Strategic focus and investment led to technological breakthroughs and sustainable growth
Huawei announced its financial results for 2015, reporting that its Carrier, Enterprise, and Consumer Business Groups (BGs) all achieved strong year-on-year growth. The three BGs generated CNY395 billion (US$60.8 billion) in annual revenue worldwide, an increase of 37% YoY. Net profit was CNY36.9 billion (US$5.7 billion), up 33% YoY.
Guo Ping, Huawei’s deputy chairman and rotating CEO, remarked, “In part, Huawei owes its long-term growth to the sheer size of the ICT market, which is the driving force of digital economies around the world. However, our growth is also a direct result of strategic focus and heavy investment in our core businesses. Over the next three to five years, we will concentrate on enhancing connectivity, enabling the development of vertical industries, and redefining network capabilities. With an open and collaborative approach, and a commitment to shared success, we will work closely with our customers and partners to maximize industry development opportunities. Together, we will build a Better Connected World.”
In 2015, Huawei’s three business segments experienced significant growth:
The Carrier BG generated CNY232.3 billion (US$35.8 billion) in annual revenue, up 21% YoY. Widespread rollout of 4G networks accounted for a large portion of this growth.
The Enterprise BG generated CNY27.6 billion (US$4.3 billion) in annual revenue, an increase of 44% YoY. In particular, Huawei’s enterprise business experienced rapid growth in the public safety, finance, transportation, and energy sectors.
A major highlight of the company’s performance in 2015, Huawei’s Consumer BG reported CNY129.1 billion (US$19.9 billion) in annual revenue, up 73% YoY. This increase was a direct result of increased demand for high-quality products that deliver a premium user experience, as well as Huawei’s growing influence as a consumer brand.
Over the past 20-plus years, Huawei has remained focused on ICT infrastructure, steadily investing in R&D. In 2015 alone, Huawei invested 15% of its annual revenue – CNY59.6 billion (US$9.2 billion) – in research and development. Huawei’s total R&D investment over the past decade exceeds CNY240 billion (approximately US$37 billion).
Sabrina Meng, Huawei’s CFO, noted: “We wrapped up 2015 in a robust financial position, with stable cash flow from operating activities, increased cash availability, and effective risk control. In 2016, we will continue to focus on our pipe strategy, staying customer-centric in all we do. We will press ahead with management transformation projects to better prepare ourselves for the future, and continue boosting the efficiency of our operations to ensure sustainable growth.”
Huawei’s 2015 Annual Report is based on financial statements audited independently by KPMG, an international accounting firm.