2degrees' Chinese tech provider lifts sales 11pc

Huawei equipment is at the core of 2degrees' network. Photo / Natalie Slade

The Chinese company that provides technology for 2degrees' mobile network and makes phones for the New Zealand market has announced year-on-year sales growth of 11 per cent.

In its first set of interim results, Huawei Technologies recorded revenue of 98.3 billion yuan ($18.5 billion) for the six months to June 30 and before-tax profit of 12.4 billion yuan.

The company said it was on track to meet its full-year sales target of 199 billion yuan.

Huawei's chief executive Ren Zhengfei aims to boost sales growth by diversifying the company's products beyond telecommunications devices and services, which accounted for more than 83 per cent of its revenue last year.

In April, the company announced an after-tax profit of 23.8 billion yuan for last year, up from 18.3 billion yuan in 2009.

Huawei equipment is at the core of 2degrees' network.

In February, the telco signed a deal with Huawei as part of a $100 million network expansion which will extend 2degrees' coverage and pave the way for fourth-generation (4G) mobile internet.

The company said yesterday that it had shipped 72 million units ranging from phones to tablet computers during the year.

Handset sales - led by the booming demand for smartphones - grew by more than 100 per cent, with Huawei ranking within the top five manufacturers of Android-based devices.

Huawei, which did not win its first contract outside China until 1997, achieved international sales of more than US$100 million by 2000.

- Additional reporting: Bloomberg