Huawei has released its audited financial results for 2011, and reported an 11.7% 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 (US$1.85 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% 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% 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% year-on-year, generating CNY 9.2 billion in its first full year of operation as one of Huawei's core business groups.

Huawei continued to grow and consolidate its market presence globally in 2011, generating sales revenues of CNY 65.57 billion, up 5.5%, from the domestic market; and recording sales revenues of CNY 138.4 billion, an increase of 14.9%, from overseas markets.

"In 2011, Huawei increased its investment in the enterprise and consumer business segments, and achieved all-around growth on the back of strong business momentum generated by the company's successful transformation into a complete end-to-end ICT solutions provider," said Mr. Ken Hu, Rotating and Acting CEO, Huawei. "We have made strategic investments, augmented our R&D capabilities and deployed resources globally, and implemented a future-oriented business architecture that puts Huawei in a confident position for sustained growth."

Huawei boosted its investment in R&D to CNY 23.7 billion, a year-on-year increase of 34.2%.