Huawei Technologies Co., Ltd. Business Report FY ended Dec. 2022

Financial Overview

(CNY millions)
FY ended Dec. 31, 2022 FY ended Dec. 31, 2021 Rate of change(%)
Sales 642,338 636,807 0.9
Operating profit 42,216 121,412 (65.2)
Net income 35,562 113,718 (68.7)

-Huawei has partnered with many automakers, including BAIC, Chang'an, GAC, and Seres through HI (Huawei Inside, vehicle development using Huawei’s platform).

OEM partnerships and orders

Contents
SERES

On March 23, according to Seres, Huawei announced at its Spring Flagship New Product Launch 2023 event that high-end intelligent driving versions of the Wenjie M5/M5 EV will be launched in April and the intelligent cockpits of all models of the Wenjie series will be upgraded to HarmonyOS 3. Based on human factor and distributed technologies, HarmonyOS 3 has functional upgrades in user interaction, intelligent interconnection, situational intelligence, security and privacy, etc., bringing new features such as PC coordination, intelligent vehicle finding and HUD height adaptive adjustment, as well as a new driver privacy mode.
Based on the Huawei DriveONE electric drive platform, all models of the Wenjie series have a 0 to 100km/h acceleration time in about four seconds. Featuring Huawei’s in-house developed DATS (Dynamic Adaptive Torque System), these models boast excellent handling and comfort. (From a Seres press release dated March 23, 2023)

On March 1, Seres announced that it has recently signed an agreement on deepening joint businesses with Huawei. The two parties will conduct long-term, in-depth cooperation on the Smart Selection Vehicle business, and plans to achieve a New Energy Vehicle production and sales volume of 1 million units in 2026. Concurrently, they will launch a new platform, under which the first flagship model is planned to be launched in 2023, and will feature an advanced intelligent driving system. Multiple new models under the platform will be successively launched later. According to the agreement, the two parties will further promote the joint establishment of an innovation center. Seres will promote the application of new technologies, materials and processes to cooperative models in coordination with industrial resources; Huawei Device will give full play to its advantages in intelligentization, digitalization and user experience design, including high-level intelligent driving and Harmony OS-based cockpits, to create products with robust competitiveness. In 2022, Aito, a joint venture brand between Huawei and Seres, achieved an annual sales of over 75,000 vehicles. So far, the brand’s user centers and experience centers have covered over 230 cities and totaled nearly 1,000 across China. (From a Seres Group press release dated March 1, 2023)

GAC AION

GAC Group issued the “Announcement on Resolutions of the 35th Meeting of the 6th Session of the Board of Directors”, which deliberated and passed the “Proposal on the Change of GAC Aion’s AH8 Project”, approving that the AH8 project of GAC Aion New Energy Automobile Co., Ltd., a GAC Group holding subsidiary, has been changed from joint development with Huawei to independent development. Upon this change, Huawei will continue its participation in the development of and cooperation on models of the company’s independent sub-brands as an important supplier. The total investment of the project has been adjusted from CNY 924,730,000 to CNY 1,233,420,000, and the source is self-financing. (From a GAC Group SSE press release dated March 27, 2023)

  

Partnerships with Suppliers

Suppliers Contents
CATL Contemporary Amperex Technology Co., Ltd. (CATL) announced that it has signed a Memorandum of Cooperation (MoC) with Huawei Device Co., Ltd. (Huawei Device) in Ningde, Fujian. According to the MoC, the two parties will cooperate on the Huawei Smart Selection Vehicle project. Huawei Device will recommend CATL as the preferred partner for power batteries for Huawei Smart Selection Vehicles, and CATL will provide power battery products for the Huawei Smart Selection Vehicle project. (From a CATL official WeChat account press release dated December 14, 2022)
Navinfo NavInfo Co., Ltd. (NavInfo) announced that it has signed a strategic cooperation agreement with Huawei Cloud Computing Technology Co., Ltd. (Huawei Cloud), a Huawei subsidiary, at the Huawei Bantian site in Longgang District, Shenzhen. Both parties will deeply cooperate on cloud computing technologies, autonomous driving, Internet of Things, intelligent cities, intelligent parks, intelligent communities and intelligent supply chains. (From a NavInfo official WeChat account press release dated November 16, 2022)
Joyson Electronic Ningbo Joyson Electronic Corporation (Joyson Electronic) announced that Ningbo Joynext Technology Corporation (Joynext), its holding subsidiary, has inked a memorandum of comprehensive cooperation with Huawei Device Co., Ltd., Huawei’s subsidiary, in Songshan Lake, Dongguan. In 2021, Joynext signed a cooperation agreement with Huawei’s Auto Division, focusing on cooperation on intelligent cockpits to create a new generation of intelligent cockpit solutions. At present, production models equipped with the collaborative product are already under development. By signing the memorandum of comprehensive cooperation, Joynext will expand the comprehensive cooperation with Huawei to strengthen the all-round communication in cockpits and the cockpit ecology, jointly build an overall product solution based on the HiCar intelligent mobility platform, jointly expand the market and enhance brand building, form a new value synergy, and provide users with a diverse cockpit ecological experience. (From a Joyson Electronic official WeChat account press release dated November 7, 2022)
Foryou Foryou Corporation announced that its wholly-owned subsidiary, Huizhou Foryou Multimedia Electronics Co., Ltd. (Foryou Multimedia), signed a letter of intent for cooperation with Huawei Technologies Co., Ltd. (Huawei) in the smart vehicle light business. According to the letter of intent for cooperation, the two parties will establish a long-term, stable and rapid cooperating mechanism to conduct intensive cooperation in the field of smart vehicles, especially AR-HUD (augmented reality head-up display). (From a press release dated June 30, 2022)
Xingyu Xingyu announced that it will form an alliance with Huawei for the intelligent automotive lamp business. The two companies will jointly establish an end-to-end business structure for intelligent lamps, from design to manufacturing and supply, to foster competitiveness in intelligent in-vehicle lamp system solutions, as well as other comprehensive business alliances in the same field. (From various media reports dated February 17, 2022) 

  

Partnerships with government agencies

Contents
Chongqing municipal government Huawei announced that it signed a strategic cooperation framework agreement with the Chongqing municipal government. Under the agreement, the two parties will work together to build an industry chain and ecosystem for intelligent connected electric vehicles (EVs). They will continue to enhance cooperation in fields such as artificial intelligence, smart cities, industrial Internet, and enterprise digital transformation. (From a press release dated January 30, 2023)
China Automotive Technology and Research Center Co., Ltd. (CATARC) Huawei announced that it signed an agreement in Shenzhen with China Automotive Technology and Research Center Co., Ltd. (CATARC) to enhance their cooperation in the smart vehicle lighting business. CATARC and Huawei will jointly work on the standards related to smart vehicle lights in an effort to support the quality development of the automotive industry. (From a press release dated August 18, 2022)
China Intelligent and Connected Vehicles (Beijing) Research Institute Co., Ltd. Huawei announced that it signed a cooperation agreement with China Intelligent and Connected Vehicles (Beijing) Research Institute Co., Ltd. (CICV) for the Intelligent Automotive OptiX industry development. Per the agreement, the two parties will focus on motivating upstream and downstream enterprises within the intelligent connected vehicle industrial chain to form an organization and platform for the Intelligent Automotive OptiX system, conducting monographic studies on common issues in industry development. The partners will host industry summits, salons, forums, and other activities, to facilitate the construction of related standards and assessment systems, and to promote the application of onboard lighting technology and products to further enhance the intelligence and safety of intelligent connected vehicles. Intelligent Automotive OptiX is a scenario-oriented solution that integrates ICT light technology and the automotive industry. It mainly refers to key technology applications such as light source, imaging chips, space optics, and optical algorithms. (From a press release dated October 10, 2022)

Orders

-At the 1st Automotive Smart Lighting Summit, Huawei announced that multiple models equipped with Huawei’s AR-HUD will be launched in 2023. At the same time, Huawei is developing next-generation HUD technology and will continue to conduct research in related areas such as Holographic Optical Elements (HOE), optical waveguide, and autostereoscopy. As of now, substantial progress has already been made. In addition, Huawei will unveil a new automotive display in 2023, which will improve the movie viewing experience in the car. (From a press release dated February 9, 2023)

-According to various media sources, on September 6, Huawei Technologies Co., Ltd. (Huawei) announced on its autumn new product launch event that the AITO Wenjie M5 EV will be equipped with Huawei’s all-new proprietary dynamic adaptive torque system (DATS). DATS is a technology that realizes dynamic and adaptive adjustment of the engine torque, enabling the vehicle to respond to road conditions in milliseconds, deliver smooth riding experiences on bumpy roads, and present stable and reliable cornering performance. (From various media sources dated September 7, 2022)

-Huawei Technologies Co., Ltd. (Huawei) announced that Rising Auto, the NEV (New Energy Vehicle) brand of SAIC Motor Corporation Limited (SAIC Motor), will equip its R7 model with Huawei AR-HUD (augmented reality head-up display), which marks the first series production of Huawei AR-HUD in the world. The innovative AR-HUD launched by Huawei provides a 13° x 5° field of view (FOV), meaning that various kinds of information, including dashboard information, safety tips, and AR navigation information that covers multiple lanes, is displayed in an area 7.5 meters in front of the driver. It also boasts a high resolution of 1920×730, providing R7 users with a smarter, safer and more convenient mobility experience. (From a press release dated May 19, 2022)

 

Product development/technology

Product Activity
Scenario Solution for Intelligent Expressway Reconstruction and Expansion and Traffic Organization Optimization

NavInfo Co., Ltd. announced that it was invited by Huawei Technologies Co., Ltd. (Huawei) to jointly launch the “Scenario Solution for Intelligent Expressway Reconstruction and Expansion and Traffic Organization Optimization” at the China Expressway Informatization Conference. For the creation of this joint solution, NavInfo mainly provided high-definition (HD) maps and relevant capabilities. In the future, NavInfo will continue to facilitate the R&D, innovation and promotion of product solutions for intelligent traffic scenarios and to deepen cooperation with Huawei and other ecological partners in multiple business areas.(From a NavInfo press release dated April 3, 2023)

Next-generation FusionCharge 40kW DC Charging Module

At the 35th International Electric Vehicle Symposium & Exhibition (EVS35) held in Oslo, Norway, Huawei Digital Power Technology Co., Ltd., a subsidiary of Huawei Technologies Co., Ltd. (Huawei), launched its next-generation FusionCharge 40kW DC Charging Module. The charging module applies potting and isolation technologies which ensure long-term reliable running in harsh environments. Moreover, it supports intelligent operation and maintenance reminders and OTA (over-the-air) remote upgrades. (From multiple sources dated June 14, 2022)

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. 

R&D Expenditure

(CNY millions)
FY ended Dec. 31, 2022 FY ended Dec. 31, 2021 FY ended Dec. 31, 2020
R&D expenditure 161,494 142,666 141,893
Proportion of total income (%) 25.1 22.4 15.9

-By the end of 2022, the total number of employees engaged in research and development exceeded 114,000, accounting for 55.4% of the total number of employees. In addition, the investment in the IAS division has reached USD 3 billion, and the number of it's research and development team members is 7,000 people.

  

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 (ASIL D). 

-In the field of high-definition maps, Huawei has obtained Class A qualification for surveying and cartography in China.

-The entire intelligent automotive solution passed ISO/SAE 21434 certification for automotive network security.

-Smart car cloud service passed ASPICE certification and the Volkswagen Group KGAS audit.

 

Patent

-By the end of 2022, Huawei will have over 120,000 valid and certified patents worldwide.

-According to multiple sources, Huawei published a patent for “testing methods, devices, and systems for autonomous vehicles”. The patent relates to the field of autonomous driving technology. Self-driving vehicles can be tested without the participation of monitoring personnel. This can contribute to improved test efficiency and reduce labor costs. (From multiple sources dated May 7, 2022)

Investment

-Suzhou Peifeng Tunan Semiconductor Co., Ltd. (Peifeng Tunan) underwent industrial and commercial changes, with Shenzhen Hubble Technology Investment Partnership (Huawei Hubble), a subsidiary of Huawei Technologies Co., Ltd., added as a new shareholder. Peifeng Tunan is a supplier of EDA software for the full process of production and manufacturing as well as process R&D services and integrated solutions to wafer foundries. (From multiple press releases dated February 27, 2023)

-Shenzhen Hubble Technology Investment Partnership (Hubble Investment), a subsidiary of Huawei Technologies Co., Ltd. (Huawei), has become a shareholder of Suzhou Flag Chip Micro Semiconductor Co., Ltd. (Suzhou Flag Chip Micro), increasing its registered capital to approximately CNY 10.44 million. Established in October 2020, Suzhou Flag Chip Micro engages in the R&D and sales of automotive SoC (system-on-a-chip). (Based on the National Enterprise Credit Information Publicity System in China)

-Beijing HiNa Battery Technology Co., Ltd. (HiNa Battery) underwent changes. Shenzhen Hubble Technology Investment Partnership (Hubble Investment), a subsidiary of Huawei Technologies Co., Ltd. (Huawei), has become a new shareholder of HiNa Battery. Hubble Investment will hold about 13.33% of the shares of HiNa Battery. Hubble Investment is held 69% by Huawei Technologies Co., Ltd., 30% by Huawei Terminal (Shenzhen) Co., Ltd., and 1% by Hubble Technology Venture Capital Co., Ltd. HiNa Battery is a new high-tech enterprise, focusing on the R&D and manufacture of the new generation energy storage system——Na-ion batteries. The company focuses on Na-ion battery products featuring low cost, long life, high security, and high energy density. The potential applications cover low-speed electric vehicles, large-scale energy storage, electric vehicles, and national security. The company also supplies cathode and anode materials and electrolytes for sodium-ion batteries. (From a press release dated April 6, 2022)

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