(Corrects headline and second paragraph to say results are
unaudited, not audited)
* Net profit up 33 pct, revenues rose 8 pct in 2012
* Huawei says to increase investments, risk management
By Lee Chyen Yee
BEIJING, Jan 21 Huawei Technologies Co Ltd
, the world's No.2 telecom equipment maker and the sixth
largest mobile phone vendor, posted a 33 percent rise in net
profit in 2012, reversing a fall in 2011 thanks to new telecom
projects and smartphone sales.
Privately held Huawei, which ranks behind Sweden's Ericsson
in telecom equipment sales, reported an unaudited net
profit of 15.4 billion yuan ($2.5 billion), up from 11.6 billion
yuan in 2011, Chief Financial Officer Cathy Meng said.
Revenue for the year rose 8 percent to 220.2 billion yuan.
"Huawei will increase investments and strengthen risk
management to lay a solid foundation for sustainable growth in
the future," Meng, the daughter of company founder Ren Zhengfei,
told a results presentation.
The results were in line with a New Year message to
employees from Huawei's acting and rotating CEO Guo Ping, who
said the Shenzhen-based company's net profit would be around
$2.4 billion and its revenues would exceed $35 billion.
Huawei's results came a day after rival ZTE Corp
, China's second-largest telecom equipment maker,
warned of a net loss of up to 2.9 billion yuan ($467 million)
Huawei, founded in 1987 by former Chinese military officer
Ren Zhengfei, is known for aggressively gaining sales in the
telecom equipment sector by edging out rivals such as
Alcatel-Lucent SA, Nokia Siemens Networks
While Huawei has boosted sales and gained market share in
Europe, Africa and Asia, it has also run into obstacles in
countries including the United States and Australia due to
national security and cyber espionage concerns.
Huawei, which has repeatedly said it has no links with the
Chinese government, has diversified into the mobile devices area
selling dongles, mobile phones and tablet PCs, aiming to tap the
fast-growing sector and build its global brand name.
"Huawei has a better long-term outlook (than ZTE) because it
has telecom equipment, enterprise and handsets business,"
said Jessie Yu, an analyst with Frost & Sullivan, ahead of the
"Its handsets are doing quite well and it has maintained its
telecom equipment share. There is also some pickup in its
enterprise business, so overall, its revenues channels are wider
($1 = 6.2154 Chinese yuan)
(Reporting by Lee Chyen Yee; Editing by Richard Pullin)