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Moving forward, Huawei will advance its journey of digitalization, intelligent transformation, and low carbon. We will continuously increase investment in talent, scientific research, and innovation, in an effort to reshape our foundational technologies. Building on this, we will bring together ICT technologies and our global experience to drive digital transformation across different industries, and create greater value for both our customers and society at large.
2022 may prove to be more challenging yet, but we are confident in what the future holds. We will work closely with our global partners to overcome the challenges we face as we seek to pull through and develop as a business. We will also keep increasing investments in the future to create greater value for our customers, the communities where we operate, and the society that we serve. Our goal is to survive – and to do so sustainably.
Revenue (CNY Billion)
28.6%
Net Profit (CNY Billion)
75.9%
Cash flow from operating activities (CNY Billion)
69.4%
Revenue by business segment (Unit: CNY Billion)
Revenue by region (Unit: CNY Billion)
Over the past decade, Huawei’s total R&D investment surpassed CNY845 billion.
In 2021, 107,000 employees, representing 54.8% of Huawei’s total workforce, worked in R&D.
In 2021, Huawei’s total R&D expenditure amounted to CNY142.7 billion, equaling 22.4% of the company’s total revenue.
By the end of 2021, Huawei held a total of 110,000+ active patents, across 45,000+ patent families.
We bring together developers worldwide and empower our partners to address the pain points that customers face during digital transformation.
Huawei aims to create and share value for greater success. We bring together developers worldwide and empower our partners to address the pain points that customers face during digital transformation.
Huawei’s strategy is “open hardware, open source software, partner enablement, and talent cultivation”. We are working to build a diversified computing ecosystem.
Kunpeng/Ascend ecosystem: Huawei’s strategy is “open hardware, open source software, partner enablement, and talent cultivation”. We are working to build a diversified computing ecosystem.
HarmonyOS has become the world’s fastest-growing operating system, and HMS has become the world’s third largest mobile app ecosystem.
HarmonyOS has become the world’s fastest-growing operating system, and HMS has become the world’s third largest mobile app ecosystem.
We have worked with more than 300 upstream and downstream partners from across the automotive industry to build an intelligent automotive ecosystem.
As part of our “Platform + Ecosystem” strategy, we have worked with more than 300 upstream and downstream partners from across the automotive industry to build an intelligent automotive ecosystem.
Car manufacturing has shifted to an ecosystem model that involves many different domains. Huawei has opened up three platforms – the intelligent digital vehicle platform iDVP, intelligent driving computing platform MDC, and HarmonyOS Intelligent Cockpit platform – to provide a digital foundation and development tools for creating intelligent vehicles. More than 300 partners have joined us on these three platforms, accelerating the transition to intelligent vehicles.
Huawei works tirelessly to boost employment and the economies of the countries and regions where we operate as part of our larger “Glocalization” strategy. This includes efforts such as hiring locally, investing locally, procuring locally, and establishing research facilities locally.
ICT technologies directly create value and drive immense indirect value by transforming other industries. New ICT technologies can help improve organizational and social productivity, leading to even greater social benefits as they see wider adoption in the industrial, agricultural, financial, and transportation sectors, among others. Huawei is already exploring applications of 5G tailored for over 20 industries.
Thanks to intelligent technologies, underground operations at a coal mine in Shaanxi province, China, now rely on few or even no staff, making the coal mine safer, greener, and more productive.
Huawei is committed to open collaboration and innovation to help build thriving industry ecosystems. We help incubate local ICT industry ecosystems and support local digital economies by providing open platforms for local partners, SMEs, and individual developers.
In a digital economy, digital talent is the key to digital transformation and economic growth. Digital skills and literacy are essential to the development of the digital economy. As per the United Nations, they are also a basic human right in the digital era.
In September 2021, Huawei combined multiple training programs to create the Seeds for the Future Women in Tech program in Ghana, the first session of which provided AI training for 50 female college students.
Leaving no one behind in the digital world: Huawei launched its TECH4ALL initiative to promote digital inclusion for all. The goal of the initiative is to bring digital technology to every person, home, and organization. We run projects together with our partners and are making technology more inclusive by investing in technology, applications, and skills.
Taking responsibility to build trust: Cyber security and privacy protection are a top priority at Huawei, and we continue to invest and remain transparent in both areas. We have worked to improve our software engineering capabilities and practices, build resilient networks, develop trustworthy and high-quality products, and support stable network operations and business continuity.
Contributing to a clean, efficient, low-carbon, and circular economy: We are committed to minimizing our environmental impact in manufacturing, operations, and over the entire lifecycles of our products and services. Huawei’s innovative products and solutions help industries reduce their energy consumption and emissions, and contribute to the circular economy. We actively work with all our industry partners to shrink our carbon footprint.
Collaborating for the common good: We operate with integrity and in compliance with all applicable laws and regulations, and continue to enhance sustainability risk management. We work to ensure that our employees can develop and realize their personal value. We conduct due diligence on our global supply chain to ensure its sustainability. We actively contribute to the communities we operate in. Our goal is to work with all industry partners to build a healthy and harmonious industry ecosystem.
We live in a highly interconnected world, where the physical and digital realms are converging and network boundaries are increasingly blurred. Cyber security and privacy protection are ever more important. Over the past year, a succession of critical vulnerabilities, supply chain attacks, and advanced persistent threats (APTs) emerged. Cyber security threats have become ubiquitous, arising in products, services, operations, internal IT systems, supply chains, code, and personnel. Governments around the world are paying greater attention to cyber security and privacy protection, and have adopted laws and regulations to strengthen the governance of cyberspace and protect personal data. With the rising role and importance of data in all parts of our lives, data protection and compliant data use are becoming a basic requirement.
As digital transformation accelerates across industries, the application of new technologies – such as cloud computing, artificial intelligence (AI), 5G, and big data – brings with it opportunities, but also risks. We need to consider how to meet the increasingly strict compliance requirements of regulators, and how to provide secure and trustworthy products and services that fulfill our commitments to customers. We also need to embrace a defense-in-depth approach to provide better security, ensure business continuity, and improve efficiency and customer experience while all the time protecting user privacy.
Over the past three decades, we have built more than 1,500 networks together with carriers, and helped millions of enterprises with their digital transformation. During this time, we have connected over three billion people around the world and maintained a solid track record in security. With digital transformation picking up pace, we are acutely aware that cyber security will become a cornerstone of the future digital world. Business success will not be achieved without security, trustworthiness, and privacy protection. We continue to place cyber security and privacy protection as a top priority. We are committed to confronting cyber security and privacy challenges and opportunities through management transformation, technological innovation, and open collaboration. We want to foster a better life for all in the future digital world by offering secure and trustworthy products, solutions, and services where personal data is lawfully used and always protected.
We continuously optimize our end-to-end cyber security and privacy protection assurance system, making sure that each domain is constantly refined and up-to-date:
Deepening trustworthiness transformation to enhance software engineering capabilities and cyber resilience, and building secure, trustworthy, and quality products and solutions
In 2021, we improved our internal off-the-shelf components of trustworthy technologies and product design platforms, and implemented the clean code mechanism to continuously improve code quality and reduce vulnerabilities. We also enhanced threat analysis and trustworthy design, bringing improvements to the security and resilience capabilities of products and solutions. We incorporated the software engineering capability enhancements into the Integrated Product Development Lifecycle (IPD 12.0).
In terms of organizational changes, we strengthened the integration and continuous development of common security capabilities. We set up a corporate-level vulnerability management center based on the Product Security Incident Response Team (PSIRT) to enhance common vulnerability management capabilities. We also integrated the Trustworthiness Enabling Department and IT Equipment Department at the product line level to help implement software engineering capabilities through IT systems.
We comply with privacy protection laws and regulations in the countries and regions in which we operate. In 2016, we established a unified privacy governance framework in accordance with the General Data Protection Regulation (GDPR). With successive personal data protection laws – such as China’s Personal Information Protection Law – being enacted and cross-border data transfer requirements being imposed in different regions and countries, we have continuously improved our governance architecture and technical capabilities, and incorporated privacy protection and cross-border data transfer requirements into R&D, services, operations, and other aspects. Based on the governance architecture and processes, we developed a series of IT tools and platforms to improve compliance effectiveness and management maturity, and provided transparent and clear compliance processes and results. We handled over 20,000 data subject requests in a timely and effective manner, protecting the rights of data subjects. We conducted 30 internal and external audits in different countries across business domains, and multiple subsidiaries have obtained internationally recognized privacy protection certifications, ensuring that our privacy policies are effectively implemented and independently validated.
We continue to research, explore, and implement cutting-edge fundamental technologies, such as cryptography, AI trustworthiness, confidential computing, and differential privacy. Furthermore, we accelerate the application of security technology solutions to products, and continue to introduce vulnerability mitigation, advanced threat detection, data protection, and other technologies into ICT products, improving security and resilience.
Take 5G base stations as an example. We deploy a wide range of functions – including software integrity check in the boot state, runtime software integrity measurement, and one-click security configuration check – providing security verification, hardening, and detection capabilities. We also build intrinsic security for 5G to enable a more efficient integrated security protection system. In this way, we have significantly enhanced cyber resilience.
Additionally, we introduced application behavior detection and other functions under device-cloud synergy to mobile phones, further enhancing privacy protection capabilities. We released the AI situational awareness technology, which improves the attack detection and audit capabilities of AI models and protects AI model assets.
HarmonyOS is a next-generation operating system that can run on a wide range of smart devices. It enables different smart devices to speak the same language, facilitating better connection and collaboration, and bringing a simple, smooth, continuous, secure, and reliable interaction experience in all scenarios.
At the outset, we emphasized the fundamental importance of consumer privacy and security and implemented a system security architecture and ecosystem management and control framework, in order to explicitly address these issues. With HarmonyOS, we have built a security architecture for the Super Device. It implements hierarchical device security management, trusted device connections, distributed access control, and a security collaboration platform, protecting the security of consumers.
Furthermore, we have built a HarmonyOS application management and control framework to ensure that applications are protected throughout the lifecycle, including the development, commissioning, release, installation, and running phases. In this way, we protect users from malicious applications and effectively ensure their privacy and security.
We continue to invest in the development of IT-based capabilities for trustworthy operations and digitally ensure transparent and traceable network operations. We set up an operations trustworthiness lab to strengthen interconnection with global standards organizations and cutting-edge research and we continued to develop capabilities to address emerging cyber security challenges. Our data security management system for carrier service support passed the external System and Organization Controls 2 (SOC 2) audit, demonstrating effective lifecycle management of such data. At the same time, we continued with the Network Safety Day campaign to increase cyber security awareness and risk control, working together with our customers to enhance cyber resilience.
We encourage employees’ continued participation in external professional cyber security and privacy protection certification programs. To date, more than 1,200 employees have obtained industry-recognized certifications, such as Certified Information Systems Security Professional (CISSP), Certified Information Privacy Professional (CIPP) from the International Association of Privacy Professionals (IAPP), and Certificate of Cloud Security Knowledge (CCSK). We have established a Cyber Security & Privacy Protection Knowledge Center and released more than 200 Massive Open Online Courses (MOOCs), facilitating rapid sharing and transfer of knowledge within the organization.
In order to continuously improve cyber security and privacy protection awareness among all employees, we held the Cyber Security Awareness Month campaign, engaging about 150,000 employees online and offline through different activities. Such activities included messages from top-level management, expert lectures, knowledge quizzes, Capture the Flag competition, a cyber security technology conference, and a verification conference.
We have established a comprehensive ISO 28000 compliant supply chain security management system to identify and control security risks in the end-to-end process from incoming materials to manufacturing and delivery to customers. We have developed industry-leading material security and trustworthiness specifications, security sourcing test standards, and supplier security and trustworthiness maturity standards. Suppliers must pass the security system certification and test before they are admitted.
In 2021, we conducted cyber security risk assessments of more than 4,000 suppliers worldwide, and recorded, tracked, and rectified the issues identified. We signed data processing or protection agreements with more than 5,000 suppliers and implemented privacy protection management requirements for suppliers to ensure compliance. We also optimized the security baselines and verification processes for manufacturing and supply availability, and implemented them in the production and delivery processes of new products.
Given the great importance we attach to supply chain security requirements around the world, we have now obtained 35 Authorized Economic Operator (AEO) certificates in 28 countries and regions across five continents. We continue to build a thriving security ecosystem together with our partners, and 25 of our logistics service providers around the world have obtained Transported Asset Protection Association (TAPA) certificates. We continue to optimize our supply chain tracking system, which is capable of tracing software and hardware from incoming materials to customer delivery within hours, effectively supporting rapid rectification and risk mitigation.
We continue our cooperation with industry-recognized certification bodies to test our cyber security capabilities against international standards and best practices, providing customers with internationally recognized security assurance. In 2021, we obtained more than 70 cyber security certificates. For example, our 5G base station was the first to pass the NESAS/SCAS 2.0 evaluation in the industry; HarmonyOS obtained high-level Common Criteria certification; the Intelligent Automotive Solution Business Unit (IAS BU) was the world’s first to obtain ISO/SAE 21434 certification for automotive cyber security; and digital power products obtained the IEC 62443 certificate.
Cyber security and privacy are a common challenge, one that all stakeholders – including governments, industry and standards organizations, enterprises, technology suppliers, and consumers – have a shared responsibility to confront. We reiterate our commitment to communicating and collaborating with all stakeholders in an open, transparent, and responsible manner so that we can jointly improve cyber security and privacy capabilities and address the challenges through technological innovation, knowledge sharing, standards development, verification, and other measures. We strive to continually improve cyber security and personal privacy, enabling everyone to enjoy all of the benefits brought by technological advances. In 2021, we made the following key achievements in external cooperation:
Huawei UAE Chief Security Officer reporting to the chairman of the CSC at the UAE Cyber Security Week
In June 2021, we opened our Global Cyber Security and Privacy Protection Transparency Center in Dongguan, China, providing a communication and collaboration platform. We are committed to strengthening communication and collaboration with stakeholders, promoting common security standards, technological innovation, security governance, testing, and verification, and more. We look forward to collaborating with all stakeholders to build cyber security and privacy protection capabilities, share value, and embrace both challenges and opportunities, to foster a better life for everyone in the future digital world.