Huawei profits drop 53% in 2011
Profit down, revenue up, as Huawei expands and adopts revolving CEO structure
Huawei recorded a 53% drop in profits for 2011, according to its full year report.
The company saw profits of 11.6 billion yuan ($1.84bn) down from 24.7 billion yuan ($3.9bn) in 2010, due to increased R&D expenditure and expansion into new sectors.
Sales revenue was up 11.7% to 203.9 billion yuan ($32.4bn).
The company also announced a new management structure, which will see the CEO role shared by three executives on a rotating basis.
Current deputy chairman Guo Ping, Xu Zhijun and Hu Houkan will each take on the co-CEO role for six months at a time. Huawei founder Ren Zhengfei will remain as deputy chairman, and chairwoman Sun Yafang's role will remain unchanged.
Huawei said that the move was intended to make the company more agile and to avoid corporate stagnation.
The company has continued to diversify into consumer and enterprise markets, and increased R&D spend by 34% to 23.7 billion yuan ($3.76bn).
Sales revenue from consumer devices grew 44.3% to 44.6 billion yuan ($7bn) in 2011, with 150 million smart devices shipped.
Sales for the enterprise business were also up, by 57.1% year-on-year, to 9.2 billion yuan ($1.46bn), for its first full year of operations.
Sales revenue was up 5.5% in China, to 65.57 billion yuan ($10.42bn), and overseas markets were up 14.9% to 138.4 billion yuan ($21.98bn).
"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 Ken (Houkan) Hu, Rotating and Acting CEO, Huawei. "We have made strategic investments, augmented our R&D capabilities and deployed these resources globally, and implemented a future-oriented business architecture that puts Huawei in a confident position for sustained growth."