Huawei Technologies Co Ltd, China’s top telecommunications equipment maker, reported a 17% increase in its operating profit the previous year as the global adoption of 4G mobile technology increased earnings.
Huawei’s profit reached 34.3 billion yuan last year with a 20% increase in its revenue at 289 billion yuan. The company disclosed the data on Tuesday during unaudited results.
The company competes with Ericsson of Sweden when it comes to the top rank in communications towers market and other infrastructure. The company is also eyeing on the development of 5G technology.
Meanwhile, the 4G networks’ gradual switch has enhanced business at both companies. On Tuesday, Huawei said the revenue in its carrier network venture jumped 15% last year. According to some assessments, China’s top 3 carriers were able to build almost 1 million 4G towers towards the end of last year.
The company’s Chief Executive Officer (CEO), Meng Wanzhou, said the operating profit margin of last year, almost matched the 12% in 2013, thus, the company will continually allocate 10% of its revenue to research and development.
In 2013, the company executives said Huawei would invest 600 million dollars in 5G research and development until 2017. Simultaneously, the company will continually pursue its multiple-year expansion into the enterprise and smartphone computing.
Last year’s revenue jumped 32% in the company’s consumer devices business, while 27% in enterprise division.