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The telecoms giant boosts sales in developing nations as its competitors falter in mature markets

Earnings at Huawei Technologies  surged 177 per cent last year, helped by strong sales growth in overseas markets.

The mainland's largest supplier of telecommunications equipment recorded an unaudited net profit of about US$300 million, a company spokesman said.

This compares to US$108 million in 2002 but is still short of its $578 million record set in 2001.

The Shenzhen-based company hopes for continued growth in the mainland and overseas, especially as operators launch next-generation services.

'The telecommunications industry seems to be slowly recovering. 2004 will be an even more important year as 3G [third-generation]  networks and broadband products are sure to see better prospects,' Huawei said.

Sales at Huawei last year grew 42 per cent to US$3.83 billion, a record for the 16-year-old company. Most of the growth was from overseas, where it derived  $1.05 billion in sales.

Overseas sales now account for 27 per cent of the company's revenue. Huawei identified Asia-Pacific, the Middle East and North Africa as its top three overseas markets.

Sales in China jumped 29 per cent to US$2.78 billion last year.

About one-third of its sales were from fixed-line operators, the Huawei spokesman said.

The company commands 40 per cent of the mainland's fixed-line market and sells next-generation network equipment in nine other countries.

According to research firm Gartner, Huawei is the No2 provider of such equipment based on shipments.

About 10 per cent of Huawei's revenue was from optical network equipment and another 10 per cent from data communications gear such as routers.

Analysts said Huawei was racking up sales in developing countries while its global competitors languished in maturing markets.

'Huawei had market share gains from competitors like Alcatel, Ericsson and Lucent because there is very limited growth in developed markets,' JP Morgan analyst Edison Lee said.

He noted the company had won several major contracts in Asia, particularly in Thailand.

Mobile equipment was Huawei's fastest-growing business. The company has secured two 3G contracts: Sunday Communications in Hong Kong and Etisalat  in the Middle East.

Last year, it was the largest supplier of CDMA450 equipment in 10 countries. Overall, it distributed CDMA2000 products in more than 20 countries.

The firm  applied for more than 1,000 patents last year, bringing its patent applications to 3,888. So far, 686 have been authorised. It has also registered 607 trademarks in more than 90 countries.



Huawei earnings soar 177pc on strong overseas growth