Original title: survival is Huawei’s theme now! Just at the analyst conference, there was a lot of information
Source: 21tech (NEWS-21)
Author: Ni Yuqing
Editors: Li Qingyu, Liu Xueying
On the afternoon of May 18, Shenzhen was covered with dark clouds, and a rainstorm seemed to be brewing in the sultry heat. However, Huawei’s headquarters in Bantian was already stormy.
On May 18, the first day of Huawei’s annual and ordinary analyst conference, the US Department of Commerce issued two new sanctions announcements against Huawei just three days ago.
The first is to extend Huawei’s temporary supply license for 90 days to August 14 for the last time; the second is to plan to revise the relevant export management rules to limit Huawei’s ability to design and produce semiconductors abroad using American technology and software. For example, the semiconductor products designed by Huawei Hisilicon with American technology are subject to control, and for example, the wafer manufacturers that produce chips for Huawei outside the United States , as long as the U.S. equipment is used, a license is required.
The waves came in a rush and a rush.
The regular three-day analyst conference is an important window for Huawei to pass the company’s overall strategy and industry’s future trend to the outside world every year. This year, due to the first anniversary of the “516” ban and the level of restrictions imposed on Huawei by the US Department of Commerce, the significance of the meeting has become particularly different.
The wind and rain outside the window are unpredictable, but the brave people are angry and the color is unchanged.
At the analyst conference, Huawei formally responded to the new regulations of the US Department of Commerce:
This revision of the rules will not only affect Huawei, but also bring serious impact to related industries around the world. In the long run, the trust foundation of global cooperation in chip and other industries will be destroyed, and the conflicts and losses in the industry will be further intensified. If the United States uses its own technological advantages to suppress other enterprises, it will weaken their confidence in the use of American technological elements, and ultimately hurt the interests of the United States itself.
Guo Ping, Huawei’s CEO in office, said in the keynote speech, “Huawei is struggling to survive and strive to move forward. Under the US ban, we are in a hurry and have been communicating with customers, partners and Huawei employees. Most of them can understand. Now we are still in the process of communication.”. The United States puts great pressure on our operations and risk management, but the good news is that we are still alive and our R & D and inventory have increased dramatically. ”
“The new order of the U.S. Department of Commerce will inevitably have a huge impact on us, but with this year’s grind, we are rough and thick skinned, and we are confident that we will find a solution as soon as possible,” he added. We don’t understand why the United States continues to crack down on Huawei, and what has this brought to the world? ”
In terms of interview and Q & A, Huawei is still evaluating the impact of the new rules. Under the bland, there are doubts and helplessness, ambition and courage, as well as the brewing vortex. Guo Ping concluded, “survival is Huawei’s current theme.”
At the end of the interview, he said: “although the revenue increased last year, it was about 12 billion dollars less than our original plan. Last year’s quarterly growth has also been declining, and getting contracts is more difficult than ever. Thank you very much for the trust and support from so many customers.
As for the new regulations two days ago this year, many situations are not clear. In the process of evaluation, there is no clear judgment on the development of follow-up business. Huawei, as an ICT equipment and terminal company, can design integrated circuits, but it has no ability beyond that, so we are trying to find out how to survive. ”
Ren Zhengfei said in an interview at the end of 2019: “we are ready for the U.S. to never withdraw the entity list, so our growth is based on a solid foundation. Originally Huawei didn’t have such a big growth determination and plan. Instead, it was US sanctions that forced us to argue. ”
He also predicted at that time: “2020 is the year when we will survive under the sanctions of the United States, which will let the world know that Huawei will survive very well under the strong sanctions of the United States. Now (referring to September 2019) it is predicted that Huawei will still grow in 2020, but the growth rate will not be too high, which is estimated to be around 10% in 2020. ”
The following is the real record of Q & A organized by the reporter on site (deleted):
1. Reporter: can you talk about Huawei’s response measures in the past year?
Guo Ping: the past year has been very difficult and (full of) challenges. Last May 16, when we went to the list of entities in the United States, we were in a hurry. We spent a lot of time communicating with our customers, partners, Huawei employees, clarifying and (seeking) understanding. In the case of great technical constraints, the R & D investment has been increased, and the R & D has increased by about 30%, mainly used for patching holes in our aircraft. Including the redesign of over 60 million lines of code, more than 1000 new boards, new supply materials for new choices, we have paid a lot of efforts and costs.
Fortunately, we are trusted and recognized by most of our customer partners and employees, so in the face of sanctions with long-term rule uncertainty, I believe we can find solutions.
2. Reporter: with regard to the current development trend of science and technology, there may be a hemisphere dominated by the United States and a hemisphere that does not rely on American science and technology. With regard to the second hemisphere, can Huawei achieve growth, and how can it change to achieve growth?
Guo Ping: we have experience and lessons in the field of connectivity, and it is our consensus to pursue a unified standard. We may have experienced this before. When we travel to different countries and continents, we need different mobile phones. From the era of 2, 3 and 4G multi-system, it is not easy to get a unified system. International organizations also play an active role in the process. In the era of 2G, the US telecom equipment manufacturers no longer have a leading position in the competition because of the multi-mode US operators. The US has learned a lesson. In Europe, the system is unified, and the operators and manufacturers in Europe get a lot of benefits. Experience shows that manufacturers, operators and users can benefit.
Regardless of future setbacks due to various reasons, we believe that relevant organizations will actively promote standards, Huawei will continue to support and promote the realization of global unified standards with an open and cooperative attitude.
3. Reporter: Huawei’s development plan in Europe, especially ICT and HMS ecology?
Wang Yanmin: after Google ecology can’t be used, (we) are forced to develop HMS ecology. We have increased our investment in the past year, especially in the use of platforms and technology platforms by developers. After 516, the investment in HMS ecology has been increased. There are nearly 1.4 million developers at present, and the investment is increased by 150% compared with the beginning of 2019.
Ecology is more oriented to local developers. In the future, it will continue to provide developers’ platforms and implement innovation labs. It is hoped that European developers and partners will join the ecology as soon as possible.
4. Reporter: when the global new crown epidemic is in crisis, how do you think the United States is suppressing Huawei at this time?
Guo Ping: Huawei has gone through the whole process of China’s epidemic and made positive efforts to help global customers overcome the new crown epidemic. From this outbreak, ICT infrastructure can play a very active and important role. Huawei has summed up nine anti epidemic plans. The residential area in big cities is generally very crowded. It is very difficult for everyone to stay for more than 80 days. In China, we work with the government and partners to fight the epidemic. In Africa and other parts of the world, HUAWEI also provides high-quality network services. ICT can play a positive role in telecommuting.
Huawei has always been an active contributor in ICT field. Why does the United States attack us all the time? There is no reason at all. Recently, I also read some statements made by senior officials of the United States. The United States believes that technology leadership is the foundation of American hegemony, and the technology leadership of any other country or company may damage the hegemony of the United States. Unfortunately, Huawei is also the fastest growing ICT company in the field of ICT.
5. Reporter: Huawei’s cloud business has been adjusted this year. In the context of sanctions, what impact will Huawei cloud have and what response will it make?
Wang Tao: the next ten years will be the golden decade of digital transformation, in order to enable intelligent transformation. Hua Weiyun has played an extremely important role in building the black land of the intelligent world. As an open computing intelligent platform, Huawei cloud cooperates with customers to provide intelligent solutions. Many new products have been launched to promote industrial innovation.
6. Reporter: what is the expectation of Huawei’s revenue this year? Could chip restrictions affect high-end models? Will the phone be adjusted?
Guo Ping: after it was listed in the entity list last year, it has an impact on Huawei. Last year’s revenue was about $12 billion, compared with our BP. Last year’s quarterly growth is also declining, which should be seen as well. At the same time, getting a contract is more difficult than ever. Thank you very much for the trust and support from so many customers. As for the new regulations two days ago this year, many situations are not clear. In the process of evaluation, there is no clear judgment on the development of follow-up business.
As an ICT equipment and terminal company, Huawei is able to design integrated circuits, but it has no ability beyond that, so we are trying to find out how to survive. Survival is Huawei’s current theme.