2020 - huawei

1 2020 Who is huawei ?Founded in 1987, huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. We are committed to bringing digital to every person, home and organization for a fully connected, intelligent world. We have approximately 197,000 employees and we operate in over 170 countries and regions, serving more than three billion people around the owns huawei ? huawei is a private company wholly owned by its employees. Through the Union of huawei Investment & Holding Co., Ltd., we implement an Employee Shareholding Scheme involving 121,269 employees. Only huawei employees are eligible to participate. No government agency or outside organization holds shares in controls and manages huawei ? huawei has a robust corporate governance system that ensures the company s independent operations and management. Shareholding employees elect 115 representatives to form our Representatives Commission, and the Commission elects the company s Board of Directors and Supervisory Board.

2 The Commission, along with the Board of Directors and Supervisory Board, decides on, manages, and monitors major company , the Commission elects the Chairman of the Board and the remaining 16 board directors. The Board of Directors elects four deputy chairs and three executive directors. Three deputy chairs take turns serving as the company s rotating rotating chairman leads the Board of Directors and its Executive Committee while in office. The Board exercises decision-making authority for corporate strategy and operations management, and is the highest body responsible for corporate strategy, operations management, and customer , the Chairman of the Board presides over the Representatives Commission. As huawei s highest decision-making body, the Commission makes decisions on major company matters, like profit distribution, capital increases, and the elections of members of the Board of Directors and the Supervisory does huawei work with?

3 Externally, we rely on our customers and partners. Customers are at the heart of everything we do, and we create value for them with innovative products. Internally, we rely on our hard-working and dedicated employees. At huawei , those who contribute more get work with a broad range of stakeholders including partners, industry organizations, open source communities, standards organizations, universities, and research institutes all over the world to cultivate a broader ecosystem that thrives on shared success. In this way, we can help drive advancements in technology and grow the industry as a create local employment opportunities, pay taxes, and comply with all applicable laws and regulations in the countries where we operate. We also help local industries go digital, and openly engage with governments, the media, and other do we offer the world?We create value for our customers. Together with our partners, we provide telecom carriers with network products and solutions that are innovative, simplified, intelligent, secure, and trustworthy.

4 We also open up our ICT capabilities to government and enterprise customers, providing them with products and services that are intelligent, secure, and trustworthy. With our smart devices, we help people enjoy a better digital experience in work, life, travel, and ensure secure and stable network operations. Cyber security and privacy protection are and will always remain our top priorities. We believe strongly in the power of openness and transparency, and work hard to make ongoing improvements to our software engineering capabilities and business continuity management systems, while enhancing the resilience of our more than 30 years, we have worked closely with our carrier customers to build over 1,500 networks in more than 170 countries and regions. Together, we have connected more than three billion people around the world and have maintained a solid track record in promote industry development. huawei advocates openness, collaboration, and shared success.

5 Through joint innovation with our customers and partners, we are expanding the value of ICT to foster a healthy and symbiotic industry ecosystem. huawei is an active member of more than 600 standards organizations, industry alliances, and open source communities, where we work with our peers to develop mainstream standards and drive the industry enable sustainable development. huawei is committed to bridging the digital divide and promoting digital inclusion. We have helped connect places as remote as the highest peaks of the Himalayas and the frigid depths of the arctic Circle. We are keenly aware of the importance of telecommunications during emergency situations. In response to catastrophic events like earthquakes, floods, conflicts, and public health emergencies, our people on the ground hold fast to restore communications networks in affected areas and ensure the reliable operations of essential telecoms equipment.

6 To further promote sustainability, we prioritize a low-carbon footprint and environmental protection. We are also helping develop the next generation of local ICT talent to boost the digital from the Rotating ChairmanBusiness Highlights in 2020 Five-Year Financial HighlightsMessage from the Chairman0206070813514815016511148081132 Industry TrendsManagement Discussion and AnalysisIndependent Auditors ReportConsolidated Financial Statements SummaryRisk FactorsCorporate Governance ReportCreating Social ValueSustainable DevelopmentAbbreviations, Financial Terminology, and Exchange RatesContents02 huawei Investment & Holding Co., from the Rotating ChairmanNeedless to say, 2020 was an extraordinary year. According to WHO, more than 100 countries went on lockdown last year, a degree of social distancing the likes of which the world has never seen. This has had a huge impact on both our lives and the huawei , for the past year we ve held strong in the face of adversity.

7 We have kept innovating to create value for our customers, to help fight the pandemic, and to support both economic recovery and social also took this opportunity to further enhance operations. As a result, our business performance was largely in line with forecast. Despite a challenging business environment, huawei has remained committed to a globalized and diversified supply chain one that doesn t rely on any single country or region, but instead leverages global resources to ensure supply a member of the ICT community, we have been doing everything we can to support the ongoing fight against the pandemic. We continue to work closely with our customers to ensure the stable operations of more than 1,500 networks across over 170 countries and regions, and have been actively using ICT technology to assist the pandemic response in local communities. As part of our commitment to multilateral international cooperation, we are working closely with local governments, community organizations, international organizations, and our customers and partners to protect the health and safety of the people we 2021, we will continue to find ourselves in a complex and volatile global environment.

8 Resurgence of COVID-19 and geopolitical uncertainty will present ongoing challenges for the global community. huawei believes deeply in the power of digital technology to provide fresh solutions to the problems we all face. We want to create digital technology that makes lives better, makes businesses more intelligent, and makes society more inclusive. This will ultimately bring us closer to a fully connected, intelligent Annual Report 03In Malaysia and Saudi Arabia, we installed telepresence videoconferencing systems so that different organizations responsible for pandemic response could collaborate more seamlessly. This allowed doctors to share clinical experience more efficiently and governments to issue guidance more effectively. In Ecuador and Italy, we helped hospitals deploy AI-assisted CT scan screening systems to expedite the diagnosis of potential COVID-19 patients and reduce the strain on their healthcare systems.

9 In Namibia and Argentina, we helped install infrared thermometers in crowded places to prevent the spread of the virus. In total, huawei provided technical assistance to nearly 90 countries, doing our best to support our local communities in this time of great 2020 had its fair share of challenges, it also came with opportunity. The pandemic ended up greatly expediting the digital transformation of organizations around the world. Businesses are moving to the cloud one to three years ahead of schedule, and as new technologies like AI continue to mature, efforts to go digital will expand beyond the office and into production systems, bringing industries into a new phase of intelligent companies spearheaded the first wave of this transformation process. In the second wave, traditional industries especially finance, manufacturing, education, and healthcare are optimizing the value of their data by moving their production management systems onto the cloud and streamlining the flow of data throughout their organizations.

10 As these industries transform, new digital technologies like 5G, AI, cloud, and IoT are converging to create new business models, boost user experience, and improve operating matter what changes come our way, our commitment to serving customers and to realizing our vision and mission will remain as strong as ever. We will continue in our endeavor to bring digital to every person, home and organization for a fully connected, intelligent all else, creating real value for our customersServing our customers and creating value for them is why we exist, and we will stick to this course. That means maintaining our focus on ICT infrastructure and smart devices and drawing clear boundaries between the kinds of business we pursue and those we don t. As always, we will keep creating value for our customers through quality products and continue to innovate in connectivity and computing, working with our customers and partners to make the most of ICT infrastructure.