The adjustment of business is sometimes like feelings, being together is for happiness, and being apart is also ......
In 1992, Huawei saw the space for post and telecommunications services and planned to establish a joint venture with the local post and telecommunications system to build a platform and alliance from a business perspective.
In 1993, Huawei and 10 institutes of the Ministry of Posts and Telecommunications and 21 provincial capitals jointly established Shenzhen Mobek Communication Industry Co., Ltd. *** on January 26, 1994, the industrial and commercial registration passed), the name is taken from the homonym of three well-known engineers in the field of communications: Morse (the inventor of the telegraph), Bell (the inventor of the ** machine), and Marconi (the founder of wireless communications, Marconi). The company provides Huawei with supporting power products and solutions, and Huawei has given an annual return on investment commitment of no less than 33%, which solves the cash flow problem and achieves the goal of long-term cooperation with customers (in-depth), laying the foundation for Huawei's rapid development in the 90s.
In 1995, Mobek determined the business goal of integrating R&D, production, sales and service centered on communication power supply, and became an independent subsidiary of Huawei.
In 1996, Mobek revenue sales contract 21.6 billion, profit of 50 million, in the same year changed its name to Shenzhen Huawei Communications Co., Ltd. ***
In 1999, Huawei's revenue reached a record high of 20 billion yuan. But Ren Zhengfei realized that domestic competition was becoming increasingly fierce, and Huawei needed to focus on building its own moat in the areas where it has the most advantages, and expand globally to survive.
In 2000, the global Internet IT bubble hit the global communications industry with a huge impact, and Huawei was no exception. Later, Ren Zhengfei wrote the famous "Huawei's Winter", and mentioned that "whoever has a padded jacket will survive". On the one hand, Huawei has sent a large number of experts to compete overseas with the determination of "burying loyal bones everywhere in the green mountains, and where is the world is not home", and on the other hand, Huawei has decided to return funds to keep its main business. As a non-core business but with the ability to monetize, Huawei's electrical system was undoubtedly the most suitable "padded jacket" at that time, and the electrical system accounted for 30% of the Chinese market that year, ranking first.
In 2000, in order to facilitate the split, Huawei began to gradually spin off Huawei Electric, and in March, it was reorganized into Shenzhen Huawei Electric Co., Ltd. in October and renamed Shenzhen Ansheng Electric
In 2001, Huawei suffered a double defeat of CDMA and PHS in China, and in October of the same year, it was valued at 7500 million US dollars, to Emerson ** Ansheng Electric. Relying on the proceeds of this spin-off transaction, Huawei was able to survive and began its journey to globalization.
In March 2002, Emerson Electric formed the "Emerson Network Power" with Emerson ASCO, Emerson Industrial Automation, Emerson Libot, Emerson ASTEC, etc. Among the more than 3,000 people in Emerson China, 3,000 people are employees of Huawei Ansheng Electric, because the core layer is the original manager of Ansheng Electric, and the management style of the new company naturally follows Huawei's style, such as the income of technical personnel such as engineers should also be closely linked to sales performance, so that Emerson's original old employees are extremely dissatisfied, and there was a sensational collective resignation storm that year: Nearly 70% of the employees of Liebert China Company resigned en masse**. But it's a foregone conclusion. Later, Emerson sold Emerson Network Power to a team based on Platinum Asset Management in the United States on August 2, 2016, and changed its name to Vertiv on December 1, 2017, and officially named Vertiv Technology in October 2017. A few more words: from the perspective of management style, Vertiv Technology has also become a relatively "Buddhist" company in the field of communication and energy today, the style is not radical and low-key, the salary is average, the treatment is very good, many engineers in the Huawei department "do not move" if they consider the need to take care of more family, and even reduce their salary to join this company.
In the process of integration between Ansheng Electric and Emerson, especially in 2004, the last year of compensation payment (when Ansheng Electric employees merged into Emerson, the original Huawei shares were compensated and distributed in four three-year proportions at a ratio of 1:6, that is, 25% when the compensation agreement was signed, and 25% per year for the next three years), some of the core employees with the strategic vision of foreign companies and Huawei's "striver-oriented" style chose to go out to start a business, and since then the "Huawei-Emerson Entrepreneurship Department" has been opened At the same time, Huawei-Emerson Entrepreneurship has incubated more than 10 listed companies, and Huawei's management philosophy has also begun to be rapidly recognized and promoted in the market, which has become popular so far.
In 2010, the non-compete between Huawei and Emerson ended, Huawei restarted its network power business, and rose rapidly. In June 2021, Huawei established Huawei Digital Energy Technology with a registered capital of 3 billion yuan to accelerate the concept of energy digitalization.
Well, familiar taste.
Side story: The split of Sheng'an Electric has explored a successful path for Huawei to obtain a "padded jacket" for the winter
1) In 2003, in response to Cisco's lawsuit and entering the U.S. network communications market, Huawei and Cisco's competitor 3com established a joint venture "Hua 3com", in which Huawei held 51% of the shares. From 2006 to 2007, Huawei needed to raise funds for the research and development of 3G networks and international market development, and for 900 million US dollars, it gave 51% of the equity of its subsidiary "H3C" (mainly providing low-end routers and other data communication equipment for domestic government and enterprise customers) to 3com for 900 million US dollars, and changed its name to "H3C". In 2008, 3com was not well managed, and it was planned to put "h3c"**Huawei failed to "repurchase" because of the blockade of Cisco and the United States**, HP took the opportunity to directly take over 3com and h3c, and in 2016, Unigroup acquired 51% of H3C's shares from HP for $2.5 billion ** and established "New H3C Group".
2) In November 2020, Huawei's overseas business was affected by sanctions, and 51% of the equity of its subsidiary Huawei Marine, which is engaged in submarine cable business, was given to Hengtong Optoelectronics, an optical fiber communication company, for 300 million.
3) On November 17, 2020, Shenzhen Zhixin New Information Technology Co., Ltd. led more than 30 leading Huawei merchants to sign an acquisition agreement with Huawei Investment Holdings, completing the comprehensive acquisition of business assets related to the Honor brand. **Later, Huawei no longer holds any shares in the new Glory Company, and it is said that the net income exceeds 40 billion, **Glory is Huawei's warmest and largest "padded jacket" at present.
4) In 2021, the x86 server business, the amount is ominous, and the acquirer is Henan Super Energy Technology *** Henan State-owned Assets Supervision and Administration Commission (SASAC).
1. Growth background: The United States has 4 rounds of extreme suppression and sanctions, and a new "padded jacket" is needed
In 2018, the United States began to impose sanctions on Huawei, Huawei mobile phones lost the U.S. market, and on December 1 of the same year, under the instigation of the United States, Canada seized Meng Wanzhou, Huawei's CFO who was preparing to transfer in Vancouver, which opened the prelude to the "Shangganling Campaign" of Sino-US technology competition.
From 2019 to 2022, the United States gradually increased sanctions against Huawei: Google stopped providing GMS services to Huawei, the SD Association and the WiFi Alliance cancelled Huawei's membership, many semiconductor companies were stopped providing support to Huawei within a time limit (TSMC, Micron, SK hynix, Toshiba, Samsung Electronics, etc.), and a number of European countries were required to tentatively or even give a timeline to gradually dismantle Huawei's communication equipment ......
In January 2023, the United States** said it was considering cutting off Huawei's ...... from all U.S.** companies
Under the extreme suppression and sanctions of the United States, although Huawei has stubbornly withstood it, it is very realistic that Huawei's revenue has fallen from 891.4 billion in 2020 to 642.3 billion in 2022 (close to 6,036 in 2017), and from the perspective of cash flow, in 2022, Huawei's cash flow will only be 17.8 billion, which is comparable to 2011 and a 10-year regression.
Huawei now needs a new "padded jacket" for the winter.
2. Review of the development line of automobile BU.
In 2012, Huawei established the Internet of Vehicles (IoV) Lab
In 2013, the company released a new vehicle module product, ME99T, and began to explore the commercialization of products
In 2014, it signed a cooperation agreement with Changan and Dongfeng on the Internet of Vehicles and intelligent vehicles, and began the journey of in-depth cooperation with these two companies
In 2015, it signed a contract with FAW and entered the list of Audi's leading merchants, starting the history of the first on-board communication module for luxury cars
In 2016, it established a 5G automotive communication technology alliance with BBA and others to determine its position in the industry
In 2017, it signed a long-term cooperation with PSA Peugeot Citroen Group in the field of Internet of Vehicles, completed the design of 5G automated driving with the German Aerospace Center, and began a large-scale cooperation journey with European car companies
In 2018, after the United States launched sanctions, Huawei had a hunch that the terminal business, which accounted for half of its revenue, would be greatly affected, and it was urgent to find new business growth points
In May 2019, Huawei Automotive BU was established, with Wang Jun, then head of Huawei's Japan carrier, as president, and the automotive BU is listed as a first-level department along with consumer BG, operator BG, and enterprise BG, which is directly managed by Huawei's ICT Business Management Committee, and is positioned to become a tier-1 incremental parts supplier in the automotive chain, similar to Bosch. Later, the HI (Huawei Inside) mode was launched, which opened up the fully self-developed technology of more than 30 intelligent components, such as intelligent cockpit, intelligent driving, and lidar, to car companies. In the same year, it began to comprehensively deepen strategic cooperation with Changan Automobile and landed a comprehensive cooperation agreement with BAIC Energy, but in fact, the market response of these two models was average, and the prospects were bleak. Since then, although Huawei has repeatedly reiterated that it "does not make cars", the mentality of car companies is like "the head teacher said that the physical education teacher took a leave of absence" when he was studying, and he was skeptical.
In 2020, it released a number of products such as the MDCZ intelligent driving platform, the core of the autonomous driving operating system, and the in-vehicle version of HarmonyOS, and announced that it would jointly build a "5G ecosystem" with 18 car companies. In November, the car BU was merged into Huawei's consumer BG (later renamed Huawei terminal*** car BU was positioned within Huawei as the main carrier of smart car-related technologies. Due to financial pressure, it was intended to give the team of the intelligent driving department, which has more than 50 experts and a total of more than 700 employees, to Volkswagen, but it was not over.
In 2021, Huawei Smart reached a cooperation agreement with Xiaokang, deeply participated in the definition and development process of Xiaokang-related products, and launched the cooperative brand Cialis (later renamed "Wenjie") in its channels, and Huawei Automotive's third cooperation model, the Smart Car business, began to take shape. In the same year, Yu Chengdong served as the CEO of the automotive BU, and at the end of the year, he released the M5, a car that looks a little like the Porsche Macan, and is the work of Huawei Automobile's fame.
In August 2022, Ren Zhengfei issued an internal document warning for the first time in many years that the global economy and Huawei's dynamics are coming: the company needs to reduce all marginal business and focus only on revenue and profits. In the same year, a number of Huawei corps were established in domestic business, and it also organized overseas again. In the second half of 2022, Huawei Auto entered a "period of confusion", with sales declining, many cooperation responses were mediocre, and business promotion was difficult. Huawei's revenue in 2022 was 1 billion yuan, compared to 624.3 billion yuan in 2022 (891.4 billion yuan in 2020).
In the first half of 2023, Huawei will continue to be under pressure, and in the second half of the year, the "Wenjie M 7" with Cialis has become a turnaround work of Huawei automobiles, and then Chery's Zhijie S7 and others have begun to gain market recognition. In September 2023, Jin Yuzhi, head of the optical product line, will serve as the new CEO of Chebu, and Yu Chengdong will serve as the chairman. In November 2023, after investing 7,000 people directly and 10,000 indirectly, burning more than $3 billion for more than 4 years, and Huawei's revenue continued to face huge pressure (cash flow of 17.8 billion yuan in 2022, back to the level of 2011), Huawei chose to split the automotive BU and established a company with Changan on this basis to engage in R&D, design, production, sales and service of automotive intelligent systems and component solutions. According to Yu Chengdong's explanation, Huawei will lead the technology research and development direction of the new joint venture, and the partners of Huawei's smart car business will join the joint venture one after another in the future. In other words, in principle, Huawei will no longer engage in business that competes with joint ventures. On the one hand, Huawei can alleviate the pressure on cash flow, on the other hand, it can turn customers into "colleagues and allies" to stabilize the source of customers, and the open and independent operation is also conducive to eliminating everyone's concerns about Huawei's "car manufacturing", and can also avoid more sanctions risks, which is worth looking forward to.
It is worth mentioning that Huawei's automotive BU business this time is: intelligent driving solutions, intelligent cockpits, intelligent vehicle digital platforms, intelligent vehicle clouds, AR-HUD and intelligent car lights, while Huawei's current most recognized "smart car" business is no longer among them, as a "pro-son" and a "cash cow" that is about to see profit margins, Huawei has left a hand.
1. The splitting background is different, but they are all in order to make the company "live".
Before the split of Ansheng Electric, although Huawei was at the peak of revenue, the team saw the bottleneck and crisis of the business, and if the company did not "save itself", it would face huge survival pressureBefore the split of Huawei's car bu, Huawei is in the United States' extreme suppression sanctions, although it can still be carried, but cash flow is already very tight, in the face of the car bu that still needs huge investment and can't see profitability in the short term, and can only carry out "self-help" to solve the problem of survival, Huawei's three models, it is difficult to get through in the short term, domestic new energy vehicles have been "rolled into twist", foreign-funded enterprises are afraid of being "sanctioned" for cooperation with Huawei, so basically they can only watch and eat a melon, that's all, some joint ventures are afraid" Lose your soul", of course, the B-segment sedan, which they have been popular for many years, found in crash tests that a crash can really make people lose their soul easily, and stripping seems to be the only way out.
2. Why did "Ansheng Electric" sell to foreign companies, and Huawei BU chose to take the lead in cooperation with "Chang'an"?
In 2020, I want to try to sell to the public but can't do it, with the current US sanctions on Huawei, no foreign capital will dare to take over for a while, and choosing "Chang'an" is the best solution. First of all, the cooperation between Huawei and Changan Automobile has been 10 years smaller, and the two sides have the basis for cooperation and mutual recognition, and secondly, Changan is also in urgent need of supplementing new and strong technical system support in the direction of new energy.
3. I look forward to Huawei Auto BU becoming the next "Ansheng Electric".
The era of the birth of Ansheng Electric is the dawn of the outbreak in the field of industrial automation in China, Siemens, ABB, Schneider, etc. occupy most of the domestic market share, based on Ansheng Electric as the team of "Huawei-Emerson Entrepreneurship System" in the long stay for 20 years, continue to attack the synchronous giants in their respective fields.
In the wave of industrial upgrading and domestic substitution of imports, the "Huawei-Emerson Entrepreneurship System" has upgraded its products from "Chinese" to "Chinese" in the industry, which has made great contributions to the independence of our industrial control. Now, in the era of new energy vehicles in the trillion market, we have the opportunity to reconstruct the automobile market in the mechanical era dominated by Europe and the United States for more than 100 years, which is a historical opportunity and a proper national fortune. Although European and American car companies are still very strong, we are not an order of magnitude with them in the operation of globalization, and with the continuous acceleration of cars going overseas will inevitably affect their basic market, we will also face more sanctions and suppression, the road ahead is very difficult, but we are already on the way.
Together, it's OK!Refuel Chinese cars.