NEW DELHI: ICT solutions provider Huawei has recorded a 32.7% rise in its net profit to $4.5 billion in 2014 over the last year and said it would continue its investment heavily around innovative areas such as cloud computing, big data, etc.
Its overall group revenue reached $ 46.5 billion, an increase of 20.6% against 2013.
”Our strong revenue growth in 2014 can be attributed to a continuous focus on our pipe strategy, while profit increase stems from streamlined management and improvements in overall efficiency,” said Ken Hu, Deputy Chairman of the Board and Rotating CEO.
Huawei continues to invest heavily in innovation. In 2014, Huawei invested $6.6 billion into research and development (R&D), representing 14.2% of 2014 revenue and a significant increase of 29.4% from 2013.
It has invested more than $ 30.7 billion in R&D over the past decade.
“With heavy investment in innovations in areas such as cloud computing, big data, 5G, SDN and NFV, we believe we are well positioned to capture the tremendous business opportunities in this digital transformation era.”
The revenues from Carrier Business Group increased by 16.4% to $ 31 billion, with a strong contribution from mobile broadband network rollouts around the world
The Enterprise Business Group’s revenue increased by 27.3% to $3 billion, with strong growth in network and IT areas including cloud data center solutions and agile networks
The Consumer Business Group’s revenue increased by 32.6% to $12 billion, thanks to growing consumer demand for smartphones and particularly strong growth in emerging markets.
Huawei CFO Meng Wanzhou remarked, “In 2014, Huawei maintained effective growth and achieved steady financial performance. Our cash flow, revenue, and profit all grew over the previous year. The net cash amounted to $12.6 billion. Moreover, our debt and financing structures have continuously improved. Huawei’s short-term and long-term borrowings totalled $4.5 billion as of December 31, 2014, provided primarily by overseas financial institutions at market rates.”
Hu said, “As 2015 unfolds, ICT technologies, notably broadband, cloud computing, Big Data, and the Internet of Things (IoT), are becoming the engines that drive transformations in many industries. Huawei will continue focusing on pipe strategy to create value for our customers. Through the dedication of our employees, Huawei strives to become a strategic partner for carriers in their future transformation, a leader in providing enterprise ICT infrastructure, and a top smart device brand preferred and trusted by consumers.”