Huawei foresees 10-12 p.c. revenue growth in 2013

BEIJING, CHINA: Information and communications technology (ICT) solutions provider Huawei expects its 2012 global sales revenues to reach CNY 220.2 billion (1 USD equals 6.2285 CNY), an eight per cent year-on-year increase, with a net profit of CNY 15.4 billion, a 33 per cent increase from the previous year. The company expects its overall revenue to grow 10-12 per cent in 2013.

Sixty per cent of Huawei's overall revenue came from outside China. Among the overseas revenue, the Asia-Pacific region saw revenue of CNY 37.4 billion, while Europe, Middle East and Africa recorded CNY 77.4 billion and the Americas contributed CNY 31.8 billion. The domestic market China recorded CNY 73.6 billion.

Cathy Meng, Huawei's Chief Financial Officer, said the company achieved effective growth in 2012 by focusing on customers, streamlining management and improving efficiency. Ms. Meng is positive about the industry's future growth prospects.

The company has cumulatively invested CNY 120 billion in R&D over the past 10 years, including a CNY 29.9 billion investment in 2012, accounting for more than 13 per cent of the year's revenue.

Meng explained that Huawei's success in 2012 can be attributed to maximizing value for the customer.

"We insist on strictly controlling G&A expenses and allocate 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."

The company's release says that about 70 per cent of its 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, the release adds.

Huawei's Carrier Network business group had sales revenues of CNY 160.3 billion, its consumer business group recorded robust sales revenue of CNY 48.4 billion, with sales continuing to grow in developed markets including Europe and Japan. And its enterprise business group further developed its portfolio and won contracts, generating sales revenue of CNY 11.5 billion.

The convergence of mobile internet, smartphones, the digital and physical world is likely to generate hundreds of times more data in the coming years, which presents tremendous challenges as well as unprecedented opportunities for development of the ICT industry. Huawei believes that pipes with large bandwidth that can transmit and process massive data flow are the key to addressing these challenges and also Huawei's key growth driver in the future, adds the release.