Huawei 2008 Annual Report Download

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Table of contents

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    ... Innovation Broadband Everywhere Convergence and Transformation Innovative Services Emerging Markets Green Communications Products, Solutions and Services Radio Access Network All-IP Broadband Network Core Network Software Services Terminals Corporate Social Responsibility Financial Report Glossary

  • Page 4
    ... market challenges, translating technological advantages into commercial success. Leading Products and Solutions Our products and services embrace radio access networks, All-IP broadband, core network, software, professional services and terminals. With all major products ranking among the top...

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    ...ended 31 December Revenue Net Income Cash Flows From Operations Operating Profit Margin Return on Net Assets 2008 18,329 1,...Revenue (USD in millions) Net Income (USD in millions) Cash Flows from Operations (USD in millions) ·All the financial data are quoted from the unqualified auditing reports...

  • Page 6
    2008 Highlights 03 2008 HIGHLIGHTS

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    ... responsive, professional and dedicated services for customers. In 2008, our sales in managed services increased 67% year on year. By the end of 2008, we had been delivering more than 45 managed services projects. Leading provider of mobile broadband terminals More than 25 million units of Huawei...

  • Page 8
    Message from Huawei Executive Management Team 05 MESSAGE FROM HUAWEI EMT

  • Page 9
    ...networks with low Total Cost of Ownership (TCO) and innovative services which increase revenue will be the key to addressing the rapidly changing challenges of operators. Our commitment to our customers and our position as a trusted partner will enable operators to break bottlenecks in broadband and...

  • Page 10
    Continuous Customer-Centric Innovation 07 CONTINUOUS CUSTOMER-CENTRIC INNOVATION

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    ...devoted to cutting-edge, core and essential technologies. We have set up 14 R&D institutes worldwide. With this global R&D organization, we are able to effectively leverage the best global human and technological resources. 20% Ranking among the world's top three, holding 20% of total essential LTE...

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    09 BROADBAND EVERYWHERE

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    ...an increase of 1.2 billion over the number of current users. High bandwidth of fixed networks, combined with extensive mobile coverage has the potential to offer users ubiquitous broadband service experiences. Capturing the tremendous business opportunities brought about by ubiquitous broadband will...

  • Page 14
    ...All-IP network convergence covers every network layer, from the access network to the bearer and core networks, as well as services and terminals. By incorporating a wide variety of radio access technologies, Huawei's SingleRAN solution simplifies choices for technological and network evolutions and...

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    CONVERGENCE AND TRANSFORMATION 12

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    ... operators. Huawei SolutionProfit margin expansion through innovative applications and intelligent traffic management Value-added services and basic service foundation elements, including a unified service development platform, convergent billing, personal entertainment, digital home, digital media...

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    INNOVATIVE SERVICES 14

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    ... solutions and services Problems with basic infrastructure, engineering, power supply, and transmission account for a large proportion of the construction cost in emerging markets. To address this issue, Huawei has been creating innovative approaches to highpower coverage, solar and wind power...

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    EMERGING MARKETS 16

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    ..., Green World" program, Huawei is committed to ensuring harmony between technological development, environmental and economic benefits. Environmental protection is incorporated into our end-to-end solutions, covering base station sites, equipment rooms, transmission and supply chains. Our product...

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    GREEN COMMUNICATIONS 18

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    Products, Solutions and Services 19 PRODUCTS, SOLUTIONS AND SERVICES

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    ... deployment of All-IP broadband networks, an area where Huawei has market leadership. The IPTime Solution, a carrier-class All-IP ultra-broadband green network solution, developed by Huawei, integrates products of fixed access, transmission network, Metro Ethernet, routers, OSS and service. As well...

  • Page 24
    ...and thus more business opportunities for enterprises. 2008 Key Achievements ·Ranked No. 1 for RBT services, serving 1.2 billion users worldwide ·Ranked No. 2 among telecom equipment vendors in billing system sales ·Constructed the world's most advanced and largest SDP platform, which serves Telef...

  • Page 25
    ...area of mobile broadband terminals. Our expertise in mobile phone customization has positioned us as the leading ODM provider of UMTS phones. We also hold a leadership position in the convergence field, providing converged terminals that support various access modes and service experiences. Our high...

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    Corporate Social Responsibility 23 CORPORATE SOCIAL RESPONSIBILITY

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    ... all. Supply Chain Huawei also incorporates CSR requirements into the certification, selection and management of our suppliers. We have instituted and enacted a supplier social responsibility verification program, and the training and certification of procurement employees and suppliers is based on...

  • Page 28
    Consolidated Income Statement Huawei Technologies Corporation and Subsidiary Companies For the year ended 31 December 2008 USD '000 2007 * USD '000 Revenue Cost of sales Gross profit Operating expenses Other operating income/loss Income from operations 18,328,956 (11,060,376) 7,268,580 (4,820,843)...

  • Page 29
    ... Sheet Huawei Technologies Corporation and Subsidiary Companies As of 31 December 2008 USD '000 2007 * USD '000 Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets Property, plant and equipment Long-term leasehold prepayments Intangible assets Investments...

  • Page 30
    ...International Financial Reporting Standards). ·The consolidated financial statements of the year ended 31 December 2008 have been translated to US dollars at the rate of USD1.00=CNY 6.8225 ( 2007: USD1.00=CNY 7.3046). ·According to the company's decision, the terminal business had been transferred...

  • Page 31
    ... entities. The Group's activities involve research and development, production and sale of telecommunications equipment and provision of related services. ii) Contract revenue When the outcome of a construction contract can be estimated reliably, revenue from a fixed price contract is recognised...

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    ... to market conditions and discounted cash flow forecasts. The Group's current lease agreements, which were entered into on an arm's-length basis, were taken into account. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: 2008 2007 USD'000 USD'000 Less...

  • Page 33
    ... to The Home General Packet Radio Service Global System for Mobile communications High-Speed Packet Access Information and Communications Technology International Engineering Consortium Intelligent Network Internet Protocol Integrated Product Development IP Transport Infrastructure for Multi-play...

  • Page 34
    ...to specific customer requirements and conditions. Trademarks and Permissions and other Huawei trademarks are trademarks of Huawei Technologies Co., Ltd. All other trademarks and trade names mentioned in this document are the property of their respective holders. Printed on environmentally friendly...