Chinese tech powerhouse Huawei reported a 33 percent rise in net profit for 2015 from the previous year, on the back of its growing consumer device business and rising demand for information and communications technologies (ICT) globally.
Net profit rose to 36.9 billion yuan ($5.7 billion), it said in a statement. Huawei, which saw growth in all three of its business units, saw a 37 percent year-on-year increase in global revenues to 395 billion yuan despite economic headwinds.
However, 2015 gross margin fell by 2.5 percentage points to 41.7 percent due to increased investment in Research and Development (R&D), said the Chinese tech firm.
"Huawei owes its long-term growth to the sheer size of the ICT market, which is the driving force of digital economies around the world. However, our growth is also a direct result of strategic focus and heavy investment in our core businesses," said Guo Ping, deputy chairman and rotating CEO at Huawei, in a statement.
Huawei's carrier division, which accounted for the
largest part of Huawei's 2015 revenues, saw revenues rise by 21 percent
on-year to 232.3 billion yuan on the back of increased demand of 4G
networks over the year.
The Enterprise business group generated 27.6 billion yuan in annual revenue, 44 percent higher than in 2014.
The Shenzhen-based company made the greatest strides in its consumer device business, which includes smartphones and tablets. It recorded a 73 percent boost in annual revenues from the previous year to 129.1 billion yuan, a testament to "Huawei's growing influence as a consumer brand," the tech firm said.
Huawei's debt to earnings before interest, tax, depreciation and amortization (EBITDA) ratio fell to 0.58 compared with 0.72 in 2014. Huawei's operating expense ratio was also lower by 2.3 percent, as Huawei reported that it has increased efficiency through better management and higher investments.
"We wrapped up 2015 in a robust financial position, with stable cash flow from operating activities, increased cash availability, and effective risk control," said Sabring Meng, chief financial officer at Huawei.
The Enterprise business group generated 27.6 billion yuan in annual revenue, 44 percent higher than in 2014.
The Shenzhen-based company made the greatest strides in its consumer device business, which includes smartphones and tablets. It recorded a 73 percent boost in annual revenues from the previous year to 129.1 billion yuan, a testament to "Huawei's growing influence as a consumer brand," the tech firm said.
Huawei's debt to earnings before interest, tax, depreciation and amortization (EBITDA) ratio fell to 0.58 compared with 0.72 in 2014. Huawei's operating expense ratio was also lower by 2.3 percent, as Huawei reported that it has increased efficiency through better management and higher investments.
"We wrapped up 2015 in a robust financial position, with stable cash flow from operating activities, increased cash availability, and effective risk control," said Sabring Meng, chief financial officer at Huawei.
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