Huawei records 33pc profit increase to Sh215bn globally
The entrance of the Huawei office in central China's Hubei province on October 2012. Huawei and ZTE Corporation are engaged in a protracted legal battle over the control of a multi-billion shilling tender to supply Kenyan police with communication and surveillance system.
What you need to know:
- Sixty six per cent of the company’s total revenue came from outside China.
Technology firm Huawei saw its profits after tax soar 33 per cent in the financial year ending December 2012.
The global information and communications technology solutions provider said its net profits rose to Sh215 billion ($2.5 billion) in 2012, a 33 per cent increase from the previous year.
Huawei chief financial officer Cathy Meng said the company achieved the growth in 2012 owing to a streamlined management, improved efficiency and keen focus on customers.
“In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services programme,” Ms Meng said.
She noted that the earnings disclosure is part of the technology firm’s ongoing commitment as a private employee-owned company to be more open and transparent.
The firm’s global sales revenue stood at Sh3 trillion ($35.4 billion), an 8 per cent year-on-year increase, with the expectation that the same would grow between 10-12 per cent in 2013.
Sixty six per cent of the company’s total revenue came from outside China.
The Asia-Pacific region saw revenue of Sh516 billion ($6 billion), while Europe, Middle East and Africa recorded Sh1 trillion ($12bn) and the Americas contributed Sh430 billion ($5 billion). The domestic market in China, where the company is the market leader, recorded Sh1 trillion ($11.8 billion).
Earlier, Reuters had reported that Huawei’s competitor, ZTE, had warned of a net loss of as much as Sh40 billion ($465 million for 2012.
