Huawei Announces 43 Percent Jump in Full Year Profits
Published on: 16th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Huawei has released its unaudited financial results and said that its revenues for 2013 are expected to be up by around 8 percent at between CNY238 billion to CNY 240 billion (around USD39.8 billion).
More than 75 percent of the carrier network business group's revenue in 2013 came from the world's top 50 telecom carriers, while the proportion of revenue from services and software in the carrier business increased to 37 percent in 2013 from 34 percent in 2012.
Huawei says that it also generated rapid growth in its consumer and enterprise business groups.
Chief Financial Officer Cathy Meng announced that Huawei's operating profit for 2013 is expected to be in the range CNY28.6 billion to CNY29.4 billion. That represents a jump of around 43 percent over the previous year. The company said that profits growth was due to restructuring and cost cutting measures.
Ms Meng added, "Every year for over the past 10 years, Huawei has invested more than 10 percent of sales revenue in innovation. In 2013 alone, the company's investment in R&D reached CNY33 billion, accounting for about 14 percent of our sales revenue."
This means Huawei's annual investment in R&D exceeded USD5.4 billion for the first time.
Huawei's audited results are due to be announced in the second quarter of 2014.