Huawei's net profit surges 33% despite challenges in major economies

China's tech giant and world's second biggest telecoms equipment maker Huawei Technologies reported that its profits jumped a third last year, driven by strong performances in all its businesses.

The company said its net profit was 27.9bn yuan ($4.5bn), up from 21bn yuan in 2013 - matching the forecasts announced in January. The firm saw revenues rise by 21% over the year.

"Our cash flow, revenue, and profit all grew over the previous year," said chief financial officer Meng Wanzhou in a statement on Tuesday. "Moreover, our debt and financing structures have continuously improved."

The company's earnings were highly impacted by foreign exchange gains, as it generates more than 60% of its revenue abroad.

The growth comes despite challenges the company faces in several major economies.

In the US, legislators branded it a national security threat, because of its alleged close ties with the Chinese government.

Moreover, it has been banned from being involved in broadband projects in Australia over espionage fears.

However, the company finds itself well positioned to capture business opportunities with heavy investment in innovative areas such as cloud computing and fifth generation (5G) mobile technology.