Huawei eyes 10 pc growth in the next five years

BANGALORE, INDIA: Networking company Huawei forecasts a compound annual growth rate of 10 per cent in the next five years.

In its audit report, the networking company said that it has reported sales revenues of CNY220.19 billion and net profit of CNY15.38 billion.

"In 2012, Huawei met business performance expectations through improved operational efficiency," said Guo Ping, Huawei's Rotating and Acting CEO. "Today, telecom networks are yet to meet the requirements for ubiquitous connections - zero wait time, ultra broadband, and smart applications. In the future, ICT will continue to grow, with new opportunities coming from cloud computing, BYOD (Bring Your Own Device), and big data, and feature phones being replaced by smartphones at a faster rate. Huawei will continue to focus on its pipe strategy, integrate and develop businesses around the information pipe, and create value for customers, while achieving sustainable and effective growth."

Huawei's business demonstrated robust growth across all three of its business groups (BGs). The Carrier Network BG maintained its leadership position, achieving CNY160.1 billion in sales revenue, an increase of 6.7 per cent year-on-year.

The Enterprise BG continued to grow in the Chinese market and actively expanded internationally, achieving CNY11.5 billion in sales revenue, a 25.8 per cent increase from the previous year. The Consumer BG's global sales revenue reached CNY48.4 billion, an increase of 8.4 per cent year-on-year.

Rapid growth in Europe, the Middle East, and Africa (EMEA) contributed record regional sales revenue of CNY77.4 billion, an increase of 6.1 per cent year-on-year. In the Asia Pacific region, sales revenue was CNY37.4 billion, an increase of 7.2 per cent year-on-year; in the Americas, sales revenue was CNY31.8 billion, an increase of 4.3 per cent year-on-year.

Huawei generated CNY73.6 billion revenue from China, an increase of 12.2 per cent year-on-year.

In 2012, Huawei invested CNY30.09 billion, or 13.7 per cent, of its total sales revenue into research and development (R&D). The company has established 16 R&D centers and 28 joint innovation centers across the world.