Huawei 2011 Annual Report Download - page 8

03 /Letter from the Rotating and Acting CEO
Huawei basically achieved the expected business results.
Through the dedicated efforts of all our employees, our
sales revenue reached CNY203.9 billion and net profits
amounted to CNY11.6 billion in 2011.
The downward spiral in the global economy, combined
with other factors like political turmoil in some regions and
exchange rate fluctuations, has impacted our company
this past year. In spite of these difculties, Huawei basically
achieved the expected business results. Through the
dedicated efforts of all our employees, our sales revenue
reached CNY203.9 billion and net profits amounted
to CNY11.6 billion in 2011. We increased our business
investments and recruited nearly 30,000 additional employees.
In addition, we adopted risk prevention initiatives to improve
the quality of our contracts and to resolve transactional issues.
These initiatives have laid a solid foundation for our continued
growth over the next couple of years.
Our carrier network business has been growing steadily.
We maintained a leading position in wireless LTE networks
and experienced rapid growth in the area of professional
services and national broadband. In carrier software and
core networks, Huawei provides end-to-end solutions and
services for more than 310 carrier customers worldwide.
In the enterprise business area, Huawei has become a
mainstream supplier of information and communication
technologies (ICT) solutions for enterprises in China. The
establishment of the IT Product Line and the acquisition of
Symantec's shares in Huawei Symantec have strengthened
our leading position in providing cloud computing data
center solutions and improved our capabilities in providing
ICT solutions for enterprise customers. Sales revenue from
our consumer business was CNY44.6 billion, an increase
of 44% year-on-year. Device shipments reached nearly
150 million units, an annual increase of over 30%. We
also launched a series of flagship devices that received
outstanding feedbacks from the market.
The ICT industry is now in a new stage of development.
User experience characterized by zero wait time, superb
quality, and simplicity has become the key factor that drives
the development of this industry. Cloud computing will be
used more widely and will change many of the business
models in the CT and IT industries. In the next five years,
the number of mobile broadband subscribers is expected to
exceed ve billion and network trafc is projected to grow a
hundredfold. Smart devices will become increasingly popular
and will be an integral part of people's daily lives.
While capitalizing on these unprecedented opportunities,
we also face numerous challenges. From a macroeconomic
perspective, the global economy remains stagnant. Factors
such as inflation and exchange rate fluctuations have
increased our operating costs and exposed us to greater
operational risks. Weak global demand, the burst of the
asset bubble, and financial deleveraging are likely to occur
simultaneously, which has increased the degree of uncertainty
about the future of the global economy. Our capabilities
in selecting and executing strategies are being tested as
we face new scenarios and difficulties. To clearly define
the decision-making structure, streamline processes and
organizations, and improve operational efficiency, we have
adopted a management mechanism that is geared towards
operating multiple business groups (BGs) rather than the
Letter from the Rotating and Acting CEO