华为2007年年报

Enriching Life Through Communication Annual Report 2007 1 Unique Values 3 Five-Year Summary 4 Business Focus 2007 5 Message from Huawei EMT 7 Continuous Innovation Based on Customer Needs 25 Products and Services 29 A Culture of Dedication 31 Corporate Social Responsibility 35 Financial Report 2007 Contents Annual Report 2007 UNIQUE VALUES Unique Values Long-Term Partnership Huawei has realized steady revenue growth for five straight years, with concomitant contributions from international markets. Supported by the momentum of well sustained growth, this solid track record has established Huawei as a major international supplier. The company has fulfilled the needs of 70% of the world’s top 50 telecom companies. Every year, more and more leading operators achieve long-term benefits from in-depth partnerships with Huawei. Continuous Innovation Based on Customer Needs The company has maintained a strategy of continuous customer-centric innovation. Product R&D has remained responsive to projected and actual customer needs. With the goal of maximizing customer benefits and values, we continuously improved our technologies, solutions and services. For enhanced customer correspondence and optimal response, we established joint innovation centers with Vodafone, British Telecom, Telecom Italia, France Telecom, Telefonica and Deutsche Telekom. These centers expedite the translation of technological advantages into time and efficiency critical competitive advantages. 1 UNIQUE VALUES Leading Solutions and Fast Response Huawei has established a head start advantage in future-oriented transformation. Our next generation products and services embrace mobile, broadband, IP, optical network, value-added services and terminals, offering customers the most competitive telecom solutions. Adhering to our proximity strategy, Huawei relocated essential decision-making centers, such as those of sales departments, financial departments and supply chains, to regional divisions. The company also established a three-level (local, regional and corporate) global service system to more precisely understand customers’ demands and quickly respond with the most appropriate professional support. High Caliber Operations Internationally, Huawei has achieved notable and increasing success at multiple levels of operations management from improved product deployment and enhanced quality controls to expedited network solutions and services, embracing the strict ethical requirements of all strategic partners including leading operators throughout Europe and in other developed markets. In 2007, Huawei inaugurated the IFS (Integrated Financial Service) program, addressing all essential financial reporting functionalities from a highly responsive worldwide platform. The new IFS program provides a uniquely strong backbone for Huawei’s future business expansion and fulfillment of our global strategic goals. IFS’s capabilities also fulfill the essential role of extending and deepening our partnership with leading operators. 2 FIVE-YEAR SUMMARY Five-Year Summary Years ended 31 December 2007 2006 2005 2004 2003 Revenue 12,560 8,504 5,982 3,827 2,694 Net Income 674 512 681 624 384 Cash Flows From Operations 843 743 708 396 385 Operating Profit Margin 7% 7% 14% 18% 19% Return on Net Assets 22% 20% 30% 31% 23% CAGR: 47% CAGR: 15% CAGR: 22% 0 2000 4000 6000 8000 10000 12000 14000 0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 900 Revenue (USD in millions) Net Income (USD in millions) Cash Flows from Operations (USD in millions) USD in millions 2,694 3,827 5,982 8,504 12,560 384 624 681 512 674 385 396 708 743 843 3 BUSINESS FOCUS 2007 Five-Year Summary Business Focus 2007 Enhanced Mobile Service n 2007, Huawei was awarded 45% of all new UMTS/HSPA contracts, garnering the company the prestige of global category leadership. Huawei has also become one of the top three suppliers in the global GSM market. In 2007 alone, 700,000 carrier frequencies of base station were shipped, the aggregate totals exceeded 1.5 million, serving over 300 million GSM users worldwide. Most notably, China Mobile awarded Huawei a 23.6% slice of a GSM group purchase project. In addition, Huawei’s market-leading mobile softswitches now serve more than 670 million subscribers. Winning 44.8% of all new contracts in 2007, Huawei has also earned leadership of the global CDMA category. Besides, the company has deployed 12 commercial WiMAX networks around the world. Leading Telecom Acknowledgment uawei has now been selected by a who’s who of global leading operators, including Vodafone, British Telecom, Telefonica, France Telecom/Orange and China Mobile, as a trusted partner for future- oriented network transformation. As a singular mark of recognition by the world’s leading mobile operator, Vodafone awarded Huawei a 2007 Global Supplier Award citing delivery of highly competitive products and services across the group’s network. Huawei was the only network equipment supplier to be awarded this specific accolade. Professional Services uawei has attached strategic importance to Professional Services. We have established a specialized professional services team and seven managed services centers across the world. Allowing customers to focus on their core business, Huawei now provides professional services and solutions in support of all aspects of network management, planning and optimization, as well as consultation and managed services. Huawei’s services are specifically designed to help operators innovate business models and sharpen their competitive edge. Huawei has achieved rapid growth in Managed Services, with 34 such contracts awarded by Vodafone, China Mobile, Etisalat, MTN, Warid and other international telecom incumbents in 2007. Environmental Protection and Energy Conservation uawei emphasizes the value of “green” in network deployment, power supply and product development. The policy of “green” is no longer solely an aspect of social responsibility; it has become a proven effective and practical means for operators to cut operating expenditure and maintain price competitiveness. By the end of 2007, Huawei had deployed over 100,000 GSM green base stations, saving approximately 570 million kilowatt-hours (kWh) or 170,000 tons of coal. I H H H 4 MESSAGE FROM HUAWEI EMT5 MESSAGE FROM HUAWEI EMT Operators hope to gain new revenue streams through developing all-IP broadband services while enhancing profitability through optimizing competitive cost structures. Meanwhile, in many emerging markets, billions of people are still unable to access basic communication services. Operators are focusing on rapid coverage of low ARPU (Average Revenue Per User) areas. To succeed in this new industry environment, a demonstrated reliable equipment supply partner, capable of ensuring future-oriented transformation and providing on- target solutions based on deep understanding of real world challenges, becomes essential. Globally, nationally or regionally, Huawei is just such a proven partner. Providing critical support for operators in this age of all-IP convergence, we have established comprehensive strengths in all essential fields, from fixed and mobile network to continuous data communication technological innovation. Furthermore, we continuously introduce on-target and highly competitive products and solutions designed to enhance operators’ profitability and Total Value of Ownership (TVO). Universally, Huawei is committed to cooperating with industry chain partners to build a winning business ecosystem with operators at the core to ensure long-term competitiveness for all parties. In retrospect, we truly understand your continued success is at the heart of our sustained growth. Going forward, Huawei will continue to advocate a corporate culture of dedication, and encourage employees to devote themselves to creating long- term value for customers through consistent hard work and innovation. Working together, we will all succeed in enriching life through optimizing communications across the world. Executive Management Team Huawei Technologies Co., Ltd. Message from Huawei EMT Dear Colleagues: n 2007, Huawei realized global contract sales of USD16 billion, an increase of 45% over 2006. International markets accounted for 72% of all sales revenues. Huawei achieved growth of more than 150% in developed markets such as Europe, the United States and Japan, while maintaining strong growth momentum in emerging markets including the Asia-Pacific region, Latin America, the Middle East and North Africa. Backed by several years of steady growth, Huawei has now become an undisputed industry leader. For this success, we gratefully credit our customers, our partners and our employees. Thank you all for your long-term trust and unflagging support. The world, as well as the information industry itself is becoming increasingly flatter as a result of fast evolving information technologies. Blurring initial borders, telecom networks, Internet, digital media and consumer electronics industry are rapidly converging in the same direction. This trend exposes the conventional telecom industry to unprecedented challenges and forces operators to reconsider and transform their business operating models in order to maintain position in the industry chain. All-IP based FMC has become the consensus among most operators as the solution for continued transformation. All-IP architecture and convergence across every network layer will help operators simplify network structure, save transmission and operating costs and enable a wide variety of innovative applications. End users will be able to enjoy consistent communication experiences anytime, anywhere via any terminal. In developed markets, more and more convergence- based services are marketed every month. I 6 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS Continuous Innovation Based on Customer Needs 7 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS No.4 Huawei ranked as the fourth largest patent applicant under the Patent Cooperation Treaty (PCT) of the World Intellectual Property Organization (WIPO). 83 Member of 83 standardization organizations (including ITU, 3GPP and 3GPP2). 35,000 35,000 employees (43% of all employees worldwide) are engaged in R&D. We believe that any advanced technology or product has to be translated into customers’ commercial success before it can generate any value. Giving top priority to customers’ specific needs, Huawei listens attentively and continuously innovates focusing on individual challenges and opportunities. Product R&D Driven by Customer Needs uawei launched the Integrated Product Development (IPD) program. Product R&D has remained responsive to projected and actual customer needs. Through widely applied modularization, standardization and technology sharing, we now present the integrated advantages of “Speed, Quality and Cost”, to maximize customer benefits and value. R&D Investment Huawei reinvested no less than 10% of sales revenue in R&D and 10% of the R&D budget in cutting-edge technologies and fundamental technologies. Our R&D system is now applied worldwide. Strategically located R&D institutes in the US, Europe, India, and throughout China, leverage the highest quality global human and technological resources. Patents and Standards By December of 2007, Huawei had filed 26,880 patent applications in aggregate. The number of UMTS 3G essential patent applications filed saw Huawei ranked among world’s top five. Huawei is a member of 83 standardization organizations (including ITU, 3GPP and 3GPP2) with over one hundred positions accepted. In 2007, a total of 3,072 proposals were submitted, including over 800 proposals in fiber transmission, access network, NGN, IP QoS and security, and more than 1,500 proposals in mobile core network, service application and radio access. H 8 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS On 22 December 2007, “EI Gordo” lottery TV show was broadcast as scheduled in Spain. Through a handset, Mario, who was out of the country on vacation, enjoyed the live moment simultaneously with countless other mobile TV spectators. In the past, when traveling, Mario could only discover the drawing result afterwards from Internet news. “It would have been a shame not to be able to watch the live draw especially if I won a prize myself!” Mario is one of 20 million fans of “EI Gordo” in Spain. Previously, to watch the live draw, aficionados had to stay in front of TV at home. In 2007, things became different. Irrespective of location, lottery fans can now witness the exciting moment as it happens. Freedom from TV at home occurred through the new mobile TV service provided by Vodafone. 3G subscribers to Vodafone Live! were offered access to 10 digital TV channels via their handsets. Services on TV and mobile phones continue to converge. Through ground breaking technology, Huawei helped Vodafone Spain increase its network performance by over 30% in total, paving the way for launch of the new mobile TV service. Around the globe, Huawei is enabling many operators with similarly innovative solutions to capture convergence business opportunities and to provide consistently enhanced communication experiences for end users. 3G subscribers to Vodafone Live! were offered access to 10 digital TV channels via their handsets. Services on TV and mobile phones continue to converge. 9 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS 10 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS People expect integrated multimedia information services and consistent communication experiences anywhere, anytime, at home, at office or on the road regardless of the network they access. Convergence Consistent communication experience for everyone 11 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS Customer Demands elecom networks, IT, digital media and consumer electronics are evolving to offer more comprehensive and in-depth convergence. To sustain growth, operators need to transform existing communication networks into more flexible, open and affordable all-IP networks and, in the process, achieve a convergence of network technologies to provide end users with a commensurate communication experience. Huawei Innovations To help expedite evolution and ensure sustained commercial success, Huawei has launched innovative solutions for network, technology and service convergence. Network Convergence: Pooling Value Huawei leads the way in evolving every network layer to IP. The company has now realized in-depth convergence at every level from access to transport and core networks. By way of example, Huawei IMS-based innovative ISE/TSE dual-engine eliminates the borders between telecommunications and Internet, making it possible for users and services in the two areas to converge. Technology Convergence: Minimizing Operators’ Investment Risk Huawei’s fourth generation base station platforms allow future convergence of GSM, CDMA, UMTS, LTE and WiMAX technologies. For operators, this resolves decision making and helps save considerable construction and operating costs encountered when attempting to combine diverse technological solutions. Service Convergence: Capturing Market Opportunity and Driving Revenue Growth Huawei provides uniform FMC service solutions, offering operators richer multimedia VAS to convert network advantages into revenue growth. For example, Huawei’s Convergent Billing Solution allows for the flexible combination and personalized marketing of all services. With a shorter time to market, operators can more quickly gain critical market initiatives. 30% Huawei helped Vodafone Romania deploy a unified 2G/3G core network, with TCO savings of 30%. 1 day Huawei’s Convergent Billing Solution enables the operator to launch a service package in a matter of hours instead of the previous months. T 12 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS13 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS Hassan and his family were sitting together to enjoy TV programs. “It is great to have so many choices. Now every one in our family is free to watch what they like.” Hassan’s family is among hundreds of thousands in Morocco that benefit from Morocco Telecom’s IPTV service. In the recent past, watching TV was considered a luxury and choice was extremely limited. With IPTV, the cost has plunged by over 87% and a wide range of programs now cover sports, movie, entertainment, music and more. Through an all-service broadband network, Morocco Telecom allows people to enjoy the convenience of added telephony, Internet surfing and IPTV over just one telephone line. Huawei’s Multi-Play solution supports Morocco Telecom’s new service and provides a platform for speedy introduction of added services. In similar fashion, Huawei’s innovative solutions are helping operators roll out omnipresent rich telecom services all around the world. People can enjoy the convenience of fixed telephony, Internet surfing and IPTV over one telephone line. 14 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS Driven by information communication technologies, profound changes have taken place in people’s communication needs and habits: universally users expect increasingly smoother and enriched communications experiences. All-IP Broadband Omnipresent rich telecom services 15 CONTINUOUS INNOVATION BASED ON CUSTOMER NEEDS Customer Demands nd-to-end all-IP is a major symbol of the broadband era. On this backbone, operators will deploy networks and services from two aspects to satisfy user needs: 3G/HSPA/LTE networks to support mobile broadband services and fixed broadband networks to satisfy the demands for super high-bandwidth services. Huawei Innovations Huawei has enabled end-to-end transformation of entire telecom networks into all-IP, increasing the throughput of overall systems and boosting operators’ flexible deployment of broadband services. Mobile Broadband Solutions Huawei’s 3G/LTE Solution enables operable mobile broadband networks, paving the way for mobile Internet services and allowing operators to profit from future-oriented competencies. The Femto cell home solution satisfies enterprises’ and families’ demands for indoor broadband; the MBMS mobile TV solution ensures lively mobile broadband service experiences enhanced by high-quality images. Huawei’s IPTime (IP Transport Infrastructure for Mobile Evolution) Solution is an all-IP based transport solution for enhanced broadband experiences and structural TCO reduction in 2G/3G mobile networks. In addition, Huawei’s WiMAX solution is designed to meld with existing CDMA, GSM, NGN and IMS systems, enabling cost-effective deployment of mobile broadband networks and providing seamless and convergent mobile broadband service experiences. Fixed Broadband Solutions Huawei’s IPBase (IP Broadband Architecture for Service Experience) Solution is an all-IP broadband solution, which ensures uninterrupted service and high quality of experience. For IPBase, Huawei launched a T-bit optical access platform, a 160T multi- chassis cluster router, and a T-bit OTN with 40G WDM. The capabilities of the triple T-bit have built an end-to-end ultra broadband network. Broadband Terminals Keeping ahead of mobile and broadband trends, Huawei provides operators with abundant fixed and mobile broadband terminal products. Supporting a wide range of services, Huawei broadband terminals enable operators to