Chinese telecom giant Huawei Technologies Co Ltd said it has no intention of being listed in the near future, which indicates that the company is unlikely to make large mergers and acquisitions due to financial pressure, according to company executives.
Eric Xu, executive vice-president of Huawei and one of its rotating CEOs, said that Huawei, the world's second-largest telecom equipment maker, has grown organically over the past 25 years.
"And looking into the future, we will continue to rely mainly on organic growth," Xu said.
Huawei is not a listed company and it does not intend to become one. Therefore, it does not have enough cash to purchase large companies, Xu added.
He made the remarks during the 2013 Huawei Global Analyst Summit, which was held in Shenzhen on Tuesday.
"However, we do not rule out the possibility of buying smaller companies for technologies, or for markets, which will help improve our competitiveness," Xu added.
Shenzhen-based Huawei posted an eye-catching results last year by achieving a 32 percent jump in net profit to 15.38 billion yuan ($2.48 billion). Its cross-town rival ZTE Corp, in contrast, booked a net loss of 2.84 billion yuan last year, from a net profit of 2.06 billion yuan in 2011.
Other global major telecom gear vendors, including Sweden-based Ericsson, also failed to gain significant profit growth in 2012. Slower network infrastructure spending by worldwide telecom operators was regarded as one of the main reasons for the flat telecom gear business growth in the period.
Xu said he is neither optimistic nor pessimistic about the carrier networking business this year.
China’s weekly story
(2013.4.13-4.19)
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