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Huawei, a leading global information and communications technology (ICT) solutions provider, has released its 2012 financial performance results with Huawei Chief Financial Officer, Cathy Meng, announcing the company achieved efficient growth in 2012 by focusing on customers, streamlining management and improving efficiency.
Huawei expects its 2012 global sales revenues to reach US$ 35.5 billion, an 8% year-on-year increase, with a net profit of US$ 2.4 billion, a 33% increase from the previous year. The January earnings disclosure is part of Huawei’s ongoing commitment as a private employee-owned company to be more open and transparent with stakeholders. The 2012 results audited by KPMG will be outlined in the company’s annual report, which will be released in April.
Meng is also positive about the industry’s future growth prospects with a projection that Huawei expects its overall group revenue to grow 10-12% in 2013.
The CFO explained that Huawei’s success in 2012 can be attributed to maximizing value for its customers. “We insist on strictly controlling general & administrative expenses while 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 focused on customer needs is also an important driving force behind Huawei’s growth. The company has cumulatively invested US$ 19.2 billion into research and development over the past 10 years, including a US$ 4.8 billion investment in 2012, accounting for more than 13% of the year’s revenue.
Huawei has strategically focused on developing sophisticated communications network infrastructure, or “pipe.” Huawei 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. Huawei’s Carrier Network business group, a traditionally strong business group, continued to be a leader in the industry, with sales revenues of US$ 25.7 billion. Huawei’s Device business group recorded robust sales revenue of US$ 7.7 billion and made breakthroughs in developed markets. Huawei’s Enterprise business group started strong and made robust movements in products and high-value markets, generating sales revenue of US$ 1.8 billion.
Overseas markets consolidated their presences in their regions, with 66% of Huawei’s overall revenue generated outside China. Among the overseas revenue, the Asia- Pacific region saw revenue of US$ 6 billion, Europe, Middle East and Africa recorded US$ 12.4 billion, and the Americas contributed US$ 5.1 billion. The company’s domestic China market recorded US$ 11.8 billion.
In addition, the individual interests of Huawei employees are combined with the company’s sustainable growth – meaning everyone works hard to ensure Huawei’s long-term development. Huawei’s management team highly values integrity and self-discipline. The personal income of each member of the management team, from the most senior executives to middle-level managers, is limited to their salary, incentive bonus and stock dividends provided by the company. Related policies and regulations have been established and implemented to ensure that no one in the company could abuse their power for self-serving purposes.