Huawei 2016 Annual Report: Solid Growth and Sustained Investment in the Future
Huawei today releasedits audited financial results for 2016, reporting that its Carrier, Enterprise, and Consumer business groups (BGs) each achievedsolid year-on-year growth. Group annual revenue was CNY521.6 billion(US$75.1 billion), an increase of 32% over 2015. Net profitswereCNY37.1 billion(US$5.3 billion), an increase of0.4%.In 2016, Huaweicontinued to invest in the future, withthe company’s annual spendingonresearch and developmentreachingCNY76.4billion(US$11 billion).
Eric Xu, Huawei Rotating CEO, remarked, “In 2016, Huaweimaintained its strategic focus and achieved solid growth.As humanitycontinues toexplore and make new breakthroughs in the digital world, digitization and increasing intelligence present huge business opportunities for all industries,and are alsopaving the road for new growth for the ICT industry.We will stay customer-centric and will support digitaltransformation in all industries, in order to create value for our customersand to grow sustainably.”
In 2016, Huawei’s Carrier BG generated CNY290.6 billion(US$41.8 billion) in revenue, an increase of24% year-on-year. This wasachieved by focusing ondigital transformation and leveraging major opportunities in cloud, video,the Internet of Things, and operations transformation for carrier customers.
Working in closecollaboration with its partners, Huawei’s Enterprise BGdelivered ICT infrastructure to support the digital transformation of key vertical industries, including finance, energy, government bodies, and public safety. This business generated CNY40.7billion(US$5.9 billion) in annual revenue, an increase of 47%.
Thanks to its increasingly innovative products and growing global recognition as a premium device brand, Huawei’s Consumer BG shipped 139 million smartphones during 2016, and reported CNY179.8 billion(US$25.9 billion) in annual revenue, up 44%.
Sabrina Meng, Huawei’s CFO, noted: “Huawei was operationally healthy in 2016, with ample cash reserves, a solid and sustainable capital structure,and high resilience against risk. In 2017, we will continue to boostthe efficiency and quality of our operations to ensure solid growth.”
Financial statements in the 2016 Annual Report are audited independently byKPMG.
To download the 2016 Annual Report, visit www.huawei.com/en/about-huawei/annual-report/2016
Note 1: All CNY figures in the Annual Report were converted into USDusing the closing rate on December 31, 2016: US$1.00 = CNY6.9448.
Note 2: Growth rates are calculated based on CNY figures.
Huawei is a leading global information and communications technology (ICT) solutions provider. Our aim is to build a better connected world, acting as a responsible corporate citizen, innovative enabler for the information society, and collaborative contributor to the industry. Driven by customer-centric innovation and open partnerships, Huawei has established an end-to-end ICT solutions portfolio that gives customers competitive advantages in telecom and enterprise networks, devices and cloud computing. Huawei’s 180,000 employees worldwide are committed to creating maximum value for telecom operators, enterprises and consumers. Our innovative ICT solutions, products and services are used in more than 170 countries and regions, serving over one-third of the world’s population. Founded in 1987, Huawei is a private company fully owned by its employees.