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Huawei’s 2013 profit may reach $US4.85bn

Huawei’s 2013 profit may reach $US4.85bn

Company’s unaudited financials point at revenue between $US39.29 billion and $US29.62bn

Communications vendor, Huawei, has reported that unaudited 2013 revenue will reach between $US39.29 billion and $US29.62bn (¥238bn to ¥240bn based on a December 31 exchange rate of $US1 to ¥6.0569), reflecting an increase of 11.6 per cent year-over-year (YoY).

Overall operating profit for the year is expected to be in the range of $US4.72bn and $US4.85bn (¥28.6bn to ¥29.4bn), with cash flow from operating activities and the company’s asset to liability ratio remaining stable.

In a statement, Huawei said it achieved new business growth in its carrier network business, claiming more than 75 per cent of the group’s 2013 revenue came from the world’s top 50 telecommunications carriers. It also reported that the proportion of revenue from services and software in the same business increased to 37 per cent in 2013, up from 34 per cent the year prior.

The vendor said its consumer and enterprise business groups generated rapid growth as well.

Huawei attributes the figures to its investment in innovation.

“Every year for the over the past 10 years, Huawei has invested more than 10 per cent of sales revenue in innovation,” Huawei financial officer, Cathy Meng, said. “In 2013 alone, the company’s investment in research and development reached ¥33bn ($US5.49bn), accounting for about 14 per cent of our sales revenue.”

According to Huawei, its “continued profitability was supported by improved efficiencies and reductions in internal management and operating costs” which came as a result of several restructures. This included the reorganisation of its corporate management, new training programs for staff, and the strengthening of roles and responsibilities for frontline management.

Moving forward, the company said it is committed in investing $US600m by 2018 in supporting research and innovation in 5G mobile network technologies.

Huawei will report its audited financial results in the second quarter of 2014.

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