Huawei releases annual report and full 2013 financial figures

Huawei, a leading global information and communications technology (ICT) solutions provider, has released its audited 2013 financial results delivering record sales revenues and net profit. Huawei's financial performance was strong across all business areas in 2013, achieving steady growth and sales revenues of USD $39.4 billion, up 8.5% year-on-year or 11.6% if measured in US dollars, and net profit of USD $3.4 billion. 

"Thanks to the favorable global macroeconomic and industry environment, as well as the effective execution of our company strategy, Huawei basically achieved our business targets for 2013," said Eric Xu, Huawei's Rotating and Acting CEO. “Huawei has never been more closely connected to the world than it is now. This level of connectivity has two implications. First, ICT technologies have been deployed in more than 170 countries and regions, helping more than 3 billion people connect to the world, communicate anytime, anywhere, and easily acquire and share information. Second, this connected world is reshaping politics, economics, business, and production at an incredible speed and with formidable force. ” 

Huawei’s significant global presence has helped it achieve stable and continuous growth in its carrier network, enterprise, and consumer businesses. In 2013, Huawei's carrier network business delivered a solid performance, achieving USD $27.4 billion in sales revenue, up 4% year-on-year. The sales revenues of the enterprise and consumer businesses increased tremendously in 2013, by 32.4% and 17.8% to USD $2.5 billion and USD $9.4 billion, respectively. 

Huawei earned 65% of its revenue from markets outside of China in 2013. In the Chinese market, the company achieved USD $13.8 billion in sales revenues, up 14.2% year-on-year. On the local level Huawei Middle East is headquartered in Bahrain and has offices across 10 countries with around 4,000 employees, of whom over 60% are local hires. All three of Huawei’s main business groups, carrier network, enterprise and consumer, are active in the region. 

Continuous innovation has been essential to effective growth for Huawei. In 2013, Huawei invested approximately USD $5.06 billion into R&D which is about 12.8% of its sales revenue. Huawei's total R&D investment over the last 10 years exceeded USD $24.9 billion. Huawei innovates based on customer needs and will increase its investment in basic scientific and engineering technologies as necessary to maintain its leadership position in core ICT technologies. 

"In the past year, to adapt to the future development trend, Huawei published the SoftCOM network architecture in order to develop ICT-convergent products and solutions,” Xu continued. “The future will hold a better connected world, where everyone can share everything. Alongside our customers and partners, we will build the world’s most efficient and integrated digital logistics system to ensure full connectivity between people, people and things, and things and things. Doing so will facilitate the free sharing of ideas. We will continue to pursue dreams, spark innovation, and drive the evolution of technologies, industries, and human interaction to create a better connected world.” 

In 2014, Huawei sees the growing penetration of ultra-broadband and mobile broadband, particularly LTE, as an important strategic opportunity. Smart devices will be another key area for the company as they become more and more of an intrinsic necessity to "digital natives" and extensions of people's sensory systems. ICT is turning into a production system and a core competence for enterprises, driven by the transformation of existing IT systems and the reconstruction of traditional industries toward digital. 

Xu added: "2014 marks a new beginning, not only for Huawei, but for the entire industry. Huawei is still a young company, and the ICT industry is booming. A connected world has unlocked opportunities beyond our imagination. While continuing to pursue a more focused strategy and a leaner management style in 2014, we will work to expedite steady growth to lay a solid foundation for the company's development over the next 10 years, especially to pursue a leading position in the Enterprise business." 

Huawei's full-year results, which have been independently audited by international accounting firm KPMG, are outlined in the company's 2013 annual report. The annual report can be found at http://www.huawei.com/en/annualreport2013.