Huawei Technologies Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change（%） | Factors | |
| Sales | 636,807 | 891,368 | (28.56) |
-Sales declined year-on-year for the entire company due to a significant drop in sales in consumer services. |
| Operating profit | 121,412 | 72,501 | 67.46 | |
| Net income | 113,718 | 64,649 | 75.90 |
-In 2021, Huawei proceeded to roll out its own brand of Huawei solutions called HI (Huawei Inside), starting with the ARCFOX αS HI exhibited at the Shanghai Motor Show. The ARCFOX αS HI model, distinct from the regular model, is equipped with Huawei's Harmony OS and advanced automatic driving system.
-The Avatr 11 from Avatr Technology (Chongqing), in which Changan Automobile and others have invested, also carries the HI logo. It features a full stack of Huawei solutions, including three computing platforms: Smart Drive, Smart Cockpit, and Smart Vehicle Control, as well as three operating systems: AOS (Smart Drive OS), HOS (Cockpit OS), and VOS (Vehicle Control OS). The Avatr 11 will go into mass production in the third quarter of 2022.
-Huawei is also enhancing its solutions offerings for intelligent cars with the Harmony OS intelligent cockpit that is in the Wenjie M5 SUV from Chongqing Jinkang SERES, which was announced to have begun deliveries in March 2022.
OEM partnerships and orders
| OEM | Activity |
|---|---|
| SAIC VW | Huawei and SAIC VW release full-stack integrated simulation platform -Huawei Technologies Co., Ltd. (Huawei) and SAIC Volkswagen Automotive Co., Ltd. (SAIC VW) jointly released a full-stack integrated simulation platform solution at the Huawei Intelligent Manufacturing Data Infrastructure Summit Forum 2021 held in Shanghai. The platform is the first large-scale application of similar solutions in China’s automotive industry, which is applicable to manufacturing industries such as the automobile industry and aerospace industry. Huawei can offer a full-stack integrated simulation platform that covers products and services from Level-1 infrastructure (in relation to computing, storage and network) to Level-3 communication libraries, compilers, cluster management and professional services, to enable pre-processing, simulation for solutions, and post-processing of such CAE (computer-aided engineering) simulation technologies as flow simulation, electromagnetic design, collision design, noise design, and motor design, thus pushing forward autonomous driving R&D and simulated aerospace training. Powerful data infrastructure can be therefore provided for car, aerospace and other manufacturers. (From various media sources dated July 7, 2021) |
| Beijing Electric Vehicle Co., Ltd. (BJEV) |
ARCFOX αS Huawei HI version released |
| Huawei signs comprehensive business cooperation agreement with Beijing Electric Vehicle -Huawei announced that it has signed a comprehensive business cooperation agreement with Beijing Electric Vehicle Co., Ltd. (BJEV). The two companies will cooperate in various areas, including the establishment of a joint management system, enhancement of product development, and joint brand marketing. They will start with cooperation in the field of intelligentization, and build a highly coordinated development model that integrates technological innovation and the industrial chain. Huawei will focus on ICT technology to help BJEV become an industry-leading global intelligent EV manufacturer. (From a press release dated September 27, 2021) |
|
| GAC Group |
Working together to develop a new generation of connected car platforms |
|
Mass production of a new electric SUV jointly developed with GAC Aion to start at the end of 2023 |
|
| Changan Automobile |
Changan Automobile unveils its first smart electric vehicle (EV) jointly developed with CATL |
| Great Wall Motor | Cooperate with Great Wall Motor in terms of innovative technologies such as intelligent connectivity and intelligent driving -Huawei will provide Great Wall Motor with MDC-based intelligent driving computing platforms with strong computing power and work actively with Great Wall Motor in various assessments and tests of perception components (such as LiDARs and cameras) required for intelligent driving. (From press releases dated December 30, 2020) |
| Hozon New Energy Automobile |
Hozon to start comprehensive cooperation with Huawei in intelligent driving and other areas |
| FAW | Signed a strategic agreement for cooperation with FAW in vehicle connectivity The companies will establish a digital platform and work together on application and innovation of vehicle connectivity technologies based on Huawei’s 5G Industrial Internet platform. |
| SERES |
Jointly developed “hump” intelligent range extender system with SERES |
| Chery |
Chery partners with Huawei in intelligent vehicle field |
| Yutong Bus | Yutong Bus partners with Huawei in autonomous driving Huawei and Zhengzhou Yutong Bus Co., Ltd. (Yutong Bus) will cooperate in the fields of cloud computing, big data, Internet of Vehicles, autonomous driving, new energy, intelligent transportation, intelligent parks, enterprise management, intelligent plants and international business development.(From a press release dated July 29, 2020) |
| JAC | Huawei partners with JAC in intelligent vehicle solutions and other fields -Anhui Jianghuai Automobile Group Corp., Ltd. (JAC) and Huawei Technologies Co., Ltd. (Huawei) officially signed a framework cooperation agreement and an MDC (mobile data center) platform cooperation agreement in Shenzhen. The companies will cooperate in such fields as intelligent vehicle solutions, enterprise informatization, smart industrial parks and smart plants. They will also explore such fields as intelligent driving, intelligent cockpits, intelligent electrification, intelligent connectivity as well as cloud services.(From press releases dated December 11, 2019) |
Partnerships with Suppliers
| Partner | Activity |
|---|---|
| Xingyu Lighting | Huawei and Xingyu Lighting cooperate in smart onboard lighting business Huawei and Changzhou Xingyu Automotive Lighting Systems Co., Ltd. will collaborate on the smart automotive lamp business. The two parties will jointly build end-to-end capabilities of smart automotive lighting from design to production and delivery, driving the development of the smart automotive lighting industry and building smart automotive lighting solutions that can secure a leading position in the industry. Moreover, the two companies will have other business cooperation in the field of smart onboard lighting. (From a press release dated February 17, 2022) |
| Joyson Electronic | Huawei to collaborate with Joynext for smart cockpit According to several Chinese media sources, Ningbo Joynext Technology Co., Ltd. (Joynext), a subsidiary of Ningbo Joyson Electronic Corporation, has concluded a cooperation agreement with Huawei. Both companies will utilize their resources to conduct research and bring innovation in the area of smart cockpit, and focus on improving the interaction experience between users and the cockpit. The products developed by both companies will include Huawei’s smart cockpit module, HarmonyOS, HMS-A core platform, and Harmony application ecosystem. Based on Huawei's platform capability, the companies will provide complete hardware and software intelligent cockpit solutions from domain controller, operating system to application layer. The relevant products have been ordered by a leading domestic car manufacturer for a number of models. In the future, both companies will continue to expand their cooperation and create intelligent cockpit solutions based on Huawei's solutions for automakers. (From a press release dated August 23, 2021) |
| Desay SV | Huawei partners with Desay SV on full scenario smart mobility eco-solution Huawei announced that it signed a full scenario smart mobility eco-solution cooperation agreement with Huizhou Desay SV Automotive Co., Ltd. (Desay SV). They will enhance cooperation in terms of HiCar solution platform-level cooperation, testing capability building and onboard eco-system innovation. The HUAWEI HiCar (Huawei’s full scenario intelligent connected solution that connects people, vehicles and home) will be incorporated into Desay SV’s mainstream in-vehicle infotainment platform. They will make joint innovations based on Huawei’s full scenario smart mobility eco-solution, set up joint innovation labs, develop comprehensive test schemes of the HUAWEI HiCar, and provide customers with intelligent cockpit products and solutions. (From a press release dated April 26, 2021) |
| TomTom | Huawei selects TomTom to power Petal Maps On October 22, TomTom announced that Huawei has selected TomTom to fuel its new map application. Petal Maps offers maps, turn-by-turn navigation, traffic information and search. The app comes with the new HUAWEI Mate 40 Series and is available for download on the HUAWEI AppGallery in over 140 countries and regions.(TomTom press release on October 22, 2020) |
| ECARX | ECARX partners with Huawei on smart cockpits ECARX Co., Ltd. (ECARX), under the Geely Technology Group, signed a partnership agreement with Huawei Technologies Co., Ltd.’s intelligent mobility division. The companies will cooperate in the fields of smart cockpits and consumer eco-services. They will work together to create a better in-vehicle intelligent connected experience for vehicle owners by use of Huawei HiCar, mobile car key, HMS for Car and other solutions. Huawei HiCar and mobile car key will be used in models of different brands in the Geely group via the ECARX connected vehicle platform. (From a press release dated September 22, 2021) |
| TELD New Energy | Huawei and TELD form partnership in NEV charging On May 20, Huawei Technologies Co., Ltd. (Huawei) signed an agreement in Shenzhen for all-round cooperation with TELD New Energy Co., Ltd. (TELD). The companies will cooperate in such fields as intelligent charging, 4G/5G communications, Huawei Cloud services and charging network standards. TELD is China’s largest charging service operator. It provides charging services to more than 2.7 million NEV (new energy vehicle) owners in 334 Chinese cities. (From a press release dated May 20, 2020) |
Partnerships with government agencies
| Partner | Activity |
|---|---|
| Chinese Ministry of Industry and Information Technology (MIIT) Equipment Industry Development Center (EIDC) | Huawei forms strategic alliance with organization under China’s MIIT The Chinese Ministry of Industry and Information Technology (MIIT) Equipment Industry Development Center (EIDC) announced that it has signed a strategic alliance with Huawei. Both will collaborate in the area of industrial policy and regulations, technology standards, measurement and evaluation systems and platform construction to develop the connected vehicle industry. EIDC is an organization directly under MIIT and provides management support and policy recommendations in the equipment industry, as well as examining regulations regarding access to connected vehicles. (From a press release dated September 25, 2021) |
| Wuhan Economic & Technological Development Zone (WHDZ) | Huawei and WHDZ sign ICV industry cooperation agreement Huawei announced that it has signed an intelligent connected vehicle (ICV) industry cooperation agreement with the Wuhan Economic & Technological Development Zone (WHDZ). Huawei and WHDZ will cooperate with companies including China EV100 Intelligent Networking Research Institute (Wuhan) Co., Ltd. to carry out technical innovations and standard development in the area of coordination between intelligent vehicles and smart cities in the national ICV demonstration zone in Wuhan, to build Wuhan into a global site with high innovation capabilities for the intelligent vehicle industry. Huawei will set up the Huawei (Wuhan) Intelligent Connected Industry Innovation Center in the WHDZ, which will offer open autonomous vehicle development platform services in the demonstration zone. (From a press release dated January 29, 2021) |
Product development/technology
| Product | Activity |
|---|---|
| HUAWEI HiCar |
Huawei HiCar is Huawei's connected solution that connects people, cars, and homes. By 2021, Huawei HiCar will be installed in more than 100 models and 10 million vehicles. The company will also work with various companies to provide in-vehicle services to users through HMSforCar, which will pre-install cloud services in cars. |
| HMS for Car |
HMS for Car is a smart car cloud service solution built by Huawei Terminal Cloud Services. Based on Huawei Mobile Services (HMS), it includes apps such as Huawei Smart Assistant, Huawei Music, Huawei Video, My Car, Huawei App Market, and Huawei Quick App Center. As of December 2021, HMS for Car has already partnered with Volvo and other automakers, and the company aims to expand its partnerships in the future. |
| 4D imaging radar |
Huawei’s 4D imaging radar employs a large antenna array of 12T24R (12 transmit channels and 24 receive channels), which is 24 times larger than the antenna configuration of conventional millimeter wave radar (3T4R). In addition to the range and speed measurement of conventional millimeter-wave radar, it has a unique capability to detect targets whose distance is visually obscured by light or rain, resulting in a significant performance improvement. In addition, the evolution of 4D dense point clouds like LiDAR will lead to a wealth of sensory enhancement applications such as environmental mapping, synthesis, and positioning. Moreover, the fusion of multiple radars at the point cloud level will enable more effective 360° detection around the vehicle to meet full-target, full-coverage, multi-condition, and all-weather sensing requirements. (From a press release dated April 18, 2021) |
| MDC 810 mobile digital computation platform |
The Huawei MDC 810 mobile digital computation platform ensures high-density 400 TOPS computing power, ASIL D functional safety requirements, and is equipped with intelligent drive platform software MDC Core. It will also enable automated driving functions such as Traffic Jam Pilot (TJP), Highway Pilot (HWP), and Automatic Valet Parking (AVP). |
| AR-HUD | AR-HUD can work in a 7.5m range with a 70-inch frame, enabling the user to experience an immersive visual experience and different driving assistance functions. |
Huawei Octopus |
Huawei launched the Octopus, a data-driven closed-loop open platform based on core autonomous driving hardware including data, high-definition maps and algorithms. The platform will assist automakers in forming the ability for developing autonomous driving technologies from scratch. |
| Thermal Management System | The Huawei TMS (Thermal Management System) has an integrated design for its architecture and components, and features control integration technology. It is able to reduce the operating temperature of the heat pump from -10 degrees Celsius to -18 degree Celsius, and increase the range of a New Energy Vehicle by 20%. (From a press release dated April 18, 2021) |
| HarmonyOS 2 |
The HarmonyOS 2.0 operating system is able to integrate multiple smart devices into a single terminal, thus enabling all devices to be interconnected. The operating system also supports onboard application on vehicles. Powered by the HarmonyOS 2.0, Huawei’s intelligent cockpit solution will realize full-scenario synergy and interconnection between different devices. (From various media sources on June 2, 2021) |
| All-in-one electric drive system DriveONE | The DriveONE all-in-one electric drive system integrates seven mechanical and power components, including a micro control unit (MCU), an electric motor, a reducer, a DC/DC converter, an on-board charger (OBC), a power distribution unit (PDU), and a battery control unit (BCU). Additionally, the DriveONE system supports the 2C fast charging experience and offers a cruising range of 200km with a 10 minute charge. The system is more efficient (with an NEDC efficiency level of 89%), more accurate (with a State of Charge (SOC) detection accuracy of ±3%) and more power-efficient (with a power density of 2.1kW/kg) than previous solutions. (From a press release dated November 11, 2020) |
| Automotive-grade LiDARs | Huawei commenced LiDAR R&D in 2016. After analyzing response scenarios of LiDARs, Huawei designed and developed this 96E mid- to long-distance LiDAR. This LiDAR is capable of detecting pedestrians and vehicles in urban areas as well as vehicles on highways, which is adaptive to Chinese road conditions. A large field of view (120 degrees x 25 degrees) enables it to respond to people and vehicle ranging demands in scenarios such as urban areas and highways. Horizontal and vertical light bundles are distributed uniformly in a full field of view. Its small volume is suitable for factory-installed production models. (From a press release dated December 22, 2020) |
| White paper for intelligent driving computing platform MDC | Positioned as an intelligent driving computing platform, the MDC (Mobile Data Center) is built specially for intelligent driving. It consists of standardized series hardware products, intelligent driving operating systems AOS, VOS and MDC Core, supports tool chain and vehicle-road-cloud coordination services, Component as a Service, interface standardization, development tooling, and meets safety requirements of the automotive industry. The MDC platform supports software and hardware decoupling. With a software architecture, different hardware configurations, standardized dimensions and physical properties, the platform enables forward compatibility and can achieve smooth evolution from autonomous driving level L2+ to L5. So far, the Huawei MDC platform and its partners have established cooperation or conducted trial operation with nearly 20 mainstream automakers and Tier1 suppliers in the field of intelligent driving to cover several intelligent driving application scenarios regarding passenger vehicles, commercial vehicles, and special vehicles. (From a press release dated October 28, 2020) |
| Autonomous Driving Cloud Service | Huawei officially began the operation of the Autonomous Driving Cloud Service platform. The platform, also called Huawei Octopus, will be put into use in the companies engaging in intelligent connectivity services that are based in the Xiangjiang New Area, Hunan Province. Huawei officially released the Huawei Octopus platform in April 2019. The platform has integrated Huawei’s technologies in such fields as cloud services, AI (artificial intelligence), 5G and C-V2X (cellular vehicle-to-everything). It is capable of providing data services, training services and simulation services to automakers and car developers. With regard to simulative training services, the platform includes more than 10,000 simulative scenarios that comprise those related to intelligent driving, active safety and dangerous road conditions. Additionally, users can convert from road test data scenarios to simulative scenarios and use the platform to implement virtual tests for more than 5 million kilometers in a single day. The platform will enable the companies engaging in intelligent connectivity services to strengthen the application of their technologies in such fields as intelligent parking, intelligent transportation, intelligent logistics and Robotaxis. (From various media sources dated May 23, 2020) |
Contracts
| Year of announcement | OEM | Brand / Model | Product |
| 2021 | BAIC | BEIJING | HarmonyOS |
| - | BEIJING X5 | High-performance in-vehicle infotainment system | |
| - | BEIJING X3 | HarmonyOS system | |
| 2021 |
Beijing Electric Vehicle |
ARCFOX αS HI | HarmonyOS operating system and Autonomous Driving Solution (ADS) system |
| 2021 | ARCFOX αT | Huawei's technology in the field of smart internet and smart electricity | |
| 2021 | ARCFOX HBT | LiDAR | |
| 2021 | JAC | Sehol QX | HarmonyOS and AI assistant |
| 2021 |
Jinkang New Energy |
AITO Wenjie M5 |
HarmonyOS, 10.25" HD LCD meter, high-power wireless charging, NFC key module |
| 2021 | SERES SF5 |
Integrated electric drive system DriveONE, motor controller |
|
| 2021 | GAC Aion | Aion V | The next-generation 5G chipset Balong 5000 |
| 2021 |
Chery Automobile |
Jetour X70 Plus |
Huawei HiCar, an intelligent connectivity system |
| 2021 |
Jetour X |
Level 3 highly automated driver assistance systems, Smart Cockpit 3.0 and Wellness Cockpit 4.0 |
|
| 2021 |
SAIC Motor |
EUNIQ 5 series |
Motor Control Unit (MCU) and three-in-one Conversion and Distribution Unit (CDU) that integrates a DC converter, an onboard charger and a high-voltage junction box |
| 2021 | Roewe MARVEL-R | The next-generation 5G chipset Balong 5000 |
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | ||
| R&D expenditure | 141,893 | 131,659 | 101,509 | ||
| Proportion of total income (%) | 15.9 | 15.3 | 14.1 | ||
-In 2021, the Intelligent Automotive Solutions Business Unit (IAS BU) had R&D expenditures of USD 1 billion and a headcount of 5,000.
Certifications
-The intelligent cockpit operating system AOS, the intelligent vehicle control operating system VOS, the automated driving calculation platform MDC, the automated driving solution ADS, and sensor fusion and intelligent electronics products received the Automotive Safety Integrity Level of D. In Map Solution, the company has obtained China's national mapping certification, and in Intelligent Vehicle Solution, the company has obtained ISO/SAE 21434 certification for automotive network security. In addition, the cloud service has passed ASPICE certification and Volkswagen Group KGAS audit.
Patent
-Huawei announced a new patent named “Reducer, Powertrain and Vehicle” with patent publication number CN112248801A in China. According to the patent description, the reducer can be applied to electric vehicles, battery electric vehicles, hybrid vehicles, range-extended electric vehicles, plug-in hybrid vehicles, new energy vehicles, and others. (From various media sources dated January 25, 2021)
- Huawei announced that it has applied for and received a patent for a method of cleaning window glass without using wipers. Sensors detect foreign objects on the window glass, and ultrasonic vibration is used to remove them. This technology, which eliminates the need for wipers, is said to reduce power consumption and improve cleaning performance. (From multiple media sources dated April 10, 2021)