2014 Annual Report shows strong financial performance across all Business Groups
Huawei has 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 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.”
