Huawei's profit slumps 53% in 2011

SHANGHAI - Chinese telecoms giant Huawei saw its profit more than halved in 2011 despite a rise in revenue, as the global economic turmoil, a strengthening Chinese currency and rising costs took their toll on the company, new figures show.

The net profit of Huawei, which is among the world's top makers of telecommunications equipment, stood at 11.6 billion yuan ($1.84 billion) in 2011, down 53 percent from a year earlier, according to the firm's annual report released late Monday.

Sales revenue rose 11.7 percent year-on-year to 203.9 billion yuan in 2011.

In addition to sluggish global demand and the stronger Chinese currency, the company's increased investment to boost its presence in the mobile electronics market and its heavy spending on research were also behind Huawei's profit slump, according to the report.

The company's consumer business, which includes smartphones, last year generated a 44.3-percent year-on-year rise to 44.6 billion yuan in revenue.