Global technology solutions firm Huawei, which operates locally under the Huawei Technologies (Kenya) Company Limited subsidiary, has released its audited financial results for 2017, reporting solid business growth.
In the firm’s Annual Report, Huawei cites significant progress on the local market; confirming that its efforts to bridge the digital divide in Kenya among other countries are beginning to bear fruit.
“By leveraging our core strengths, we are working with our customers to narrow the gap in network connections, digital services, and digital tools adoption. In Kenya, we have helped significantly reduce the medical costs of over 200,000 people; with digital clinic and telemedicine platforms,” the report says.
“In 2017, we partnered with carriers including Safaricom in Kenya, Pakistan Telecommunication Company Limited (PTCL), PLDT in the Philippines, and Omantel in the Middle East; to implement the approach of value driven network deployment and jointly build premium broadband networks. This has allowed these carriers to set themselves apart from the competition and achieve business success,” it adds.
Locally, Huawei Technologies Kenya is also currently implementing the Nairobi Intelligent Traffic System (ITS) project. The project is part of the Nairobi Urban Transport Improvement Program; and funded to the tune of Kshs.1.4 Billion by World Bank and the Government of Kenya; with Kenya Urban Roads being the implementing agency. The implementation of the Nairobi ITS comes hot on the heels of the Huawei Digital Railway Solution deployment; for the Mombasa-Nairobi Standard Gauge Railway project.
“Huawei strives to facilitate easy transportation for people and goods. We are determined to provide an innovative Smart Traffic Solution for customers; in order to improve the safety and efficiency of transportation, as well as passenger experiences,” the report confirms adding that:
“At the end of 2017, we served over 220,000 km of railways and highways; over 60 urban railway lines, and more than 50 customers in the aviation industry.”
Huawei’s 2017 Annual Report: Solid Performance and Lasting Value for Customers
The company announced that its total annual revenue was CNY603.6 billion (US$92.5 billion based on year-end exchange rates), an increase of 15.7% over 2016. Net profits were CNY47.5 billion (US$7.3 billion), an increase of 28.1% year-on-year. In 2017, Huawei’s annual investment in research and development reached CNY89.7 billion (US$13.8 billion), up 17.4% compared with 2016. The company’s total R&D spend over the past decade has exceeded CNY394 billion (US$60.4 billion).
According to Huawei’s Rotating Chairman, Ken Hu, “We’re on a new journey, opportunities and challenges are popping up faster than ever before, and nonstop open innovation is the only way we can keep ahead of the game. Over the next 10 years, Huawei will continue to increase investment in technological innovation, investing more than 10 billion dollars back into R&D every year. We will actively pursue open collaboration, attract and cultivate top talent, and step up efforts in exploratory research. We want to better enable all industries to go digital and intelligent.”
“As we look to 2018, emerging technologies like the Internet of Things, cloud computing, artificial intelligence, and 5G will soon see large-scale application. Throughout this process, Huawei will stay at the forefront of technological innovation and business transformation. More importantly, we will pay special attention to the practical challenges that our customers face as they go digital. Our job is to help them overcome these challenges and achieve business success. Ultimately, we aim to bring digital to every person, home and organization for a fully connected, intelligent world.”
In 2017, Huawei’s Carrier business group generated CNY297.8 billion (US$45.7 billion) in revenue; an increase of 2.5% year-on-year, focusing on helping global carriers maximize the potential of their existing network assets and seize new opportunities in video, IoT, and cloud markets.
Huawei’s Enterprise business group enhanced innovations in cloud, big data, campus networks, data centers, IoT, and other domains, and drove extensive application of its products and solutions for a range of vertical industries. In 2017, Huawei’s enterprise business generated CNY54.9 billion (US$8.4 billion) in annual revenue, an increase of 35.1% compared with 2016.
In Huawei’s consumer business, the Huawei and Honor brands ran full speed ahead, leading to rapid growth in their respective markets. Huawei shipped a total of 153 million smartphones (including Honor) in 2017, and reported CNY237.2 billion (US$36.4 billion) in annual revenue, up 31.9% year-on-year.
Huawei set up a Cloud Business Unit in 2017, which launched 99 cloud services across 14 major categories, and over 50 solutions. The company also unveiled the Enterprise Intelligence (EI) platform, and developed over 2,000 cloud service partners.