Sunday, April 17, 2011

Huawei's Revenue Hit CNY185.2 Billion in 2010, Up 24.2%

Huawei Technologies reported sales revenues of CNY 185.2 billion (US$28.36 billion) for full-year 2010, a 24.2% growth over the previous year. Huawei also reported an increased net profit of CNY 23.8 billion (US$3.64 billion), up 30.0% from 2009, and net profit margin of 12.3%. The financial results were independently audited by international accounting firm KPMG.

Huawei cited several factors for its steady growth in 2010, including a notable expansion in overseas markets, as well as continued development in its three core business divisions – Telecom Networks, Global Services, and Devices.

The company also vowed to adopt a more market-oriented corporate governance. Under this new structure, each of Huawei's main business units will be overseen by its own executive management teams that are in turn managed by the company's CEO alongside an active Board of Directors that provide direction and ensure synergies across the lines of business. The current Board was elected in at the beginning of 2011 and their biographies are included in Huawei's 2010 annual report.

Huawei will establish four business groups: Carrier Network, Enterprise Business, Device Business, and Other Business.

Sales revenue from the China market was CNY 64,771 million, an increase of 9.7% year-on-year.

The 2010 operating margin was 15.8%, increased 1.7 percentage points from 2009, as a result of consistent
implementation of expense control measures and favorable gross margin. Gross margin in 2010 was
41.9%, 2.3 percentage points higher than 2009.

Telecom Networks sales for 2010 were CNY122,921 million, an increase of 23.0% year-on-year.

Huawei is forecasting that the number of LTE subscribers worldwide will reach 600 million in 2015.

"Operators continue to choose Huawei for our unique ability to transform their needs into customized, innovative, and flexible solutions that create maximum value for their business," said Ken Hu, Deputy Chairman of Huawei Technologies. "As part of Huawei's future growth strategy, we leveraged our deep experience in the telecoms industry to expand into new areas, including the enterprise and device businesses, and will continue to capitalize on opportunities provided by the industry's digital transformation to support our global business in 2011."

The company also noted that by the end of 2010, it had deployed over 80 SingleRAN networks for operators, among which 28 LTE networks were commercially launched or ready to be launched.

Huawei now has 110,000 employees.