Huawei delivered strong 2013 financial results after increased sales revenues contributed to record net profit.
The Chinese manufacturer saw enterprise and consumer sales increase by 32.4% and 17.8% to CNY15.2bn (£1.5bn) and CNY57bn (£5.5bn) respectively. 65% of its revenue came from markets outside China, while its home market achieved CNY84bn in sales revenues, a year-on-year increase of 14.2%.
Overall sales revenue was up 8.5% year-on-year to CNY239bn (£23bn).
Huawei’s rotating and acting CEO Eric Xu said: ‘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. 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 carrier network business grew 4% year-on-year to CNY166.5bn (£16bn). The smartphone maker invested 12.8% of its sales revenue (CNY30.7bn (£3bn)) into research and development, a number exceeded by CNY151bn (£15bn) over ten years.
Xu added: ‘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. 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.
‘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.’