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Thursday, February 23, 2017
Market pays close attention on Huawei's profitability
ANBOUND

Huawei is one of the top outstanding companies in China. Its innovation ability, income scale, real international revenue source and global distribution make it a real leader among Chinese companies. However, Huawei's annual report in 2016 shows that its profit margin is only about 7%, with its profitability began to attract more and more attentions. According to report, attracting talents through high salary is a major feature of Huawei; from 2013 to 2015, Huawei's employee cost almost doubled from 52.45 billion renminbi to 1008.34 billion renminbi. Although Huawei is a non-listed company and its unique internal financing structure does not require it to pay too much attention on the overall business profit data, and that its high employee cost can be seen as a way to give back to its shareholders and employees, based on general corporate competency assessment standards, Huawei still needs to pay attention and improve on profitability.

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