Huawei's brilliant year: a 33 percent rise in net profitStaff writer ▼ | January 21, 2013
Huawei, a global ICT giant, reported its 2012 financial performance results and they look great: The company expects a net profit of $2.48 billion, a 33% increase year-on-year.Huawei, a global ICT giant, reported its 2012 financial performance results and they look great: The company expects a net profit of $2.48 billion, a 33% increase year-on-year.
Huawei expects its 2012 global sales revenues to reach CNY 220.2 billion, and that's an 8% year-on-year increase. About 70% of Huawei's revenue was generated from serving leading telecommunications operators, including 45 of the world's top 50. 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 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," said Cathy Meng, chief financial officer.
Continuous innovation focusing on customer needs is also an important driving force for Huawei's growth. The company has cumulatively invested CNY 120 billion in R&D over the past 10 years, including a CNY 29.9 billion investment in 2012, accounting for more than 13% of the year's revenue.
Huawei's three business groups continued their steady growth and achieved performance in line with expectations. Huawei's Carrier Network business group, a traditionally strong business group, continued to be a leader in the industry, with sales revenues of CNY 160.3 billion. Consumer business group recorded robust sales revenue of CNY 48.4 billion, with sales continuing to grow in developed markets including Europe and Japan. Enterprise business group further developed its portfolio and won contracts, generating sales revenue of CNY 11.5 billion.
The markets outside China contributed with 66% of Huawei's overall revenue. The Asia-Pacific region saw revenue of CNY 37.4 billion, while Europe, Middle East and Africa recorded CNY 77.4 billion and the Americas contributed CNY 31.8 billion. The domestic market China recorded CNY 73.6 billion. Ms. Meng expects the company's overall revenue to grow 10-12% in 2013. ■