Huawei aleading global provider of information and communications technology (ICT) solutions, announced its financial results for 2013, recording record sales and net profits. With strong performance across all business segments, it achieved solid sales growth of 8.5% year-on-year to CNY239 billion (USD39.5 billion) and net profits of CNY21 billion (USD3.5 billion).
“Our goal is to create a world where everyone is connected to each other”
On the occasion of the 2013 financial results, Huawei's Rotating & Acting CEO stated, "Thanks to the favorable global macroeconomic and industry environment, as well as the effective implementation of our strategic planning, Huawei achieved its business goals for 2013."He continued by saying, "Huawei has never been more closely connected to the world than it is now. This high level of interconnection has two parameters. First, ICT have been deployed in more than 170 countries and regions, helping over 3 billion people to connect with the world, communicate anytime, as well as obtain and exchange information anywhere and in the most convenient way. Second, this connected world is reshaping policies, as well as promoting the economy, business and production with extraordinary speed and power."
The company's strong global presence has contributed to the steady and continuous growth of its transport networks, as well as its enterprise and consumer products. In 2013, Huawei's transport networks business showed a steady performance, achieving sales of CNY166.5 billion (USD27.5 billion), an increase of 4.0% compared to 2012. Revenues from the enterprise and consumer products business grew significantly by 32.4% and 17.8% to CNY15.2 billion (USD2.5 billion) and CNY57.0 billion (USD9.4 billion), respectively. Huawei earned 65% of its revenue from markets outside China in 2013, while in the Chinese market, Huawei's sales amounted to CNY84 billion (USD13.9 billion), an increase of 14.2%.
Continuous innovation is a prerequisite for effective development. In 2013, Huawei invested CNY30.7 billion (USD5.1 billion) in R&D, which accounts for approximately 12.8% of its turnover. Huawei's total investment in R&D over the past 10 years has exceeded CNY151 billion (USD24.9 billion). Huawei innovates based on the needs of its customers, and aims to increase its investment in core scientific and engineering technologies as necessary to maintain its leading position in the ICT sector.
Mr. Xu continued: “In order to adapt to the future trends, we released the SoftCOM to develop ICT. In the future, we will have a better-connected world, where everyone can share everything. Together with our customers and partners, we will create the world’s most efficient and comprehensive digital logistics system to ensure full connectivity between people, people with things, and things with each other. This will facilitate the free exchange of ideas. We will continue to pursue our dreams, drive innovation, and accelerate the evolution of technologies, industry, and human interaction to create a better-connected world.”
For 2014, Huawei sees the increasing penetration of ultra-broadband and mobile networks, especially LTE, as a major strategic opportunity. Smartphones will be another key area for the company, as they increasingly become an inherent need of “digital natives” and an extension of people’s sensory organs. ICT is becoming a production system and core function for businesses, driven by the transformation of existing IT systems and the restructuring of traditional industries towards the digital age.
Eric Xu concluded, “2014 marks a new beginning, not only for Huawei, but also for the entire industry. Huawei is still a young company, and the ICT is booming. A connected world creates opportunities beyond our imagination. While we continue to pursue a more focused strategy and a leaner management style, in 2014 we will work even more purposefully to achieve steady growth that will lay the foundation for the company’s growth over the next 10 years. Our primary goal is to become the leader in enterprise products.”
Huawei's annual results, which have been audited by independent auditors KPMG, are described in the company's 2013 annual report. You can find the annual report at: https://www.Huawei.com/en/annualreport2013
(Exchange rate: 1USD = 6.0569 CNY as of December 31, 2013)
