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1、Huawei Investment&Holding Co.,Ltd.2023 ANNUAL REPORTWho is Huawei?Founded in 1987,Huawei is a leading global provider of information and communications technology(ICT)infrastructure and smart devices.We have approximately 207,000 employees and we operate in over 170 countries and regions,serving mor
2、e than three billion people around the world.We are committed to bringing digital to every person,home and organization for a fully connected,intelligent world.Walking the walk for steady,long-term growthLaying the groundwork for an intelligent worldIn 2023,we witnessed rapid advancement in emerging
3、 technologies like artificial intelligence(AI)and nonstop innovation in new applications for business.AI development has evolved from customization on a small scale to massive application at an industrial level,while digital technology has become more deeply integrated with every aspect of our lives
4、.This digital and intelligent transformation is bringing new value to individuals and breathing new life into enterprises.We want to help all industries make the most of these new developments.So we are leveraging the collective strengths of our business portfolio,backed by a solid grasp on complex
5、hardware and software platforms,to build a solid foundation for a digital and intelligent world.Delving deep into basic research and driving technological innovationHuawei values research and innovation,and we take an open approach to both.We continue to delve deep into basic scientific and theoreti
6、cal research,and are working closely with academia and the industry to push innovation forward.Together with our customers and partners,we are pushing the limits of technology to address broader industry challenges.We also develop innovative products and solutions to address the unique problems our
7、customers face.We want to create greater value for the world.For the past three years,we have invested more than 20%of our annual sales revenue back into research and development.Our aim is to drive industry development to help pave the way for the imminent arrival of an intelligent world one with 1
8、00 billion connections and a universal 10 gigabit experience.Prioritizing security and trustworthiness,succeeding through qualityCyber security and privacy protection are Huaweis top priorities.We continue to build up and improve on our end-to-end cyber security assurance system,embedding cyber secu
9、rity requirements into all aspects of our operations,including policy,management,and technology.Through industry exchange and international cooperation,we also share best practices and work with stakeholders to build a secure,trustworthy,and intelligent world.Our efforts have earned worldwide recogn
10、ition,and we continue to maintain a solid track record in cyber security in over 170 markets around the world.Customer trust is the most solid testament to the security of our products and services.Quality is our path to success.Over more than three decades in the ICT domain,we have built up signifi
11、cant capabilities and experience in quality management and are adapting this experience to meet the needs of new business domains.We are also sharing these capabilities with our suppliers,channel partners,and other partners.Through end-to-end quality management systems,we provide our customers with
12、more competitive products and solutions.Building up thriving ecosystems for a more dynamic industryDigital,intelligent,and low-carbon transformation will continue to be major development trends moving forward.We will continue to maintain strategic focus while supporting free trade,open markets,and f
13、air competition.We are committed to driving healthy industry development and creating value for our customers,partners,and the world.To make this happen,we are working to promote a more open,diverse,and inclusive ecosystem.We value openness and collaboration and work hard to help others succeed.In p
14、articular,we are actively developing platform capabilities for ecosystem-centric domains like HarmonyOS,Kunpeng,Ascend,and cloud computing,and we are combining strengths across the industry to promote the development of business ecosystems.By enabling ecosystem partners and enhancing experience for
15、developers,we hope to stimulate innovation and drive shared success.Powering sustainable development with technologyWe use advanced ICT solutions to help industries reduce their carbon emissions and accelerate the construction of new energy infrastructure.This is part of our broader efforts to foste
16、r a more circular economy and maximize the value of digital technology in powering green development.We do our best to give back,and hope to make the intelligent world a more inclusive,sustainable place.In particular,we are using technology like broadband,cloud,and AI to promote equitable and qualit
17、y education,environmental protection,and balanced development.We have also expanded our talent development program Seeds for the Future to help foster the next generation of digital talent.Through this program,we are nurturing digital leadership,helping young people build digital skills,and upskilli
18、ng ICT professionals.To date,this program has benefited more than 3.4 million people from around the world.ContentsMessage from the Rotating ChairmanBusiness Highlights in 2023Five-Year Financial HighlightsMessage from the Chairman02050708Industry TrendsManagement Discussion and AnalysisI
19、ndependent Auditors Report Consolidated Financial Statements SummaryRisk Factors138155189Corporate Governance ReportSustainable Development Abbreviations,Financial Terminology,and Exchange Rates02 Huawei Investment&Holding Co.,Ltd.Message from the Rotating ChairmanWeve been through a lot over the pa
20、st few years.But through one challenge after another,weve managed to grow.We rounded off 2023 with CNY704.2 billion in revenue.Our ICT infrastructure business remained solid,and our consumer business met expectations.Both our cloud computing and digital power businesses grew steadily,and our intelli
21、gent automotive solution business began large-scale delivery.The trust and support of our customers,partners,and friends around the world is what helped us keep going,keep surviving,and keep growing.On behalf of Huawei,Id like to extend our heartfelt gratitude to everyone for your ongoing support.Th
22、roughout the past year,the entire team at Huawei has been forging ahead,working closely with partners to drive shared success and create value for our customers.In the ICT infrastructure domain,we worked side-by-side with our carrier customers to maximize returns on their 5G network investment and s
23、teadily advance the commercial deployment of 5.5G.In the enterprise domain,we differentiated our products,portfolios,and industry solutions based on the unique needs of different types of customers,including named accounts,SMEs,and MSMEs.In the consumer domain,the HUAWEI Mate 60 Series and the Harmo
24、nyOS ecosystem received wide acclaim.In cloud computing,we moved ahead with our AI for Industries strategy.We launched innovative products like our Pangu Models 3.0 and Ascend AI cloud service,which are designed to provide all industries with a solid cloud foundation for going digital.In the energy
25、domain,Huawei Digital Power continues to use digital technology to help power the worlds green and low-carbon development.In 2023,we made tremendous progress in areas like smart PVs and liquid-cooled ultra-fast charging.2023 Annual Report 03And in the automotive domain,our solutions like intelligent
26、 driving and intelligent cockpits saw large-scale adoption in a growing number of automotive brands.Open innovation for an intelligent worldIn todays world,emerging technologies progress by leaps and bounds,with nonstop innovation in new business applications.AI models have moved beyond small-scale
27、customization and are now seeing massive development on an industrial level.Looking ahead,its clear that digitalization,intelligence,and decarbonation are the path forward.An intelligent world is coming fast,and it will bring countless new opportunities for the ICT industry.Open innovation is critic
28、al for social development and technological progress,and its built into Huaweis very DNA.We are actively working with other industry players and academia to advance technology and help different industries modernize.Huawei has built up an extensive range of ICT technologies,and we will continue to i
29、nvest heavily in R&D while strengthening strategic synergy across hardware,software,chips,devices,networks,and cloud.Despite a number of immense challenges over the past three years,we continue to innovate based on two core drivers:science and technology,and customer needs.Throughout this time,we ha
30、ve invested over 20%of our annual revenue back into R&D to ensure the competitiveness of our products and solutions.To meet industry demand for green transition,for example,we recently launched a 0 Bit 0 Watt wireless solution,which helps carriers strike the optimal balance between mobile network ex
31、perience and energy consumption.Huawei Clouds Pangu-Weather model is another great example.Featured in Nature,Pangu-Weather is the worlds first AI model that delivers more accurate weather forecasts than traditional numerical prediction methods.Huaweis foundational software,including openEuler and G
32、aussDB,has also seen broad application in multiple industries.These are all the result of innovation between Huawei,different industries,and the academic community.Platform capabilities for thriving ecosystemsTrees need deep roots to grow a dense canopy of leaves.Likewise,our industry needs the acti
33、ve participation of many partners and developers in order to thrive.At Huawei,ecosystem development is a key long-term strategy.We advocate for open collaboration and helping others succeed.With this approach,we focus on developing core ICT technologies,as well as building up platform capabilities f
34、or complex hardware and sophisticated software,which we then open up to our partners to promote shared success.We have fostered a robust device ecosystem based on HarmonyOS and Kirin,a general computing ecosystem based on openEuler and Kunpeng,an AI computing ecosystem based on CANN and Ascend,and a
35、 multiplatform developer ecosystem with Huawei Cloud as a unified portal.To date,HarmonyOS has been deployed on more than 800 million devices,and more than 6,300 partners have joined our computing ecosystems.Among these,the Ascend-based AI computing ecosystem has grown particularly fast.We look forw
36、ard to joining forces with other industry players to drive large-scale adoption of these technologies,optimize them,and move the industry forward.As for the developer ecosystem,we have attracted more than 9.5 million developers to HarmonyOS,Kunpeng,Ascend,and Huawei Cloud.We provide a rich array of
37、development tools on Huawei Cloud,making it easier for application,operating system,and database developers to do what they do best.The end goal is to stimulate innovation across the entire ecosystem.04 Huawei Investment&Holding Co.,Ltd.Succeeding through quality and achieving quality growthThese da
38、ys,digital technology is tightly integrated with every aspect of industry and every aspect of our lives.In effect,ICT infrastructure has become the very backbone of an intelligent world,so ensuring quality is more important than ever.At Huawei,quality isnt just about meeting customer needs.Its our r
39、esponsibility.We remain committed to succeeding through quality,and are working hard to make quality one of our core competitive strengths.Building a robust quality management system requires concerted effort across the entire value chain.Huawei has built up decades of experience and capabilities ma
40、naging quality in the ICT sector,and we are working to extend this experience to new domains like digital power and intelligent automotive solutions.We also hope to share these capabilities with our suppliers,channel partners,and ecosystem partners up and down the value chain.Together,we can promote
41、 quality growth across the industry.Promoting digital inclusion and creating social valueHuaweis vision and mission is to bring digital to every person,home and organization for a fully connected,intelligent world.We want to help more people reap the benefits of digital technology.Back in 2019,we la
42、unched our TECH4ALL digital inclusion program,which focuses on four domains:education,environment,health,and development.In education,working together with a wide range of customers,partners,and NGOs,we use innovative digital technology to make quality education more accessible and equitable.To date
43、,we have launched digital skills training programs in 630 schools around the world,providing learning opportunities for more than 400,000 people.In addition,we continue to implement Huawei ICT Academy programs and hold Huawei ICT Competitions around the world to provide young people with digital tra
44、ining and the opportunity to connect.To date,these programs have benefited more than 1.1 million students from over 100 countries and regions.When it comes to the environment,were using digital technology to promote nature conservation efforts in 53 of the worlds protected areas,covering endangered
45、species like Hainan gibbons and jaguars,as well as ecosystems like tropical rainforests and estuaries.Through these programs and more,were taking concrete action to make the world a better,more sustainable,and more inclusive place for all.A new journey awaits us in 2024.We will create greater value
46、for our customers and society by driving open innovation,building thriving ecosystems,and succeeding through quality.Here Id like to thank those who have joined us and will join us along the way.Together,lets make something extraordinary.Lets build a fully connected,intelligent world.Hu HoukunRotati
47、ng Chairman2023 Annual Report 05Business Highlights in 2023 Driving Ubiquitous Connectivity We worked with carriers and partners around the world to continue securing 5Gs business success.By the end of 2023,the number of 5G users across the globe had exceeded 1.5 billion,and 5G networks built by Hua
48、wei had continued to deliver leading experiences.Innovative applications,such as naked-eye 3D,New Calling,and cloud phones,have comprehensively upgraded personal service experiences.And 5G has enabled the large-scale digitalization of industries,with more than 50,000 5G applications being put into u
49、se in many different industries.In addition,Huawei actively worked with other industry players to drive the development of 5.5G,and partnered with leading carriers around the world to promote the technological verification and commercial deployment of 5.5G and accelerate rollout.We helped our carrie
50、r,government,and enterprise customers build ubiquitous optical networks and intelligent IP networks as well as 10 gigabit smart homes,High-Quality 10 Gbps CloudCampus,Super-Connectivity 400GE CloudFabric,and Converged IP Transport Network.This infrastructure will create a solid foundation for the di
51、gital transformation and intelligent upgrade of all industries.We deepened cooperation with international organizations to provide connectivity to remote areas and continuously increase the access of remote communities to digital technology.Enabling Pervasive Intelligence Digital,intelligent,and low
52、-carbon transformations are continuing to gain traction.Therefore,Huawei unveiled its All Intelligence strategy this year in order to support a vast range of AI models and applications for all industries and accelerate their intelligent transformation.The Kunpeng and Ascend ecosystems continued to g
53、row steadily,attracting more than 5.7 million developers and 6,300 partners,and more than 17,400 solutions have been certified.Huawei also released a reference architecture that will drive industrial intelligent transformation,as well as a number of related solutions and a white paper titled Acceler
54、ating Intelligent Transformation,which offer practical advice and references that help industries make the most of intelligence.We released Pangu Models 3.0 to dive deep into industries and develop tailored models and capability sets for a wide range of industries,including finance,government servic
55、es,manufacturing,mining,meteorology,railways,automobiles,and healthcare.These models combine industry know-how with foundation model capabilities,reshaping industries and boosting productivity and efficiency.In the intelligent automotive solution domain,we worked with more than 300 partners to build
56、 an intelligent industry ecosystem.Together,we have created experience benchmarks for intelligent driving,intelligent cockpits,and intelligent vehicle control and contributed to industry standards and key technologies,jointly expanding the market and accelerating the intelligent transformation of th
57、e automotive industry.In 2023,our ICT infrastructure business remained solid,and our consumer business met expectations.Both our cloud computing and digital power businesses grew steadily,and our intelligent automotive solution business began large-scale delivery.06 Huawei Investment&Holding Co.,Ltd
58、.Delivering a Personalized Experience In the consumer business,we have continued to innovate by focusing on consumers,creating an inspired AI experience across all scenarios and building a high-end brand that has a human touch and is liked and trusted by consumers.We have also worked with our partne
59、rs to build a prosperous HarmonyOS ecosystem and achieve business success.We launched smartphones like the HUAWEI Mate 60 Series and unveiled a new ultra-high-end brand ULTIMATE DESIGN,all winning high acclaim from consumers.By the end of 2023,Huawei had shipped a grand total of over 100 million tab
60、lets and over 150 million wearables around the world,and served more than 450 million users in the fitness and health domain.Under the Huawei Zhixuan model,we worked with partners around the Harmony Intelligent Mobility Alliance(HIMA)to launch products that deliver ever-improving experiences.We offi
61、cially launched HarmonyOS 4 in 2023,and by the end of the year HarmonyOS had been deployed on more than 800 million devices.Building a Digital Platform As industries rush to embrace digital and intelligent transformation,Huawei Cloud continued to implement its Everything as a Service strategy,helpin
62、g customers unleash the power of digital faster.By the end of 2023,Huawei Cloud was providing customers from more than 170 countries and regions with stable,reliable,secure,trustworthy,and sustainable cloud services.Huawei Cloud also actively innovated and launched the Ascend AI cloud service as wel
63、l as the GaussDB distributed database,more than 20 software development tools,and products like the CraftArts hardware development pipeline,to help industries go digital and intelligent faster.Huawei Cloud envisions an ecosystem that is Of All,By All,and For All.We aggregate applications for numerou
64、s industries and empower developers and partners around the world.By the end of 2023,over six million developers and 40,000 partners were working with Huawei Cloud to jointly build a thriving ecosystem for innovation on the cloud.2023 Annual Report 07Five-Year Financial Highlights2023202220212020201
65、9(USD Million)(CNY Million)(CNY Million)Revenue99,448704,174642,338636,807891,368858,833Operating profit14,744104,40142,216121,41272,50177,835Operating margin14.8%14.8%6.6%19.1%8.1%9.1%Net profit12,28086,95035,562113,71864,64962,656Cash flow from operating activities9,85969,80717,79759,67035,21891,3
66、84Cash and short-term investments67,128475,317373,452416,334357,366371,040Working capital59,550421,662344,938376,923299,062257,638Total assets178,4541,263,5971,063,804982,971876,854858,661Total borrowings43,556308,414197,144175,100141,811112,162Equity71,682507,568437,076414,652330,408295,537Liabilit
67、y ratio59.8%59.8%58.9%57.8%62.3%65.6%Note:The financial information is in accordance with IFRS Accounting Standards,and converted into United States dollars(USD)using the closing rate at the end of 2023 of USD1.00=CNY7.0808.CNY MillionCNY MillionCNY MillionRevenueOperating profitCash flow from opera
68、ting activitiesCAGR:(5)%891,368636,807704,174858,8330200,000400,000600,000800,0001,000,000CAGR:8%77,83572,501121,412104,401020,00040,00060,00080,000100,000120,000140,000CAGR:(7)%91,38435,21859,67069,807020,00040,00060,00080,000100,000120,00092022223642,33842,21617,79708 Huawei
69、Investment&Holding Co.,Ltd.Message from the ChairmanPressing ahead to achieve our business development goalsIn 2023,all hands were on deck to achieve our business development goals,and our performance was in line with forecast.Id like to thank our customers,partners,and friends from all over the wor
70、ld for their ongoing trust and support.Over the past year,we invested more in technological innovation and continued to deliver high-quality products and services.We also buckled down to enhance our overall competitiveness.Our ICT infrastructure business remained solid,and our consumer business met
71、expectations.Both our cloud computing and digital power businesses grew steadily,and our intelligent automotive solution business began large-scale delivery.All the while,we have worked hard to drive digital inclusion and promote green and sustainable development.In 2024,we will continue to forge ah
72、ead,united as one,investing strategically and strengthening the capabilities we need to ensure sustainable survival and hone our overall competitiveness.We will focus on creating greater value for our customers,partners,and society as we work to achieve steady,long-term growth.Promoting sustainable
73、development through digital inclusionEveryone should have access to stable connectivity.We believe that connectivity is not just a basic right for every person,but also a cornerstone of the digital economy.For decades,Huawei has been committed to pushing the boundaries of ICT and promoting its globa
74、l adoption.We have actively promoted the deployment of digital infrastructure and interconnectivity to 2023 Annual Report 09bring more people into the digital fold.And now,we are extending these efforts by innovating in both connectivity and computing to provide our global customers with leading ICT
75、 solutions.Huawei is also an active member of the International Telecommunication Unions Partner2Connect Digital Coalition.After joining the coalition,as of 2023 our ICT solutions have brought connectivity to 90 million people in remote regions in nearly 80 countries around the world.When Trkiye was
76、 struck by a catastrophic earthquake,we worked side-by-side with our carrier customers to rebuild over 1,900 sites within 72 hours.Together,we got the damaged networks back online so that people in affected areas could access critical network services.In Pakistan,we worked together with internationa
77、l organizations and local governments to connect remote communities,giving residents access to telemedicine services through broadband networks and bringing online education to students through a smart classroom platform.In China,when Jishishan County in Gansu Province was rocked by a massive earthq
78、uake,we immediately set out to affected areas in both Gansu and Qinghai.Alongside our carrier customers,we quickly restored communications at more than 100 key sites in Gansu,and recovered all disrupted services in Qinghai Province within 16 hours,helping people re-connect with their loved ones.In a
79、ddition to connectivity,we are working to drive broader digital inclusion through our TECH4ALL program.This program has brought about long-term positive change to remote areas and a wide range of environmental protection efforts.As of the end of 2023,our TECH4ALL education programs have benefited 63
80、0 schools and more than 400,000 people.In 53 of the worlds protected areas,we are also using digital technology to increase biodiversity,enhance natural resource sustainability,and improve natural resource utilization.Enabling digital industries for an intelligent worldDigital,intelligent,and low-ca
81、rbon transformation is picking up speed around the world.Breakthroughs in AI technology and applications are enabling industries to go intelligent faster.Mobile networks are evolving towards 5G and 5.5G.Smart device ecosystems for all scenarios are converging faster than ever,the automotive industry
82、 is well on the way to going intelligent,and the transition to clean energy is gaining traction.As the intelligent world takes shape,ICT will be further integrated into all industries,and computing will become a fundamental driver of productivity,helping the digital economy take flight.Huawei will d
83、elve deeper into industry digitalization,accelerate the construction of computing infrastructure,and promote digital and intelligent transformation in all industries.Together with our global customers and partners,we want to build a leading computing backbone that will power the intelligent world.Po
84、wering green and low-carbon development with digital technologyGreen and low-carbon development has become an important part of socioeconomic transformation on a global scale.At Huawei,we believe that digital technology is an effective tool to fight climate change,protect the environment,and enable
85、green development.Digitalization and decarbonization can work hand-in-hand,propelling and reinforcing each other to help build a greener world.10 Huawei Investment&Holding Co.,Ltd.In Saudi Arabia,for example,our latest energy-saving technologies were used to build nearly 100 wireless sites in the NE
86、OM project.Furthermore,our cooperation with Zain KSA has helped cut their wireless network energy consumption by nearly 28%.In China,we also launched our green Wi-Fi solution for smart campuses,which uses innovative algorithms to cut the average annual power consumption of campus Wi-Fi networks by a
87、bout 20%.Renewable energy will be crucial for green and sustainable development.At Huawei,we continue to increase the use of renewable energy in our own operations.Our digital power business is also working to drive the transition to renewable energy in all industries by focusing on areas like clean
88、 power generation,mobility electrification,and green ICT power infrastructure.By the end of 2023,our digital power solutions have helped customers generate 997.9 billion kWh of green power and save 46.1 billion kWh of electricity.These efforts resulted in a reduction of 495 million tons in CO2 emiss
89、ions.Green and low-carbon solutions are providing new momentum for sustainable development.Industries are also embarking on a new journey that combines digital,intelligent,and green transformation.This will stimulate innovation and encourage efforts to build next-generation digital and energy infras
90、tructure that supports green and low-carbon development.Growing together with partners through open innovationHuawei delves deep into research and innovation,and we take an open approach to both as we work with our partners worldwide to probe the frontiers of science and technology.As part of our br
91、oader collaboration efforts,we closely engage with academic associations around the world to explore the challenges that industries face.We have also released more than 70 new research topics through academic platforms in an effort to drive advancements in computer science and AI.In 2023,Huawei and
92、its partners held multiple competitions and training activities,including ICPC Training Camps,the ICPC Challenge Championship,and various bootcamps.Through these programs,we shared our industry know-how with academia and learned from their expertise.Together,we are invigorating academic pursuits and
93、 encouraging students and researchers to unleash their full potential.We are also working with global partners and developers to improve the device ecosystem based on HarmonyOS and Kirin,the general computing ecosystem based on openEuler and Kunpeng,as well as the AI computing ecosystem based on CAN
94、N and Ascend.Together,we are working to stimulate innovation across ecosystems and achieve shared success.By the end of 2023,HarmonyOS was deployed on more than 800 million devices,and the HarmonyOS ecosystem attracted more than 2.2 million developers.The Kunpeng ecosystem has also been developing s
95、teadily.To date,we have worked with more than 4,700 partners to launch over 14,500 industry-specific solutions.In computing,we have joined forces with industry partners to drive the development of the openEuler operating system,the openGauss database,and the MindSpore AI framework.We have also furth
96、er enhanced all-scenario collaboration for openEuler,and by the end of 2023,over 50%of the industrys 2023 Annual Report 11major foundation models were natively trained on MindSpore.The MindSpore open source community now serves more than 5,500 enterprises.For Ascend,we continue to build leading AI t
97、raining clusters and a complete series of inference products.We further opened up the heterogeneous compute architecture CANN 7.0.And by the end of 2023,more than 1,600 independent software vendors(ISVs)have used Ascend to launch over 2,900 industry-specific AI solutions.On the operations side,Huawe
98、i is committed to globalized operations and diversifying our supply chains to ensure long-term,continuous,and stable supply,and to lay the foundations for more sustainable development.We have established long-term partnerships with over 10,000 suppliers and partners around the world.Through open col
99、laboration,we strive to overcome all manner of difficulties and challenges over the course of development.We are confident that our work with partners will drive shared growth and benefits,and help forge a secure,reliable,competitive,and healthy value chain.Ultimately,this will allow us to provide h
100、igher-quality products and services for customers around the world.Enhancing corporate governance and ensuring operational compliance to better serve our customersA robust corporate governance system is the cornerstone of sustainable development.In 2023,we continued to build up and optimize our corp
101、orate governance system.Last year,our Representatives Commission held one meeting where a new Board of Directors was elected,resulting in a new set of regular and alternate directors.In 2023,our Board of Directors held 12 meetings where they reviewed and approved matters such as the companys medium-
102、to-long-term strategic plan,as well as the companys annual business plan,audit report,profit distribution,and capital increases.At Huawei,we believe that legal compliance is a bulwark against the uncertainties of international politics.We are committed to conducting business with integrity,adhering
103、to business ethics,and observing all applicable laws and regulations in the countries and regions where we operate.This is a core guiding principle upheld by our management team.For years,we have worked hard to build a compliance management system that aligns with industry best practices and embeds
104、compliance management into our business activities and processes.These efforts continue to this day.We work hard to create a culture of integrity,and require all employees to comply with our Business Conduct Guidelines(BCGs).We continue to communicate openly and embrace transparency so that our cust
105、omers,partners,and the rest of the world can see what we truly stand for.We welcome stakeholders including governments,the media,researchers,and experts to visit our company to strengthen mutual understanding and trust.No matter what changes come our way,we will stay committed to openness,collaborat
106、ion,and innovation.We will continue to press ahead against all manner of difficulties and stay true to our vision and mission to bring digital to every person,home and organization for a fully connected,intelligent world.Liang HuaChairman of the Board12 Huawei Investment&Holding Co.,Ltd.Industry Tre
107、ndsThe Age of Intelligence Is Coming and FastDigital Infrastructure and Smart Devices Will Evolve RapidlyThe world is full of uncertainty these days.Economic instability,geopolitical risks,climate change,and all manner of challenges have left us in a state of global flux.Against this backdrop,howeve
108、r,there is one thing we can be certain about:Major trends like digitalization,intelligence,and decarbonation are taking hold and gaining momentum all around us.This momentum was especially clear throughout 2023 as the world made incredible progress towards a new age of intelligence.We now find ourse
109、lves in the midst of a new industrial revolution where AI is penetrating the fabric of all sectors at an incredible rate,taking productivity and creativity to new heights.Renowned futurist Kevin Kelly has characterized AI as a type of artificial power,one that can eventually be tapped as easily as e
110、lectricity to cognify everything around us.In the next 100 years,he said in a 2023 interview,artificial intelligence will exceed anything that other artificial powers can accomplish.AI will fuel the convergence of the digital and physical worlds,redefining everything and changing how we live and wor
111、k,both as individuals and as industries.It will bring unprecedented challenges and opportunities.The focus of network build-out has shifted from straightforward connectivity to center around experience itself.In the age of intelligence,5.5G networks the next evolution of 5G will take it one step fur
112、ther:They will be productivity-centric,helping all industries vastly enhance their ability to create.5.5G will deliver universal 10 Gbit/s access for digital services,elastic ultra-broadband transport,and massive computing power from hyper-converged data centers.It will be the cornerstone of new dig
113、ital infrastructure To bring the full value of intelligence to industries,we need to make all things connectable,all applications modellable,and all decisions computable.All things connectable:Not just physical objects,but also logical and virtual objects,including both digital equipment as well as
114、traditional terminals and devices.With everything connected,data can be passed up and intent can be passed down.All applications modellable:Broad adoption of AI foundation models will bring the benefits of smart applications to people,homes,and organizations more rapidly than ever.All decisions comp
115、utable:An accessible,ubiquitous supply of computing power will make intelligence more readily available wherever its needed and help unleash the full potential of data.AI is giving rise to a staggering array of innovative applications.Its also stimulating across-the-board changes to devices,networks
116、,computing,and cloud,taking us one step closer to a truly momentous intelligent world.and drive the digital economy forward.But evolving to these productivity-centric networks will require effort in several areas:Ubiquitous 10 Gbit/s ultrabroadband access:This upgrade will provide universal 10 Gbit/
117、s broadband access to mobile users everywhere they go,and bring ultrafast connectivity to every nook and cranny of homes around the world.Enterprises will also benefit from an enhanced 10 Gbit/s experience Connectivity:Full speed ahead with 5.5G2023 Annual Report 13on their campus networks,as well a
118、s 10 Gbit/s elastic private line services with higher throughput for growing computing needs.Universal high-speed connectivity will be vital to accelerate the adoption of digital services across all sectors of society.400G converged transport networks:Upgrading converged transport networks to 400G w
119、ill increase transport power and,with end-to-end optical cross-connect(OXC),will guarantee experience for latency-sensitive services across different latency circles(e.g.,1 ms for access networks,5 ms for city networks,and 20 ms for nationwide networks).Advanced hyper-converged architecture for data
120、 center networks:Based on this architecture,800GE Breakthroughs in AI technology and applications are driving industrial transformation at a rate and scale never seen before.In particular,foundation models have brought artificial intelligence to an inflection point,where AI is going beyond perceptio
121、n and analysis to generate new content entirely;where multi-modal models are taking precedence over single-modal models;and where special-purpose AI is giving way to more general-purpose application.AI applications themselves have gone beyond consumer domains to support core industrial scenarios.Ove
122、r the next two years,AI applications will create even greater value in more than 50%of core industrial scenarios.To help industries maximize the value of AI,we need to adapt computing infrastructure in two major ways:Adopting new computing architectures that cater to diverse computing needs:Demand f
123、or heterogenous computing capabilities is changing the way data centers are designed,and demand for AI computing is growing exponentially fast.We estimate that,between 2020 and 2030,global demand for general computing power will increase tenfold to reach 3.3 ZFLOPS,while demand for AI computing powe
124、r will grow by a factor of 500 to hit 105 ZFLOPS.The world will generate roughly 1 yottabyte of data annually,a 23-fold increase over Computing infrastructure:Making computing power and intelligence available wherever its neededinterconnection will help fully unlock the potential of general computin
125、g,AI computing,high-performance computing,and storage.Congestion notification algorithms will ensure zero packet loss,and network-scale load balancing algorithms will help increase the training efficiency of AI cluster networks by 20%.Telecom foundation models:AI models specifically designed for tel
126、ecom networks will enable carriers to evolve towards L4 autonomous driving networks(ADNs)that are more autonomous,digitalized,and intelligent than ever,allowing network management engineers to double their efficiency.2020.To address these diverse needs for massive computing power,we need to replace
127、CPU-centric computing architecture with peer-to-peer architecture structures that help us overcome limitations in conventional architectures,boosting both computing bandwidth and performance while reducing latency.Breaking through bottlenecks in large-scale computing:Computing power is crucial for A
128、I innovation.The amount of computing power available determines the speed of AI iteration and innovation,and massive amounts are needed to train foundation models.Through systematic design,we can evolve data centers into de facto AI supercomputers that tightly integrate computing,storage,networking,
129、and power supply.Data centers like this can deliver incredible amounts of computing power with greater availability,better energy efficiency,and a more stable environment for long-term model training.This will lay the groundwork for developing a wide range of AI models and applications.14 Huawei Inv
130、estment&Holding Co.,Ltd.All industries are actively embracing AI,infusing their know-how and ingenuity into foundation models that help them tackle complex issues,including those in research,production,supply,sales,and service.New innovations in AI and foundation models are emerging every day,and as
131、 AI theory gains more practical application,developments in this sector will turbocharge the intelligent transformation of industries.But to speed up the transformation process,there are a number of technical gaps that industries need to overcome.On the cloud front,AI is reshaping the technical stac
132、k,redefining the clouds unique strengths,and transforming cloud infrastructure as well as the applications running on it.To keep up with these trends,cloud service providers(CSPs)need to revamp their architecture,their computing and storage systems,the relationship between data and AI,app developmen
133、t,and their overall security posture.Architecture:CSPs will need to move from CPU-centric client-server architecture towards peer-to-peer architecture that can keep up with more diverse computing needs.Computing and storage systems:CSPs will need to shift from general computing to high-performance A
134、I computing,and upgrade from data lake storage to AI-native intelligent storage.As more and more consumer devices make use of AI,we will see greater convergence in multiple fields:chip architectures,operating systems,and device ecosystems across different scenarios.Formerly disparate ecosystems will
135、 begin to converge at a growing rate,such as mobile device ecosystems,office device ecosystems,and IoT device ecosystems.This trend promises huge benefits:Users will receive a smarter,more intuitive experience across all scenarios one characterized by a larger variety of services,greater convenience
136、,and better security.At the same time,developers will see a boost in their productivity and returns.With AI,smartphones,personal computers,and tablets will provide a far superior experience,even for basic functions like taking photos,processing images,communications,entertainment,and productivity.On
137、-Smart devices:Providing an intelligent experience across all consumer scenarios Data and AI:CSPs will need to move towards Data for AI and AI for Data approaches,where data and AI work more seamlessly together to create greater value.App development:CSPs will need to transition from full-code devel
138、opment to low-code or zero-code development,and further towards AI-assisted or even autonomous development.Security posture:CSPs will need to go beyond traditional network and information security and focus on building zero-trust systems.Embracing zero-trust will help them better align with ever-gro
139、wing customer requirements for cyber security and privacy protection,and contribute to trustworthy cloud services.Accelerating intelligent transformation will also require an entirely new tech ecosystem.Innovating around industry needs raises the bar for the quality and efficiency of R&D tools.Devel
140、opers will need cloud-native core software and development toolchains(e.g.,software code repositories,hardware development pipelines,and software development pipelines).Building these tools will take more in-depth collaboration across the entire value chain,including industry,academia,researchers,an
141、d users alike.Collaboration is the driving force behind a truly robust tech ecosystem.device AI assistants will be better able to understand user intent and provide people with exactly what they need.Users will be able to accomplish what they want faster and let their creativity run wild.New ways of
142、 human-computer interaction(e.g.,spatial computing,gesture tracking,and eye tracking)and new form factors(e.g.,foldable phones,augmented reality and virtual reality devices,robots,and intelligent cockpits)will keep emerging in greater numbers.And with greater convergence across different scenarios(l
143、ike fitness,office,travel,and home),users will have access to an intuitive,consistent,and intelligent experience across devices that work seamlessly together with AI-native technology.Greater convergence will also allow for better personal data management and a smarter experience across the board.Cl
144、oud:Providing Everything as a Service to accelerate industrial intelligence2023 Annual Report 15Electrification,intelligence,and connectivity are megatrends in the automotive industry.In 2023,global production and sales of new-energy vehicles reached record highs,and Chinas automotive market in part
145、icular performed remarkably well.Now with electrification well underway,carmakers are shifting gears towards intelligence.We will see a dramatic upgrade in mobility experience as vehicles integrate new ICT technologies.These include radar,new electrical/electronic architectures,autonomous driving pl
146、atforms with massive computing power,intelligent cockpits for more intuitive interaction with on-board systems,and intelligent communications modules.Equipped with these technologies,intelligent electric vehicles will deliver safer and more comfortable mobility and a more personalized experience alo
147、ng the way.The UAE Consensus was signed in 2023,representing another significant global push for decarbonation.The transition to clean energy is picking up speed worldwide.For solar energy,advancements in photovoltaics and energy storage technology are driving down both the levelized cost of storage
148、(LCOS)and the levelized cost of energy(LCOE).New energy sources,solar and wind power in particular,will take center stage a trend that will bring huge changes to conventional electric power systems based on fossil fuels.As digital and AI technologies continue their rapid advance,digital will further
149、 weave its way into the energy domain,supporting three new types of energy infrastructure that will power the intelligent world.New energy infrastructure for power systems:Grid forming technology will play a central role in these systems,fueling the adoption of new energy and shifting their role fro
150、m secondary sources to primary sources.New energy infrastructure for electric vehicles(EVs):Electric vehicles and charging piles are Intelligent vehicles:Bringing ICT technology on board to redefine the mobility experienceIntelligent driving will continue to gain traction.According to a recent repor
151、t on consumer preference,intelligent vehicle controls,intelligent driving,and intelligent cockpits have become more important factors in purchase decisions.This is especially true of functionality like mapless navigation,which enables intelligent vehicles to effectively navigate in all types of unkn
152、own environments,whether it be highways,ring roads,or even urban streets.At the same time,the intelligent cockpit sector will continue to grow and expand to cover a wider range of mobility scenarios,including various types of vehicles,high-speed trains,and ships.Going intelligent is an unstoppable t
153、rend in the mobility industry.Digital power:Building three new types of energy infrastructure to power the intelligent worldessential components of new power systems,so coordinated development of EVs,charging piles,and charging networks will be vital moving forward.Electricity will play a dominant r
154、ole in the energy sector,with its share in final energy consumption rising sharply.New energy infrastructure for the digital industry:New power supply systems,especially those for large low-carbon data centers,will use green energy to provide more eco-friendly computing power for digital and intelli
155、gent transformation.New power systems will increasingly depend on renewables,power electronics equipment,and high-density energy storage systems with large capacity.This means the end-to-end quality and safety of these power systems will be more important than ever.The three new types of energy infr
156、astructure outlined above will operate with enhanced quality,safety,and reliability to power the intelligent world.16 Huawei Investment&Holding Co.,Ltd.Building an intelligent world will take concerted effort from a wide range of stellar players.Over the past 30 years,from the information age to the
157、 digital age,Huawei has never stopped imagining what the future might hold.More importantly,weve never stopped working to make that future happen.Back in 2003,we introduced our All IP Strategy to boost connectivity.In 2013,we announced the All Cloud Strategy to expedite digitalization.In 2023,we too
158、k yet another huge step forward,unveiling our All Intelligence Strategy in a bid to accelerate intelligence.Exploring Nonstop for a Fully Connected,Intelligent WorldMoving forward,we will support a vast range of AI models and applications across industries by driving AI innovation across all aspects
159、 of our organization,from theory,architecture,and engineering to our products,portfolios,and business models.On a river with a hundred ships,those who paddle the hardest will take the lead.So lets take the same ship.Amidst the rising tides of intelligence,if we work together and keep exploring,we ca
160、n chart a solid course towards a fully connected,intelligent world.2023 Annual Report 17Management Discussion and Analysis18Our Vision,Mission,and Strategy212023 Business Review22ICT Infrastructure Business22 Carrier Market30 Enterprise Market37 Connectivity40 Computing41 ICT Services and Software44
161、Cloud Computing Business49Digital Power Business54Consumer Business62Intelligent Automotive Solution Business64Research and Innovation68Improving the Management System77Cyber Security and Privacy Protection82Openness.Collaboration.Shared Success.87Results of Operations89Financial Risk Management18 H
162、uawei Investment&Holding Co.,Ltd.Our Vision,Mission,and StrategyHuaweis mission is to bring digital to every person,home and organization for a fully connected,intelligent world.To this end,we will:Drive ubiquitous connectivity and promote equal access to networks to lay the foundation for the intel
163、ligent world Provide diversified computing power to deliver ubiquitous cloud and intelligence Redefine user experience with AI,offering consumers a more personalized and intelligent experience across all scenarios,including home,travel,office,entertainment,and fitness&health Build powerful digital p
164、latforms to help all industries and organizations become more agile,efficient,and dynamicA new digital wave is sweeping the globe.Digital and AI technologies are helping all governments and enterprises become more agile,efficient,and dynamic.Open,secure,flexible,and easy-to-use digital platforms are
165、 facilitating innovation and transformation in all industries.They will be the bedrock and the fertile ground for our digital society to flourish.Using AI,cloud,and big data technologies,enterprises can better understand their customers needs and innovate with greater agility to craft a more persona
166、lized experience.Coordination and collaboration across industries will drive innovation at scale.With the continuous evolution of smart devices,a seamless experience across all scenarios will become the foundation of an intelligent life.In the digital economy,computing power is a new driver of produ
167、ctivity.Data itself is a core asset,and cloud and AI are the new tools of productivity.Moving forward,AI computing will account for more than 80%of a computing centers capacity,providing the muscle for practical AI applications in all areas of life.To deliver ubiquitous cloud and intelligence,we wil
168、l need to provide diversified computing power.Every person has the right to be connected.Connectivity is the foundation for social progress and economic growth.Connections will soon become a natural and ubiquitous resource,provided by networks that proactively sense changes and user needs.These netw
169、orks will offer intelligent,seamless,and secure connections to people and things whenever and wherever they want.With the advent of 5G,we begin a new chapter in this story.Ubiquitous ConnectivityPervasive IntelligenceDigital PlatformPersonalized ExperienceBuilding a Fully Connected,Intelligent World
170、2023 Annual Report 19Ubiquitous ConnectivityConnectivity has extended from people to things and from our homes to the factory floor.Now its the foundation of everything in an increasingly intelligent world.Huawei is doing what it can to help our customers get ready for the future.For mobile and home
171、 users,Huawei teams up with carriers to provide an ultra-broadband experience across all aspects of everyday life.For governments and enterprises,Huawei works with our partners to enable digital and intelligent transformation in different industries.We provide intelligent connectivity solutions for
172、different industrial scenarios,including ubiquitous ultra-broadband,deterministic experience,and hyper-automation,to support the diverse needs of all customers.We are working to push connectivity to its limits with products and solutions like 5.5G,simplified green sites,fully-converged cloud-native
173、core networks,best-in-class Wi-Fi 7,Super-Connectivity 400GE CloudFabric,optical cross-connect(OXC),fiber to the room(FTTR),and green data centers.We are also actively collaborating with the industry to define its next steps and drive the advancement of connectivity.To better meet connectivity requi
174、rements in industrial scenarios,we are using AI to enable hyper-automation of network O&M and developing new algorithms to pave the way for truly deterministic IP networks.As green development becomes the clear path forward for all industries,the compounding forces of digitalization and decarbonizat
175、ion will drive us ever closer to a sustainable future.Huawei works closely with customers and partners on nonstop innovation for new digital and energy infrastructure.We aim to provide green ICT that will enable green development and bring greener connections to all parts of the world.Pervasive Inte
176、lligenceData has become a valuable raw material,and computing power has become the new driver of productivity.The amount of data we produce will explode as more and more of the devices around us become smart,and more industries will need massive,intelligent storage capabilities to handle these new r
177、esources.Abundant and affordable computing power will determine the future of the digital economy.Through nonstop innovation in data storage,diversified computing,and cloud services,Huawei is helping industries go digital and intelligent by making pervasive intelligence possible.Together we will bui
178、ld a fully intelligent world.In data storage,Huawei provides customers with products and solutions that span all domains and scenarios,in a bid to satisfy requirements for sufficient storage,free mobility,and the full utilization of mass data.Our goal is to build a high-performance,reliable,green,an
179、d secure data storage foundation for customers.In computing,Huawei sticks to our strategy of open hardware,open source software,partner enablement,and talent cultivation.We are developing the Kunpeng,Ascend,and openEuler ecosystems as part of our efforts to bring more diversified computing power to
180、the whole world.In cloud computing,Huawei Cloud is focusing on AI for Industries and AI for Science.We are diving deep into industrial scenarios and harnessing AI to help enterprises tackle their biggest challenges,thereby reshaping industries with AI.Personalized ExperienceThe physical and digital
181、worlds are converging,and the process is speeding up.Mass production is giving way to mass customization,leading to greater business innovation,closer collaboration across ecosystems,and a richer user experience.Using new technologies like AI and cloud,enterprises can better understand their custome
182、rs needs and innovate with greater agility to craft a more personalized experience.Coordination and collaboration across industries will drive innovation at scale.In our user-centric intelligent world,usage scenarios and experiences are evolving.The boundaries between products and services continue
183、to break down,with many converging scenarios,including home,travel,office,and fitness&health.Soon all content and services will travel with users for a completely seamless,holistic experience.Smart collaboration between software and devices will give users an intelligent experience across all scenar
184、ios.20 Huawei Investment&Holding Co.,Ltd.We will continue working closely with partners across our software,service,and hardware ecosystems to both integrate existing technology and drive innovation to better serve consumers.Our 1+8+N Seamless AI Life strategy is centered on smartphones and touches
185、on five major scenarios:Smart Office,Fitness&Health,Smart Home,Easy Travel,and Entertainment.Through HarmonyOS,we empower our ecosystem partners to provide consumers with a superior,intelligent experience across all scenarios.Digital PlatformData volumes are growing exponentially as more and more in
186、dustries embrace intelligence.Enterprises are applying digital and intelligence to a growing array of scenarios as cutting-edge technologies,innovative models,and intelligent algorithms continue to emerge.All of this is creating a multiplying effect of accelerated innovation.From video data and indu
187、strial data to personal data and consumption data,all data is coming from more sources and in more forms and is becoming more fragmented.Powerful digital platforms are needed to integrate this data.New technologies in connectivity,cloud,AI,computing,and industry applications are converging to suppor
188、t comprehensive intelligent connections between people,things,and information at multiple levels.These technologies will help industries expand their traditional boundaries,and enable enterprises to expedite intelligent upgrade.Enterprises will have to adapt their strategies,organization,processes,m
189、arketing,services,manufacturing,and R&D to cope with changes.To do so,enterprises need to synergize the cloud,networks,edge,and devices to build an open,powerful digital platform with multidimensional perception,all-domain collaboration,accurate judgment,and continuous evolution.With cloud as the fo
190、undation and AI at its core,this digital platform helps users accumulate industry know-how,rapidly innovate their core business processes,and quickly iterate to respond to changes in their business environments.A digital platform is one of the core engines that drives success in digital and intellig
191、ent transformation.New information technologies can make organizations more efficient through intelligent management of their physical assets like buildings,factories,production lines,and utilities.At the same time,advanced digital technologies in connectivity,cloud,AI,and computing can change the w
192、ay organizations operate and create new business models.This is the process of digital and intelligent transformation.An organizations IT systems and the corresponding operational methods combine to form a digital platform.Together with its ecosystem partners,Huawei provides innovative technologies,
193、products,and solutions that help its customers build open,secure,flexible,and easy-to-use digital platforms.With its digital platform,Huawei assists customers in crafting their own intelligent solutions,and enables industries to navigate digital transformation and intelligent upgrade.Huaweis digital
194、 platform is injecting new momentum into the digital economy.2023 Annual Report 2167%China21%EMEA6%Asia Pacific5%Americas2023 Business ReviewIn 2023,Huawei maintained strategic focus and fully leveraged the collective strengths of our business portfolio,our ability to innovate,and our grasp on compl
195、ex software and hardware platforms.This allowed us to keep providing our customers with high-quality products and services alongside our ecosystem partners.In 2023,Huaweis annual revenue was CNY704,174 million,an increase of 9.6%year-over-year.Our overall performance was in line with forecast.In the
196、 Chinese market,industries were going digital,intelligent,and low-carbon at a faster rate.To adapt to this market trend,we improved our ability to integrate software,hardware,chips,edge,devices,and cloud,and fully leveraged our collective strengths in computing,storage,networks,digital power,devices
197、,and intelligent automotive solutions.As a result,Huawei saw growth in all of its business domains in China.Our revenue from the Chinese market was CNY471,303 million in 2023.In Europe,the Middle East,and Africa(EMEA),ICT infrastructure such as 5G and optical networks was being constructed rapidly a
198、nd industries sped up digital,intelligent,and low-carbon transformation.As a result,our cloud computing business grew rapidly,our ICT infrastructure business remained steady,and the performance of our digital power business was in line with forecast.In addition,our consumer business remained focused
199、 on building out the HMS ecosystem and developing converged products.Huaweis revenue from this region was CNY145,343 million in 2023.In the Asia-Pacific Region,industries stepped up their efforts in digital,intelligent,and low-carbon transformation.As a result,our digital power and cloud computing b
200、usinesses continued to grow,our consumer business ramped up innovation and saw a rapidly growing ecosystem,and the performance of our ICT infrastructure business was in line with forecast.Huaweis revenue from this region was CNY41,041 million in 2023.In the Americas,customers increased investment an
201、d industries accelerated digital,intelligent,and low-carbon transformation.Our ICT infrastructure business grew steadily,our digital power and cloud computing businesses continued to grow,and our consumer business remained focused on developing converged products.In 2023,our revenue from this region
202、 was CNY35,362 million.By business segment(CNY Million)20232022YoYICT Infrastructure361,997353,9782.3%Consumer251,496214,46317.3%Cloud Computing55,28745,34221.9%Digital Power52,60750,8063.5%Intelligent Automotive Solutions4,7372,077128.1%Other8,6243,978116.8%Elimination(30,574)(28,306)8.0%Total704,1
203、74642,3389.6%By region(CNY Million)20232022YoYChina471,303403,99916.7%EMEA145,343149,206(2.6)%Asia Pacific41,04148,048(14.6)%Americas35,36231,89810.9%Other11,1259,18721.1%Total704,174642,3389.6%22 Huawei Investment&Holding Co.,Ltd.ICT Infrastructure BusinessICT is the core engine that drives the dev
204、elopment of the digital and intelligent economy.It is a key technology that drives industry upgrade and high-quality development for enterprises.As digital,intelligent,and low-carbon transformations continue to gain traction,Huawei has focused its efforts in the ICT infrastructure business on inform
205、ation distribution,interaction,transmission,processing,and storage.This allows us to provide leading products and solutions for telecom carrier,government,and enterprise customers around the world and support the digital and intelligent transformation of numerous industries.We provide high-quality s
206、ervices to the carrier,government,and enterprise markets and create new value for customers:Carrier market:We work to build ubiquitous connectivity and enable pervasive intelligence,in order to help our carrier customers achieve business success.Together,we are accelerating the commercial deployment
207、 of 5.5G,taking digital and intelligent transformation to the next level,and leading humanity to an intelligent world faster.Government and enterprise market:To facilitate digital and intelligent transformation,we have launched a collaborative,open,agile,and trustworthy reference architecture for in
208、telligent transformation.We have become a reliable partner for intelligent transformation across industries by providing digital and intelligent products and solutions that enable industries to go intelligent faster.We are continuing to invest in the ICT industry to lead industry development and tec
209、hnological innovation.In 2023,we worked with other industry players to drive connectivity to new heights.As part of this,we also explored the evolution to 5.5G and helped establish 10 gigabit showcase cities around the world.In addition,we have worked to nurture the Kunpeng and Ascend ecosystems in
210、order to support a vast range of AI models and applications that will help all industries thrive.We also provide ICT services and software to support the digital and intelligent transformation of our carrier,government,and enterprise customers in operations and maintenance(O&M).In the ICT services a
211、nd software domain,we have called upon our more than 30 years of experience in ICT services to provide a broad portfolio of digital and intelligent ICT service and software solutions by focusing on the entire business process that covers everything from network planning and construction to O&M,optim
212、ization,operations,and training.We aim to facilitate the digital and intelligent transformation of carrier,government,and enterprise customers by building green,efficient,secure,and robust ICT infrastructure that provides the ultimate experience.Carrier MarketIn 2023,Huawei remained customer-centric
213、 and continued to innovate.We enabled carriers to maximize the value of networks and explore potential monetization channels.We worked alongside carriers to expand the boundaries of their business and achieve sustainable business growth,and helped carriers achieve a positive business loop with 5G an
214、d explore the opportunities of 5.5G.Since 5G networks were put into commercial use five years ago,they have been deployed by more than 300 carriers in more than 100 countries.There are now more than 1.5 billion 5G users.It took nine years almost twice as long for 4G to get to that level.In the tests
215、 conducted by global authoritative institutions in 2023,Huawei helped multiple carriers around the world rank first in mobile network experience.We helped carriers start 5.5G commercial verification and testing in multiple cities around the world,and worked with them to fully explore five connectivi
216、ty businesses to connect people,homes,things,vehicles,and industries.In 10 gigabit smart home scenarios,we helped carriers accelerate the upgrade to the 10 gigabit experience and explore new business opportunities.Huawei helps carriers upgrade and build their network infrastructure and software syst
217、ems into intelligent ones that have the capacity to evolve and support robust networks,converged cloud,and intelligence.Huawei Cloud works with carriers on cloud transformation and helps carriers seize new business opportunities that arise from intelligent upgrade through a variety of industry APIs
218、and B2B practices.2023 Annual Report 232024 will mark the first year of 5.5G commercial use.Huawei will work with carriers to actively explore the evolution to 5.5G,build efficient,coordinated,green,stable,and intelligent networks which feature ubiquitous 10 gigabit access and offer a premium experi
219、ence.This type of collaboration will take digital and intelligent transformation to a new level and propel us towards an intelligent world.Driving Ubiquitous Connectivity to Help Customers Achieve Business SuccessHuawei continues to innovate our products and solutions.We have worked with carriers an
220、d industry partners to explore service applications and verify key technologies,help carriers achieve business success with 5G,and unlock new applications and opportunities in 5.5G.Jointly Creating New Value with 5G and Fueling New Business GrowthIn 2023,Huawei actively helped carriers accelerate 5G
221、 monetization,including traditional traffic monetization and monetization through differentiated experiences and converged new services,and this helped to further unleash 5G potential and facilitate ongoing 5G business success.In terms of traffic monetization,by the end of 2023,many global carriers
222、served by Huawei had invested in 5G construction and user base expansion.In China,the proportion of 5G package subscribers exceeded 70%,and this fueled the development of the digital economy.In markets outside China,Huawei helped carriers deploy 5G fixed wireless access(FWA)services that provided 10
223、0 Mbit/s wireless home broadband access to millions of households.These 5G FWA services significantly increased carriers overall revenue growth.In terms of experience monetization,Huawei worked with carriers to shift towards 5G experience operations based on network capabilities such as rates,uplink
224、,and latency.5G experience operations have become a key driver of new growth.Deterministic rates have become a new paradigm for rate monetization.In markets outside China,FWA offerings have shifted from rate-based packages to experience-guaranteed packages,and this has increased the average revenue
225、per user(ARPU)by about 25%.In China,carriers were some of the first to launch 5G livestreaming packages,which provided ultra-high uplink rates and VVIP services and increased the ARPU by more than 70%.Carriers also launched 5G packages with faster network access for gamers and financial investors to
226、 deliver a differentiated user experience and further increase ARPU.In markets outside China,carriers released 5G hotspot acceleration packages which supported on-demand and time-based subscriptions and these packages increased the ARPU by about 23%.In terms of monetization through new services,Huaw
227、ei recognizes the fact that the applications of new technologies such as 5G,cloud,and AI are converging quickly,and that this is leading to a wide variety of new services and bringing new value to the industry in the following two domains:In individual-facing domains,Huawei has actively supported ca
228、rriers in developing converged applications such as cloud phones,New Calling,and naked-eye 3D.Chinese carriers have attracted a large number of new subscribers to the cloud phone service.Through cloud phones,individual users can access computing power.Cloud phones have become the portal to hallmark
229、5G applications.The first carrier to launch New Calling with visualized voice calling services has attracted many new customers.The average minutes of use(MOU)per customer increased by about 21%and the video call penetration rate increased by about 24%.In industry-facing domains,Huawei has worked al
230、ongside carriers to facilitate large-scale industry digitalization through 5G.5G has been applied at scale in industries such as oil and gas,mining,ports,manufacturing,and healthcare.In China,more than 1,000 fully connected 5G factories have been built.In markets outside China,5G has enabled remote
231、assistance through augmented reality(AR)for offshore oil and gas platforms,and this has significantly improved these platforms operating efficiency.Building 5G Networks to Deliver Exceptional Experience and Facilitate Ongoing Business SuccessHuawei continues to innovate to help carriers build 5G net
232、works that are highly coordinated,green,stable,intelligent,and capable of delivering exceptional user experiences.We also facilitate evolution to 5.5G by helping carriers build networks that deliver a 10 gigabit experience.These networks offer ten times 24 Huawei Investment&Holding Co.,Ltd.stronger
233、capabilities and create a new space with hundreds of billions of connections.Huawei helped carriers provide exceptional user experiences and meet differentiated service requirements.In markets outside China,the rapid increase of 5G users has brought higher requirements on consistent indoor and outdo
234、or experiences.Huawei deployed large-capacity,wide-coverage MetaAAUs on a large scale to deliver an exceptional and ubiquitous experience.In China,Huawei provided a 5.5G solution to deliver new capabilities such as ultra-high-speed uplink and downlink,deterministic experiences,and all-scenario Inter
235、net of Things(IoT).These have opened up a new market where all things are connected and intelligent.Huawei helped carriers greatly improve operational and energy efficiency and maximize spectrum utilization.In markets outside China,Huawei helped carriers deploy the ultra-broadband,energy-efficient G
236、igaGreen solution to deliver consistent,high-quality 5G experiences across urban and suburban areas.This solution increased the camping ratio of 5G users to 98%and drastically improved the uplink experience.Huaweis energy-efficient Eco antennas reduce the power consumption of each site,which leads t
237、o a lower operating expenditure(OPEX)for carriers.As traditional frequency band resources become increasingly insufficient,it becomes more difficult to meet ultra-high-bandwidth backhaul requirements in the 5G era.Huaweis innovative microwave solution helped carriers implement long-distance,large-ca
238、pacity backhaul,which greatly improved spectrum utilization and reduces energy consumption.Huawei helped carriers relieve network congestion to accelerate growth in dataflow of usage(DOU)and ARPU.In markets outside China,the number of users and the network traffic demand increased sharply,and most n
239、etworks in urban areas became congested.Huaweis Massive multiple-input multiple-output(MIMO)solution with large capacity and multi-band integration increased the network capacity several-fold and shortened the return on investment(ROI)cycle for carriers.In densely populated areas,networks generally
240、carry heavy loads and traffic demand is increasing rapidly.Huaweis innovative intermediate frequency(IF)solution helped carriers quickly upgrade their networks to almost double the capacity and reduce energy consumption by 27%.The solution also primed the carrier networks for 5G evolution.Huawei hel
241、ped carriers deploy 5G core networks with carrier-class stability and reliability.In markets outside China,Huawei launched a six-dimensional high-stability core network model to solve the problem of frequent signaling storms on carriers 5G networks.By detecting and eliminating potential risks in adv
242、ance,this network model helped carriers build an AI-native,stable 5G core network.Huawei also worked with customers to innovate and leverage the intelligent network functions of 5G core networks.Together,we implemented differentiated experience assurance that can be evaluated in real time,optimized
243、dynamically,and monetized to achieve business profitability,thereby enabling monetization across multiple dimensions such as network traffic,rates,and latency.Leading the Way to Intelligent Connectivity with 5.5G and Jointly Exploring New BusinessesIn 2023,Huawei worked with leading carriers around
244、the world and industry partners to innovate and meet the requirements arising from new 5.5G applications and scenarios.Together,we promoted 5.5G technology verification and network deployment,and explored new business opportunities for 5.5G.Individual-and home-facing applications:Huawei has helped m
245、ultiple carriers around the world verify 10 Gbit/s downlink and 1 Gbit/s uplink rates of 5.5G,to deliver exceptional experiences with FWA services.In October 2023,Huawei helped a carrier outside China launch the worlds first 5.5G smart home service,featuring brand-new services such as naked-eye 3D,h
246、ome care,and whole-house intelligence,which further unleashed the business potential of smart homes.Industry-facing applications:Huawei used 5.5G network technologies to support carriers in exploring and verifying digital and intelligent transformation in multiple sectors,such as manufacturing,minin
247、g,and transportation.In 2023,in the field of automobile manufacturing,Huawei worked with Chinese carriers to build flexible production lines based on 5.5G technologies,which reduced downtime in high-end core manufacturing processes and improved manufacturers delivery capabilities.In the field of min
248、ing,Huawei helped a carrier build the worlds first 5.5G smart mining 2023 Annual Report 25pilot network with an uplink rate of 1 Gbit/s.This network implemented panoramic visualization and remote control of fully mechanized underground core mining operations,thereby improving the safety of mining.In
249、 the field of transportation,Huawei worked with carriers to complete the verification of the low-latency 5.5G IoV solution on the wide area network(WAN).The solution is expected to be put into commercial use in 2024,and estimates suggest that it will reduce urban traffic congestion by about 20%.Enab
250、ling 10 Gigabit Smart Homes to Help Carriers Achieve FBB Business SuccessAccording to third-party statistics,by the end of 2023,there were more than 200 million gigabit broadband users,and more than 50 carriers had released 5-Gbit/s-or-higher packages.This was the perfect time to release 10 gigabit
251、offerings.Drawing on our innovation capabilities in the optical broadband domain,Huawei helped carriers achieve fast coverage of 100 Mbit/s fiber to the home(FTTH),smooth upgrade to gigabit FTTH,and large-scale deployment of 10 gigabit smart homes,which led to business success in fixed broadband(FBB
252、).For 100 Mbit/s coverage,Huawei used the central office(CO)+AirPON all-scenario solution to effectively reuse existing resources,implement fast network construction at low costs,reduce carbon emissions,and provide users with a high-quality network access experience.Currently,this solution has been
253、deployed at scale in multiple countries and regions around the world.For upgrades to gigabit,Huawei provided the gigabit access solution to facilitate a smooth evolution to gigabit services.This solution has been used by many carriers around the world to improve user experiences and achieve stable A
254、RPU growth.For 10 gigabit smart homes,Huawei leveraged the FTTR F30 solutions new capabilities such as whole-house coverage and beyond-gigabit to solve problems in indoor Wi-Fi coverage.In markets outside China,Huawei helped carriers explore opportunities to monetize new services,such as ultra-fast
255、cloud-based network-attached storage(NAS)and gaming,as well as smart care.As a result,carriers were able to attract new users and increase the ARPU of home broadband services.Building Converged Bearer Networks with the Best Experience to Facilitate 5G Business SuccessNew scenarios,such as 10 Gbit/s
256、access and enterprises digital and intelligent transformation,require bearer networks with higher bandwidth,lower latency,and higher reliability.Huawei helped carriers build congestion-free,low-latency,scalable,and highly reliable bearer networks.These networks facilitate the development of emerging
257、 services and help carriers achieve business success with 5G.In the all-optical domain,Huawei helped carriers build ubiquitous all-optical foundations with solutions such as optical cross-connect(OXC)and Alps-WDM.Globally,Huaweis Alps-WDM solution helped carriers increase deployment efficiency,lower
258、 overall costs,and streamline the O&M of Huawei and a Chinese carrier were among the first to deploy a 5.5G 10 gigabit network and quickly incubate new businesses and ecosystems.26 Huawei Investment&Holding Co.,Ltd.optical cables.In China,we have helped carriers build more than 60 all-optical cities
259、,and these have consolidated the network foundation for developing the digital and intelligent economy.In the data communication domain,Huaweis NetEngine series routers,which feature large capacity,tight integration,ultra-high stability,and high energy efficiency,have been deployed by many carriers
260、around the world to help them build converged bearer networks oriented to all services.In addition,carriers used the routers new capabilities such as network slicing to ensure user experiences and improve user satisfaction.In addition,Huaweis Network Digital Map Solution enables multi-dimensional vi
261、sualization,management,and optimization of networks,and this improves network O&M efficiency and accelerates network resource monetization.In the IP+optical converged bearer domain,to help carriers resolve cross-domain O&M difficulties,Huawei used the iMaster NCE-Super solution to implement end-to-e
262、nd IP+optical orchestration and unified cross-domain management.This solution covers network planning,construction,maintenance,and optimization,and offers benefits such as visualized O&M,improved network orchestration efficiency,and significantly lower OPEX.Inspiring New Growth with XtoBIn 2023,Huaw
263、ei helped carriers around the world focus on sectors such as government services,education,healthcare,industrial,finance,and small-and medium-sized enterprises(SMEs).By taking differentiated measures such as enhancing connectivity,diving deep into campus scenarios,and developing cloud services,Huawe
264、i has helped address the challenges faced by numerous industries,including diverse scenarios,complex requirements,difficult maintenance,and multiple risks.Together,we helped enterprises make progress on their digital and intelligent transformation and achieve new business growth.Enhancing connectivi
265、ty Maximizing network monetization through differentiated private line solutions:Different enterprises have different requirements on private line services,such as reliability,latency,and service provisioning speed.In markets outside China,Huawei helped carriers deploy premium international private
266、lines to connect multiple adjacent countries in the region,build international latency circles of 3,6,and 9 ms,provision services about 50%faster,and enable the digital and intelligent transformation of large enterprises in the region.Huaweis innovative secure software-defined wide area network(SD-W
267、AN)solution helped configure networks in minutes,made them capable of self-healing in seconds,and made them over 30%more secure.Diving deep into campus scenarios Opening up new campus spaces with scenario-based services:Enterprises in the production and manufacturing sector have requirements for co-
268、existing services such as keeping their core data within their campuses while using cloud-based office services.In China,Huawei helped carriers provide one-stop services including campus networking and edge IT,so that manufacturing enterprises could store their core design data assets securely on ca
269、mpus while enjoying remote offices on the cloud.The one-stop services improved productivity by more than 20%and reduced the TCO by about 50%.Campus scenarios such as education,healthcare,culture and tourism,and sports usually face challenges such as the coexistence of multiple networks and complex d
270、elivery.In markets outside China,Huawei worked with a carrier to provide a campus network solution that integrates 5G,Wi-Fi,optical fibers,and IoT technologies for stadiums.This solution improved the campus network delivery efficiency by more than 30%and more than tripled the carriers revenue.Develo
271、ping cloud services Providing one-stop value-added cloud services to improve service stickiness:Based on the extensive enterprise broadband networks,carriers leveraged the strong capabilities of Huaweis localized service teams to provide scenario-based and standardized one-stop cloud network service
272、s for SMEs and the commercial market to solve problems such as numerous scenarios and difficult maintenance.In China,Huawei helped carriers release value-added cloud services for the commercial market such as small office and home office(SOHO),and these services doubled the ARPU and increased the pr
273、oportion of first-time users to 60%of all new package users in one year.For chain retail enterprises in markets outside China,Huawei provided carriers with the Easy Branch solution.This integrated solution is designed for the multi-2023 Annual Report 27branch scenario.It integrates a smart retail so
274、lution from Huawei Cloud and an electronic price tag solution from a third-party partner,and helps carriers increase their cloud service revenue.Enabling Pervasive Intelligence to Lead the Way to an Intelligent WorldIntelligence will greatly improve user experiences and energy efficiency for the tel
275、ecom industry.In 2023,through non-stop innovation,Huawei provided carriers around the world with intelligent,efficient,and secure data storage products and solutions;helped carriers build DC-centric,agile,lossless,and elastic networks;and offered carriers one-stop,cloud-based application delivery so
276、lutions and Autonomous Driving Network(ADN)solutions,in order to continue to facilitate carriers digital and intelligent transformation and accelerate our journey towards an intelligent world.Enabling Carriers to Unleash Data Potential with Intelligent Data InfrastructureHuawei provides the OneStora
277、ge 2.0 storage data lake solution.The solution realizes the transformation from device management to data management.It uses an innovative global file system(GFS)to implement visible,manageable,and flexibly flowing data,and helps carriers manage data elements as assets to unleash the value of data.B
278、y the end of 2023,Huawei had provided intelligent,efficient,and secure data storage products and solutions for many carriers.In China,carriers intelligent computing centers have hybrid load requirements for data training in AI scenarios.Huawei provided an innovative storage solution to upload massiv
279、e amounts of training data much more efficiently.In markets outside China,Huawei provided a state-of-the-art active-active storage solution featuring reliable network-attached storage(NAS).The solution ensures that enterprise resource planning(ERP)analysis reports run smoothly and improves system sp
280、eeds by about 50%,to meet carriers requirements for accelerated and stable core systems on the IT cloud.To meet carriers requirements for developing 4K HD video services,Huawei provided a distributed storage solution for videos.This solution takes up 66%less equipment room space and reduces the ener
281、gy consumption of data storage infrastructure by 12%.To meet carriers constantly increasing requirements for backing up live-network core service data,such as billing data,Huawei provided a backup storage solution which builds a unified backup pool to make backup 50%faster.Enabling Intelligent Netwo
282、rks with ADNBuilding intelligent networks is an important strategy for carriers.91%of carriers worldwide have incorporated automation into their corporate strategies and are aiming to reach Level 3 Autonomous Networks or above by 2025.By the end of 2023,47 leading enterprises around the world had si
283、gned the Autonomous Networks Manifesto.Huawei uses its own ADN technology to help carriers improve network intelligence and accelerate the evolution toward highly autonomous networks.In China,Huawei worked with carriers to focus on increasing quality,revenue,efficiency,environmental sustainability,s
284、tability,and simplicity.Huawei has actively explored foundational technologies such as telecom foundation models and native intelligence for network elements(NEs),and implemented more than 10 technological innovations to evolve toward Level 4 Autonomous Networks.In markets outside China,Huawei has h
285、elped carriers deploy over 70 ADN applications,such as network energy saving,user experience assurance,intelligent troubleshooting,high-value customer exploration,and agile service provisioning.The iPowerStar solution has reduced power consumption for wireless networks.The intelligent Fault Manageme
286、nt(iFM)solution has helped multiple carriers improve troubleshooting efficiency by 80%.The cell outage detection and compensation(CODC)solution has enabled base stations to automatically compensate for signals in poor weather conditions,ensuring uninterrupted network connectivity and improving custo
287、mer satisfaction.Enabling Carriers Digital and Intelligent Transformation with Huawei Cloud StackIn 2023,Huawei Cloud provided a distributed cloud foundation for global carrier customers on Huawei Cloud Stack.With its flexible deployment modes and business models,Huawei Cloud Stack helped carriers a
288、ccelerate innovation in key internal IT applications,consumer-/home-/business-facing services,and intelligent services and increase revenue.28 Huawei Investment&Holding Co.,Ltd.Accelerating carriers migration of key internal IT applications to the cloud:In markets outside China,carriers have used Hu
289、aweis full-stack,one-stop delivery services to smoothly migrate their core business systems,such as the billing system,to Huawei Cloud.Since then,they have been able to add advanced capabilities such as cloud-native services and big data to their systems,and realize their strategy of 100%internal ap
290、plications on the cloud.By doing this,they greatly improved operational efficiency,and were able to roll out new services more than 30%faster.Helping carriers increase the revenue from consumer-/home-/business-facing services:Carriers in markets outside China used the ecosystem capabilities of Huawe
291、i Clouds KooGallery to quickly replicate more than 120 services through software as a service(SaaS)applications,including digital government,smart education,and smart agriculture.In this way,carriers have helped accelerate the digital and intelligent transformation of numerous industries and have in
292、creased the revenue from consumer-/home-/business-facing services.Facilitating carriers innovation:In China,Huawei has helped carriers innovate in fields such as operation,customer service,and R&D to improve user experiences.These innovations include smart assistants for cloud drives and gesture-bas
293、ed interactions on cloud phones.As a result,carriers were able to attract more than 10 million new users each year and increase the dataflow of usage(DOU)by more than 30%.Enabling New Momentum in the AI Era with DC-centric Efficient NetworksHuawei helped carriers build DC-centric,agile,lossless,and
294、elastic networks to meet industries requirements for large computing power and large transport power and to help them stay competitive in the intelligent era.Within data centers,Huawei used its brand-new CloudEngine series switches and autonomous driving capabilities to provide customers with a hype
295、r-converged data center network solution that helped carriers seize new opportunities presented by enterprise cloudification and computing power rental.The innovative network-scale load balancing(NSLB)algorithm nearly doubled network throughput and improved training efficiency by about 20%with the s
296、ame number of servers.Between data centers,Huaweis elastic DCI solution provides customers with agile transport power services based on the all-optical foundation,intelligent elephant flow identification,and precise scheduling of tens of millions of flows,thereby improving network resource utilizati
297、on from 40%to about 60%.One carrier has used this solution to transmit 500 TB of media materials to the data center for a film and television production company.Compared with the traditional solution,Huaweis solution shortened the transmission time from two weeks to just one day,and as such was able
298、 to meet user requirements for differentiated timeliness services of TB-level data.Facilitating Digital and Intelligent Transformation to Enable New GrowthIn 2023,Huawei set carrier transformation benchmarks for revenue increase from digital and intelligent transformation services,upgrades to O&M mo
299、dels for digital and intelligent transformation,and green and simplified infrastructure deployment.In addition,Huawei worked with carriers to unveil seven showcases in digital and intelligent transformation in O&M.These initiatives helped carriers accelerate their digital and intelligent transformat
300、ion and create greater business value.Tapping into the Potential of Innovative Digital Services to Increase RevenueIn 2023,Huawei launched the Mobile Money solution to help carriers improve the conversion rate of high-value users and accelerate the development of Micro Finance services.Huawei also l
301、aunched the intelligent cloud customer service center based on converged data,and this has effectively improved user experiences in customer services and driven new revenue growth in carriers business-facing services.In addition,Huawei launched the convergent billing solution,which uses intelligent
302、technologies to help carriers monetize digital services more efficiently.In markets outside China,an auxiliary operation solution enabled by converged data rapidly converted about 57%telecom users into Mobile Money users and helped carriers develop more than 3 million Micro Finance users in two year
303、s.The convergent billing solution enabled a carrier to integrate multiple billing systems into one,which facilitated the launch of new converged marketing products within days.The number of new users increased six-fold in the first month after the products launch.2023 Annual Report 29 In China,Huawe
304、i helped carriers expand the business-facing service market using the intelligent cloud customer service center solution.This solution provided omni-channel,intelligent professional services for multiple industries such as government services,finance,retail,transportation,manufacturing,and energy,an
305、d helped carriers substantially increase their revenue.Upgrading O&M Models to Enable Service Development and Experience ImprovementCarriers are leveraging converged data and foundation models to transform their O&M models from being network-centric to being service-centric.In 2023,Huawei built an i
306、ntelligent operation engine based on SmartCare.By converging the data from the operations support system(OSS),business support system(BSS),and third-party public sources,the engine helped carriers optimize end user experiences and their network net promoter scores(NPS)and enabled service development
307、.By the end of 2023,Huaweis digital and intelligent transformation solution for O&M had been applied in more than 200 projects around the world,continuously helping carriers achieve business growth.In markets outside China,Huaweis comprehensive digital and intelligent transformation solution for O&M
308、,which features the collaboration of SmartCare,intelligent O&M,and network optimization,increased network traffic by about 8%,improved customer-experienced rates by about 40%,and shortened the mean time to repair(MTTR)by about 40%.In addition,the SmartCare-based intelligent operation engine helped c
309、arriers develop Mobile Money users,increasing the conversion rate of high-value users more than tenfold.In China,our customers used Huaweis network satisfaction modeling for end-to-end mobile network problem demarcation,location,rectification,and result evaluation to proactively manage network satis
310、faction problems and improve satisfaction rates.Injecting Momentum into Infrastructure with Green DevelopmentIn 2023,Huawei provided a three-layer solution encompassing green sites,green networks,and green operations to systematically improve network energy efficiency and help carriers achieve More
311、Bits,Less Watts.We helped carriers build simplified,efficient,intelligent,and low-carbon target networks.We worked together to apply this solution first to sites and then to networks,and we optimized target networks first in individual domains and then on a systematic basis.Huawei helped customers b
312、uild new green data centers that anticipate the exponential growth of computing power in the future.In markets outside China,Huawei worked with carriers to digitally reconstruct the power systems of base stations using an intelligent optimization solution that coordinates the main equipment and auxi
313、liary equipment.This greatly improved the stability and efficiency of the power supply for base stations.The power availability(PAV)increased to 99%,and the network traffic increased by more than 50%,which helped carriers increase revenue.Huawei also worked with carriers to successfully deploy 5G ze
314、ro-carbon sites.Powered by solar power systems and lithium batteries,the sites are managed in real time by an intelligent network management system(NMS)which visualizes site energy efficiency(SEE)and helps significantly reduce annual carbon emissions.In 2023,Huawei released a full series of green da
315、ta center solutions,including the hybrid architecture for air and liquid cooling and the converged power supply system.These solutions helped carriers deploy green data centers featuring high power density,the lowest possible power usage effectiveness(PUE),high reliability,and the ability to provide
316、 general and intelligent computing power.In China,carriers used our solutions to build efficient and reliable cloud data centers with high power density and diversified computing power.Our cabinets provide about 30%more capacity,which means there is more space for IT and this maximizes business valu
317、e.Our efficient,energy-saving cooling systems help to reduce the annual PUE.Staying Customer-centric and Providing Carriers with Services That Have a Positive ImpactIn 2023,Huawei stayed customer-centric and provided our carrier customers with services that have a positive impact on the environment,
318、society,and business.Huawei is proud to be the most trusted partner of carriers worldwide,and has continued to build a comprehensive service system of experts,talent,partners,platforms,and processes,while also continuing to create value for customers.Together,we are working tirelessly towards the go
319、al of building a fully connected,intelligent world.30 Huawei Investment&Holding Co.,Ltd.Huawei continued to explore delivery modes that leverage digital and intelligent technologies,and built delivery capabilities suited to diverse scenarios.Our exploration and practices helped carriers efficiently
320、build high-quality,green,simplified,resilient,and reliable ICT infrastructure to facilitate digital and intelligent transformation.Huawei worked with carriers to ensure the stable running of more than 1,500 networks around the world.Our stable and reliable communication assurance services have enabl
321、ed users to enjoy high-quality networks at over 200 sports events and major activities.We worked side by side with our customers to overcome challenges during disaster relief efforts.Our agile and professional services helped to quickly recover network communication and reduce losses.Huawei helped c
322、arriers provide network services of high quality and exceptional experience.According to tests run by third-party authoritative institutions,carriers who used the products and network optimization services provided by Huawei ranked top in terms of network quality and user experience.Enterprise Marke
323、tA new chapter in intelligent transformation is unfolding.And so,Huawei is working with customers and partners around the world to deeply integrate ICT with industry scenarios and spearhead the kind of innovation in ICT infrastructure that will drive digital and intelligent transformation and suppor
324、t a vast range of AI models and applications for all industries.Together,we are helping all industries go intelligent,and helping them do it faster.Driven by customer scenarios and technological innovation,and always starting from top-level design,we focus on creating value for customers and guiding
325、 them throughout their digital and intelligent transformation journey.These efforts cover numerous sectors such as smart cities,finance,transportation,energy,manufacturing,education,healthcare,and Internet services.Based on our extensive experience in industrial intelligence,we have released a refer
326、ence architecture that will drive industrial intelligent transformation,as well as a number of related solutions and a white paper titled Accelerating Intelligent Transformation,which offer practical advice and references that help industries make the most of intelligence.We are committed to strengt
327、hening the breadth and depth of our strategy and have increased investment in the small-and medium-sized enterprise(SME)market.We have continued to optimize our partner+Huawei sales and service system and develop marketable products and solutions.In addition,we have launched HUAWEI eKit,a sub-brand
328、dedicated to SMEs and micro enterprises,to better meet their requirements for digital and intelligent transformation.A thriving and sustainable ecosystem is crucial for digital and intelligent transformation across industries.As such,we team up with partners to build a healthy ecosystem that advocat
329、es open collaboration for shared success,and grow with partners with shared benefits as the bridge,integrity as the foundation,and rules as the guarantee.We have developed more than 40,000 partners worldwide to help customers achieve business success.A Wealth of Experience in Helping Governments and
330、 Enterprises Go Digital and IntelligentSmart CitiesHuawei released the Architecture for Intelligent Transformation of Public Services in order to accelerate the intelligent transformation of public services to drive a cognitive society.We support the digital and intelligent transformation of governm
331、ent services,more efficient public services,and innovation in scientific research and help governments and public service customers around the world go intelligent,making public services fairer and more inclusive.We currently serve over 700 cities across more than 100 countries and regions.We use Ci
332、ty Intelligent Twins and a universal reference architecture and integrate multiple technologies to build new infrastructure that can act as the digital foundation for cities.We enable service innovation and work alongside partners to develop tailored solutions that significantly expand 2023 Annual R
333、eport 31the adoption of digital and intelligent technologies in public services.Focusing on the goals of ensuring high-quality and intelligent government services and improving service handling efficiency,we released foundation models for government services,government office applications,and city governance.We also continued to optimize our One-Stop Public Services Solution and Intelligent City G