But Huawei's net profits dipped by 52.9 percent to RMB11.65 billion ($1.84 billion), according to the vendor's annual report published Monday.
The Chinese giant, which has been pushing hard in the enterprise and mobile device markets during the past year, saw its gross margin slip by 6.5 percentage points to 37.5 percent while its operating profit sunk by 39.4 percent to RMB18.6 billion ($2.95 billion).
Table 1: Huawei Key Financial Figures 2008-2011
|Revenues||RMB*123.1 billion||RMB146.6 billion||RMB182.5 billion||RMB203.9 billion|
|Net income||RMB7.9 billion||RMB19 billion||RMB24.7 billion||RMB11.65 billion|
|* = Chinese yuan renminbi|
NA = not provided
The company's total operating expenses grew by 16.5 percent to RMB57.9 billion ($9.2 billion) and its operating margin slipped to 9.1 percent.
Huawei said that the dramatic dip in net profits was partly due to unfavorable currency exchange fluctuations, and that once adjusted for the shift in exchange rates its net profit would have been down by 36.6 percent compared with 2010. Profits were also hit by "increased price competition" in the carrier networks market and by more "controlled" capital expenditures by operators.
That carrier networks market still accounted for 73.6 percent of Huawei's 2011 revenues, or RMB150.1 billion ($23.8 billion), while its Consumer Business (devices, including mobile handsets) accounted for RMB44.6 billion ($7.1 billion) of 2011 revenues, or 21.9 percent of the total. Huawei's Enterprise Business division generated revenues of RMB9.2 billion ($1.46 billion), or 4.5 percent of total sales.
Geographically, only 32.2 percent of the vendor's revenues, RMB65.6 billion ($10.4 billion), were generated in its domestic market in 2011, while the remaining 67.8 percent, or RMB138.4 billion ($21.95 billion), came from international sales. Huawei's domestic revenues were up 5.5 percent year-on-year, while its international revenues grew by 14.9 percent.
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