Annual report shows that last year, Huawei achieved sales revenue of 521.574 billion yuan, an increase of 32%; net profit of 37.052 billion yuan, an increase of 0.38%.
Company secretly noted that 0.38% net profit growth, a record increase in recent years, Huawei’s performance low. Over the past three years, Huawei’s net profit growth in more than 30%.
In addition, the company secret found that Huawei is still generous in the treatment of employees. According to the calculation, last year 18 million Huawei employees average per capita salary, close to 600,000 yuan, compared to 2015 a substantial increase.
“Off the apple, who told a fine of 100 yuan”
Huawei released the 2016 annual report shows that in the past year, sales revenue of 521.574 billion yuan, an increase of 32%.
Consumer business is a relatively large change in the 2016 a plate, the plate sales revenue 1798.08 billion yuan, an increase of 43.6%.
Among them, the consumer business in the chip, UI systems, dual cameras and other fields have achieved a key breakthrough. According to the annual report, Huawei last year, smartphone shipments reached 139 million units, an increase of 29%, continued steady growth for five consecutive years.
“P9 series of global shipments exceeded 10 million units, becoming Huawei’s first shipments exceeded 10 million flagship product.” Huawei said.
Company secret note, Huawei’s heart of the community published in January this year, founder of Huawei Ren Zhengfei, in the consumer BG annual meeting speech. In his speech, Ren Zhengfei expounded his views on Huawei’s consumer business.
“The consumer business has made great progress, and today you have done better than we thought, but there is still much room for improvement.” Ren Zhengfei said he hoped that Huawei “to excellent manufacturers to learn excellent place.”
Ren Zhengfei said, Huawei to the terminal business set a small target, “three years, the level of service to catch up with Apple, profit margins to catch up with OPPO, VIVO”, “you always expose OPPO, VIVO the bottom, put it low to prove that we high , In fact, we are not high.
Ren Zhengfei requirements, “off the Samsung, off the apple” and the like, regardless of public occasions, or private occasions, one can not say, “who told a fine 100 yuan.”
Net profit ended three years of rapid growth
Huawei’s performance indicators this year, the net profit there has been a significant change.
In 2016, Huawei achieved net profit of 37.052 billion yuan, up 36.81 billion yuan over the previous year 0.38%. In 2013 and 2015, the net profit growth rate was 34.42%, 32.68%, 32.45%.
Annual report, the company secret did not find Huawei’s net profit growth slowed down the explanation.
At the same time, Huawei’s gross margin also fell from 41.7% in 2015 to 40.3%. Huawei explained that the rapid growth of consumer business, revenue accounted for an increase in overall sales gross margin fell 1.4 percentage points.
In addition, in 2016, Huawei’s operating margin was 9.1%, compared to 11.6% in 2015 decreased by 2.5%.
Company secretly noted that in January this year, Huawei CEO Xu Zhijun said in the New Year speech, Huawei “operating efficiency and cash flow to improve the lack of management costs over revenue and sales growth, cash income ratio decline.”
Xu Zhijun prescription is, “the business unit to pursue a profitable growth, cash profits; to strive to improve operational efficiency, reduce management costs; management of ultra – long – term inventory and long – term arrears, improve cash flow.
On the R & D emphasis and investment, Huawei has not changed. In 2016, Huawei R & D costs about 76.391 billion yuan, compared with 59.607 billion yuan in 2015 increased by 28.2%.
Huawei Chairman Sun Yafang said in his annual report that Huawei “insists that more than 10% of its revenue will be invested in R & D in the field of research and development, and it will never reduce the investment in innovation and reduce the short-term financial efficiency. Output and productivity. ”
In terms of liabilities, Huawei’s total borrowings in 2016 totaled 44.799 billion yuan, up 54.55% from 28.986 billion yuan in 2015. Asset-liability ratio, Huawei also increased by 0.4 percentage points to 68.4%.
At the same time, by the end of 2016, Huawei cash and short-term investment totaled 145.53 billion yuan, an increase of 16.3% over 2015. Huawei said that ample capital reserves and stable operating cash flow provided an important guarantee for the Group to avoid liquidity risk and debt service risk.
“Will the light want to lie in bed, maybe?”
In February this year, the “Huawei million annual salary of workers that can not afford to pay the mortgage,” the message was exposed to the effect that a middle-aged man in the communications industry, is about to be dismissed by the company facing unemployment, not in Shenzhen Two sets of loans. The employee’s company was guessed for Huawei.
After many years, Huawei has repeatedly been a different recruitment agencies as “the best employer.” The net posted after the break, the staff of Huawei’s income and work intensity of the topic, but also hot.
Today’s annual report, Huawei Chairman Sun Yafang’s speech, there is a paragraph on her return on the views of employees.
“We do not have any scarce resources can be dependent, only through the long-term hard work of employees to continue for customers, to create value for the community, the struggle and therefore a reasonable return and personal growth.” Sun Yafang said.
So, how did the Huawei employees get in 2016?
Annual report shows that last year, Huawei to pay the cost of 94.179 billion yuan of employees. The annual report mentions that Huawei now has about 180,000 employees. According to this calculation, Huawei employees per capita annual salary of 523,200 yuan.
In addition, there is a profit-sharing and bonus plan based on employee performance, which is planned for time units, that is, within the scope of Huawei’s employees.
According to the plan, the staff incentive unit is awarded, and the employee who has obtained the time incentive unit will enjoy the right to receive the cash in five years from the date of grant, including the annual income and the accumulated income at the end of the period.
In 2016, the time unit plan amount of 13.076 billion yuan, if according to Huawei 180,000 employees to calculate, then each person to enjoy 72,600 yuan.
According to this calculation, Huawei employees in the 2016 salary, the average person reached 595,800 yuan.
Company secret found that in 2015, Huawei has more than 170,000 employees, wages, salary costs is 802.14 billion; time unit plan amount of 89.23 billion yuan. Roughly calculated, the average treatment of each employee in the 524,300 yuan or so.
Compared to 2015, Huawei employees last year, the average treatment, rose about 13.6%.
Huawei’s high salary, pick up is not easy. The company secretly noted that in February this year, Ren Zhengfei said in his speech, Huawei is no money, we do not struggle to collapse, can not pay for those who do not struggle; “30-year-old young and strong, do not work, Is it possible to lie in bed?
73-year-old Ren Zhengfei also promised to the staff, “as long as I still fly, you will come to the hardships to see you, to war, plague and other areas to accompany you”, “If I am afraid of fear, why let you go heroic struggle.”
In January this year, several agencies jointly released data show that in 2016, Huawei’s average working day overtime time of 3.96 hours, more than Tencent, Alibaba and other Internet companies, topped the list.
“Rushed to the hills is a hero, on the hill will be inspired”
For Huawei’s talent, the CEO CEO Xu Zhijun said in his annual report, “We want to prevent the aging of skills and team consolidation, so that more senior cadres and experts went to the line, to practice to succeed in the experience, to assume more important To be qualified. ”
“We want to adhere to the responsibility of the results-oriented assessment mechanism to further deepen the sharing of the concept of sharing the value of the heroes in a timely manner to encourage, exceptional promotion of the contribution of thousands of troops immediately battlefield, so that talent in the best time, the best role to make The best contribution, but also give a reasonable return. “Xu Zhijun said.
Huawei also said in the annual report, Huawei adhere to the “struggle to”, to contribute to the evaluation of employees and the selection of cadres.
Last year in June, Ren Zhengfei participated in the Central Asian region part of the staff of the forum. Ren Zhengfei talked about the “heroes in a timely manner to stimulate, widen the distribution gap” assessment mechanism.
“Rushed to the hills is the hero, the hair should be inspired by the award.” What is the hero? “Everyone has a main battlefield and is the best of your own business,” he said.
“Iron Army are playing out, won the fast promotion, high morale, fighting on the strong. Select a few outstanding staff to set the benchmark, we see an example, will begin to fight on the battlefield charge, to go beyond the benchmark, So that the morale of the team to get up. “Ren Zhengfei also said that backward, backward, no performance of the staff, to slowly out of the last bit.
Recently, there are reports that Huawei is focused on cleaning up more than 34 old employees.
According to the 21st century economic report, Huawei CEO Xu Zhijun in today’s performance briefing to respond to the matter.
Xu Zhijun said that Huawei has never heard of the “layoffs” within the word, any business to 34 years old employees leave the company is very crazy things.
Xu Zhijun also admitted that Huawei has been out of the contribution of employees less than the cost, I hope this part of the people to leave Huawei, but with age does not matter, “any age employees as long as the value of Huawei can continue to create his stage to fly.