Key Points:
- Huawei’s revenue will grow by 9.63% in 2023, reaching 704.2 billion yuan. Consumer business, including the handset segment, expands by 17.3%.
- Net profit increases by 144.5% to 87 billion yuan, doubling net profit margin.
- Stable performance in the core ICT infrastructure business and substantial growth in the cloud business also bolstered profitability.
- The smart car software and components business surged by 128.1% year-on-year. Huawei has announced the spin-off of smart car units into a separate entity.
Huawei Technologies (HWT.UL) experienced its fastest growth in four years in 2023, signaling a significant rebound from the challenges posed by U.S. sanctions. The company’s revenue surged by 9.63% to reach 704.2 billion yuan (Approx. $97.53 billion), with the consumer business expanding by 17.3% to 251.49 billion yuan (Approx. $34.83 billion), emerging as a key contributor to this growth.
Despite the absence of detailed breakdowns, Huawei’s consumer segment, which includes its handset business, notably thrived last year. The successful launch of the Mate 60 series marked Huawei’s resurgence in the mainstream 5G smartphone market, demonstrating resilience in the face of U.S. restrictions imposed since 2019 over alleged security concerns, which Huawei vehemently denies.
This robust performance marks Huawei’s third consecutive year of growth, following a significant revenue decline in 2021 when chip reserves were depleted. Although revenue has yet to surpass its peak in 2020, its steady progress underscores its ability to adapt and thrive amidst adversity.
Unlike in previous years, Huawei has opted to forego traditional press conferences. Rotating chairman Ken Hu expressed satisfaction with the results in a press release, highlighting the company’s resilience in overcoming challenges. The net profit in 2023 soared by 144.5% to 87 billion yuan (Approx. $12.05 billion), with the net profit margin more than doubling compared to the previous year.
While Huawei’s core ICT infrastructure remained stable, its cloud business experienced substantial growth, generating revenue of 55.3 billion yuan (Approx. $7.66 billion). Furthermore, the company’s smart car software and components business witnessed remarkable growth, surging by 128.1% year-on-year to 4.7 billion yuan (Approx. $0.65 billion). Huawei’s decision to spin off this unit into a separate entity reflects its commitment to diversifying its offerings and tapping into emerging opportunities.
Richard Yu, managing director and chairman of Huawei’s smart car solutions, expressed optimism about the unit’s future profitability, anticipating a turnaround from April onwards after initial losses. This strategic move underscores Huawei’s long-term vision and determination to capitalize on the evolving automotive industry landscape.
