华为公司2004年报

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2Huawei Technologies Annual Report 2004

About Huawei Technologies

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=Huawei Technologies Annual Report 2004

Everyday, nearly

1 billion people

all over the world

are communicating

through Huawei’s

products and solutions.

4Huawei Technologies Annual Report 2004

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=Huawei Technologies Annual Report 2004Financial Highlights Note: (*) Excluding discontinuing D in millions

Year Ended December 31

2004200320022001(*)2000Revenue

3,8272,6942,1282,2901,933Net Income

624384108258345Cash Flow From Operations

396385311204255Operating Profit Margin

18%19%10%17%24%Return on Net Assets

31%23%7%20%47%

HUAWEI TECHNOLOGIES CORPORATION and Subsidiary Companies

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Huawei Technologies Annual Report 2004The Year

Feb

Huawei established a joint

venture with Siemens to ofter TD-

SCDMA

Both parties set up a joint venture

specializing in the development,

sales and services of TD-SCDMA

technologies and products to

boost TD-SCDMA commercialization.

Over USD100 million was invested in

the joint venture, 51% of which

was contributed by Siemens and

49% by Huawei.

Apr

For the first time, China domestic

high-end routers begin to serve

the national backbone networks

of China Telecom on a large scale

Huawei’s IP core router series NE5000

and NE80 were applied on a large

scale. The Terabit core router NE5000

claimed a 100% market share in

building two super national backbone

nodes for Guangzhou, China. And

the NE80 claimed a 75% market

share in the new construction project.

Both the NE5000 and NE80 also are

serving as integral parts of the

ChinaNet national backbone network

and have become dominant data

communication products in the

network of China Telecom.

Jun China Mobile Selected Huawei to exclusively contract its softswitch-based private IP network T elecom service over IP network is an important concept change for global telecom operators to prepare for the coming NGN and 3G era. This IP network is currently the world largest mobile softswitch bearer network in the world.Successful completion of phase-1UMTS network project for Etisalat On 31 May 2004, the phase-13G/UMTS network of Etisalat in UAE was completed, and the whole set of UMTS equipment, including wireless access network, circuit-switched and packet-switched domain core network and multimedia color ringback tone platform, was built into the network.Jul Cisco claim against Huawei resolved 28 July 2004, Huawei, Cisco and 3COM submitted a “request for terminating lawsuit” to the East Texas Court of America. Accordingly, the court issued a decree to terminate the lawsuit against Huawei, ending in a final settlement in the dispute on intellectual property rights. Each party undertook their own legal fee,lawsuit expenses and other related expenses. This decree stated that Cisco shall not institute any future lawsuits regarding this or equivalent cases. Mr. Chambers, CEO of Cisco,expressed to the media “Huawei is an excellent company and good competitor.”Aug Huawei launched the world’s first large-capacity long-haul G.653-based optical wavelength division trunk Huawei launched the first G.653-based large-capacity long-haul optical wavelength division trunk into service for T elemar – the top fixed network operator in Latin America. As a result,Huawei became the sole optical network equipment supplier to own and commercially apply such technology. This G.653-based optic network extends 1,000km, and spans many of the major cities in Brazil, it is now the main transmission trunk that can meet the service dispatching requirements of T elemar in the coming years. Huawei accomplished a single-band rate of 10G at the C band, and 16-wavelength DWDM transmission.This project set the record of the single-band rate of 10G for transmitting a capacity of 160G on the G.653 fiber for 1,000km.Sep Telekom Malaysia awarded Huawei UMTS contract On 28 September, 2004, Huawei won the UMTS bidding project to help Telekom Malaysia build its UMTS network.Huawei’s project obtained an enormous export loan from a foreign bank for the first time Algeria T elecom Company (borrower)entered into a loan agreement with the Paris Bank of France (lender) for credit of the buyer totalling USD28 million. This project is under the financial guarantee of the Algeria National Bank, and the