Huawei says ‘innovation’ is behind its 8% increase in sales for 2013

Unaudited results for 2013 show sales revenue of CNY238bn-240bn (£24.0-24.2bn) while operating profit is expected to be CNY28.6bn-29.4 bn (£2.8-2.9bn)

Huawei says ‘innovation’ is behind its 8% increase in sales for 2013

Chinese ICT giant Huawei announced unaudited financial results for 2013 today (15 January 2014), which showed global sales revenue will reach CNY238-240 billion (£24.0-24.2bn) in 2013, up 8% (or 11.6% in US$).

Chief financial officer Cathy Meng announced a significant increase in operating profit for 2013, which is expected to be in the range CNY28.6 billion to CNY29.4 billion (£2.8bn-2.9bn). The figure for 2012 was CNY20 billion.

Huawei said it achieved new business growth across its carrier network, enterprise and consumer business groups. More than 75% of the carrier network business group’s revenue in 2013 came from the world's top 50 telecom carriers.

The proportion of revenue from services and software in the carrier business increased to 37% in 2013 from 34% in 2012. Huawei also generated rapid growth in its consumer and enterprise business groups, it reported.

The company said that its continued growth, ‘despite an increasingly competitive landscape in the global ICT industry’, can be attributed to its continued commitment to innovation.

Ms Meng said: "Every year for over the past 10 years, Huawei has invested more than 10% of sales revenue in innovation. In 2013 alone, the company's investment in R&D reached CNY33 billion (£3.3bn), accounting for about 14% of our sales revenue."

Huawei’s audited results will be announced in the second quarter of 2014.

See also: 

ZTE expects to return to profitability in 2013 

NSN sales slump in Q4 2013 and as full year revenues drop by 18%

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