Huawei 2013 Annual Report Download - page 39

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38 Management Discussion and Analysis
Total Operating Expenses and Other Income
CNY Million 2013 2012 YOY (%)
Restated
Research and development expenses 30,672 29,747 3.1%
– as % of revenue 12.8% 13.5% (0.7%)
Selling and administrative expenses 38,943 38,667 0.7%
– as % of revenue 16.3% 17.6% (1.3%)
Other (income)/operating expenses, net (723) (1,386) (47. 8%)
– as % of revenue (0.3%) (0.6%) 0.3%
Total operating expenses and other income 68,892 67,028 2.8%
– as % of revenue 28.8% 30.4% (1.6%)
In 2013, the company’s total expenses ratio decreased by 1.6% due to internal efforts aimed at
continuously improving operational efficiency. Specifically, the selling and administrative expenses ratio
declined by 1.3%, the research and development expenses ratio fell 0.7%, and the ratio of other income
and other operating expenses (as % of revenue) rose 0.3%.
Net Finance Expenses
CNY Million 2013 2012 YOY (%)
Restated
Net foreign exchange loss 3,686 1,085 239.7%
Other net finance expenses 256 954 (73.2%)
Total net finance expenses 3,942 2,039 93.3%
Net finance expenses in 2013 amounted to CNY3,942 million, an increase of CNY1,903 million from 2012.
This was attributable to an increase of CNY2,601 million year-on-year in net foreign exchange loss and
a decrease of CNY698 million year-on-year in other net finance expenses.