Huawei raised another 4 billion yuan from the bond market

Huawei Investment Holdings Co., Ltd. is seeking its first bond market financing in 2022. A few days ago, Huawei said that it will publicly issue the "Huawei Investment Holdings Co., Ltd. 2022 first medium-term note" in the national interbank bond market. The current debt will be used to supplement the working capital of the company's headquarters and its subsidiaries, with a term of 3 years and an issuance scale of 4 billion yuan.

Huawei promises not to use it for long-term investment, real estate investment, financial management, and various equity investments. Since 2019, Huawei has issued bonds for financing several times in the bond market, with a total balance of 9 bonds totaling 23 billion yuan.

According to the prospectus, from 2018 to 2020, Huawei's consolidated operating income reached 715.192 billion yuan, 849.646 billion yuan and 882.877 billion yuan, a year-on-year increase of 19.50%, 18.80% and 3.91% respectively, and the 2018-2020 compound annual growth rate reached 11.11 %.

Huawei said that with the continuous expansion of the company's various businesses, operating costs and R&D expenditures have also increased accordingly. From 2018 to 2020, the company's consolidated cash expenditures for operating activities were 778.238 billion yuan, 939.346 billion yuan, and 1,019.805 billion yuan, and research and development expenditures were 101.475 billion yuan, 131.466 billion yuan, and 141.951 billion yuan respectively.

On December 31 last year, Huawei announced that its revenue in 2021 would drop by 28.9% year-on-year to RMB 634 billion; revenue in the fourth quarter fell by 19% to RMB 178.2 billion.

In his speech, Guo Ping, the rotating chairman of Huawei, estimated that the sales revenue in 2021 will be about 634 billion yuan. Among them, the operator business performed steadily, the enterprise business grew healthily, and the terminal business rapidly developed new industries. 2022 is to survive with quality.

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