The profit of Chinese tech company Huawei rose by 33 per cent in 2015, driven by its smartphones sale. In its annual report, the company revealed that its net profits reached 36.9 billion yuan ($6.13 billion) in 2015 and its global revenue grew to 395 billion yuan, up by 37 percent from the previous year.

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Huawei's consumer business revenue hit 129.1 billion yuan last year, up by 73 percent. The company's terminal products, including smartphones, were sold in 170 countries and regions. The sales of Huawei's network gear increased by 21 percent to 232.3 billion yuan

Huawei revealed that its revenue in overseas markets accounted for 58 percent of its total earnings last year. Huawei's debt to earnings ratio before interest, tax, depreciation and amortization (EBITDA) fell to 0.58 compared with 0.72 in 2014. Huawei's operating expense ratio was also lower by 2.3 percent. Huawei claims to have increased its efficiency through better management and higher investments.

The company's 2015 gross margin fell by 2.5 percentage points to 41.7 percent due to increased investment in Research and Development (R&D). Huawei spent 59.6 billion yuan on research and development (R&D) in 2015. It has invested more than 240 billion yuan in R&D over the past decade.

Huawei is currently the world's third-largest smartphone maker by shipment volume after Samsung and Apple. The Chinese tech company shipped 108 million smartphones in 2015, a 44 percent increase from the year before. That figure was overshadowed by Samsung's estimated 319.7 million smartphone shipments, and Apple's estimated 231.5 million shipped last year, according to data from research firm Strategy Analytics.

TagsHuawei, Smartphones, china, apple, Samsung