Profit reached $5.47 billion which was about a 20 percent increase in revenue.

Huawei competes with Sweden's Ericsson for the top spot in the market for communications towers and other infrastructure, while racing to develop 5G technology.

In the meantime, the gradual switch to 4G networks has boosted business at both players. Huawei on Tuesday said revenue at its carrier network business rose 15 percent last year.

China's three carriers alone built close to 1 million 4G towers by the end of 2014, according to some estimates.

Chief Financial Officer Meng Wanzhou on Tuesday said Huawei's 2014 operating profit margin likely matched 2013's 12 percent, and that the company would continue to invest 10 percent of revenue in research and development.

Huawei executives in 2013 said the company would invest $600 million in 5G research through 2017. At the same time, the company will continue to pursue its multi-year expansion into smartphones and enterprise computing.

Revenue last year rose 32 percent in Huawei's consumer devices business and 27 percent in its enterprise division.