo without selling the Honor sub-brand.

Due to the decline in production capacity, the market share has also dropped from 56% to 7%, and the ranking of the large screen in the dragon 8 international official mobile version has also dropped from first to ninth, which is classified as"Miscellaneous"。

It was not until Chinese New Year's Eve 2022-2023 that Huawei officially announced a change, revenue began to grow steadily, and more importantly, it made breakthroughs in the implementation of its independent strategy.

According to the financial report for the first three quarters released in October, Huawei's total revenue reached 456.6 billion yuan, although the year-on-year growth was only 24%, but the total net profit has achieved a huge breakthrough.

Considering that the profit margin in the first three quarters of 2022 was only 61%, compared to 16% profit margin this year, it can be said that the nearly 10% revenue and profit growth is really a bit surprising.

What's more interesting is that behind the profit growth, Huawei's R&D investment in the first half of 2023 will also reach 82.6 billion yuan, a year-on-year increase of 44%, which proves that Huawei has not cut corners in independent research and development.

Some time ago, the industry announced Huawei's investment statistics since the beginning of the crackdown in 2019. Huawei's total commitments started at 554 billion yuan and reached 537.9 billion yuan, 568.2 billion yuan, and 626.7 billion yuan in 2022.

As of the end of the third quarter of this year, Huawei's total investment reached 704.2 billion yuan, an increase of 150.2 billion yuan over 2019, accounting for nearly a quarter of Huawei's annual revenue.

Judging from the R&D investment in 2022 and the first half of 2023, combined with the debt data, a part of Huawei's debt will definitely be used for spending, but the increase in debt value can't help but make Huawei's support fans a little worried.

But in fact, this is not all bad news, on the contrary, Huawei's strategic execution is steadily improving, which is good news, so the United States is the one who should start panicking.

It is understood that in the past four years, Huawei has learned the lesson of stealing Kirin's chip foundry services and is committed to investing in semiconductors and chips.

Up to now, Huawei has invested in more than 50 Chinese semiconductor companies, focusing on key chip technologies such as filters, radio frequency, and EDA software, to promote chip development and establish a domestic semiconductor industry chain.

Huawei's efforts have indeed paid off with the Kirin 9000S and 5G RF chips in Huawei's Mate60 series, as well as the 14nm EDA design software developed by the United Nations EDA company that Ren Zhengfei has mentioned.

In addition, under Ren Zhengfei's leadership, Huawei has also set up a number of universities in major universities"Elite class"Attract talents in a two-pronged way of R&D investment and talent training measures.

With affordable financial support and continued talent development, Huawei is on its way to becoming an excellent independent network semiconductor company, albeit as a smartphone manufacturer.

Thanks to a large amount of investment in layout and R&D, the company's assets continue to grow, and Huawei's debt value continues to increase, but the debt-to-income ratio has decreased to a certain extent.

It was 65% in 2018 and dropped to 58 in 20229%, according to the latest data for 2023, Huawei's debt ratio has dropped to 469%, which clearly shows a relatively good trend.

Huawei has chosen a path that most companies are unwilling to take, and has not only undertaken the important task of revitalizing the enterprise, but also undertaken the important task of developing China's semiconductors, proving that Ren Zhengfei's choice is correct. What are your thoughts on this?Feel free to leave a message in the comment area!

Related Pages