Rotating and Acting CEO Eric Xu: Create a better connected world

Huawei releases 2013 annual report, recorded an 8.5% year-on-year increase in sales revenue (11.6% YOY growth in USD)

[Shenzhen, China, March 31, 2014] Huawei, a leading global information and communications technology (ICT) solutions provider, today released its audited 2013 financial results, delivering record sales revenues and net profit. Huawei's financial performance was strong across all business areas in 2013, achieving steady growth and sales revenues of CNY239 billion, up 8.5% year-on-year (11.6% YOY growth in USD), and net profit of CNY21 billion.

"Thanks to the favorable global macroeconomic and industry environment, as well as the effective execution of our company strategy, Huawei basically achieved our business targets for 2013," said Eric Xu, Huawei's Rotating and Acting CEO. “Huawei has never been more closely connected to the world than it is now. This level of connectivity has two implications. First, ICT technologies have been deployed in more than 170 countries and regions, helping more than 3 billion people connect to the world, communicate anytime, anywhere, and easily acquire and share information. Second, this connected world is reshaping politics, economics, business, and production at an incredible speed and with formidable force. ”

Our significant global presence has helped us achieve stable and continuous growth in the carrier network, enterprise, and consumer businesses. In 2013, Huawei's carrier network business delivered a solid performance, achieving CNY166.5 billion in sales revenue, up 4.0% year-on-year. The sales revenues of the enterprise and consumer businesses increased tremendously in 2013, by 32.4% and 17.8% to CNY15.2 billion and CNY57.0 billion, respectively. Huawei earned 65% of its revenue from markets outside of China in 2013, and in the Chinese market, Huawei achieved CNY84 billion in sales revenues, up 14.2% year-on-year.

Continuous innovation is essential to effective growth. In 2013, Huawei invested CNY30.7 billion (~5.06 USD billion) into R&D which is about 12.8% of its sales revenue. And, Huawei's total R&D investment over the last 10 years exceeded CNY151 billion. Huawei innovates based on customer needs and will increase its investment in basic scientific and engineering technologies as necessary to maintain its leadership position in core ICT technologies.

Xu continued, "In the past year, to adapt to the future development trend, Huawei published the SoftCOM network architecture in order to develop ICT-convergent products and solutions. The future will hold a better connected world, where everyone can share everything. Alongside our customers and partners, we will build the world’s most efficient and integrated digital logistics system to ensure full connectivity between people, people and things, and things and things. Doing so will facilitate the free sharing of ideas. We will continue to pursue dreams, spark innovation, and drive the evolution of technologies, industries, and human interaction to create a better connected world.”

In 2014, Huawei sees the growing penetration of ultra-broadband and mobile broadband, particularly LTE, as an important strategic opportunity. Smart devices will be another key area for the company as they become more and more of an intrinsic necessity to "digital natives" and extensions of people's sensory systems. ICT is turning into a production system and a core competence for enterprises, driven by the transformation of existing IT systems and the reconstruction of traditional industries toward digital.

Xu added, "2014 marks a new beginning, not only for Huawei, but for the entire industry. Huawei is still a young company, and the ICT industry is booming. A connected world has unlocked opportunities beyond our imagination. While continuing to pursue a more focused strategy and a leaner management style in 2014, we will work to expedite steady growth to lay a solid foundation for the company's development over the next 10 years, especially to pursue a leading position in the Enterprise business."

Huawei's full-year results, which have been independently audited by international accounting firm KPMG, are outlined in the company's 2013 annual report. The annual report can be found at http://www.huawei.com/en/annualreport2013

(Exchange Rates: 1USD = 6.0569 CNY as of December 31, 2013)

华为轮值CEO徐直军：构建更加美好的全联接世界
华为发布2013年报，销售收入同比增长8.5%

[中国，深圳，2014年3月31日]全球领先的信息和通信解决方案供应商华为今天发布经审计的2013年度财报。报告显示，2013年公司各项业务持续有效增长，实现全球销售收入2390亿元人民币，同比增长8.5%，净利润210亿元。

“受益于整体向好的全球宏观经济环境和行业环境，及公司战略的有效执行，2013年华为基本实现了预期的经营目标。 ”华为轮值CEO徐直军表示，“回顾过去，华为从来没有像今天这样，与世界联接得如此紧密。这不仅在于，我们已经运用信息与通信技术，覆盖170多个国家和地区、帮助近30亿人加入了世界的联接，让人们随时随地实现自由沟通与信息分享；这还意味着，今天这个联接的世界，正以超乎想象的速度与力量，对人类社会的政治经济、商业文明、生产方式等进行全面的重塑。”

华为构筑的全球化均衡布局使公司在运营商网络、企业业务和消费者领域均获得了稳定健康的发展。2013年运营商网络业务实现销售收入1665亿元人民币，同比增长4.0%；企业业务和消费者业务同比增长率为32.4%和17.8%，分别报收152亿元和570亿元人民币。从区域维度看，65%的收入来自海外市场。中国市场实现销售收入840亿元，同比增长14.2%。

持续创新是公司有效增长的基础。在紧紧围绕客户需求创新的同时，华为加大了对基础科学技术和基础工程技术的创新投入，以保持在ICT核心技术领域的领先地位。2013年华为研发投入达307亿元人民币，占销售收入约12.8%，过去十年累计研发投入已超过1510亿元人民币。同时，华为持续推进全球化建设，进一步开放合作、整合全球优势资源，加大本地化经营授权，并成为对当地社会卓有贡献的企业公民。

“去年，华为发布了面向未来的SoftCOM网络架构，借助云计算等先进的IT技术和设计理念，引领和驱动网络变革和ICT走向融合，牵引公司产品与解决方案的发展方向。”徐直军说，“信息社会的数字化重构给ICT行业带来重大发展机遇，华为将紧紧抓住这一战略机遇，与客户、合作伙伴一道，全力打造全球最高效、整合的数字物流系统，让人与人、人与物、物与物全面互联，促进全面自由地沟通分享与思想交流，推动科技、产业及人类互动方式持续演进，创造更美好的全联接世界。”

展望2014年，宏观经济会继续复苏；超宽带、移动宽带特别是LTE的普及和发展，为电信业迎来新的发展机遇；智能终端将成为人的感官系统的延伸，成为“数字元人”不可或缺的一部分；IT转型和全社会在信息时代的数字化重构，将使ICT成为未来企业的生产系统和核心竞争力。

徐直军说：“这些有利的因素，都预示着2014年将是一个新的起点。这个起点不仅仅是华为的，更是全行业的。今天，华为依然是一家年轻的公司，ICT仍然是蓬勃发展的行业，联接的世界已然释放出了最富想象力的机遇，我们将继续在聚焦战略、简化管理的同时，力促有效增长，构筑公司面向下一个十年新一轮发展的基石，特别是建立华为在企业市场的领导地位。”


华为2013年年报可通过以下链接查看：http://www.huawei.com/cn/annualreport2013