Huawei, the world's biggest maker of telecoms equipment, said Friday its 2016 sales rose 32% from a year earlier but profit increased by only 0.4% due to higher spending on research and marketing.
Huawei said it earned 37 billion yuan ($5.4 billion) on total revenue that rose 32% to 521.6 billion yuan ($75.6 billion).
Consumer sales, which includes Huawei's smartphone brand, rose 44% to 179.8 billion yuan ($26 billion). Revenue for its carrier business rose 24% to 290.6 billion ($41.8 billion) while enterprise sales gained 47% to 40.7 billion ($5.9 billion).
Spending on research and development rose 28% to 76.4 billion yuan ($11 billion). Huawei has the biggest R&D budget of any Chinese company. Selling and administrative costs rose 38.8% to 86.4 billion yuan ($12.5 billion).
Huawei, headquartered in the southern city of Shenzhen, near Hong Kong, is the biggest maker of network gear used by telephone and Internet companies and the No. 3 smartphone brand behind Apple and Samsung Electronics.
Smartphone shipments rose 38.6% last year to 45.4 million, according to IDC, a research firm. It said Huawei has a 10.6% share of the global market, behind Apple at 18.3% and Samsung at 18.1%.
Huawei is owned by its employees, with no publicly traded shares, but has reported financial results in recent years in an effort to allay security concerns in the United States and Europe.
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