Huawei looks to five years of growth

As Huawei posts a year-on-year rise in profit, it promises five more years with a compound annual growth rate of 10%

The annual results of Huawei were published today, showing rises in both revenue and profit over the course of 2012 and confidence that growth will continue in the coming years.

The Chinese telecoms firm claimed the figures showed “steady business growth” as sales revenues hit just over CNY220bn – £23bn – up from almost CNY204bn in the previous year. Net profit also saw a healthy jump, rising by 32% from CNY11.6bn in 2011 to CNY15.4bn in 2012.

Huawei’s carrier network division performed the best, responsible for over CNY160bn of its revenues and growing by 6.7% year on year. However, its enterprise business grew by the largest percentage, with revenue rising 25.8% on last year to hit CNY11.5bn. The consumer business also rose by 8.4% compared with 2011, bringing in revenues of CNY48.4bn.

Despite its controversies in both the US and Europe – with government officials suggesting using telecoms equipment from the company could lead to leaks to the Chinese government and threats to national security – Huawei managed to grow in both regions.

An 8.4% year-on-year growth in Europe, the Middle East and Africa led to record revenues of CNY77.4bn for the region, while in the Americas sales rose by 4.3% to CNY31.8bn.

"In 2012, Huawei met business performance expectations through improved operational efficiency," said Guo Ping, Huawei's rotating and acting CEO.

“Today, telecoms networks are yet to meet the requirements for ubiquitous connections… [and] Huawei will continue to focus on its pipe strategy, integrate and develop businesses around the information pipe and create value for customers, while achieving sustainable and effective growth," he said.

Looking to the future, the company predicted sales and profit would continue to grow, going as far as to say it expected a compound annual growth rate of 10% in the next five years.

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