Huawei Technologies Co. posted 25.01 percent jump in annual profit, thanks to copious investment in research and development (R&D) as the Chinese telecoms firm won customers for its smartphones and networking gear.
China’s largest tech company by sales posted net income of CNY59.30 billion (N3.18bn) in 2018 as its 5G business continues to garner traction.
Revenue for the year round jumped 19.50 percent to CNY721.20 billion, as the company battles with Apple for number 2 spot in the industry.
Huawei, according to its 2018 annual report, invested CNY101.5 billion (14.1% of its sales revenue) in R&D, ranking fifth globally in the 2018 European Union Industrial R&D Investment Scoreboard.
Guo Ping, Huawei’s rotating chairman, spoke at the release of its annual report, noting that over the last 10 years, Huawei’s R&D expenditure had reached more than CNY480 billion.
Financial statements in the 2018 Annual Report are independently audited by KPMG, an international Big Four accounting firm.
According to official data released by the World Intellectual Property Organisation (WIPO), Huawei filed 5,405 patent applications in 2018, ranking first among all companies globally.
The same year, Huawei bagged the award for the Supplier of the Year 2018 and Best Innovation 2018 at MTN’s annual Supplier Award Ceremony in Dubai, according to a statement by the company.
Huawei got the awards after emerging top with performance metrics such as quality, delivery and support, account performance management, innovation and meeting MTN compliance and risk requirements.
The Best Innovation Award focuses on suppliers who demonstrate and share best practice, market insights and generate the most innovative ideas and solutions.
“MTN has worked extensively with Huawei to ensure MTN continuously stays at the forefront of the telecoms industry, and consistently delivers the most innovative products and services to its customers,” the statement added.
“As a supplier with leading products and solutions and with a team of dedicated professionals, Huawei has been a part of our success for a very long time and we recognise their partnership with confidence towards a bright future,” said Dirk Karl, MTN group executive, Global Sourcing and Supply Chain, as he presented the awards to Huawei.
“Hand in hand, both MTN and Huawei teams have been working together and conquered numerous difficulties in the past. We look forward to continuing our collaboration and overcoming any new challenges we may face in the future,” the president of Huawei – MTN Key Account Group, Frank Li, said.
Speaking on the role of ICT in socio-economic development, Guo Ping, Huawei’s rotating chairman, said, “Information and Communications Technology is rapidly working its way into every industry. This has triggered a digital, intelligent transformation – the driving force behind our digital economy. Through heavy, consistent investment in 5G innovation, alongside large-scale commercial deployment, Huawei is committed to building the world’s best network connections.
“Throughout this process, Huawei will continue to strictly comply with all relevant standards to build secure, trustworthy, and high-quality products. As we work towards this goal, we have been explicitly clear: Cyber security and user privacy protection are at the absolute top of our agenda. We are confident that the companies that choose to work with Huawei will be the most competitive in the 5G era. And countries that choose to work with Huawei will gain an advantage for the next wave of growth in the digital economy.”
“The easiest way to bring down a fortress is to attack it from within. And the easiest way to reinforce it is from outside. Moving forward, we will do everything we can to shake off outside distractions, improve management, and make progress towards our strategic goals. We will continue to strengthen operational compliance, ensure business continuity and sustainability, and cultivate an open ecosystem where all players collaborate and prosper together. In addition, we will continue our organisational transformation to inspire greater passion and vitality across the organisation.”
In its carrier business, Huawei launched its latest 5G and SoftCOM Artificial Intelligent Solutions solutions, focusing on making them as simple as possible to use and maintain. In its enterprise business, Huawei continued providing cloud, big data, AI, and the Internet of Things solutions as well as a range of products for data centres, all-flash storage, and WiFi.
In its enterprise business, Huawei continued providing cloud, big data, artificial intelligence (AI), and IoT solutions, as well as a range of products for data centres, all-flash storage, and WiFi. By integrating these technologies into its digital platform, Huawei has facilitated the construction of smart cities, safe cities, and smart campuses, and has helped drive the digital transformation of its customers in the finance, transportation, and energy sectors. In 2018, the sales revenue of Huawei’s enterprise business reached CNY74.4 billion, up 23.8% year-on-year.
In its cloud business, Huawei launched 160 cloud services and 140 solutions, and worked with its partners to serve customers worldwide with 40 availability zones across 23 regions. Huawei has grown its list of partners to more than 6,000 in this domain, and is actively exploring the use of its AI services in more than 200 projects across 10 major industries.
In its consumer business, Huawei further increased its share of the global smartphone market and has further enhanced the positioning of its high-end devices. It has also made major breakthroughs in building an intelligent ecosystem for all user scenarios. In 2018, the sales revenue of Huawei’s consumer business reached CNY348.9 billion, up 45.1% year-on-year.
