(Yicai Global) March 29 -- Chinese telecom equipment giant Huawei Technologies has increased its net profit on the back of its strong mobile phone business.
Huawei lifted its net profit 25 percent to CNY59.3 billion (USD8.8 billion) in 2018, the Shenzhen-based firm's earnings report that was released today shows.
Huawei narrowed the gap between it and the world's two biggest smartphone sellers of Samsung Electronics and Apple last year. It increased global shipments 34 percent to 206 million. "Huawei's consumer business has surpassed its carrier business for the first time," Guo Ping, the firm's rotating chairman, said at the earnings meeting. "This is a structural change."
The company bolstered its revenue nearly by 20 percent to CNY721.2 billion. That for its consumer business rose 45 percent to CNY348.9 billion. The operating income from its corporate business advanced 24 percent to CNY74.4 billion. That related to its operator business stood at CNY294 billion, basically unchanged.
Huawei boosted its spending on research and development. At CNY101.5 billion, such expenses equal to 14 percent of its total revenue for the entire year. The firm ranked fifth on the EU Industrial R&D Investment Scoreboard released by the European Union. During the past decade, Huawei has spent CNY480 million in R&D.
At over 5,400 patent applications, Huawei submitted the biggest number of these documents to the World Intellectual Property Organization last year. "Huawei pays attention to protecting its intellectual property rights and respecting the IP rights of others," Guo said.
Huawei is committed to creating the best network connection in the world while strictly complying with the related standards, and prioritizing network security and privacy protection, according to Guo. Huawei has already won more than 30 commercial 5G contracts and it has built 45,000 5G base stations.
Huawei's stock price [SHE: 002502] has risen 2.4 percent today to CNY4.3 (US 60 cents).
Editor: Emmi Laine