Workers at Jinmao Tower in Shanghai used to joke that it was easy to spot a Huawei employee; they usually weren’t dressed well and they were usually in a rush. But as most employees worry about their jobs in this financial meltdown, Huawei workers are being congratulated on their performance.

According to Reuters, Huawei’s contract sales bucked the trend last year and actually saw an increase. In 2008, the global revenues of this telecom solution provider amounted to USD23.3 billion, increasing by 46% over the previous year to meet the preset target. The international markets contributed more than 75% of its revenues. Huawei employees have earned the right to rest easy for the next little while.

Huawei’s increase in revenues from RMB 15.2 billion (USD2.2 billion) eight years ago to the current USD23.3 billion has allowed it to be ranked in the top 10 most influential companies in the world according to the latest rating from Business Week magazine.

As the global financial crisis swelled in 2008, the world’s telecom industry was particularly impacted by the financial storm. According to its own data, Huawei’s asset-liability ratio grew from 58% in 2005 to 69.4% in 2007, close to the financially critical point of 75%. This showed that Huawei was under great financial pressure. In addition, the accounts receivable of Huawei also grew significantly from less than 25% of total assets in 2004 to over 50% in 2007, indicating this telecom solution provider suffered a serious capital tie-up. Moreover, the proportion of its cash flow in revenues has also slid over the years. So, in the eyes of observers, if Huawei wasn’t able to collect the receivables for the projects it had completed, its fund chain was bound to be tested.

The most critical period was the second half of 2008. For any telecom equipment provider, this is the prime time to collect receivables. According to one Huawei employee, the company knew that fund liquidity was extremely stressed in the international market, and that it would face a lot of pressure to collect the receivables. But things turned out better than expected. In the last quarter, Huawei received up to USD11 billion. This means that Huawei collected a little over 30% of its receivables in the first three quarters last year while in the fourth quarter it nearly completed the actual sales for the whole year.

The financial crisis constitutes a major challenge for all telecom equipment providers. But the comparative cost advantage that Huawei has enjoyed has also become a magic weapon.

Because its employee salaries are much smaller compared to its foreign rivals, Huawei can hire more expertise for the same amount of money. Other employee overhead, like travel expenses, have also translated into cost advantages for Huawei. In addition, Huawei has secured a considerable share of the international market, and international buyers are recognizing its quality service. Consequently, operators that are forced to slash their investment will be more inclined to choose Huawei for its more competitive prices.

Alcatel-Lucent, Nokia Siemens and other international players are much less optimistic about the international business climate, predicting the market will shrink by 5%-12% in 2009. Huawei has also pared back its growth forecast for 2009, but it still stands at an optimistic 28.8% with global revenues expected to be well over USD30 billion next year.

Even if its international business shrinks, Huawei will still be able to achieve its growth goal given the strong momentum in its home market. In January, the Ministry of Industry and Information Technology officially granted three 3G licenses. Huawei is counting on a lot of business as a result.

Because of its outstanding performance in the bids for 3G network construction for China Mobile and China Telecom last year, Huawei is likely to win 17%-18% of China Mobile’s equipment orders and 15% of China Telecom’s. Moreover, it is also included in China Unicom’s shortlist of equipment suppliers in which it may secure an even larger share. In addition, a report by Shenyin & Wanguo Securities predicts that in 2009, the total capital expenditure of local operators will amount to RMB310.4 billion (USD45.65 billion). This means Huawei will undoubtedly take a large chunk of the 3G market. Sinolink Securities predicts that Huawei will go shoulder to shoulder with ZTE to become the principal beneficiaries of China’s 3G drive.

Maybe Ren Zhengfei, the president of Huawei, can finally relax a little and finally quit worrying. After years of precautionary measures and elaborate preparations, it may be time to enjoy the rewards.