Huawei Expands Revenue Streams by Offering Cloud and AI Tech to China's Top Copper Pipe Exporter

Huawei Technologies has announced a strategic partnership with Hailiang Group, a leading player in the global copper pipe market, to provide cloud, 5G, and artificial intelligence (AI) solutions.

Credit: Bloomberg

The collaboration aims to diversify Huawei's revenue streams through deals with traditional industries amid US sanctions.

Under the partnership, Huawei and Hailiang will work together on various areas, including digital management solutions, advanced manufacturing, smart education, and green energy. Hailiang, known for its business interests in mining, education, agriculture, and real estate, has been collaborating with Huawei on digital management and cloud migration strategies since 2022.

Hailiang operates copper tube and pipe production facilities in multiple countries, including the US, Germany, France, Italy, Spain, Vietnam, Thailand, and Indonesia. The company is considered a champion of China's "going out" strategy to promote Chinese enterprises overseas. The partnership with Huawei will accelerate Hailiang's digital transformation, according to Zhang Pingan, CEO of Huawei's cloud unit.

Huawei will provide technologies in cloud computing, big data, AI foundation models, and 5G to facilitate Hailiang's digital transformation. This deal is part of Huawei's ongoing efforts to forge deeper ties with traditional industries and corporations in order to diversify its revenue streams, following the impact of US trade sanctions in 2019.

To strengthen its relationship with enterprise clients, Huawei established "legions" in October 2021, focusing on digital transformation products and services for various industries. The enterprise business segment has been the fastest-growing among Huawei's three core units, with a 30% year-on-year revenue surge in 2022, reaching 133 billion yuan (US$18.7 billion).

In addition to its collaboration with Hailiang, Huawei has also ventured into the electric vehicle sector with the launch of Aito cars, a joint brand with Chinese electric carmaker Seres. The company also provides smart car components to the auto industry. Recently, Huawei signed a memorandum of cooperation with Changan Automobile, a major state-owned carmaker, for a joint venture in smart car systems.

---

• Huawei partners with Hailiang Group, a leading player in the global copper pipe market, to offer cloud, 5G, and AI solutions.

• The collaboration aims to diversify Huawei's revenue streams amid US sanctions.

• Huawei and Hailiang will work together on digital management solutions, advanced manufacturing, smart education, and green energy.

Source: SCMP