Huawei in the interbank market disclosure 2022 fourth medium-term notes subscription instructions, instructions show that the term of this debt financing instruments 3 years, the issue size of 4 billion yuan, no basic underwriting amount. The subscription period is from 9:00 on July 20 to 17:00 on July 21, and the subscription interest rate range is 2.6%~3.2%.
In the past three years, the total amount of debt issued by Huawei is controlled below 10 billion yuan, while this year Huawei debt issuance amount is significantly increased. If you add the 4 billion yuan of medium-term notes to be issued, the total amount of debt issued by Huawei in 2022 will reach 21 billion yuan, which is more than two times the amount of debt issued in 2021. Looking back at Huawei’s debt issuance process, 2019 is a clear watershed. Before 2019, Huawei mainly issued debt overseas, while after 2019, domestic debt issuance gradually became Huawei’s main debt issuance channel.
The prospectus shows that Huawei will achieve operating revenues of RMB849.646 billion, RMB882.877 billion and RMB630.698 billion from 2019 to 2021 on a consolidated basis, with year-on-year growth of 18.8%, 3.91% and -28.56%, respectively, and an average CAGR of -13.84% from 2019 to 2021.
From 2019 to 2021, Huawei’s consolidated net profit will be 62.783 billion yuan, 64.603 billion yuan and 113.591 billion yuan respectively, of which, the net profit will increase greatly in 2021 under the decline of revenue, mainly due to the investment income of 61.7 billion yuan, while the investment income will be 480 million yuan in 2020.
As a leading global technology company, Huawei has huge expenditures in R&D. In 2019-2021, Huawei’s consolidated cash expenditures for operating activities will be 939.346 billion yuan, 101.985 billion yuan and 706.719 billion yuan, and R&D expenditures will be 131.466 billion yuan, 141.951 billion yuan and 142.567 billion yuan, respectively.
Huawei said the company’s overall operations were sound and the financial results were in line with expectations. To support the development of various businesses and the implementation of key strategies, the company intends to issue 4 billion yuan of medium-term notes, which will be used to supplement the working capital of the company’s headquarters and subsidiaries.
Huawei’s recent actions are frequent and are of great concern to the outside world. On the one hand, Huawei will be held on July 28 HarmonyOS 3 and Huawei full-scene new product launch, when there will be many new products released. On the other hand, Huawei launched the “Petal Travel” taxi fast application to the crowd test users on July 4, which may enter the field of online taxi.