Meng Wanzhou "There is pressure, but I am confident"
Expresses confidence while mentioning difficult business environment
China's largest telecommunications equipment manufacturer, Huawei, saw its sales rebound last year despite U.S. technology sanctions. Meng Wanzhou, Chief Financial Officer (CFO) and daughter of the company's founder Ren Zhengfei, drew attention by likening Huawei to a 'maehwa' (plum blossom) that has endured winter, emphasizing the difficulties and overcoming of U.S.-imposed sanctions.
On the 31st, CFO Meng Wanzhou announced at the 2022 performance briefing held at Huawei's headquarters in Shenzhen, Guangdong Province, China, that last year's sales reached 642.3 billion yuan (approximately 121.825 trillion won). This represents a 0.9% increase compared to the previous year despite U.S. advanced technology sanctions. Huawei's sales in 2021 had sharply declined by 28.6% compared to the previous year.
Meng Wanzhou, Chief Financial Officer (CFO) of Huawei, is explaining last year's sales and other performance at the 2022 earnings presentation held at the company's headquarters in Shenzhen, Guangdong Province, China. Throughout the presentation, CFO Meng displayed a photo of "maehwa" (plum blossoms) as the background screen. (Photo by Kim Hyunjung)
Net profit was 35.6 billion yuan, down 68.7% from the previous year's record high. The decrease in net profit was largely due to Huawei's investment in research and development (R&D). Last year, Huawei invested 161.5 billion yuan in R&D, accounting for 25.1% of total sales.
By sector, sales in the ICT infrastructure field showed steady growth, reaching 354 billion yuan, while sales in the terminal device sector amounted to 214.5 billion yuan. Sales in the digital energy and cloud sectors reached 50.8 billion yuan and 45.3 billion yuan, respectively.
CFO Meng said, "2022 was a year for Huawei to normalize the situation of being under U.S. sanctions and aim for normal operations," emphasizing, "Without the support of consumers, customers, and partner collaborators, Huawei as it is today would not exist." She added, "Although management faced great pressure last year, a sound financial situation continues."
Meng Wanzhou, Chief Financial Officer (CFO) of Huawei, is explaining last year's sales and other performance at the 2022 earnings presentation held at the company's headquarters in Shenzhen, Guangdong Province, China. Throughout CFO Meng's presentation, the background was filled with a photo of "maehwa" (plum blossoms). (Photo by Kim Hyunjung)
Throughout the performance announcement, CFO Meng displayed photos of maehwa on a large screen, and after finishing the presentation, she said, "After the snow, the maehwa branches are pressed down, but when spring comes, the sunlight shines brightly (雪後疏梅正壓枝, 春來朝日已暉暉)," adding, "There is pressure, but even more confidence (有壓力, 更有信心)." This is interpreted as her reflection on the solid performance recorded despite the recent high-intensity sanctions imposed by the U.S. on Chinese advanced companies including Huawei.
Earlier, Xu Zhijin, Huawei's rotating chairman, also said, "I want to liken Huawei today to the maehwa," emphasizing, "The maehwa endures the severe cold and then emits fragrance." He continued, "The current challenges are huge, but growth opportunities remain, there is confidence in industrial recovery, and there is the boldness to make aggressive investments."
Shenzhen ? Correspondent Kim Hyun-jung alphag@
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