Huawei 2011 Annual Report Download - page 25

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Total operating expenses and other income
CNY Million 2011 2010 YOY(%)
Research and development expenses 23,696 17,653 34.2%
as % of revenue 11.6% 9.7% 1.9%
Selling, general and administrative expenses 33,770 31,439 7.4%
as % of revenue 16.6% 17.2% -0.6%
Other operating expenses / (income) 400 585 -31.6%
as % of revenue 0.2% 0.3% -0.1%
Total operating expenses and other income 57,866 49,677 16.5%
as % of revenue 28.4% 27.2% 1.2%
In 2011, the company expanded its investment in the
consumer and enterprise business segments. Total expense
ratio increased by 1.2 percentage points year-on-year. This
increase was mainly attributable to a 1.9 percentage points
increase in the R&D expense ratio and was partially offset by
declines in the SG&A expense ratio and the other operating
expense ratio, which decreased by 0.6 percentage points and
0.1 percentage points, respectively.
Net nance expense
CNY Million 2011 2010 YOY(%)
Exchange loss 4,876 1,367 256.7%
Other net nance expense 1,021 751 36.0%
Total net nance expense 5,897 2,118 178.4%
Net finance expense in 2011 amounted to CNY5,897
million, an increase of CNY3,779 million from 2010. This
was primarily attributable to the increased exchange loss
year-on-year, which amounted to CNY3,509 million. In
addition, other net nance expense increased by CNY270
million from 2010.
Management Discussion and Analysis