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Huawei Technologies Co., Ltd. Business Report FY ended Dec. 2024

Financial Overview

(CNY millions)
  FY ended Dec. 31, 2023 FY ended Dec. 31, 2022 Rate of change(%)
Sales 704,174 642,338 9.63
Operating profit 104,401 42,216 147.30
Net income 86,950 35,562 144.50

-The operating income of Huawei's Intelligent Automotive Solutions Business Unit (IAS BU) in 2023 was CNY 4.737 billion, an increase of 128.1% from the previous year.

Regional performance

Chinese market: As China's low-carbon, intelligent, and industrial digitalization accelerates, Huawei has improved its "soft, hard, core, edge, and cloud" integration capabilities. By demonstrating comprehensive advantages in fields such as computing, storage, networking, energy, terminals, and intelligent car solutions, the company has achieved effective growth in all industries. Sales were CNY 471,303 million.

Europe/Middle East/Africa: The cloud business is rapidly growing due to the acceleration of the construction of ICT infrastructure such as 5G and optical networks, as well as the acceleration of transformation and sophistication such as industrial digitization, intelligence, and decarbonization. The ICT infrastructure business performed steadily, and the digital energy business performed as expected. For terminals, the focus is on building the HMS ecosystem and expanding integrated products. Total sales revenue was CNY 145,343 million.

Asia-Pacific: The transformation and upgrading of digital, intelligent, and low-carbon industries has deepened and accelerated. The digital energy and cloud business maintained strong growth, focused on building the terminal HMS ecosystem and expanding convergence products. Overall sales reached CNY 41,041 million.

Americas: The ICT infrastructure business is growing steadily, benefiting from increased customer investment and accelerating industrial transformation and sophistication toward digitalization, intelligence, and low-carbonization. Digital energy and cloud maintained good growth momentum, while Terminals focused on integrated product expansion. Sales reached CNY 35,362 million.

 

New products & technology

Announcement of intelligent automotive solution sub-brand “Qiankun”
Intelligent automotive solution sub-brand “Qiankun”
(Source: Huawei WeChat official account)

-On April 24, the Huawei Intelligent Automotive Solution Business Unit (IAS BU) held a launch event in Beijing, where Qiankun, a new Huawei intelligent automotive solution sub-brand with intelligent driving at the core, was introduced.

Qiankun is a metaphor for breaking through the sky upwards to lead the industry and rooting downwards to master hardcore technologies. Along with HarmonySpace, they serve as the Huawei IAS BU’s two core sub-brands.

Qiankun encompasses newly upgraded solutions such as the Qiankun ADS (Advanced Driving System), the Qiankun Vehicle Control, and the Qiankun Vehicle Cloud.

  • Based on the GOD (General Obstacle Detection) network, the Qiankun ADS 3.0 makes a leap from simple detection of obstacles to in-depth understanding of driving scenarios. The system employs the PDP (Prediction Decision Planning) network for human-like decision-making and planning capabilities, with a complex intersection passage rate of greater than 96% and a computing power as high as 3.5E FLOPS. The system makes the debut of parking slot to parking slot NCA (Navigation Cruise Assist) and realizes the all-scenario commercialization of VPD (Vehicle Parking District), which will be usable in 100 commercial parking lots and 2,000 community and office parking lots by the end of 2024. It is also available in a more affordable SE edition.
  • Consisting of the iDVP 2.0 platform, a vehicle control module, and the XMotion 2.0 system (supports the 6D vehicle motion control algorithm), the Qiankun Vehicle Control will offer personalized experience, service-oriented software, and a centralized architecture.
  • The Qiankun Intelligent Vehicle Cloud Service 3.0 covers all vehicle application scenarios and includes six innovative services and applications: the Qiankun Yunque large model, a digital key, the Qiankun Yunkan real-time remote exterior monitoring system, the Qiankun Yunxi user-customized welcome lamp, the DVFdiff OTA high-efficiency difference algorithm, and a vehicle connectivity safe cloud service.

Also unveiled was the next-generation HarmonySpace that contains innovative technologies such as the Qianwu engine, the Qiankun audio system, and the most powerful in-vehicle ecosystem.

In 2024, cooperative models featuring Qiankun intelligent automotive solutions will be rolled out successively.

 

Partnership styles between Huawei and OEMs

Currently, Huawei has three styles of partnerships with vehicle manufacturers. The parts supply partnership style is one in which components are supplied conventionally. Huawei will provide standardized modules and other components to automakers.

  • In the solution partnership style, also known as the Huawei Inside partnership type (HI Type for short), the finished vehicle plant is responsible for the entire design of the products, and not only does Huawei provide individual components and modules, but also provides full-stack intelligent driving solutions to the automaker.
  • The Harmony Intelligent Mobility Alliance (HIMA) intelligent car scheme is based on the HI Type and provides automakers with a whole series of solutions and products, and is more deeply involved in the design of complete vehicles. Also, using Huawei’s marketing and sales networks, Huawei is involved in the marketing process, and conducts sales in partnership with the vehicle plant.
  • Under the intelligent car scheme, Huawei established the Harmony Intelligence Mobility Alliance together with its alliance partners. Currently, four automakers are developing intelligent car partnerships with Huawei: SERES Group Co., Ltd., Beijing Automotive Group Co., Ltd., Chery Automobile Co., Ltd., and Anhui Jianghuai Automobile Group Corp., Ltd. Huawei hopes to have more automakers as alliance partners in the future. On March 15, 2024, GAC’s Trumpchi brand, Dongfeng Motor’s premium New Energy Vehicle (NEV) brand Voyah, Leapmotor, and Chery Automobile’s Kaiyi Auto brand announced that they have joined the Huawei's HarmonyOS ecosystem of in-car systems, becoming the first group of partners in the automotive industry for Harmony's native apps. Huawei will work with these four brands to develop an app version of Harmony native applications based on HarmonyOS NEXT. It will help users manage their vehicles and adequately protect user data security and privacy. It will also enable primary development and multi-deployment of apps to create a seamless experience on many devices such as smartphones and smartwatches, creating an intelligent mobility experience through "IoE" (Internet of Everything).
Type Degree of cooperation Partner companies Brand Products or models offered
Parts supply partnership Shallow Hozon New Energy Automobile, BYD, etc. - 5G modules, drive motors, integrated thermal management systems, AR head-up display (AR-HUD), radar, etc.
Solution partnership (Huawei Inside) Medium level Changan Automobile Avatr Avatr 11Avatr 12
Beijing Automotive Group ARCFOX ARCFOXαS HI version(models other than ARCFOXα do not fall within the scope of the partnership)

Intelligent car partnership (HIMA)

Deep SERES Automobile AITO Wenjie M5Wenjie M7、Wenjie M9
Chery Automobile Luxeed Zhiejie S7
Beijing Automotive Group Under development, scheduled to be released in July 2024 Stelato S9
Jianghuai Automobile (JAC) Under development, scheduled to be released in 2025 -

(Source: Prepared by MarkLines based on information from the product launch presentation)

 

OEM partnerships and orders

  Contents
GAC Trumpchi

On April 25, 2024, at the Auto China 2024 in Beijing, GAC Trumpchi showcased a full range of models and the latest results of its high-quality transformation into a New Energy Vehicle technology company.

GAC Trumpchi will launch a joint innovation program with Huawei for in-depth co-development in areas such as intelligent chassis and intelligent human-machine interaction. The automaker will take the lead in employing the latest Qiankun intelligent automotive solutions from Huawei to develop world-class new flagship models, with the first to be launched and delivered in Q1 2025.

A premium customized 4-seater edition co-developed with a German vehicle customization brand for the Trumpchi E9 MPV became available for pre-order. Chinese traditional dragon elements have been incorporated into the exterior and interior designs of the vehicle.

Also on display was the Trumpchi M6 Max all-purpose family MPV, which adopts a dynamic, atmospheric new design with stronger visual impact and comes standard with the HiCar intelligent system for seamless connection between the mobile phone and the in-vehicle system.

JAC Group

On March 26, 2024, JAC Group signed a memorandum of cooperation with Huawei Device Co., Ltd. (Huawei Device). Leveraging the OpenHarmony-based HarmonyOS, the two parties will work together on scenario definition; experience design; and development of HarmonyOS-based native applications. They will comprehensively upgrade pan-terminal device information experience and create smarter mobility solutions for users.

Leapmotor

On March 15, 2024Leapmotor and Huawei signed a cooperation agreement on the HarmonyOS and announced that they will start developing the native Leapmotor APP based on the HarmonyOS NEXT.

With this agreement signed, the two parties will launch in-depth cooperation on the HarmonyOS ecosystem, technology complementation, a win-win business model, and more. The HarmonyOS NEXT allows for seamless connection of the Leapmotor APP among terminal devices such as mobile phones, intelligent watches, and tablets to help users browse information, control the vehicle, and share opinions in a more convenient manner.

M-Hero

Huawei announced the establishment of a strategic partnership with M-Hero Technology, a Dongfeng Motor subsidiary.

For this partnership, the two parties will complement respective advantages and empower each other. They will jointly promote the commercialization of Huawei intelligent automotive solutions and help M-Hero Technology become a leader in Chinese luxury electric off-road vehicle culture to accelerate the high-quality intelligentization development of China’s auto industry.

(From a Huawei press release dated February 22, 2024)

VOYAH

Huawei announced that it signed a strategic cooperation agreement with VOYAH, Dongfeng Motor's premium EV brand.

The partners aim to leverage their respective strengths to create an unparalleled intelligent mobility experience based on user needs. Through cooperation on vehicle models, the two parties will explore innovations across various domains to accelerate the large-scale commercialization of intelligent technologies. (From a press release dated January 22, 2024)

FAW Jiefang

On October 24, 2023, FAW Jiefang Automotive Co., Ltd. (FAW Jiefang) signed a special Memorandum of Cooperation (MoC) with Huawei Technologies Co., Ltd. (Huawei) at the Huawei Bantian Site in Shenzhen to comprehensively deepen cooperation on AI, intelligent driving, and intelligent cockpits.

In terms of innovation of AI large model technologies, the two parties will co-build the FAW Jiefang Intelligent Brain based on the Huawei Cloud Pangu Models (HCPM) to provide users with one-stop services from vehicle selection to replacement and enable all business scenarios including R&D, production, and supply. Based on the HCPM, they will also co-build a large model for the commercial vehicle industry and co-create industrial AI solutions.

Concerning intelligent driving, the two parties will co-develop intelligent driving total solutions and co-create and promote the application of competitive intelligent driving products.

For intelligent cockpits, the two parties will co-build a safer, more comfortable intelligent cockpit platform.

 

Changan Auto

On August 19, 2023, Changan Auto announced the recent signing of a framework agreement on comprehensively and continuously deepening strategic cooperation with Huawei. The two parties will cooperate in such fields as digital transformation (including human resource training, consulting services, and R&D digitalization), computing centers, cloud businesses, industrial software, software tool chains, overseas businesses, photovoltaic power generation, energy storage, and charging, and jointly improve mechanisms to promote cooperation.
So far, the Avatr 11 high-end battery electric coupe SUV co-developed by the two parties and CATL has been launched, and Deepal, a Changan Auto sub-brand, has officially signed a cooperation framework agreement with Huawei on August 16 to jointly promote breakthroughs in and application of new technologies and accelerate the dawn of the era of smart electrification.

Deepal

On August 17, 2023, Deepal announced the official signing of a cooperation framework agreement with Huawei at the latter’s global headquarters in Bantian, Shenzhen. The two parties will focus on automobile intelligentization and jointly promote the R&D of application of new technologies in the field of intelligent electric vehicles.
In the next three years, Deepal will deeply cultivate six product lineups by launching over two new products per year and over 12 new and facelift models in total and investing no less than 10% R&D expenditure per year in the continuous development of new technologies.


SERES

Huawei Digital Power Technology Co., Ltd. (Huawei Digital Power), a Huawei subsidiary, announced the establishment of a comprehensive strategic partnership with Seres Group.
Huawei Digital Power and Seres Group will conduct comprehensive strategic cooperation in areas such as intelligent electric components and products for New Energy Vehicles (NEVs), development and application of NEV platform technologies, construction and operation of charging networks for NEVs, and internationalization of NEVs. The two parties will jointly develop and manufacture components and products such as electric drives, in-vehicle chargers, range-extender systems, chassis integration systems, brake-by-wire systems, and all-in-one drive systems for innovation and cost reduction.
They will also jointly promote the deployment of NEV super charging networks as well as the internationalization of the development of products and technologies and market expansion. (From a Huawei Digital Power press release dated January 4, 2024)

On March 23, 2023, 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, 2023, 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
Baidu Maps

Huawei announced that its Intelligent Cockpit division signed an ecosystem cooperation agreement with Baidu Maps. Focusing on navigation and mobility experience, the two parties will conduct comprehensive, in-depth cooperation on Huawei intelligent cockpits. With this agreement, Baidu Maps’ features, such as all-scenario voice interaction, lane-level navigation, HUD-based navigation information display, traffic signal countdown, personalized navigation voice packages, real-time parking navigation, and mobile phone-vehicle interconnection, will be integrated into Huawei intelligent cockpits. The map service will successively be available on models with a Huawei intelligent cockpit.

(From a Huawei press release dated January 18, 2024)

CATL 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)

 

 

Product development/technology

Product Activity
HarmonyOS 4

Huawei announced that it held the Huawei Developer Conference 2023 (HDC.Together) in Dongguan on August 4. At the event, Huawei revealed the HarmonyOS 4. The HarmonyOS 4 adopts the new Ark Engine, which significantly improves the capabilities of graphics, multimedia, memory, scheduling, storage, and low power consumption. Compared with the previous generation, it improves the sliding smoothness by 20% and has 30 more minutes of battery life. The HarmonyOS 4 brings new features to the HarmonyOS Smart Cockpit, including multi-screen sharing and a super desktop experience. Multi-screen sharing enables front-seat and rear-seat passengers to watch movies simultaneously; mobile games can also be projected onto the HarmonyOS 4, so that players can enjoy these games on a big screen. The HarmonyOS Smart Cockpit will also introduce a function called “aerial photography transfer”. When operating the drone, users can use the cockpit screen as a big display screen via the super desktop while sitting in the car. (From a press release dated August 4, 2023)

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 intelligent driving computation platform

The Huawei MDC 810 intelligent driving 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. 
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)
Autonomous Driving Cloud Service (Huawei Octopus) 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, 2023 FY ended Dec. 31, 2022 FY ended Dec. 31, 2021
R&D expenditure 164,721 161,494 142,666
Percent of sales (%) 23.4 25.1 22.4

-At the end of 2023, the total number of employees engaged in research and development exceeded 114,000, accounting for 55% of the total number of employees.

  

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.

 

Patents

-By the end of 2023, Huawei had over 140,000 valid and certified patents worldwide.

-According to multiple press releases, the “Methods and Devices for Fatigued Driving Warning” patent applied by Huawei Technologies Co., Ltd. (Huawei) was officially published. The technology of this patent determines the driver’s awake time accurately through the combination of a smart watch, a smartphone, and an in-vehicle device and gives the driver warning tips when the awake time exceeds a certain value, effectively reducing the probability of traffic accidents caused by driver fatigue. (From multiple press releases dated February 20, 2024)

-According to multiple sources, Huawei Technologies Co., Ltd. (Huawei) obtained a patented technology named “Battery and Body Integrated Structure and Electric Vehicles”. The patent is a battery-body integrated structure, including a body frame and a battery pack. The body frame has an accommodation space between two sill beams that are installed in parallel. The battery pack includes an enclosure which houses cell assemblies and beams, while beams are connected to the enclosure. The patent contributes to a simpler body structure and a lighter weight of the vehicle, thus improving the cruising range. (From multiple sources dated August 15, 2023)

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