Shenzhen, China-based global networking company Huawei Technologies Co. Ltd released its audited financial results for 2013 today (Monday, March 31, 2014) and said it had delivered "record sales revenues and net profit." According to executives from the company, "Huawei's financial performance was strong across all business areas in 2013, achieving steady growth and sales revenues of CNY239 billion [US$39.46 billion*], up 8.5 percent year-on-year (YOY), and net profit of CNY21 billion [US$3.47 billion]."
They attributed Huawei's strong financial showing for 2013 to a number of factors, not the least of which were global economic forces and information and communication technology (ICT) adoption trends, and the company's global presence and commitment to R&D.
"Thanks to the favourable global macroeconomic and industry environment, as well as the effective execution of our strategy, Huawei basically achieved its business targets for 2013," said Huawei's Rotating and Acting CEO, Eric Xu, commenting on his company's latest financial results. "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 three 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 executives would have us know that their company's "significant global presence [had] helped [them] achieve stable and [continued] growth in the carrier network, enterprise, and consumer businesses." According to them, in 2013 Huawei's carrier network business increased by 4.0 percent YOY and drew CNY166.5 billion (US$27.49 billion) in sales revenues, enterprise business by 32.4 percent and drew CNY15.2 billion (US$2.51 billion), and consumer business by 17.8 percent and drew CNY57 billion (US$9.41 billion). They also said that Huawei earned CNY84 million (US$13.87 million) in sales revenues in the domestic Chinese market (registering 14.2 percent YOY growth) but that 65 percent of Huawei's total revenue for the year was earned from markets outside of China.
Citing instances of their company's commitment to "continuous innovation" Huawei's executives said that in total for the year 2013 alone, they invested CNY30.7 billion (US$5.06 billion)-about 12.8 percent of their sales revenue for the year-in R&D, and that their total R&D investment in the last decade was upwards of CNY151 billion (US$24.93 billion).
Moving forward, they announced that they will invest in "core ICT technologies" and in the development of what Xu referred to as "ICT-convergent products and solutions."
"In the past year, to adapt to the future development trend, Huawei published the SoftCOM network architecture in order to develop ICT-convergent products and solutions," Xu said. "The future will hold a better connected world, where everyone can share everything. Alongside our customers and partners, we will build the world's most efficient and integrated digital logistics system to ensure full connectivity between people, people and things, and things and things. Doing so will facilitate the free sharing of ideas. We will continue to pursue dreams, spark innovation, and drive the evolution of technologies, industries, and human interaction to create a better connected world.
Huawei's executives said that in 2014 they will be watching closely the proliferation of ultra-broadband and mobile broadband services, and the mass adoption of smart devices worldwide, and will be looking for opportunities these trends throw up. "2014 marks a new beginning, not only for Huawei, but for the entire industry," said Xu. "A connected world has unlocked opportunities beyond our imagination. While continuing to pursue a more focused strategy and a leaner management style in 2014, we will work to expedite steady growth to lay a solid foundation for the company's development of the next 10 years, especially to pursue a leading position in the enterprise business."
* All CNY to US$ conversions here are based on the exchange rate of US$1 = CNY6.0569, as used by the Huawei financial report referenced.