Middle East: Huawei announced its business results for the first half of 2022 today. Overall performance was in line with forecast.
In 2022 H1, Huawei generated $45 billion in revenue, with a net profit margin of 5.0%. The Carrier BG contributed $21.3 billion, the Enterprise BG $8.1 billion, and the Device BG $15.1 billion.
"While our device business was heavily impacted, our ICT infrastructure business maintained steady growth," said Ken Hu, Huawei's Rotating Chairman. "Moving forward, we will harness trends in digitalization and decarbonization to keep creating value for our customers and partners, and secure quality development."
Huawei's R&D spending reached a high point in 2021. The company invested about USD 22.38 billion, representing 22.4% of its total revenue and bringing its total R&D expenditure over the past ten years to over USD 132.5 billion. Moving forward, Huawei will continue to invest heavily in R&D.
In the first half of this year, the carrier business saw steady growth in line with forecasts. The business reported stable development in 5G, while other business modules like optical networks, cloud core networks, services, and software grew rapidly. Huawei's exploration into 5GtoB has been highly rewarding. Working with carriers and partners, the company had signed more than 5,000 commercial contracts for industrial 5G applications by June 2022. In some Middle East countries, such as Saudi Arabia and the UAE, Huawei's 5GtoB offerings have seen large-scale commercial deployment across numerous industries, including ports, mining, manufacturing, and oil and gas. 5G Fixed Wireless Access has seen wide adoption in home applications, helping carriers achieve business success with 5G among home and enterprise users.
During H1, Huawei's enterprise business revenue grew steadily, exceeding 27% both in and outside China. In the second half of 2021, the company established "integrated teams". These teams focus on select industries of strategic importance to the company and work closely with partners to create more customer value. Characterized by shorter management chains, integrated teams are designed to more rapidly mobilize internal resources and delve deep into industry-specific scenarios to explore which technologies will best serve customers.
Huawei Cloud maintained rapid growth in the first half of this year and has been widely recognized by customers across several sectors like government, finance, manufacturing, and the Internet. In terms of product innovation, Huawei Cloud closely follows its "Everything as a Service" strategy. In the first half of 2022, Huawei Cloud released 15 innovative services, covering Infrastructure as a Service, Technology as a Service, and Expertise as a Service.
Moving forward, Huawei Cloud will continue to invest and innovate according to its "Everything as a Service" strategy and build the best cloud platform for industry-specific innovation as the world heads towards a golden decade of SaaS. Huawei Cloud will also forge a new partner system and help partners improve their capabilities to achieve shared success. With Huawei Cloud serving as the foundation, Huawei will enable developers to grow and contribute to a thriving developer ecosystem through developer programs like the Huawei Cloud Developer Program.
Huawei Cloud has continued to expand its global presence. Together with partners, Huawei Cloud is currently operating 65 Availability Zones in 27 Regions, including UAE and the upcoming Saudi Region. According to Gartner, Huawei Cloud is the 5th largest IaaS vendor in the world.
In the device business, the HarmonyOS ecosystem continues to grow rapidly. HarmonyOS has already been deployed on more than 300 million Huawei devices and HarmonyOS Connect has attracted more than 2,000 ecosystem partners. Over 170 million third-party HarmonyOS Connect devices have been shipped. As the world becomes fully connected, Huawei will continue to pursue this HarmonyOS-centered device ecosystem using an open-source strategy and allow more developers to use, contribute to, and benefit from Huawei's capabilities.
Green development is now a global consensus. To support the green agenda and help drive the digital economy forward, Huawei has continued innovating and proposed a three-layer solution: green sites, green networks, and green operations. Huawei aims to help carriers enhance network energy efficiency in all areas. By integrating digital and power electronics technologies, Huawei is developing innovative digital power products and solutions that will drive the shift towards a green and low-carbon energy sector. By June 2022, Huawei's Digital Power solutions had already helped customers generate 588.5 billion kWh of green power and save 17 billion kWh of electricity. These efforts have offset 290 million tons of CO2 emissions, equivalent to planting 390 million trees.