Huawei's sales in 2016 rose 32 per cent from a year earlier but profit increased by only 0.4 per cent due to higher spending on research and marketing.
The Chinese company, which is the world's biggest maker of telecoms equipment, said on Friday it earned 37 billion yuan ($A7 billion) on total revenue that rose to 521.6 billion yuan.
Consumer sales, which includes Huawei's smartphone brand, rose 44 per cent to 179.8 billion yuan.
Spending on research and development rose 28 per cent to 76.4 billion yuan.
Huawei has the biggest research and development budget of any Chinese company.
Selling and administrative costs rose 38.8 per cent to 86.4 billion yuan.
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.
Smartphone shipments rose 38.6 per cent last year to 45.4 million, according to IDC, a research firm.
Huawei is owned by its employees but has publicly reported financial results in recent years in an effort to allay security concerns in the US and Europe.
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