Huawei says net profit up 33% from previous year

• Global sales revenue up 8%; 70% of revenue generated from telcos, including 45 of the world’s top 50
• 2012 results audited by KPMG to be outlined in company’s annual report, which will be released in April

GLOBAL information and communications technology (ICT) solutions provider Huawei has released its 2012 financial performance results, saying it expects global sales revenues to reach 220.2 billion yuan, an 8% year-on-year increase; with a net profit of 15.4 billion yuan, a 33% increase from the previous year.
 
[US$1 = 6.2285 yuan]
 
Huawei chief financial officer Cathy Meng (pic) said the company achieved effective growth in 2012 by focusing on customers, streamlining management and improving efficiency.
 
The earnings disclosure today (Jan 21) is part of Huawei’s ongoing commitment as a private employee-owned company to be more open and transparent with stakeholders, the company said in a statement.
 
The 2012 results audited by KPMG will be outlined in the company’s annual report, which will be released in April.
 
“We insist on strictly controlling G&A expenses and allocating more resources to bolster the front line and ensure continuous improvements on customer delivery and service quality,” said Meng.
 
“In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services program.”
 
Continuous innovation focusing on customer needs is also an important driving force for Huawei’s growth. The company said it has cumulatively invested 120 billion yuan in R&D over the past 10 years, including a 29.9-billion-yuan investment in 2012, accounting for more than 13% of the year’s revenue.
 
Huawei said it has invested in and developed its Carrier Network, Enterprise and Consumer businesses in order to provide faster, broader and smarter information services to its customers, while addressing the challenges and opportunities in the era of big data.
  
About 70% of Huawei’s revenue was generated from serving leading telecommunications operators, including 45 of the world’s top 50.
 
Huawei’s three business groups continued their steady growth and achieved performance in line with expectations, the company said.
 
Its Carrier Network business group, a traditionally strong business group, had sales revenues of 160.3 billion yuan. The Consumer business group recorded sales revenue of 48.4 billion yuan, with sales continuing to grow in developed markets including Europe and Japan.  The Enterprise business group further developed its portfolio and won contracts, generating sales revenue of 11.5 billion yuan.
 
66% of Huawei’s overall revenue came from outside China. Among the overseas revenue, the Asia Pacific region saw revenue of 37.4 billion yuan, while Europe, Middle East and Africa recorded 77.4 billion yuan and the Americas contributed 31.8 billion yuan. The domestic China market recorded 73.6 billion yuan.
 
Meng concluded with a projection that Huawei expects its overall revenue to grow 10-12% in 2013.

 
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