Chinese tech giant Huawei released its 2015 annual report on Friday, indicating a 37% growth in its three main businesses. Its consumer business accounted for a third of its revenue.
According to the report, Huawei’s 2015 revenue reached RMB 3.9 trillion (USD 60.8 billion), a 37% YoY increase. Its net profit was RMB 36.9 billion (USD 5.7 billion), a 33% YoY increase, and cash flow from operating activities totaled RMB 49.3 billion (USD 7.6 billion).
“In the past few years, Huawei has benefited a lot from the huge information and communication technology (ICT) market in the digital economy era,” said Guo Ping, the Rotating and Acting CEO of Huawei.
The report says Huawei’s revenue comes from its three main businesses: carrier, enterprise and consumer.
The company’s income from its carrier business reached RMB 2.3 trillion, a 21% YoY increase thanks to the extensive global deployment of its 4G network.
Its enterprise business increased by 44% YoY, contributing RMB 27.6 billion to its revenue. Huawei’s enterprise business encompasses public security, finance, transportation and energy.
Significant growth in the company’s consumer business was the highlight of 2015 for Huawei. Its consumer business contributed RMB 1.3 trillion and a 73% YoY increase. The report indicated that its consumer business made up 26% of revenue in 2014. This proportion increased to 33% in 2015.
Geographically speaking, the Chinese market contributed the most to Huawei’s revenue in 2015. It made RMB 1.7 trillion in revenue from China, 54.3% of total revenue. Europe, the Middle East and Africa accounted for 27.2% with RMB 1.3 trillion, the Americas accounted for 26.4% with RMB 39 billion, and the Asia Pacific region accounted for 19.1% with RMB 50.5 billion.
Huawei invested RMB 59.6 billion in research and development (R&D) in 2015, about 15% of the company’s revenue. Huawei’s R&D personnel reached 79,000 globally, accounting for 45% of its whole staff.
“Over the next two decades, we must explore new technological concepts, mathematical models and algorithms, and provide society with new theoretical approaches,” said Guo.
“Networks will be standardized and simplified. We need to contribute to the concepts, theory, and architecture of future data transmission.”
According to Guo, Huawei’s goal is to generate USD 30 billion in revenue in 2016. The president of Huawei Ren Zhengfei set a goal for the company to make USD 100 billion in annual revenue in five years during an internal meeting in January.
(Photos from Huawei 2015 Annual Report)