Huawei profits increase by a third

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Manufacturer also expecting revenues to increase eight per cent year-on-year in unaudited results for 2012

Huawei’s is expecting net profits from last year to increase 33 per cent from 2011 to CNY15.4 billion (£1.56 billion), according to the manufacturer’s unaudited results for the 12 month period. Audited results will be released in April.

It said the earnings disclosure is part of its ongoing commitment as a private employee-owned company to be more open transparent with stakeholders.

The Chinese company is expecting its revenues to increase by eight per cent to CNY220.2 (£22.3 billion). Huawei said around 70 per cent of its revenue was generated from serving leading telecoms operators, including 45 of the world’s top 50.

Huawei’s carrier network business group achieved sales of CNY160.3 billion (£16.2 billion), with its consumer business group recorded recording sales of CNY 48.4 billion (£4.9 billion), with sales continuing to in developing markets including Europe and Japan. The manufacturer’s Enterprise business group generated sales of CNY11.5 billion (£1.16 billion).

Two thirds of Huawei’s overall revenue came from outside China. Europe, Middle East and Africa (EMEA) saw revenue of CNY77.4 billion (£7.86 billion), the Asia-Pacific region recorded CNY37.4 billion (£3.79 billion) and the Americas contributed CNY31.8 billion (£3.22 billion). The domestic market China recorded CNY73.6 billion (£7.45 billion).

Huawei CFO Cathy Ming said the manufacturer achieved growth last year by focusing on customers, streamlining management and improving efficiency. She added the company expects its overall revenue to grow 10-12 per cent this year.

Huawei said the convergence of mobile internet, smartphones and the digital and physical world is likely to generate hundreds of times more data in the coming years and believes that pipes with large bandwidth that can transmit and process large data flow are the key to addressing these challenges and also Huawei’s key growth driver in the future.

Ming said: “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. In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services program.”

 

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