Huawei sees profit and revenue growth in 2013

Chinese infrastructure vendor Huawei said net profit for 2013 grew to $3.47bn, a 34 per cent year on year increase on the $2.58bn generated in 2012. The company also posted an 11.6 per cent year on year growth in revenue for 2013 to generate $39.5bn (CNY239.0bn) compared with $36.36bn in 2012.

Huawei claimed that its global presence enabled it to achieve stable growth in its carrier network, enterprise and consumer businesses. Rrevenue from its carrier network business grew four per cent year on year to $27.5bn, while revenue from the enterprise and consumer businesses increased by 32.4 per cent and 17.8 per cent year on year to $2.5bn and $9.4bn respectively.

The firm added that 65 per cent of its income came from markets outside of China in 2013 and added that it also saw revenue in China grow 14.2 per cent year on year to reach $13.9bn.

Eric Xu, Huawei’s rotating and acting CEO, attributed the growth to “the favourable global macroeconomic and industry environment” as well as the effective execution of its company strategy.

The vendor also announced plans to invest further in research in development in 2014. Huawei said it invested $5.1bn into research and development last year; around 12.8 per cent of its 2013 revenue, and that it has invested almost $25bn in R&D over the past ten years. The firm said it will increase its investment in basic scientific and engineering technologies in the coming year to maintain its leadership position in core ICT technologies.

“2014 marks a new beginning, not only for Huawei, but for the entire industry,” said Xu. “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 ten years, especially to pursue a leading position in the enterprise business.”

The firm also announced that Guo Ping will be appointed the acting CEO of Huawei from April 1st 2014 to September 30th 2014, in accordance with Huawei’s “Rotating CEO” system. The firm explained that the rotating CEO acts as the primary person of the company’s operations and crisis management during his tenure. He will also be responsible for chairing Board of Directors’ Executive Committee and Executive Management Team meetings.