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China's Huawei sales up 24% in 2010

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Sales revenue of China's Huawei Technologies rose 24.2 percent year on year to 185.2 billion yuan (28.4 billion U.S. dollars) in 2010, the telecom equipment maker said in its annual report released on its website Monday.

Huawei attributed the growth mainly to its fast-growing overseas markets, with sales there rising 33.8 percent year-on-year to 120.4 billion yuan.

"This progress was mainly driven by significant growth in our overseas market," Huawei's chief executive officer Ren Zhengfei said in a public letter.

Huawei's overseas sales accounted for 65 percent of the company's total, 5 percentage points higher than in 2009, while domestic sales registered relatively moderate growth of 9.7 percent, according to the annual report.

Rapid and balanced development in business segments such as Telecom Networks, Devices and Global Services was another major contributor to the growth, Ren said.

Net profit of Huawei reached 23.8 billion yuan last year, up 30 percent from 18.3 billion yuan in 2009. Its net profit margin in 2010 was 12.8 percent, according to the report.

As a leading telecom solutions provider, Huawei has deployed its products and solutions in over 140 countries.

The Shenzhen-based telecom equipment provider has witnessed fast overseas expansion in recent years. However, its expansion efforts have sometimes encountered setbacks.

In February, Huawei withdrew from an agreement to buy assets of 3Leaf Systems while under pressure from a U.S. panel over security concerns.

It was Huawei's latest setback to acquire assets in the United States.

In 2010, Huawei was blocked from purchasing the mobile wireless network division of Motorola, as well as 2Wire, an American supplier of broadband Internet software.

In 2008, its buyout attempt of 3Com with Bain Capital was rejected by the U.S. government for "security reasons".

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