Huawei 2012 Annual Results gets them optimistic of 10% Annual growth rate

Huawei headquarters in Shenzhen

Huawei yesterday posted the year 2012 Annual Report which all showed steady improvement on the score card globally. Sales revenues of CNY 220.19 billion (Approx $35 million) with a net profit of CNY 15.38 billion (Approx $2.5 million). This has led to Huawei projecting a 10% Compound Annual growth rate over the next 5 years. (Exchange Rates: US$1.00 = CNY 6.2285 as of December 31, 2012)

Huawei which consists of three Business Groups, Carrier Network Business Group, Enterprise Business Group and Consumer Business Group. The Carrier Business Group takes the lead in revenues with CNY 160 billion representing a 6.7& growth. Enterprise Business Group on the other hand did CNY 11.5 billion, this being a 25.8% increase. Consumer Business Group that has mobile devices reached CNY 48.4 billion which was an 8.4% growth for the year.
China, the home country accounted for revenues of CNY 73.6 billion at 12.2% while Asia Pacific region did a CNY 37.4 billion at 7.2% growth, Europe, Middle East and Africa EMEA was the biggest contributor at CNY 77.4 billion representing a 6.1% increase. The Americas did CNY 37.4 billion with an increase of 4.3% year on year. 13% of Huawei’s sales revenue, CNY 30 billion went into research and development with 16 research and development centers and 28 joint innovation centers established across the world.

Huawei’s acting CEO Guo Ping noted that telecom networks are yet to meet pervasive connections that are zero wait time, ultra broadband and smart applications. BYOD (Bring Your Own Device) and Big Data are new growth frontiers in ICT and feature phones are fast being replaced by smartphones. Huawei intends to capitalize on opportunities presented by increased demand for professional services, carrier data center integration and cloud services in the Carrier business group Network while in the Enterprise segment, focus on cloud computing, data centro solutions and storage.