Huawei posts net profit of US$681 million in 2005

19 June 2006

Beijing, China, 19 June – Huawei Technologies, China’s largest manufacturer of telecommunications equipment, said Friday that it had posted net profit for 2005 of US$681 million.

The company’s turnover totalled US$5.92 billion in 2005, against US$3.83 billion in 2004.

Sales on the international market totalled US$3.43 billion, or 58 percent of total turnover, for the first time overtaking sales on the domestic market, according to Huawei’s report.

The company added that it expected turnover of US$7.8 billion in 2006, with international sales accounting for 60 percent of that figure.

Huawei, which is a private company based in Shenzhen, a city bordering Hong Kong in Southern China, is the largest Chinese communication technology company, and is present in 14 European and American companies, including Portugal, where it has agreements to sell its technology to
operators Optimus and Novis, both of which are majority-owned by Sonecom.

In Brazil, according to recent statements from Johnson Hu, the company’s vice-president for international development, Huawei aims to increase turnover by between 30 and 50 percent, based on growth of mobile networks in the market.

In Brazil, which is the company’s base in South America, Huawei has contracts with fixed and mobile operators, such as Telefonica, Brasil Telecom, Telemar, CTBC and Embratel and, in March, it won the contract to expand the GSM network of Telemar/Oi.

The company’s turnover in Brazil in 2005 was over US$200 million, according to Hu. (macauhub)