Huawei Australia sees large profit and revenue growth while skirting ban impact
Huawei Australia experienced an 18% spike in revenue over the course of 2018, as the Australian arm of the Chinese giant collected receipts of AU$735 million compared to AU$623 million in the year prior.
Broken down by revenue type, the company saw revenue growth across the board: It increased goods sales by 19% to AU$417 million, revenue from services jumped 22% to AU$154 million, with construction payments growing by 12% to AU$164 million.
With the cost of sales increasing by 21% to AU$597 million, Huawei Australia had pre-tax profit of AU$38.7 million against AU$32 million in 2017. For the year to December 31, 2018, the company paid AU$9.3 million in income tax, whereas it paid AU$16.3 million for 2017, which led to the company posting an 89% jump in post-tax profit to AU$29.3 million.
The amount spent by the company on wages in 2018 fell from AU$49.4 million to AU$47.5 million, as it reported having 343 employees. For research and development, expenditure was steady at AU$4.7 million, however the amount of tax incentives gained dropped from AU$0.51 million to AU$0.13 million.
During 2018, the Chinese giant found itself banned from 5G rollouts in Australia, which resulted in TPG announcing it would cease the building out of its mobile network.
Despite this, the company optimistically claimed the ban "may reduce the scale and growth in the carrier network business".
"The company will continue to pursue its objective of increasing its profitability and market share during the next financial year, with a particular focus on the enterprise and consumer business," Huawei Australia said in its filing to ASIC.
Huawei is having better luck in the United Kingdom than Australia, where it has been allowed to deploy 5G equipment despite a report pointing out significant flaws in its equipment.
Last week, the Chinese parent company announced first quarter earnings that saw revenue jump by 39% to 180 billion yuan as it sold 59 million smartphones.
The company has previously said it wanted to be the biggest smartphone brand overall by 2020.
Huawei Australia made its filing with ASIC with an air of defiance, stating it does not believe it is a reporting entity.
"The company is not publicly accountable," the filing said.
Related Coverage
Huawei: UK will have access to best technology
While Huawei could not confirm the reports that the British government will be allowing it to take part in 5G, the Chinese tech giant says that if they are true, the UK 'will have access to the fastest and most reliable networks'.
Huawei Cloud ramps up AI efforts with Singapore lab, partners
Chinese tech giant has opened a cloud and artificial intelligence innovation lab in Singapore with resources to help universities and enterprises drive research in these technologies as well as inked agreements with various companies to jointly develop such applications in Asia-Pacific.
Huawei 1Q revenue climbs 39 percent amidst US pressure
Chinese networking vendor has reported a 39 percent increase in revenue to 197.7 billion yuan (US$29.5 billion) for the first quarter of 2019, when it shipped 59 million smartphones and inked 40 commercial contracts for 5G globally.
New Honor phone to be unveiled on May 21 in London
Honor, Huawei's smartphone sub-brand, will showcase a new offering in London on May 21.
Huawei's surveillance system in Serbia threatens citizens' rights, watchdog warns
The Chinese giant's Safe City Solution for Belgrade is raising questions about its use of personal data.
UK on Huawei: New engineering flaws found, old vulnerabilities haven't been fixed yet
Board that oversees Huawei security in the UK offers only 'limited assurance' that risk to national security can be mitigated.
Samsung Galaxy Fold v. Huawei Mate X: What's different? (TechRepublic)
Samsung and Huawei are the first big tech companies to jump on the folding smartphone bandwagon, so what's different between the Galaxy Fold and the Mate X?