Huawei CFO Announces 2012 Financial Results
Huawei, a global Information and Communications Technology (ICT) solutions provider has released its 2012 financial performance results.
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Cathy Meng, Huawei 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.
Huawei expects its 2012 global sales revenue to reach CNY 220.2 billion, 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 earnings disclosure today is part of Huawei’s ongoing commitment as a private employee-owned company which will be more open and transparent with stakeholders.
The 2012 results audited by KPMG would be outlined in the company’s annual report, which would be released in April.
Ms Meng explained that Huawei’s success in 2012 could be attributed to maximising 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 8quality,” said Ms Meng.
Continuous innovation focusing on customer needs is also an important driving force for Huawei’s growth.
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.
About 70 per cent of Huawei’s revenue was generated from serving leading telecommunications operators, including 45 of the world’s top 50.
Huawei has invested in and developed its Carrier Network.
One of the key factors for Huawei’s success is the individual interests of Huawei employees are combined with the company’s sustainable growth – meaning everyone works hard to ensure Huawei’s long-term development.
Huawei’s management team highly values integrity and self-discipline.
The personal income of each member of the management team, from board members to middle-level managers, is limited to their salary, incentive bonus and stock dividends provided by the company, with policies to ensure that no one in the company abuses their power for self-serving purposes.
Huawei’s three business groups continued their steady growth and achieved performance in line with expectations.
Huawei’s Carrier Network business group, a traditionally strong business group, continues to be a leader in the industry, with sales revenue of CNY 160.3 billion. Huawei’s Consumer Business group recorded robust sales revenue of CNY
48.4 billion, with sales continuing to grow in developed markets including Europe and Japan.