Huawei has released its audited financial results for the year ending December 31, 2016, reporting that the Europe, Middle East and Africa (EMEA) region is now the firm’s second largest revenue contributor.
Thanks to growing technology solutions uptake in Africa among other regions in the EMEA, Huawei Group’s annual revenue jumped to Kshs 7.7 trillion (US $75.1 billion) representing a 32% growth over the previous year.
The firm’s trading results indicates that the EMEA region contributed Kshs 2.2 trillion (US $ 22 billion) in revenue coming in second after China which is the firm’s largest market.
While confirming the firm’s commitment to the local and African market Huawei Kenya Director Government Affairs and Public Communications, Cyril Liang Xu said: “At Huawei, it is our dream that we will build a better connected world. As seen through our offerings in Kenya; our competitively priced smartphones, our Safe City security solutions that now serve more than 800 million people in over 200 cities across over 80 countries and regions in Europe, Africa, and Asia-Pacific innovations, Seeds for the Future youth training programs amongst others, we aim to achieve an overall sustainable world.”
He added that: “We believe that this fiscal year will see us deepen our roots into the market by collaborating with companies such as Safaricom and the ICT Authority to offer Kenyans need based innovative technologies.”
In 2016, Huawei continued to invest in the future, with the company’s annual spending on research and development reaching Kshs 1.1 trillion (US $11 billion. Huawei will strive to offer relevant innovative solutions in their daily operations across all sectors of the Kenyan economy.
The Kenyan market is progressive in matters technology as noted in its mobile penetration rate of 88% and internet users standing at 69.6%. The market still has untapped potential which, in the near future, Huawei plans to venture into through innovations such as the smart transport and smart grid ICT solutions to curb urbanization challenges, 5G internet connections and Internet of Things technology to ease life processes.
“In 2016, Huawei maintained its strategic focus and achieved solid growth. As humanity continues to explore and make new breakthroughs in the digital world, digitization and increasing intelligence present huge business opportunities for all industries, and are also paving the road for new growth for the ICT industry. We will stay customer-centric and will support digital transformation in all industries, in order to create value for our customers and to grow sustainably,” remarked Eric Xu, Huawei Rotating CEO while commenting on the results.
Working in close collaboration with its partners, Huawei’s Enterprise BG delivered ICT infrastructure to support the digital transformation of key vertical industries, including finance, energy, government bodies, and public safety. This business generated approximately Kshs 607 billion (US $5.9 billion) in annual revenue, an increase of 47%.
Thanks to its increasingly innovative products and growing global recognition as a premium device brand, Huawei’s Consumer BG shipped 139 million smartphones during 2016, and reported approximately Kshs 2.7 trillion (US $25.9 billion) in annual revenue, up 44%.
Huawei had healthy operations in 2016 with ample cash reserves, a solid and sustainable capital structure, and high resilience against risk. In 2017, Huawei aims to continue boosting the efficiency and quality of their operations to ensure solid growth.