Huawei is optimising its portfolio to boost business resilience to cope with the uncertainty brought by geopolitical tension, the resurgence of COVID-19, and United States’ bans.
The Huawei Rotating Chairman, Eric Xu, stated this while delivering a keynote speech at the company’s 18th Global Analyst Summit, themed ‘Building a Fully Connected, Intelligent World.’
In the statement made available to Financial Street on Wednesday, Xu said, “Business resilience is our guiding principle. We want to boost the resilience of our entire business, and since last year we have been working to optimise our portfolio with this goal in mind.”
According to the company’s ‘2020 Annual Report’, sales revenue rounded off at CNY891.4bn, up 3.8 per cent year-on-year, while its net profit reached CNY64.6bn, up 3.2 per cent year-on-year.
Xu said one of the priorities was to further strengthen Huawei’s software engineering capabilities.
“We’re on the lookout for new business opportunities in the software sector. When we find the right fit, we will step up investment to increase the percentage of software and services in our revenue mix,” he said.
Xu recalled that in late November 2018, Huawei invested $2bn into upgrading its software engineering capabilities, adding that the company was “pleased with the results thus far.”
According to Xu, autonomous driving software is one of the main focuses of the company software investment plan.
“With intense investment in autonomous driving software, our hope is to drive these trends forward as they facilitate the integration of the automotive and ICT industries, which in turn creates long-term strategic opportunities for Huawei.
“Once unmanned driving becomes a reality, we will see disruption in practically all adjacent sectors and trigger the most disruptive industry transformation the world will see in the next 10 years,” he added.
