Wen / Qiao Xue
Source: Tech planet (ID: tech618)
Image source visual China
April is the busiest time for Huawei people. The financial department needs to fit the financial data of the new year. Although as a non listed company, Huawei will publish the financial reports of the past year every year; For CBG (consumer business), this month is also supposed to be the day when the main flagship model P50 will be launched. However, in subway stations, shopping malls and streets, all the models of friendly companies are grabbing attention and market. There is no news about when Huawei will launch a new model.
Huawei has had the most difficult winter.
Looking at Huawei's financial reports in the past decade, we can see that in 2020, the revenue growth rate is the lowest; For the first time in 10 years, cash and short-term investment grew negatively; In the past seven years, cash flow from operating activities was the lowest. 2021q1 financial report released, profits fell again.
At one end of the scale, terminal business is declining, and operators' business is stagnant. New powerful weights are needed to stop the volatility.
Cloud is the first solution given by Huawei, and the other tentacle seems to have been found recently. With the launch of Huawei mall and its partner celis' car, Huawei finally officially entered the new car building. According to a person familiar with Huawei's internal affairs, Huawei is now almost a double bet. Huawei cloud and car manufacturing are two of Huawei's star Bu, which also help Huawei cultivate new hope in the difficult times.
Huawei doesn't build cars, but as a challenger, it rushes into the tide of new cars and becomes a force that can't be ignored. Automobile has gradually become an important support for Huawei, which is in its early years.
Drive to a new car
In Sanya in 2018, at the annual strategy meeting held in the coconut sea breeze, Huawei's senior management made a major decision: Huawei does not build cars, but helps car companies build good cars.
The next year, Huawei formally established Bu, a smart car solution. One year later, it planned Bu into the consumer business, which is equivalent to upgrading the internal level of the smart car business as a whole. Because internally, consumer BG is Huawei's crown BG, which has become the largest revenue source since 2018. It belongs to consumer BG, which means that it will get a substantial tilt of resources.
Recently, tech planet exclusively learned about the Bu architecture of Huawei's intelligent vehicle solution, which is different from the architecture when Huawei first announced it after June 2020. After readjustment, the entire automotive business architecture has been basically established, and some responsible persons have come to perform their duties.
Huawei intelligent vehicle solution Bu has nine departments, including architecture design and integration strategy department, strategic business development department, policy and standard patent department and marketing department, which can be regarded as the front department; MDC product department is equivalent to the middle platform. Intelligent driving, intelligent cockpit and intelligent car cloud will become Huawei's three main product lines; The quality and operation Department is the back office department.
On the management level, except for Li Zhensheng, director of MDC product department, and Zheng Gang, director of strategic business development department, who are not decision-making members of buat, all ministerial levels are internal members of buat, which is quite similar to EMT, Huawei's top decision-making body, with more decision-making power. The chairman of EMT rotates every six months to participate in Huawei's top strategy; Buat, on the other hand, will participate in the strategic decision-making and development of the whole intelligent vehicle solution bu.
Tech planet also learned that, from the perspective of the whole Bu, the head of each department, that is, the minister's rank in Huawei is star level. In Huawei's rank evaluation framework, star level means more than 22, and he is an important senior manager; Take Wang Jun, President of intelligent car Bu, as an example. He used to be the head of Huawei's Japanese operator business, and has been in Huawei for more than 20 years. Other CTOs such as Cai Jianyong are also old Huawei people with rich experience in automatic driving.
Recently, Huawei has appointed Mr. Ji Rengui, President of European consumer business, to replace Mr. Wang Yanmin as president of Huawei's global ecological development department, according to Tencent News "frontline". Wang Yanmin will be in charge of the newly established ecological special project optimization group, which will be responsible for the auto related business, aiming at Huawei's new auto categories. This kind of deployment also shows Huawei's importance to the new car business.
At present, the scale of the whole intelligent car solution Bu is about 1000 people. In addition, because a large number of people will be distributed in different departments, such as hicar and autopilot chips, they will not belong to bu. So, Huawei's team related to car manufacturing business will be even larger.
Although Huawei has previously said it would not build cars, Huawei is devoting all its efforts to the whole auto business.
Days of internal and external troubles
It is the best choice for Huawei, which is in the ban period, to peel off glory and survive. By the end of 2020, the 10 billion yuan deposit for the sale of glory has arrived, and the rest will be paid by the end of June 2021. By then, the glory will completely disappear in Huawei's data.
In 2020, Huawei's annual sales revenue will reach 891.4 billion yuan, a small increase of 3.8%; The net profit was 64.6 billion yuan, a year-on-year increase of 3.2%. It is worth noting that in the past five years, Huawei's compound annual growth rates of revenue and net profit were as high as 14.3% and 14.9% respectively. By comparison, in 2020, Huawei's revenue growth rate was the lowest; It is the first negative growth of cash and short-term investment in 10 years; In the past seven years, cash flow from operating activities was the lowest. The slight increase in revenue and profit is actually a retrogression for Huawei, which has always been brave.
Huawei's theme in 2020 is to survive hard.
Take the individual business layer as an example, Huawei's mobile terminal business is almost broken down due to the influence of chips. In 2019, Huawei's consumer business maintained a high growth of 34.0%, but in 2020, the consumer business only increased by 3.3%, which is the lowest over the years; This is the result of a 15.4% year-on-year growth in PC, tablet, smart wearable, smart screen and other businesses. Therefore, Huawei did not make a separate announcement on the volume of mobile phone shipments this year, and we can infer how dismal it is even if we do not make such an announcement.
According to the data of 2019, Huawei's mobile phone shipment exceeds 240 million units, that is to say, 120 million chips stored should not only meet the demand of the second half of 2020, but also continue to supply in 2021. As a result, terminal shipments are expected to be lower in 2021.
The revenue of the operator business was 296.7 billion yuan, an increase of only 0.2%. That is to say, Huawei's communication equipment business, which once made Huawei stand, has been standing still. Looking at Huawei's financial reports over the years, since 2017, Huawei's operator business has entered an embarrassing stage of low growth and growth, with a year-on-year growth rate of - 4.03% to 3.8%, and the upward resistance is very obvious.
Constantly adjusting and changing the architecture highlights the awkwardness of the location of cloud business. Cloud computing, which has been established for four years, has never appeared in the financial report, which seems to indicate that the loss may be the status quo of cloud business.
Be Microsoft in the era of smart car?
Two kilometers away from Huawei Shanghai Research Institute, Manka Science Park, 901 tanglu Road, Pudong, Shanghai, has a field similar to a basketball court. This used to be the parking lot of Volkswagen, which has been transformed into a small testing ground. With the huge roar of a transformed Tesla Model x, it has become the starting point of Huawei's automobile dream.
Huawei started to build cars. At that time, there was no concept of intelligent driving. Slowly, the focus of research shifted from electric technology to automatic driving.
Recently, I have been showing off my driverless muscles in the cooperative cars. I know that the direction I used to be is turning around.
Huawei's entry into the new car industry is not only a result of the current situation, but also a big network that has been laid out for nearly nine years. Finally, the network will be closed in 2021. Maybe it's too early to talk about closing the network, but it's not a matter of making a car. From a broader perspective, Huawei can only build a complete ecosystem by making a car.
In July 2019, Huawei won the Grade-A mapping qualification for navigation electronic map production. In 2021, Huawei's high-precision map will be put into commercial use. By then, Beishang Guangshen, Hangzhou, Chengdu, Tianjin and Chongqing will all cover data. With the blessing of high-precision map, the accuracy of automatic driving will be enhanced.
In addition, there are more than 5000 experience stores nationwide and 730 million smartphone users in stock, which can provide a huge flow entrance for product sales.
At present, only Chang'an, Xiaokang and BAIC are able to hand over their backs, and their voice in the whole new energy industry is still too low. Whether it can call on more partners to join this circle of friends has become a new problem for Huawei. After all, some people play, is the party, no one comes, can only dance alone.