Huawei suffers profit slump despite increased revenues in 2011

Huawei released its audited financial results for 2011, and reported an 11.7 per cent rise in revenues over 2010, of CNY 203.9 billion (US$32.4 billion).

Huawei however saw its profits more than halved (-53%) to CNY 11.6 billion compared to CNY 24.7 billion in 2010.

The decline in net profit was largely attributable to an exchange loss of CNY4.88 billion in 2011 due to the constant appreciation of the Chinese currency. Adjusted for the effects of exchange rates, net profit declined by 36.6 per cent year-on-year, which was in line with expectations.

Huawei recorded sales revenues of CNY 44.6 billion in the consumer business, an increase of 44.3 per cent over 2010. In particular, the consumer business group saw robust growth in the smart devices segment, shipping close to 150 million units last year. Huawei’s enterprise business group increased sales revenues by 57.1 per cent year-on-year, generating CNY 9.2 billion in its first full year of operation as one of Huawei’s core business groups.

Huawei generated sales revenues of CNY 65.57 billion, up 5.5 per cent, from the domestic market; and CNY 138.4 billion sales revenues, an increase of 14.9 per cent, from overseas markets.