Huawei sees 2013 operating profit jump 40%
Chinese vendor Huawei has increased its operating profits over 40 per cent for 2013, according to unaudited financial results released Wednesday. Operating profit for the year is expected to be between CNY28.6bn and CNY29.4bn, compared to just under CNY20bn in 2012.
The firm said it will achieve global revenue between CNY238bn ($39.37bn) and CNY240bn for the year, representing approximately an eight per cent increase year on year.
Huawei said it achieved new business growth across its carrier network, enterprise and consumer business units. The firm added that a key reason for its growth was the increased investment it made in scientific and engineering technologies in 2013. Huawei’s annual investment in research and development exceeded $5.4bn (CNY33bn) for the first time in its history.
“Every year for over the past 10 years, Huawei has invested more than ten per cent of sales revenue in innovation,” said Huawei CFO Cathy Meng. “In 2013 alone, the company’s investment in R&D reached CNY33bn, accounting for about 14 per cent of our sales revenue.”
The firm added that it took cost cutting measures in 2013, reducing internal management and operating costs. It also said it shifted its operating model from “function-centric” to “project-centric”.
“While we continue to focus on our business and innovation strategy and the ongoing process of simplifying our management structure throughout 2014, Huawei will also work to achieve effective long-term growth and lay the foundation for the company’s development over the next ten years,” Meng concluded.
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