Huawei garnered record revenue and net profit for 2014 with financial performance up strongly across all business areas, the Chinese mobile giants recent report revealed.
Overall group revenue reached $46.5 billion (288.2 billion yuan), an increase of 20.6 percent from 2013, and net profit reached $4.5 billion (27.9 billion yuan), up 32.7 percent year on year, Huawei said.
“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.”
The firm’s all business groups performed strongly in 2014, with carrier business, enterprise business and consumer business groups seeing revenues going up by 16.4, 27.3 and 32.6 percent respectively.
Huawei also continued to invest heavily in innovation. In 2014, the company invested $6.6 billion into research and development (R&D), representing 14.2 percent of 2014 revenue and an increase of 29.4 percent from 2013.
Huawei CFO Meng Wanzhou said, “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 … Huawei will continue focusing on pipe strategy to create value for our customers.”