Monday, January 21, 2013

Huawei Hits 2012 Sales of US$35.40 Billion, Up 8%

Huawei announced 2012 global sales revenues to reach CNY 220.2 billion (UD$35.40 billion), an 8% year-on-year increase, with a net profit of CNY 15.4 billion (US$2.48 billion), a 33% increase from the previous year. (percentage increase based on CNY)

Huawei said about 70% of its revenue was generated from serving leading telecommunications operators, including 45 of the world's top 50.

Some notes:

  • Carrier Network business group - CNY 160.3 billion
  • Consumer business group -- CNY 48.4 billion -- sales continuing to grow in developed markets including Europe and Japan.
  • Enterprise business  -- CNY 11.5 billion.
  • R&D expenses in 2012 were CNY 29.9 billion (US$4.81 billion) , representing for more than 13% of the year's revenue.
  • The domestic market in China recorded CNY 73.6 billion in revenue.
  • Overseas revenue was CNY 145.3 billion (US$23.36 billion) or 66% of overall revenue: Asia-Pacific region saw revenue of CNY 37.4 billion (US$6.01 billion) , while Europe, Middle East and Africa recorded CNY 77.4 billion (US$12.44 billion) and the Americas contributed CNY 31.8 billion (US$5.18 billion). 

"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 quality," said Ms. Cathy Meng, Huawei's CFO. "In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services program."

Huawei noted that its results are audited by KPMG.  The annual report will be released in April.