Huawei today released the KPMG-audited annual report which showed record revenue and net profit for 2014, with financial performance up strongly across all business areas.
Overall Group revenue reached CNY288.2 billion (USD46.5 billion), an increase of 20.6% from 2013, and Group net profit reached CNY27.9 billion (USD4.5 billion), up 32.7% year on year.
“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. “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.”
All Business Groups (BGs) performed strongly in 2014:
Carrier Business Group – revenue increased by 16.4% to CNY192.1 billion (USD31 billion), with a strong contribution from mobile broadband network rollouts around the world
- Enterprise Business Group – revenue increased by 27.3% to CNY19.4 billion (USD3 billion), with strong growth in network and IT areas including cloud data center solutions and agile networks
- Consumer Business Group – revenue increased by 32.6% to CNY75.1 billion (USD12 billion), thanks to growing consumer demand for smartphones and particularly strong growth in emerging markets.
Huawei continues to invest heavily in innovation. In 2014, Huawei invested CNY40.8 billion (USD6.6 billion) into research and development (R&D), representing 14.2% of 2014 revenue and a significant increase of 29.4% from 2013. Huawei has invested more than CNY190 billion (USD30.7 billion) in R&D over the past decade.
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 CNY77.9 billion (USD12.6 billion). Moreover, our debt and financing structures have continuously improved. Huawei’s short-term and long-term borrowings totaled CNY28.1 billion (USD4.5 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.”
Hu continued, “Together with our customers and partners, we are committed to building a Better Connected World with our innovative ICT products, solutions and services, thus creating value for social progress.”
(Exchange Rates: 1USD = 6.1958CNY as of December 31, 2014)
(All increase rates in the press release was calculated in CNY)