Huawei''s 2014 net profit up 32%

May 06, 2015

Huawei Technologies Co.’s 2014 net profit rose 32% from a year earlier on higher revenue.

By Michael Kanaabi

Huawei Technologies Co.’s 2014 net profit rose 32% from a year earlier on higher revenue.


Huawei, a smartphone maker and one of the world’s largest suppliers of telecommunications equipment, posted full-year net profit of US$4.49 billion, compared with US$3.3 billion in 2013.

Revenue for the year rose 21% to 46.5 billion dollars according to the company’s financial statements for the year ended December 2014 .

Ken Hu the Company’s deputy Board Chairman and rotating CEO attributed this growth to improved efficiency in the company and streamlining of management.

"Profit increase stems from streamlined management and improvements in overall efficiency," Ken Hu said in a statement.

Chief Financial Officer, Meng Wanzhou adds that the company is in a strong liquidity position thanks to last year’s growth and its cash position now stands at 12.6 billion dollars against a debt of 4.5 billion dollars.  

Huawei invested 6.6 billion dollars in research and development representing a 29% growth in research and development expenditure from the previous year. The company maintains a major focus on research and development with up to 76,000 employees who make up 45% of its total staff dedicated to its research and development.

And as a result of this emphasis the company has so far filed up to 38,000 patents around the world. The medium term outlook of the company remains good with revenue and profit expected to grow steadily over the medium term as the company focuses on more innovations to deliver better and improved products to its clients across the globe

“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” Ken Hu the Company’s global CEO said.

Huawei Uganda’s operations started in 2001 and to date the company employees over 100 Ugandans, representing up to 70% of staff in its Uganda office. It boasts a wide range of clients in the country including government departments, parastatals and telecom and IT companies.

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