Huawei Technologies Posts Solid Earnings

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Huawei Technologies Co. Ltd., the largest telecommunications equipment manufacturer in China, reported solid financial results for its fiscal 2013 driven by strong performance of its business in all areas.

Huawei Technologies financial results

The Chinese telecommunications equipment manufacturer said its revenue increased to 239 billion yuan ($39.46 billion) from 220 billion yuan in 2012. Its net profit was 21 billion yuan ($3.47 billion), up from 15.6 billion a year earlier.

Huawei Technologies Co. Ltd. said its operating profit increased from 20.65 billion yuan in 2012 to 29.12 billion yuan ($4.8 billion). Its operating margin is the same at 12.2%. The company said its total assets climbed from 210 billion yuan to 231 billion yuan ($38.22 billion).

In a statement, Eric Xu, deputy chairman and rotating chief executive officer of Huawei Technologies Co.Ltd. said, “Thanks to the favorable global macroeconomic and industry environment, as well as the effective execution of our company strategy, Huawei basically achieved our business targets for 2013.”

“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 3 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,” added Xu.

Huawei Technologies Co. Ltd. said the sales of its carrier network unit increase 4% to 166.5 billion yuan. The sales of its consumer business rose 18% to 57 billion yuan. The company’s enterprise division recorded a 32% sales increase to 15.2 billion yuan.

The company generated 65% of its revenue outside China as it tries to obtain more sales from bigger clients. Huawei Technologies expanded its mobile device offerings (smartphones and tablets) and business computing products and services while combating cybersecurity concerns. Australia and United States restricted the access to its network equipment.

Global smartphone market share

Last year, Huawei Technologies Co Ltd.’s smartphone market sales was behind the sales of Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Apple Inc. (NASDAQ:AAPL). According to IDC, its global smartphone market share increase from 4% to 4.9% in 2013.

The Chinese telecommunications equipment manufacturer’s target is to sell around 80 million to 100 million smartphone units to increase its market share to 8% this year. Huawei Technologies sold 50 million smartphones last year.

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