Huawei's total debt exceeds 700 billion, and there is an abnormal phenomenon in the market, and foreign media are concerned about the situation
Some time ago, bad news came: in the third quarter of 2023, Huawei's total debt exceeded 700 billion yuan. In the face of this news, many netizens felt a little incredulous, after all, in the eyes of many people, Huawei is a very profitable company.
In fact, in 2022 alone, Huawei's dividends will exceed 70 billion yuan. Huawei's R&D expenditure in recent years has exceeded 130 billion yuan, and the cumulative R&D expenditure in the past 10 years has exceeded 1 trillion yuan.
It is said that Huawei still has debts, and the debts exceed 700 billion yuan, who would believe it?
In fact, this is not alarmist, Huawei's total debt in 2018 was 432.7 billion yuan, and in 2022, Huawei's total debt was 626.7 billion yuan. Therefore, it seems understandable that Huawei's total debt in the third quarter of 2023 exceeded 700 billion yuan.
It's just that after this news broke, a strange phenomenon appeared. That is, most netizens are surprised by the news that Huawei has a debt of 700 billion yuan, but they are not worried. with"2 trillion huge debt"Compared to this"Don't worry"The phenomenon is strange.
Why is this strange phenomenon happening?I think we can start with the following three points.
First of all, Huawei's comprehensive strength is strong, and the debt of 700 billion yuan will not affect Huawei's normal operations. In fact, every enterprise has a debt situation, and this liability is a dynamic fact that is always changing, so we look at the debt situation and also look at the total assets of the enterprise.
As of the end of 2022, Huawei's total assets were 1,064$800 million. According to Huawei's development trend, this number will only increase by the third quarter of 2023.
Based on total assets and total liabilities, Huawei's 700 billion liabilities have no impact on Huawei's normal operations.
Secondly, Huawei's profitability is very strong, and even without considering total assets, Huawei has the ability to repay the 700 billion yuan of debt. Huawei is one of the most profitable companies in China. According to incomplete statistics, Huawei's profits in recent years are between 60 billion yuan and 110 billion yuan, that is, Huawei's profitability is much higher than that of its peers.
More importantly, Huawei's revenue capacity is also very strong, with a peak revenue of more than 890 billion yuan, making it the technology company with the strongest revenue capacity in China, second to none.
Huawei's annual revenue capacity is close to 900 billion yuan, and its annual profit is more than 100 billion yuan, and Huawei's debt of 700 billion yuan is not a big problem. This shows that even without considering Huawei's total assets, Huawei can easily repay the 700 billion yuan of liabilities based on revenue and profits alone.
Finally, Huawei has strong R&D capabilities, and the market is extremely optimistic about Huawei's development prospects, so there is no need to mention the 700 billion yuan debt and Huawei's R&D capabilities. As we all know, Huawei is the No. 1 R&D investment company in China, and it is also the top five R&D spending in China.
Thanks to its huge R&D investment, Huawei has successively launched Kirin chips, 5G technology, HarmonyOS and autonomous driving technology. It is no exaggeration to say that Huawei is a benchmark for Chinese technology companies and a pioneer of global technology companies.
Not long ago, Huawei launched the Huawei Mate60 series models under the pressure of the United States, and created the Kirin 9000S chip, and its R&D capabilities once again impressed the global market.
Under this series of technical endorsements, the market is extremely optimistic about Huawei's development prospects, so when the news of 700 billion yuan of debt comes, the majority of netizens will be blunt and will not sing praises for Huawei.
Why did the majority of netizens speak out so bluntly after the news of Huawei's 700 billion yuan debt came out and did not sing praises for Huawei?There are three points to this.
First, Huawei's total assets far exceed 700 billion yuan of debt, and Huawei has the strength to deal with 700 billion yuan of debt.
Second, Huawei's revenue capacity is strong, its profitability is at the leading level in the country, and the 700 billion yuan debt is difficult to shake Huawei's foundation.
Third, Huawei has strong R&D capabilities and has launched a number of world-leading technologies and products, so the market is very optimistic about Huawei's development prospects and will not shake Huawei's foundation because of a debt of 700 billion yuan.
What do you think of the news that Huawei has a debt of 700 billion yuan?