HUAWEI: NHÀ CUNG CẤP TOÀN CẦU HÀNG ĐẦU VỀ CÔNG NGHỆ THÔNG TIN VÀ TRUYỀN THÔNG ĐIỂM CAO

2022

Who is Huawei? Together, we’re building for tomorrow

Founded in 1987, Huawei is Together, we’re laying the foundations for the digital economy
a leading global provider of and helping all industries go digital. As countries around the
information and communications world buckle down for post-pandemic recovery, many have turned
technology (ICT) infrastructure to digitalization and the digital economy to address socioeconomic
and smart devices. We have challenges. And the results are clear: Throughout 2022, we have
207,000 employees and operate seen a marked increase in the adoption of digital technology and
in over 170 countries and regions, services among governments, industry organizations, enterprises, and
serving more than three billion consumers.
people around the world. We are
committed to bringing digital The world is going digital more rapidly than ever before. And as
to every person, home and this trend gains steam, we’re innovating nonstop to bring the best
organization for a fully connected, of digital technology and services to organizations of all shapes and
intelligent world. sizes, helping drive the digital transformation of all industries.

Together, we’re enabling green development and building a
better planet with technology. Climate change has become a
formidable roadblock to long-term development and well-being. Now
more than ever, we need to reassess our relationship with nature
and move faster towards low-carbon and green development models.
Carbon neutrality has become a globally recognized mission.

We believe that technology can help make our planet a better
place. Huawei is doing its part to contribute to a greener and more
sustainable digital world. Together with our customers and partners,
we use innovative technology to expand the carbon handprint of the
ICT industry, reduce carbon emissions, promote renewable energy,
and foster a more circular economy.

Together, we’re strengthening cyber security and privacy
protection for enhanced security and trustworthiness. Network
infrastructure is growing and improving every day, laying the
foundations for a booming digital economy. While this opens up
new possibilities in the digital world, challenges in cyber security and
privacy protection are also on the rise. Addressing these challenges
is an ongoing process, one that requires concerted effort from all
stakeholders.

Cyber security and privacy protection are Huawei’s top priorities,
commitments that are above and beyond any commercial interests.
We continue to maintain a solid track record in cyber security, and

our efforts have earned widespread recognition in over 170 markets Contents
around the world, where we serve more than three billion people.
Customer trust is the most solid testament to the security and quality 02 Message from the Rotating Chairman
of Huawei’s products and services. 05 Business Highlights in 2022
07 Five-Year Financial Highlights
On the industry front, Huawei firmly believes that openness and 08 Message from the Chairman
collaboration lead to shared success. We actively engage with the ICT
industry, working with our peers and industry stakeholders to share 12 Industry Trends
best practices in cyber security and privacy protection. In 2022, we 17 Management Discussion and Analysis
submitted nearly 300 cyber security standards proposals to 3GPP and 93 Independent Auditors’ Report
GSMA. Working side-by-side with stakeholders all along the value 94 Consolidated Financial Statements
chain, we are innovating together to bolster the industry’s cyber
security and privacy protection capabilities. Together, we are building Summary
a more secure digital world. 138 Risk Factors

Together, we are cultivating digital talent to bridge the digital 141 Corporate Governance Report

divide. Digital talent plays an instrumental role in driving digital 158 Sustainable Development
transformation and unleashing digital productivity. We’re working 175 Abbreviations, Financial Terminology,
hard to build digital skills in the countries and regions where we
operate. Back in 2008, Huawei launched a program called Seeds for and Exchange Rates
the Future to help universities foster the next generation of digital
talent. Through this program, we’re also helping upskill industry and
public sector professionals and nurture new tech leadership, working
with local communities to build basic digital skills, and inspiring
people to tackle real-world challenges in tech competitions. To date,
this program has benefited more than 2.43 million people from over
150 countries.

We’re working together to explore the future. We firmly
support free trade, open markets, and fair competition. We’re doing
everything we can to drive the healthy development of global supply
chains, especially in ICT. The world is changing, but our ideals and
aspirations remain firm. Global integration and economies of scale
make the whole world more efficient. To benefit from this, we need
to work together more openly, sharing both the risks and value
created by our efforts. This is the only path to shared progress and
prosperity.

As a tech company, one of our greatest social responsibilities is
exploring the future. We will spare no effort as we probe the endless
frontiers of science and technology. We will join forces with people
from around the world to break through engineering bottlenecks
and limits in fundamental theories. We are committed to bringing
ICT technology to each and every industry, to creating new value
by helping them go digital, intelligent, and green, and to helping
organizations cut their energy consumption and go low-carbon. Our

ultimate goal is to bring the benefits of technology to everyone.

Message from the Rotating Chairman

Plum blossoms tend to grow sweeter
from a harsh winter’s freeze. Today,
Huawei is like a plum blossom. While
it’s true that we have considerable
pressure ahead of us, we have what
it takes to come out the other end –
with opportunities to grow, a resilient
business portfolio, a unique competitive
edge, the enduring trust of our customers
and partners, and the courage to invest
heavily in R&D. We are confident in our
ability to rise above any challenge that
comes our way, laying a solid foundation
for sustainable survival and development.

A challenging external environment and non-market especially true of our frontline staff outside of China –
factors continue to take a toll on Huawei’s operations. those who have held the fort to serve our customers
In the midst of this storm, we have kept racing ahead, despite the adverse impacts of COVID-19 and external
doing everything in our power to maintain business restrictions. And of course, we wouldn’t be where we
continuity and serve our customers. We have also gone are today without the unfailing support of our families
to great lengths to grow the harvest – generating a and loved ones as well. They’re our rocks, and we are
steady stream of revenue to sustain our survival and fortunate to have them at our back.
lay the groundwork for future development.
On behalf of the company, I’d like to express our
The strength of pines is most pronounced in the sincere gratitude to all of you.
depths of winter, as are the ties that bind us. Huawei

would not have been able to weather such extreme The macro environment may be rife with uncertainty,
difficulties without the tremendous trust and support but what we can be certain about is that digitalization
of our customers and partners. For this, we are forever and decarbonization are the way forward, and they
grateful. are where future opportunities lie. Faced with external
volatility, we need to remain focused and stay true to
We are also immensely proud of the Huawei team: our vision and mission. We need to double down on
We’ve managed to keep our heads above the water our commitment to building the foundations of the
because we fought together, united as one. This is digital economy and to driving green and sustainable

02 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

development. By doing this, we can create greater platforms like our 2012 Laboratories and HiSilicon.
value for our customers, partners, and society at large. This portfolio includes a mix of our well-established
business domains and a handful of more pioneering
2023 will be crucial to Huawei’s sustainable survival domains. Some are developing stably while others
and development. We need to actively drive progress, are growing rapidly. Some rely on advanced process
keep inspiring passion across the organization, and technology and others don’t. Some are hardware-
further hone our capabilities. We need to be proactive centric while others are software-centric. Together,
about improving the business environment and more they constitute a resilient business portfolio in terms
effectively managing risks. This is the only way we can of both structure and potential, forming a solid basis
lay a solid foundation for Huawei’s future. for Huawei’s sustainable survival and development.

Helping industries go digital, Strengthening synergy between
intelligent, and green to unlock new chips, software, hardware, devices,
growth opportunities networks, and clouds to hone our
unique competitive edge
Countries around the world have turned to developing
their digital economy as a key counterweight against Through years of concerted effort, we have built

economic downturn. By 2027, a growing digital relatively strong competitiveness in our business
economy will open up trillion-dollar addressable domains, and we have good reason to believe
markets for our company. Naturally, countries at we’ll maintain this edge for the foreseeable future.
different stages of development will choose different But given our inability to access advanced process
paths as they build up their digital economy, just as technology, we need to keep exploring ways to
different industries and organizations will choose the further enhance the long-term competitiveness of
path that works best for their digital journey. In some our products and services.
cases, opting for the most advanced technology is not
necessarily the best solution. Huawei has the most comprehensive set of
technologies in ICT, and this is our unique advantage.
At Huawei, we put customers’ needs front and center, Moving forward, we will step up integrated innovation
providing them with the right technology for the across tech domains – namely chips, software,
right scenario, at the right time and with the right hardware, devices, networks, and clouds – to ensure
model, following the shortest route to market. For every bit of data can be collected, transmitted,
this purpose, we have established multiple integrated processed, and presented in an optimal way.
teams for specific industries, including finance, mining, Delivering the simplest possible architecture, highest
government public services, transportation (airports, possible quality, lowest possible costs, and a superior
rails, roads, waterway, and ports), and electric power. experience is our goal.
We aim to become the preferred partner for industries
as they go digital, intelligent, and green – and in We are working hard to optimize network
doing so, we can pave the way for our own long-term performance, energy consumption, cloud resource
growth, too. utilization, cloud application performance, O&M
efficiency, and service capabilities. And we will
Optimizing our business portfolio to continue to optimize user experience for devices and
enhance resilience intelligent vehicles. In these ways and more, we are
creating new value for our customers. And it’s through
We continue to optimize our business portfolio, these efforts that we will keep honing our competitive
which now covers a mix of ICT infrastructure, smart edge, bolstering the leadership of our products and
devices, Huawei Cloud, digital power, and intelligent solutions well into the future.
automotive solutions, backed by technological support

03

Succeeding through quality and Investing heavily in R&D to ensure a
making Huawei synonymous with high level of business continuity and
high quality in the ICT industry enhance product competitiveness

With external restrictions as our new normal, it’s Our business continuity touches on multiple aspects,
more important than ever that we commit ourselves including the continuity of our supply, product
to making Huawei synonymous with high quality in development, manufacturing, and IT systems. Through
the ICT industry. Quality is our path to victory. To years of hard work, we have made significant progress
continuously create value for customers, we need to in component replacement and board redesign, as
further strengthen total quality management based well as in operating systems, databases, product
on ISO 9000 standards, and implement strategy- development tools, CRM, ERP, PDM, and MES. In these
driven, all-hands, and full-process quality management areas, we have what’s needed to keep going, but there
across our entire value chain in alignment with our are still gaps in terms of leadership, ease of use, and
customers’ needs. long-term sustainability.

To build a truly end-to-end quality management Going forward, sustaining – even increasing – R&D
system, we need to progress along two end-to-end investment in these areas will be crucial for us
tracks, with one being customer-driven (from customer to ensure a high level of business continuity and
needs to customer satisfaction) and the other being fuel nonstop innovation. Our efforts to reshape
strategy-driven (from strategy development to strategy architecture, strengthen systems engineering, and
execution). Essentially, we need to tightly incorporate optimize design will take the competitiveness of our
quality requirements into all business processes, and products to new heights. As long as we maintain
provide our customers with high-quality products and a high level of business continuity and continue to
services. This will help us build and maintain trust, and deliver competitive products, we can ensure Huawei’s
ultimately become their partner of choice. sustainable survival and development.

These quality requirements don’t stop at products, Plum blossoms tend to grow sweeter from a harsh

services, and contracts, but also cover cyber security, winter’s freeze. Today, Huawei is like a plum blossom.
safety, and operational compliance. In addition, we While it’s true that we have considerable pressure
need to extend our quality management mechanisms ahead of us, we have what it takes to come out the
and requirements to every part of the supply chain other end – with opportunities to grow, a resilient
that we’ve restructured over the past few years. We business portfolio, a unique competitive edge, the
need to invest more, and improve quality together enduring trust of our customers and partners, and the
with our suppliers in order to deliver high quality to courage to invest heavily in R&D. We are confident in
our customers. our ability to rise above any challenge that comes our
way, laying a solid foundation for sustainable survival
and development.

Xu Zhijun
Rotating Chairman

04 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

Business Highlights in 2022

Driving Ubiquitous Enabling Pervasive
Connectivity Intelligence

■ We have worked with carriers and partners ■ We are committed to accelerating the digital
worldwide to accelerate digital transformation and and intelligent transformation of industries by
facilitate customers’ business success in the 5G era. developing the computing industry around Kunpeng
At the end of 2022, the number of 5G users across and Ascend. Kunpeng features general-purpose
the globe exceeded one billion. 5G networks built computing capabilities while Ascend targets AI
by Huawei continue to deliver leading experiences. computing capabilities. We work with our partners
Huawei has also worked with industry partners to drive the computing industry forward and foster

to define 5.5G and drive the connectivity industry a vibrant ecosystem. To date, more than 5,200
forward. partners and 3.1 million developers have joined the
Kunpeng and Ascend ecosystems, and more than
■ We help carriers build cutting-edge all-optical 14,000 solutions have been certified.
networks that offer ultra-high bandwidth, ultra-
low latency, and high reliability, realizing fiber to ■ Huawei Cloud has launched DevCloud, which
everywhere and OTN to every site. At the 2022 integrates the capabilities of the ModelArts AI
Broadband World Forum, Huawei’s SingleFAN development pipeline, the MetaStudio digital
Pro solution won the Outstanding FTTH Solution content production pipeline, the DataArts data
Award. governance pipeline, and the CodeArts software
development pipeline. Together, these pipelines
■ In remote rural areas, Huawei’s RuralLink solution support collaborative development and on-demand
simplifies network deployment by eliminating orchestration of AI models, data, digital content,
the need for equipment rooms, fiber cables, and and applications. They facilitate more efficient
mains power. We are committed to collaborating collaboration between teams and enable agile
with carriers and industry partners to connect the development of intelligent applications.
unconnected and bring the benefits of mobile
broadband to everyone. ■ As part of Huawei’s broader “Platform +
Ecosystem” strategy, we are creating a digital
foundation and development tools that can be
used in the development of intelligent vehicles.
We have brought together more than 300 partners
from across the automotive industry through three
ecosystem platforms: intelligent digital vehicle
platform (iDVP), intelligent driving computing
platform, and HarmonyOS Intelligent Cockpit
platform.

05

Delivering a Personalized Building a Digital Platform
Experience
■ We have worked with customers and partners
■ HarmonyOS has already been deployed on 330 worldwide in a bid to deeply integrate ICT
million Huawei devices. HarmonyOS 3 was officially technology into industries and accelerate industry
launched in 2022, representing a full expansion of digitalization. To date, we have developed more
the Super Device feature, which is now available on than 100 scenario-based solutions. We have
12 different device types, including smartphones, also established business units (BUs) that focus
tablets, PCs, HUAWEI Vision products, earphones, on specific industries, such as the Mine BU,
smart watches, and head units, facilitating Smart Road, Waterway & Port BU, Government
effortless cross-device interactions. Public Services Digitalization BU, Electric Power
Digitalization BU, Digital Finance BU, and Aviation
■ The HarmonyOS ecosystem continues to grow & Rail BU, to rapidly respond to customer needs
by leaps and bounds. HarmonyOS Connect, the together with partner products and capabilities.
technology brand that supports the HarmonyOS
ecosystem, has attracted more than 2,300 ■ Huawei Cloud continues working to provide
ecosystem partners and continues to add more Everything as a Service, including Infrastructure as
product categories. In 2022 alone, over 181 million a Service, Technology as a Service, and Expertise
new devices in the HarmonyOS Connect ecosystem as a Service, aiming to help our customers unleash
were shipped, covering numerous types of smart the power of digital faster. Huawei Cloud was
home appliances. By the end of 2022, the number recognized in Gartner’s 2022 Magic Quadrant for
of feature abilities (FAs) running on HarmonyOS- Cloud Infrastructure & Platform Services (CIPS).
powered devices exceeded 50,000. The number of Huawei Cloud developers globally
now exceeds 4 million.
■ Our intelligent cockpit and intelligent driving
solutions have won multiple prestigious industry ■ We have launched multiple programs like the
awards and set new industry benchmarks. Our Huawei Cloud Partner Competency Program, the
intelligent cockpit solution, for example, won Kunpeng Partner Program, and the openEuler
two awards at the World Intelligent Driving Partner Program to encourage innovation among
Challenge: Top Intelligent Cockpit Award and partners. We have also worked with more than

Extreme Challenge Award. All AITO models come 43,000 ecosystem partners and released over
equipped with HarmonyOS Intelligent Cockpit, 10,000 products on KooGallery, in addition to
which has been deemed one of the best head units certifying more than 12,000 Kunpeng application
on the market by the industry and consumers for software solutions and over 2,000 innovative
its intuitive, intelligent, and convenient cockpit Ascend solutions. These solutions and services
experience. are currently deployed in a number of core
industries including government, finance, energy,
transportation, manufacturing, healthcare, and
education.

06 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

Five-Year Financial Highlights

2022 2021 2020 2019 2018

(USD Million) (CNY Million) 636,807 (CNY Million) 721,202
121,412 73,287
Revenue 92,379 642,338 891,368 858,833 10.2%
Operating profit 19.1% 59,345
Operating margin 6,071 42,216 113,718 72,501 77,835 74,659
Net profit
Cash flow from 6.6% 6.6% 59,670 8.1% 9.1% 265,857
  operating activities 170,864
Cash and short-term 5,114 35,562 64,649 62,656 665,792
 investments
Working capital 2,560 17,797 35,218 91,384 69,941
Total assets 233,065

Total borrowings 53,709 373,452 416,334 357,366 371,040
Equity 65.0%
Liability ratio 49,608 344,938 376,923 299,062 257,638
152,993 1,063,804 982,971 876,854 858,661
175,100 141,811 112,162
28,353 197,144 414,652 330,408 295,537
62,859 437,076
58.9% 57.8% 62.3% 65.6%
58.9%

Note: Converted into United States dollars (“USD”) using the closing rate at the end of 2022 of USD1.00 = CNY6.9533

Revenue Operating profit Cash flow from
operating activities

CAGR: (3)% CAGR: (13)% CAGR: (30)%

CNY Million CNY Million CNY Million
140,000 120,000
1,000,000 891,368 120,000
800,000 858,833 121,412
600,000
721,202 642,338 100,000 100,000 91,384
636,807 80,000 80,000 74,659
60,000 77,835
40,000 73,287 72,501 59,670

60,000

400,000 42,216

200,000 40,000 35,218 17,797
20,000
20,000

0 0 0

18 19 20 21 22 18 19 20 21 22 18 19 20 21 22

07

Message from the Chairman

In 2023, we will continue to maintain
strategic focus and strengthen R&D
investment. Working with our global
partners, we will focus on creating
greater value for our customers, partners,
and society as we continue to prime the
pump for sustainable survival.

Forging ahead together to ensure sustainable survival

In 2022, it was all hands on deck as we rose to meet all kinds of challenges. Working together, we managed to
achieve our business goals, and our overall business performance was in line with forecast.

I would like to take a moment to thank our customers, partners, and other stakeholders from all over the world for
your ongoing trust and support.

Over the past year, we have maintained focus on our core businesses, strengthened investment, and buckled down

to address key challenges. We also worked to enhance our competitiveness through architectural innovation and
systems engineering. Our ICT infrastructure business maintained steady growth, and we achieved rapid growth in
new business domains like digital power and Huawei Cloud. We also improved consumer experience and took the
competitiveness of our intelligent automotive components to new heights. All the while, we have worked hard to
promote digital inclusion and drive green and sustainable development.

In 2023, we will continue to maintain strategic focus and strengthen R&D investment. Working with our global
partners, we will focus on creating greater value for our customers, partners, and society as we continue to prime
the pump for sustainable survival.

08 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

Building an intelligent world together In manufacturing, 5G and AI are used to identify
to drive social progress product defects during quality inspection, which helps
significantly reduce demand for manpower and make
As an intelligent world fast approaches, digitalization, the manufacturing process more efficient.
intelligent transformation, and decarbonization are key
pathways to sustainable development. As for sustainability, green and low-carbon
development has become a globally recognized
We predict that, by 2030, the world will be crisscrossed mission. At Huawei, we believe that digital technology
with hundreds of billions of connections and demand is an effective tool to fight climate change, protect
for 10 Gbit/s home broadband will be commonplace. the environment, and enable green development.
Intelligent electric vehicles will go mainstream in the Digitalization and decarbonization can work
automotive industry, and renewables will account for hand-in-hand, propelling and reinforcing each other to
more than 50% of global power capacity. By 2030, AI help build a greener world.
will be adopted at scale, driving increased demand for
computing power and network capacity. We are actively building sustainability into corporate
governance and the entire lifecycle of our products.

As this transformation unfolds, digital infrastructure We are also using innovative technology to help
for individual users, homes, and industries will face an industries reduce their energy consumption and carbon
unprecedented set of new demands. At Huawei, we footprint, ultimately paving the way to a more circular
will keep delivering on customer needs while pushing economy.
the limits of science and technology as we work to
better serve the world. In 2022, we continued efforts to build a greener
supply chain. In particular, we worked with our top
Enabling industry digitalization to speed up the 100 suppliers to collect statistics on carbon emissions
arrival of an intelligent world. The fast-growing and implement emissions reduction projects. In
digital economy – underpinned by digital and addition, we worked closely with our customers and
intelligent technologies – has become a key driver of partners in transportation, energy, construction, and
socioeconomic development. 5G, cloud computing, other industries to explore how digital technology can
and AI are seeing broader, more rapid deployment. be used to accelerate the shift towards a green and
And they are converging fast, driving the digital low-carbon world.
transformation of industries like energy, transportation,
and manufacturing. This can create business value Deeper integration of the digital economy and the
through huge gains in productivity and efficiency, while real economy will further enable digital transformation
also creating social value by enabling safer working and low-carbon development across industries. This, in
environments. turn, will promote global economic stability, fuel green
and sustainable development, and speed up the arrival
2022 saw the rapid adoption of 5G in vertical of an intelligent world.
industries, with more than 20,000 innovative 5G
applications put into use. Promoting digital inclusion for a better world.
Digital technology plays an important role in every
In coal mines, 5G is enabling remotely controlled aspect of our lives. It can be used to promote health,
operations, allowing miners to step out of the pits drive social development, and protect the environment.
and work in offices above ground. This has greatly Our goal is to create a positive impact with innovative
improved working conditions and mining safety. technology and bring the benefits to everyone.

In ports, 5G and autonomous driving are enabling For more than 30 years, Huawei has committed itself

automatic and intelligent loading, unloading, stacking, to pushing the boundaries of ICT and promoting
and more. This is making ports safer and more its global adoption. By working closely with carriers
efficient. around the world, we have built over 1,500 networks

09

that connect over three billion people in more than the frontiers of science and technology. Together, we
170 countries and regions. want to drive innovation and create greater value for
all industries and society.
In China, we have helped carriers expand the coverage
of high-speed mobile networks, making 4G and even In 2022, our R&D spend was about CNY161.5 billion,
5G networks accessible in every village. about 25.1% of the company’s annual revenue. Our
total R&D investment over the past decade amounts to
In Indonesia, we have worked with carriers to connect more than CNY977.3 billion.
the archipelago, bringing remote island communities
into the digital fold. We have set up 86 tech labs around the world
that dive deep into fundamental theories and core
In Nigeria, we have helped save lives by building a technology systems. In the wireless network domain,
digital health platform that facilitates the delivery of we are working with the industry to define the vision
emergency medical supplies like blood and oxygen to and roadmap for 5.5G and promote its adoption,
people in urgent need. further advancing evolution of ICT infrastructure. In AI,
we have launched the OptVerse AI Solver that helps
In Bangladesh, we are helping make mobile payments solve complex high-dimensional optimization problems
more accessible to drive financial inclusion, bringing across a wide range of scenarios.
a broad range of banking services to the previously
unbanked. In software, we are working with partners to create
thriving open source ecosystems around openEuler
In Italy, our AI- and cloud-based acoustic monitoring and OpenHarmony, with the aim of better adapting to
systems are protecting a wetland in Grosseto, an oasis future computing scenarios while offering the world
that is home to more than 300 species of birds. more options for operating systems.

In 2022, Huawei announced its pledge to the ITU’s As part of our broader collaboration efforts, we
Partner2Connect alliance, under which Huawei’s ICT actively engage with universities and research institutes
products and solutions will help bring connectivity to around the world, where we work together to address
about 120 million people in remote areas in over 80 our industry’s toughest challenges and drive scientific
countries by 2025. and technological progress.

In addition to connectivity, we are working to drive In 2022, we officially launched the Chaspark website,
broader digital inclusion through our TECH4ALL an open platform for academic exchange. This website
program. As of the end of 2022, our TECH4ALL has attracted more than 120,000 users, including
education programs have helped over 220,000 people many professors and experts in their fields. Huawei
build new digital skills, including unemployed youth as has distilled a number of real-world industry problems
well as students and teachers from over 600 schools. into scientific challenges, and has made them publicly
Each month, the accessibility features on Huawei available for joint exploration. Through this platform,
devices allow more than 4.4 million users with visual we want to explore new models for collaboration in
impairments and over 800,000 users with hearing science and technology.
impairments to use digital technology more seamlessly.
We first released Communications of Huawei Research
Growing together with partners in June 2022, a journal that shares views and findings
through ongoing innovation in various domains of scientific exploration. To
date, this journal has covered research results from
With an unwavering focus on research and innovation, more than 170 Huawei scientists and non-Huawei
we are working with our partners worldwide to probe researchers.

10 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

On the operations side, Huawei is committed to In 2022, Huawei continued investing resources to
globalized operations and diversifying our supply enhance our compliance programs across multiple

chains to ensure long-term, continuous, and stable business domains, including trade, finance, intellectual
supply, and to lay the foundations for more sustainable property, cyber security, and data and privacy
development. We have established long-term protection. We value and work hard to create a culture
partnerships with over 10,000 suppliers and partners of integrity, and require all employees to comply with
around the world. Through open collaboration, we our Business Conduct Guidelines (BCGs).
strive to overcome all manner of difficulties and
challenges over the course of development. We are We continue to communicate openly and embrace
confident that our work with partners around the transparency so that our customers, partners, and the
world will help forge a secure, reliable, competitive, rest of the world can see what we truly stand for. We
and healthy value chain. welcome stakeholders – including governments, the
media, researchers, and experts – to strengthen mutual
Enhancing corporate governance and understanding and trust.
ensuring operational compliance to
better serve our customers The road ahead is long and hard. But no matter how
bumpy that road may be, we are confident that things
A robust corporate governance system is the will gradually get back on track. We are confident in
cornerstone of sustainable development. In 2022, we our ability to navigate challenges and improve the
continued to build up and optimize our corporate quality of our operations to ensure sustainable survival
governance system. Our Board of Directors held 11 and development. We will stay the course and stick
meetings where they reviewed and approved matters to our vision and mission – to bring digital to every
such as the company’s medium-to-long-term strategic person, home and organization for a fully connected,
plan, as well as the company’s annual business plan, intelligent world.
audit report, profit distribution, and capital increases.
Liang Hua
In March 2023, the Representatives’ Commission Chairman of the Board
elected a new Board of Directors, which will lead
the company forward, focus on corporate strategies,
development directions, and value creation, and
support the company’s sustainable survival
and development.

At Huawei, we believe that legal compliance is a
bulwark against the uncertainties of international
politics. We are committed to conducting business with
integrity, adhering to business ethics, and observing
all applicable laws and regulations in the countries
and regions where we operate. This is a core guiding
principle upheld by our management team. For
years, we have worked hard to build a compliance
management system that aligns with industry best
practices and embeds compliance management into
our business activities. These efforts continue to
this day.

11

Industry Trends

An Intelligent World Is Fast Approaching

Decarbonization, digitalization, New demands for digital
and intelligent transformation: infrastructure
Key pathways to sustainable
development In an intelligent world, immersive communications
services like extended reality (XR) and holographic
Population demographics and energy trends have a communications will become the norm for individuals,
direct impact on where the world is heading. Needless paving the way for multi-sensory connectivity that
to say, they represent two of the most serious issues of defies the confines of time and space.
our time. The United Nations reports that the world’s
population is aging, and virtually every country in the Households will require 10 Gbit/s all-optical networks

world is experiencing labor storage to varying degrees. that underpin a wide range of new services, including
At the same time, global energy consumption is on the holographic education, holographic conferencing, 24K
rise, and fossil fuels continue to dominate the energy video, 3D media, and VR gaming.
mix. Accelerating the transition towards renewable
energy is a pressing challenge – one that is crucial for Industries will reinvent their production models with
sustainable development. digital technology and harness the power of AI to
support all production processes.
At Huawei, we believe that decarbonization,
digitalization, and intelligent transformation are key New trends will surface on other fronts too. Citizen
pathways to sustainable development. In our Intelligent development will become more prevalent. Cloud
World 2030 Report, we laid out our predictions for application ecosystems will flourish, especially
what the world will look like in 2030: those centering on 3D media, robots, Web3, and
non-fungible tokens (NFTs). Repetitive or even
■ Renewables will account for more than 50% of dangerous tasks will be relegated to intelligent
global power capacity. machines. Vehicles will become a mobile third space
outside the home and workplace, providing new
■ Electric vehicles will become predominant in the options for leisure, relaxation, and private time.
automotive industry, accounting for over 50% of Renewables will also come into wider use.
new vehicles sold.
The pursuit of a better experience knows no bounds.
■ Information and communications technology (ICT) At Huawei, we are working to push the boundaries of
will play a greater role in helping industries boost what’s possible and lay the foundations for a better
their energy efficiency, with the potential to cut future. Specifically, we want to help people exceed
global carbon emissions by 20%. their biological limits and further enhance perception.
We aim to break through the efficiency bottlenecks of
■ Over 90% of infrastructure will run on the cloud, general-purpose computing and develop new models
and more than 85% of all software will be offered of computing. We are working to transcend physical
as a service. limits to provide a truly immersive experience.

■ Intelligent robots will serve more than 18% of A magnificent intelligent world is fast approaching,

homes. and it will benefit every individual, vehicle, home, and
organization.
Moving forward, technology will continue to evolve at
lightning speed, ushering us into an intelligent world.

12 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

Theoretical and Technological Breakthroughs for the Intelligent World

Our world is built on three pillars: matter, energy, and capabilities, so we need another new use case as well:
information. Together, they determine how the world Harmonized Communication and Sensing (HCS).
works. From them, we can extrapolate what theoretical
and technological breakthroughs will be needed to The next evolution of 5G, known as 5.5G, will need to
help build the intelligent world. Matter is the origin cover these three new use cases – UCBC, RTBC, and
of existence. Energy drives motion, and information HCS – in addition to the current three defined for 5G.
allows for connectivity. We need to keep evolving 5.5G will enable the shift from connecting everything
technologies that enable the generation, transmission, to the intelligent connectivity of everything.
processing, and use of both information and energy.
Breakthrough #2: Delivering nanoscale optics for an
We predict that, in the intelligent world of 2030, exponential increase in fiber capacity
there will be hundreds of billions of connections, 10
Gbit/s broadband, a 100-fold increase in demand for Equipping 5G networks to address skyrocketing growth
computing power and storage capacity, and a more in connections has been a key challenge, whereas the
diverse energy mix with renewables accounting for challenge with optical networks is increasing fiber
more than 50%. capacity. Today, a single fiber can simultaneously
handle one million 4K video streams. In 2030, that
Based on these predictions and hypotheses, Huawei same fiber will need to be able to support one million
has proposed ten major theoretical and technological people interacting in mixed reality. This means that

breakthroughs that will be crucial to building the the capacity of a single fiber will need to exceed 100
intelligent world. Tbit/s, which is 10 times the current level.

Breakthrough #1: Defining 5.5G to support To address these needs, we need to drive advancement
hundreds of billions of diverse connections in three areas.

The first breakthrough relates to connectivity. In ■ Improve optical transceiver lasers and use
addition to connecting people, we will also need to high-modulation components to double or triple
connect a massive number of things. The demands on baud rates; and create new modulation coding and
these connections will be extremely diverse. algorithms to multiply capacity

Right now, the three main use cases for 5G – namely ■ Develop new broad-frequency and low-noise
eMBB, mMTC, and URLLC – are not sufficient for a full optical amplifiers that support manual control for
range of diverse IoT scenarios. For example, industrial reliable, ultra-long-haul transmission
IoT applications require both massive numbers of
connections and large uplink bandwidth. That’s why ■ Study dynamic controls for optical networks
Uplink Centric Broadband Communication (UCBC), and transform WDM networks into synchronous
a use case that falls between eMBB and mMTC, is systems, to improve anti-interference capabilities;
needed. There are also telemedicine applications that and leverage computing to optimize optical
need ultrabroadband, low latency, and high reliability. resource use
These require Real-Time Broadband Communication
(RTBC), a use case that falls between eMBB and Longer term, we will also need to research new fiber
URLLC. Vehicle-road collaboration for connected and optical systems, like space division multiplexing
vehicles necessitates both communications and sensing (SDM), to expand the capacity of a single fiber by
100-fold.

13

Breakthrough #3: Optimizing network protocols for ■ Analog computing: Analog computing will
industrial connections experience a resurgence in certain domains. For

example, photonic computing will have practical
Today, our networks can support tens of billions of application in domains like signal processing,
consumer connections. By 2030, networks will need to combinatorial optimization, and machine learning.
support hundreds of billions of industrial connections. In particular, photonic computing will have huge
This introduces three major requirements for network application potential in Massive MIMO and optical
protocols. communications.

■ Deterministic latency: The industry will need Breakthrough #5: Efficiently extracting knowledge
new network calculus theories and protocols to from massive multi-modal data to inform
transform the best-effort network latency we use breakthroughs in industrial AI
today into a deterministic latency that can be
calculated in advance. AI will be the mainstay of the intelligent world. As
it becomes more prevalent, trustworthiness and the
■ Security: When all things are connected, security fragmentation of AI applications are two major issues
systems will face a barrage of new challenges. that have to be resolved.
Large numbers of devices like drones, cameras,
edge computing devices, and sensors will all Developing general-purpose AI models is key to
present new security risks, and the industry will rely addressing fragmentation. General-purpose AI systems
on intrinsic, end-to-end security frameworks and can be trained with greater amounts of unlabeled data
protocols to mitigate them. and larger models, and by shifting from supervised to
self-supervised learning. These are prime targets for
■ Flexibility: Some sectors will require longer IP future breakthroughs.
addresses, while others will require shorter ones.
In response, we need to expand IP addresses with When AI and scientific computing come together, they
fixed lengths and develop new Internet protocols provide a new means of facilitating scientific research.
that feature sematic and syntax flexibility. In molecular mechanics, AI modeling can enable
large-scale molecular simulation. In physics, neural
Breakthrough #4: Developing advanced computing networks can drive the resolution of the Schrödinger
power strong enough for the intelligent world equation. In electromagnetic field simulation, neural
networks can support efforts to solve Maxwell’s

If connectivity determines the breadth of the intelligent equations. AI will underpin the new approaches,
world, computing will determine its depth. methods, and tools for scientific computing, while a
rigorous scientific computing system will help make AI
In 2030, the demand for computing power will more explainable.
increase 100-fold. Single-core CPU performance used
to grow by roughly 50% every year, but that rate has AI trustworthiness is our long-term goal. This
now dropped to around 10%. It’s also becoming more trustworthiness is particularly important in areas
and more apparent that general-purpose computing is involving matters of life and death, such as
inefficient in certain domains. autonomous driving, where we must have the ability
to resolve issues from relevance to causality.
Advanced computing power will be the next step, and
we will see development along two distinct tracks. Breakthrough #6: Going beyond von Neumann
architecture for 100x denser storage systems
■ Digital computing: The transition from
general-purpose computing to special-purpose Storage capacity and performance will be the main
computing, and then to heterogeneous computing considerations for future storage systems.
will allow for the coexistence of multiple computing
architectures like CPUs, GPUs, and xPUs.

14 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

The world will need much greater storage capacity. smell) as well as multi-modal, real-time interaction
Storage density per unit of space and energy use will between users and hundreds of smart devices, edge
need to be 100 times higher than what it is now. At computing, and cloud applications. To this end, the
the moment, existing storage media can’t achieve this environment surrounding the user has to work like a
level of density due to limits on process technology super computer that combines several core elements:
and power consumption. To meet future demand for multi-modal sensors that collect and transmit
storage capacity, we need breakthroughs in a number language, touch, light perception, neural activity,

of new technologies, including high-capacity and and other types of information; smart applications,
low-latency memory, ultra-large-capacity media like powered by edge and cloud computing, that accurately
DNA storage and high-dimensional optical storage, identify user intent; and display devices such as
and ultra-large storage space modeling and coding. naked-eye 3D, holographic projection, AR contact
lenses, digital smell, and digital touch.
We will also need significant improvements in storage
performance. In future storage systems, data access Breakthrough #8: Creating Cloud Native 2.0
bandwidth will increase from terabits per second to architecture to bridge digital gaps more rapidly
petabits per second, access latency will drop from
milliseconds to microseconds, and performance density To achieve full-scale digital transformation, established
will increase 100 times beyond what’s currently industries need a cloud platform that supports the
available. But these won’t be possible with traditional development, deployment, and operation of large
von Neumann architecture, where data has to be sent numbers of cloud-native applications in an efficient,
back and forth between CPUs, memory, and storage secure, and stable manner. Underlying this platform
media. will need to be Cloud Native 2.0 architecture with the
following features:
Another obstacle relates to the bandwidth of PCIe and
DDR-based busses, which won’t be able to keep up ■ Regionless and serverless architecture: Powered by
with growth in network performance. To break through distributed cloud native, this architecture will help
this performance wall, we need to move past von tackle thorny issues like complex control planes,
Neumann architecture and shift away from CPU-centric hybrid deployment across all scenarios, and unified
systems, exploring architectures that center on data scheduling. An architecture like this will lay the
itself. foundation for Cloud Native 2.0 platforms with
unparalleled price performance.
Breakthrough #7: Merging computing and sensing
to provide a hyperreal experience with multi-modal ■ Grid-based fault isolation: A grid-based approach
interaction to serving cloud customers, where faults are
isolated in smaller, more granular units, will be
Delivering a premium user experience will be an ideal for cloud regions with more than a million
integral part of the intelligent world. Hyperreality, or servers. This approach will provide 99.99% runtime

a state where the physical and virtual worlds are fully availability.
converged, will become true reality by 2030.
■ More robust support for cloud services
For this to happen, the virtual world will need to be targeting different industries: This will rely on
integrated seamlessly with the physical world – that is, a storage-compute decoupling architecture for
have the ability to sense and reflect what’s happening full-stack converged solutions covering databases,
in the physical world while perceiving user intent in data warehouses, data lakes, and data intelligence.
mixed reality. Another crucial technology is AI-generated content
(AIGC), which will empower innovation in domains
Another imperative will be to fully enable like intelligent hubs, AI development platforms,
multi-sensory connectivity (hearing, sight, touch, and application modernization, digital native engines,
and Web3 applications.

15

Breakthrough #9: Enabling continuous ■ Control: Using energy routers supported by
self-monitoring for more proactive health power electronics technology, we can build
management intelligent energy network controllers that allow
for bidirectional energy flow and intelligent power
As the world’s population ages, there will be growing allocation.
demand for chronic illness diagnosis and monitoring.
Roughly 85% of deaths are currently attributed to ■ Energy storage: New storage technologies,
chronic illness, and the ability to effectively treat including new electrochemical and hydrogen energy
chronic illness depends on real-time monitoring. storage, will be needed to address requirements
Moving forward, medical-grade wearables will across a broad range of scenarios.
become mainstream, enabling personal health
tracking functionality like non-invasive blood glucose ■ Power electronics: New compound semiconductors
monitoring, as well as continuous blood pressure and – including those based on silicon carbide (SiC)
ECG monitoring. Compared to photoplethysmography and diamond for medium- and high-voltage
(PPG) sensors, fiber-optic sensors can capture more applications, as well as semiconductors based on

accurate waveforms, generating higher-quality data for gallium nitride (GaN) for medium- and low-voltage
blood pressure modeling and algorithms. applications – will be vital for more efficient and
compact energy components.
Medical-grade wearables can also work with big data
platforms powered by cloud and AI technologies An Open, Inclusive, and
to enable more proactive health management. And Collaborative Approach to
with the support of brain-computer interfaces, sEMG Innovation: Building the
interfaces, and wearable robots, senior citizens will be Intelligent World Together
able to more proactively manage their own health and
lead happier lives. Since the dawn of time, people have always imagined
what the future might hold. But with technology,
Breakthrough #10: Creating an intelligent Internet we can actually get there. Driving social progress
of Energy for the generation, storage, and and tackling global challenges requires the wisdom
consumption of greener electricity of the crowd, propped up by an open, inclusive,
and collaborative approach to innovation. So as
Achieving carbon neutrality has become a global an industry, we need to work more closely with
imperative. And as the transition towards clean universities and research institutions, informing
energy gains momentum around the world, it poses and supporting scientific research, and presenting
new challenges to traditional methods of electricity world-class challenges that not only confront our
generation, energy storage, and consumption. industry, but humanity as a whole. A collaborative
approach to innovation – informed by industrial
Building a safe, efficient, low-carbon, and eco-friendly challenges and academic insight, and supported by a
energy system necessitates innovations in the following venture capital mindset – will pave the way for the
areas: intelligent world of 2030.

■ Management: By integrating ICT technologies like
big data, AI, and cloud with the Internet of Energy,
we can build an energy cloud and energy network
that enables bit-based watt management.

16 Huawei Investment & Holding Co., Ltd.

2022 Annual Report

Management

Discussion and

Analysis

18 Our Vision, Mission, and Strategy
20 2022 Business Review
22 ICT Infrastructure Business
48 Cloud Computing Business
52 Digital Power Business
56 Consumer Business
64 Intelligent Automotive Solution

Business
66 Research and Innovation
71 Improving the Management System
79 Cyber Security and Privacy

Protection
83 Openness. Collaboration. Shared

Success.
89 Results of Operations
91 Financial Risk Management

17

Our Vision, Mission, and Strategy

Huawei’s mission is to bring digital to every person, home and organization for a fully connected, intelligent world.
To this end, we will:

■ Drive ubiquitous connectivity and promote equal access to networks to lay the foundation for the intelligent
world

■ Provide diversified computing power to deliver ubiquitous cloud and intelligence

■ Redefine user experience with AI, offering consumers a more personalized and intelligent experience across all
scenarios, including home, travel, office, entertainment, and fitness & health

■ Build powerful digital platforms to help all industries and organizations become more agile, efficient, and
dynamic

Building a Fully Connected, Intelligent World

Ubiquitous Pervasive Personalized Digital Platform
Connectivity Intelligence Experience
A new digital wave is sweeping
Every person has the right to In the digital economy, Using AI, cloud, and big data the globe. Digital and AI
be connected. Connectivity computing power is a new technologies, enterprises technologies are helping all
is the foundation for social driver of production. Data can better understand their governments and enterprises
progress and economic itself is a core asset, and cloud customers’ needs and innovate become more agile, efficient,
growth. Connections will and AI are the new tools of with greater agility to craft a and dynamic. Open, secure,
soon become a natural and productivity. Moving forward, more personalized experience. flexible, and easy-to-use digital
ubiquitous resource, provided AI computing will account for Coordination and collaboration platforms are facilitating

by networks that proactively more than 80% of a computing across industries will drive innovation and transformation
sense changes and user needs. center’s capacity, providing innovation at scale. With the in all industries. They will be
These networks will offer the muscle for practical AI continuous evolution of smart the bedrock and the fertile
intelligent, seamless, and applications in all areas of life. devices, a seamless experience ground for our digital society
secure connections to people To deliver ubiquitous cloud and across all scenarios will to flourish.
and things whenever and intelligence, we will need to become the foundation of an
wherever they want. With the provide diversified computing intelligent life.
advent of 5G, we begin a new power.
chapter in this story.

Ubiquitous Connectivity ubiquitous ultra-broadband, deterministic experience,
and hyper-automation, to support the diverse needs of
Connectivity has extended from people to things and all customers.
from our homes to the factory floor. Now it’s the
foundation of everything in an increasingly intelligent We are working to push connectivity to its limits with
world. Huawei is doing what it can to help our products and solutions like 5G, simplified sites, 5G core
customers get ready for the future. (one core and cloud-native architecture), best-in-class
Wi-Fi 6, intelligent and lossless data center networks,
For mobile and home users, Huawei teams up with optical cross-connect (OXC), intelligent optical network
carriers to provide an ultra-broadband experience terminals (ONTs), and green data centers. We are
across all aspects of everyday life through gigabit 5G, actively collaborating with the industry to define 5.5G
optical, and Wi-Fi networks. and drive connectivity forward. And as more industries
go digital, we are using AI to enable hyper-automation
For governments and enterprises, Huawei works with of network O&M and developing new algorithms to
our partners to enable digital transformation. We pave the way for truly deterministic IP networks.
provide intelligent connectivity solutions, including

18 Huawei Investment & Holding Co., Ltd.