Our sales revenue rounded off the year at 521.574 billion yuan (US$75.

1 billion based on the year-end

exchange rate), up 32% year-on-year.

Our smartphone shipments have increased steadily over the past five years: In 2016, we shipped a total
of 139 million smartphones, a 29% increase over 2015.

We worked with Deutsche Telekom to launch Open Telekom Cloud, and built the world's largest science

cloud for 10 top scientific research institutions, including CERN, the European Organization for

Nuclear Research. This cloud helps 8,000 researchers from over 500 universities around the world to

collaborate more closely.

At that time, 85% of enterprise applications will be deployed in the cloud, 100% of enterprises

will use cloud services, and over 20% of industrial facilities will be intelligent.

According to Huawei's 2016 Global Connectivity Index (GCI), a one-point increase in a country's

GCI rating correlates to a 2.1% increase in competitiveness, a 2.2% increase in innovation, and a 2.3%
increase in productivity.

Huawei focuses on long-term value creation and sharing. We have consistently invested over 10% of our
annual revenue in R&D.

Based on ongoing 4G network rollout, sustained growth in the smartphone sector, and our growing
capabilities in enterprise and industry solutions, Huawei earned CNY236,512 million in revenue from the

Chinese market, up 41.0% year-on-year,Based in part on a growing share of the smartphone market, we
earned CNY156,509 million in revenue from Europe, the Middle East, and Africa (EMEA), up 22.5% year-
on-year.
Due in large part to network infrastructure build-out in markets like India and Thailand, and growing
share in the Japanese tablet market, Huawei maintained its growth momentum in the Asia Pacific
Region and achieved CNY67,500 million in revenue, up 36.6% year-on-year.

In the Americas, carriers in Mexico increased their investment in communications networks, enabling
Huawei to earn CNY 44,082 million in revenue from this region, up 13.3% over 2015.

In 2016, we achieved rapid growth in a number of industries, including public safety, energy, finance,
transportation, and manufacturing. Revenue from our enterprise business was CNY40,666 million, up
47.3% year-on-year

In 2016, revenue from our consumer business was CNY 179,808 million, up 43.6% year-on-year.

We shipped 139 million smartphones throughout the year, an increase of 29% from 2015, and we
achieved steady growth for the fifth consecutive year.

Thanks to our increasingly innovative products and growing global recognition as a premium

brand, Huawei's global smartphone market share rose to 11.9% in 2016.

Huawei's smartphone market share increased to 18.1% in 2016, and we are in a leading position in the
CNY3,000–4,000 price range. In Latin America, Africa, the Middle East, and some other regions, Huawei
has achieved over or close to a 15% market share.

According to a survey by Ipsos, global brand awareness of Huawei rose from 76% in 2015 to 81% in
2016. Huawei once again ranked on Interbrand's Top 100 Best Global Brands, this year at 72nd, and in
the BrandZ Top 100 Global Brands at No. 50

According to an analysis of Facebook user data, 58% of HUAWEI P9 users are between the ages of 18
and 34, compared with 37% for the HUAWEI P8. The share of female users is 27 percentage points
higher for the HUAWEI P9 than for the HUAWEI P8

The share of revenue contributed by open market channels rose to 71%, up 13 percentage points
compared to 2015.

Huawei has consistently invested over 10% of its revenue in R&D every year. In 2016, approximately
80,000 employees were engaged in R&D, comprising 45% of our total workforce. Huawei's R&D
expenditures totaled CNY76,391 million in 2016, accounting for 14.6% of the company's total revenue.
We have spent more than CNY313,000 million on R&D over the past decade.