Monday, April 8, 2013

Huawei Hits 2012 Revenue of US$35 Billion, Up 8% YoY

Huawei reported 2012 annual revenue of CNY220.2 billion (US$35.35 billion), up 8% for year and ahead of its peers.  Net profit for 2012 amounted to CNY15.38 billion (US$2.47 billion).

Guo Pin, Huawei's current CEO, said "the demand for communications is not closely related to economic cycles and is only moderately impacted by the financial crisis." Despite turbulent conditions in many markets, Huawei managed to increase its overall revenue.

Some notes from Huawei's 2012 Annual Report:

  • More than 150,000 employess, including over 70,000 product and solution R&D employees.  The company now has 16 R&D centers around the world.
  • In his opening letter, Ren Zhengfei discusses employee motivation at Huawei and the company's principle of deriving all compensation exclusively from salaries, incentives and bonuses. No income outside Huawei is allowed.
  • Sales from the Chinese market totaled CNY73,579 million, an increase of 12.2% year-on-year.
  • Sales from Europe, the Middle East, and Africa (EMEA), amounted to CNY77,414 million, up 6.1% year-on-year.
  • Sales for the Americas, amounted to CNY31,846 million, an increase of 4.3% year-on-year. The company cited growth in infrastructure networks across Latin America, and  in the consumer business in North America.
  • The Carrier Network BG continued to maintain modest growth, while the Enterprise BG and the Consumer BG began to gather momentum. Of particular note, sales of the Consumer BG grew by more than 30%.
  • In 2012, the sales of Huawei’s middle-range and high-end flagship smartphones, such as the Ascend P1, Ascend D1 Quad, and Honor, soared in developed countries.
  • Sales revenue from wireless network equipment totaled CNY49,837 million in 2012.

  • As of year-end, Huawei had won 139 LTE and 80 EPC commercial contracts, of which 73 LTE and 59 EPC networks had been commercially launched. Huawei LTE/EPC networks had been deployed in 68 capital cities worldwide;
  • Sales revenue from fixed network equipment totaled CNY48,452 million in 2012.
  • Huawei now supplies routers to more than 20 mainstream carriers in Europe.
  • Huawei has been awarded more than  fifty 100G commercial contracts.

  • In 2012, revenue from Global Services amounted to CNY42,913 million.
  • Sales revenue in Huawei’s carrier software and core network business totaled CNY18,891 million in 2012.
  • Huawei has deployed 143 IMS networks, making it one of the leading players in this field.
  • In 2012, Huawei’s enterprise business generated sales of CNY11,530 million, a year-on-year increase of 25.8%.
  • Huawei is paying about US$300 million in patent royalties per year to other companies.
  • Huawei’s R&D expenses totaled CNY30,090 million in 2012, accounting for 13.7% of the company’s annual revenue.
  • KPMG served as independent auditor for the report.

See also