Chinese infrastructure vendor Huawei has posted its financial results for 2012, in which it saw its net profit increase by almost a quarter year-on-year to reach CNY 15.38bn (US$ 2.47bn).
Revenue for the year stood at CNY 220bn, up from the CNY 203.9bn recorded in 2011. The firm said it saw growth across all three of its business groups: carrier network, enterprise and consumer (devices).
The carrier network business group generated CNY 160.1bn in revenue, an increase of 6.7 per cent year-on-year. The enterprise business continued to grow at home and abroad, generating CNY 11.5bn in sales revenue, a 25% increase from the previous year. The consumer division’s global sales revenue reached CNY 48.4bn, an increase of 8% year-on-year.
Over the year Huawei invested CNY 30bn into research and development, representing 13% of its total sales revenue. In the next five years, the firm expects to see a compound annual growth rate of 10%.
According to CEO Ren Zhengfei, Huawei is fundamentally changing its approach to reward its key personnel better, in order to better compete with its rivals.
“In the past, our appraisal system focused on commonalities rather than individualities, and therefore failed to appropriately widen the gap between employees with respect to compensation and benefits,” he said.