Huawei Posts Worst Profit Growth in Five Years
(Beijing) — Telecommunications giant Huawei Technologies Co. Ltd. said on Friday its profit was virtually unchanged in 2016, its worst performance in the last five years, as its margins came under intense pressure due to competition in its core businesses.
Huawei posted a profit of 37 billion yuan ($5.36 billion) last year, up just 0.4% from 2015, according to a self-released company report. Revenue rose by a much stronger 32% to 522 billion yuan, thanks in part to 44% growth in the company’s younger and fast-growing smartphone unit. But the company’s operating margin dipped to 9.1% amid stiff competition, down sharply from 11.6% in 2015 and the lowest level in the last four years.
In January, Huawei previously announced the 32% revenue growth for the year but declined to give the profit figure at that time. In a New Year’s message, rotating CEO Xu Zhijun said the company should seek sustainable growth and shift to pursuit of quality growth over growth at any cost. He sounded a similar tone in the latest results announcement.
“We can’t cling to what has worked or what we have gained, because past success is not a reliable indicator of the future,” Xu said in a statement with the annual report. “This is a vital fact that we must recognize. Moving forward, we need to hone our skills, step up to the plate, and aim for the stars.”
Huawei is not required to release financial data due to its status as a private company, but it still issues semi-annual reports in an effort to be more transparent.
The company said it still relied on China for nearly half of its sales last year, with revenue for the market rising 41% on strong gains for its core networking equipment and smartphones. Huawei is trying to become more global, and is already one of the world’s top players in its older networking equipment business. It is also aggressively trying to expand its newer smartphone business beyond its home China market.
Contact writer: Yang Ge (firstname.lastname@example.org)
Nov 26 06:42 PM
Nov 26 06:07 PM
Nov 26 05:21 PM
Nov 26 03:58 PM
Nov 26 01:16 PM
Nov 26 12:11 PM
Nov 26 11:44 AM
Nov 25 06:18 PM
Nov 25 06:16 PM
Nov 25 05:37 PM
Nov 25 04:18 PM
Nov 25 12:47 PM
Nov 24 06:00 PM
Nov 24 05:57 PM
- 1Gallery: Snow-Go for Schools in Northeastern City
- 2Malaysia Terminates $10.5 Billion Infrastructure Project Involving Chinese Investors
- 3China-Singapore (Chongqing) Connectivity Initiative Financial Summit 2020
- 4Brilliance Auto’s Debt Problems Drive It Into Restructuring
- 5Cover Story: How SOE Default Wave Shows State Bailouts Are Over
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas