Huawei expects 2012 net profit to jump 33 per cent
- 21 January, 2013 17:55
ICT and telecom giant Huawei expects its 2012 global sales to reach CNY 220.2 billion (about $33.3 billion), up 8 per cent from last year, with net profit of CNY 15.4 billion (about $2.3 billion), up 33 per cent from the previous year.
Huawei Chief Financial Officer, Cathy Meng, said the company achieved effective growth in 2012 by focusing on customers, streamlining management and improving efficiency. Meng expects Huawei to grow between 10 and 12 per cent in 2013.
“We insist on strictly controlling G&A expenses and allocate 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.”
Innovation and focusing on customer needs continue to be important driving force for Huawei’s growth. The company has cumulatively invested CNY 120 billion (about $18.1 billion) in R&D over the past 10 years, including CNY 29.9 billion (about $4.5 billion) in 2012, which accounted for more than 13 per cent of the year’s revenue.
About 70 per cent of Huawei’s revenue was generated from serving leading telecommunications operators, including 45 of the world’s top 50.
Huawei’s Carrier Network business group had revenues of CNY 160.3 billion (about $24.2 billion); its Consumer business group recorded revenues of CNY 48.4 billion (about $7.3 billion), with sales continuing to grow in developed markets including Europe and Japan. Its Enterprise business group had CNY 11.5 billion (about $1.7 billion) in revenues.
About 66 per cent of Huawei’s overall revenue came from outside China. Among the overseas revenue, the Asia-Pacific region saw revenue of CNY 37.4 billion (about $5.6 billion), while Europe, Middle East and Africa recorded CNY 77.4 billion (about $11.7 billion) and the Americas contributed CNY 31.8 billion (about $4.8 billion). The domestic market China recorded CNY 73.6 billion. (about $ 11.1 billion)
With convergence of mobile internet, smartphones, the digital and physical world and explosion in data, Huawei believes that its ‘pipes’ with large bandwidth can transmit and process massive data flow and will be key to addressing bandwidth challenges and drive its growth in the future. The 2012 results audited by KPMG will be outlined in the company’s annual report, which will be released in April.
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