“Vase into the Su Tu”, a few months ago, Huawei CEO Ren Zhengfei thing I read is full of cozy in the “2010 New Year Message,” in quotes this poem to express the time of transfer of Huawei in the old and the new mood.
Huawei staff note that this is “the boss” Ren Zhengfei business 22 years since the first use of “spring” term. The late 90s of last century, used to take precautions Huawei Ringer Story is often quoted, “Huawei’s flag can carry long?” Beginning of this century, Ringer’s “Macao Huawei’s Winter” is almost as IT industry has a copy of Jingshitongyan.
From the “winter” to “Spring”, the answer may be on Huawei on March 31 released its official Web site of the 2009 Annual Report. According to report, Huawei 2009 global sales of 149.1 billion yuan, up 19%; operating margin of 14.1%; net profit of 18.3 billion yuan, net profit margin of 12.2%; operating cash flow reached 21.7 billion yuan , an increase of 237%.
Comparative data in 2008, Huawei 2009 earnings highlights, in addition to continued growth in performance, the operating margin and net profit margin increased (13% in 2008 and 6.28%) and operating cash flow rose is its outstanding performance.
Huawei alternating winter and spring
According to Huawei, Senior Vice President Xu Zhijun, had forecast in early 2009, Huawei’s 2009 financial data and cash flow improvement, to some extent be attributed to the introduction of Huawei continued in recent years, optimize the management of the project. For example, Huawei in 2008 hired an international consultancy firm Accenture to optimize customer relationship management, the project directly for the company’s CRM (customer relationship management) to improve and increase the company’s return to section management to improve “from contract to cash” and liquidity.
As a non-listed companies, Huawei released its financial data, how much credibility? This question, perhaps the amount of tax from Huawei partially confirmed. According to Huawei’s headquarters – Longgang District, Shenzhen, government officials told us that Huawei tax year 2009, totaling more than 140 billion yuan (Huawei executives told us that the data is nearly 150 billion).
In fact, on the “boss” first cited earlier this year, “spring” term, Huawei has launched a major internal discussion forum. Also the sound that, depending on the moment as “Huawei spring” is dangerous. At the same time, has been only concerned with “how to live,” Huawei, also within the broad collection of views on China for the past 20 years of experience and the experiences of hidden behind the “trap” to sum up.
One indisputable fact is that in the global telecom equipment arena, Huawei already secured a prominent position. According to recent Gartner statistics: In 2009, Huawei in the global market share increased from 11.5% last year to 14.2%, reaching 20.8% of Ericsson. More importantly, this year, Huawei as sound business and financial growth, has been with Nokia Siemens Networks, Alcatel-Lucent and other traditional rivals apart.
According to Huawei internal statistics, by the year 2008-2009, impact of adverse economic situation, Huawei the first quarter of 2009 when the Ministry of the world’s 28 regions in 11 negative growth, once the situation is extremely serious; until quarter, Huawei timely adjustment strategy the process of expanding high-growth areas to expand in China, India, Central Asia, North Africa and other places intensify; to the third quarter, excluding China, India and other local markets, other regions are still overseas, the overall decrease of 3%, 7 Department of whole regions inadequate growth. Situation is reversed from the fourth quarter, breaking the end of the Chinese 3G standard in Europe, Norway LTE 4G networks and other large commercial projects in the fast break strategy.
Chinese companies comply with executive power of the world’s ups and the times, or Huawei wins lies. In 2005, Huawei successfully entered the Vodafone “short list”, to become partners in the 21st century, signs of Huawei in Europe to achieve major breakthroughs. After five years, is the patterns of global telecom equipment industry changes and fission of the 5-year, offsetting the other, the rise of Chinese companies, Western companies because of financial difficulties and recession, forced mergers, as the global economic recession and the two most prominent expression.
Huawei’s 2009 expression of the internal notes come from? Ringer Story of the two latest versions, or to feed its 12: The first reason is “to hear guns people to decision-making”, which is managed from a centralized to decentralized Huawei front of the sign; followed by “deep scouring Beach, for low weir “to the principles of construction of Dujiangyan, operations and product delivery process metaphor based on accurate, high quality, low cost delivery capacity of the perfect.
April 29 news, the Indian media, “Business
Line “Thursday on its Web site quoted the Indian Department of Telecommunications circular reported that India has banned the import of Huawei Technologies and ZTE and other Chinese telecom equipment manufacturers.
Two policies aimed at China Telecom equipment manufacturers
The site said that the Indian Department of Telecommunications Tuesday has the original plan to buy from Chinese manufacturers of equipment issued a ban of some operators. Earlier, India’s telecommunications department earlier informal request the operator not to buy Chinese-made telecommunications equipment, but this is the first official release of the agency for the import ban on Chinese equipment.
It is understood that, in addition to “ban” policy, India’s telecommunications department last month on the market introduction of new telecommunications operation and maintenance requirements: in India in all telecommunications equipment manufacturers, who can only do Indian employment on operation and maintenance. In the next three years, reliance on foreign engineers, should be “zero” or “minimal.” This policy will be increased to a foreign telecommunications company operating license requirement, while ZTE, Huawei and other Chinese telecommunications companies will be seriously affected.
Government of India has been worried, telecommunications equipment from some countries may be built-in spyware or malicious software, so harmful to India’s intelligence agencies.
Earlier, the Indian government has for no IMEI (International Mobile Equipment Identifier) cell phone ban, China’s cottage. In the December 8, 2009, the Indian Ministry of Finance also announced that originated in China will be synchronous digital transmission equipment (Synchronous
Digital Hierarchy Transmission
Equipment, SDH) to impose provisional anti-dumping duty, the highest price for the imports (CIF) of 236%.
Chinese telecommunications companies Zai Yu “security gate”
On including China, including Huawei and ZTE communications companies, India is an important overseas market. While the market has become the world’s most competitive telecommunications markets, China’s telecommunications companies have been expanding in India is “walking on thin ice”, the largest level of resistance from regulators. Indian authorities on many occasions for various reasons to block Chinese products to enter the equipment manufacturers, such as “national security” grounds prohibit operators purchase equipment manufacturers in China products.
It is understood that the Indian market, Huawei 2008 revenues reached 1.3 billion U.S. dollars, and has R & D center in India, with more than 4,000 employees.
ZTE has plants in India and has nearly 2,000 employees, including nearly 90% of staff localization. ZTE filing shows the performance in India last year, a record sales year on year increase of 50%.
Telecom Regulatory Authority of India is bound to these two companies would form a greater impact, while India will lose operator to buy a high opportunity cost of telecommunications equipment.
Huawei has been established since 1988, after more than a million people have been gradually leaving Huawei, China’s IT sector, a special group of people — the former Huawei.
Huawei before several important characteristics of people:
A famous graduation
(Comments 1.1,1.2:)
2 science and engineering background
(Comment 2.1)
3 special dedication
Huawei which had training camps by fighting, fighting is an important attribute.
4 partial quality, do not believe in failure
Huawei’s 20 years, is with 100 million times more powerful than their own international giant, contend the process of growing up. Years, failure is common, success is inevitable, Huawei has become a mark carved in the former heart of young people.
5 Globalization and internationalization process of training
These outstanding qualities, the former Huawei’s pioneering wave of a wave after wave, went after the Bay.
But, regrettably, has not been listed or industry leaders are emerging.
The 2000 -2 009 years, China is still a large number of emission from a number of outstanding industry leaders and public companies. If Suntech was founded in 2004, 2008, almost 100 million new solar energy industry; such as gaming, grand, giant, Perfect World, etc.; such as the Internet industry, Baidu, Netease, QQ; appliance distributors, such as Suning, Gome etc.; e-commerce, such as Alibaba.
Reflect on its outside: the former Huawei people too believe that the chance communications industry
Communication industry is indeed time for the development of China and the world differ very much from the Chinese to have the opportunity to overtake an area in the world. Automobile industry, China 100 years behind China, after 30 years of development can only catch a small fraction; while a business is different, although the wired telephone and cable telephone Ji Tong, the Chinese Min Yong range have four years or so behind the time, but Yishoujiwei on behalf of wireless communications, data communications, wide range of applications, a difference of 10-20 years, however, coupled with China’s telecom industry and open markets to the Chinese telecommunications industry to bring development opportunities once every hundred years. This is also the past two years, Huawei, ZTE rapid development, standing proudly on the world industry background.
However, we must also see that China’s telecommunications industry is an oligopoly the buyer, the seller oligopoly, core supplier oligopoly of high concentration, so in fact the market high threshold. The buyer has been led by China Mobile, China Unicom, China Telecom, China Netcom, together with their respective focus areas of development different from before, in their own area of focus is almost exclusively type, complete oligarchy, single oligarch. The seller, a long time wireless Ericsson, Nokia, Moto, Lucent, CISCO, a single large data network, and now joined Huawei, ZTE.
The result of the buyer oligopoly, the four operators between the prescribed and covertly, in carrying out diverse aspects of new business thunder, little rain, a common strangling IP phones and other new business or potential competitors, oligopoly strangle the Chinese telecommunications market itself The multi-level diversification needs; seller oligopoly equipment manufacturers, large manufacturers can easily Kaizhan predatory pricing, zero price, below cost, elimination of giving way for new entrants, as Microsoft in WINDOWS as in the tying of IE Among the new entrants in the invisible.
China long has been “anti-monopoly law,” “Anti-Unfair Competition Law” blind zone; the same time weak intellectual property protection in China is the place.
Cottage and other international mobile phone giant Nokia in fact the Chinese market similar to the “predatory pricing” tool! Nokia 5000 dollars a mobile phone for high-end crowd, almost cottage Nokia phone features a 500 dollars. The 500 dollars is predatory pricing, it costs directly to the middle of the state of technology and others out of the market.
In this context, then those who enter the communications industry, up horizon, not by operator, is to be several major equipment supplier oligopoly twisted off; down, to quickly copy a large number of small workshops were based lodged a dig of.
“Predatory pricing”, the original meaning is the means of economic or technological power in the industry in a dominant position in the company to exclude competitors for the purpose of, in certain markets on the price below cost Zanshi successive sales of goods and competition competitors out of the market to raise prices after the behavior. We review whether the market will find that communication often occurs “predatory pricing” event.
Communication industry is indeed a great opportunity exists even today, but are oligarchs, are small workshops who do not belong to the middle zone of innovation as the thrust of the SME.
Failure is not accidental, in fact, in 2000 -2,009 years, far greater than the failure in the communications industry, Huawei people before the opening of the company! Or we reflect today, in addition to remaining outside a few oligarchs, the industry, what the emerging growth enterprises?
Forward-looking, such as Shi Yuzhu, science and engineering graduates, IT industry veteran, re-start, it will also avoid the communications industry, he is well aware of this industry up and down Jieyou tiger truth.
The so-called high-threshold, simply, there is 50% of the industry with high profits are not new entrants into the rush; high threshold for the communications industry, the opportunity seems more profitable beautiful, but that was mainly caused by an oligopoly , step into the-way ticket.
In contrast, Shi Yuzhu decided to enter the health food industry, the health industry in the state of non-monopolistic competition, barriers to entry are relatively low; and select the game industry after the Shi Yuzhu, when the buyer is in a non-monopoly, the monopoly seller, the seller seriously can not meet the individual needs of a large number of differentiated, Shi Yuzhu game industry after the emergence of a number of successful breakthroughs or new enterprises, and this is because the games industry, at least not a buyer’s monopoly, the demand of the industry.
Huawei people before, as in science and engineering background, and Huawei to carry out forward-looking in communications technology have more options out of business when most of the communications industry nearby, or because the forces of venture capital, the so-called “because you’re in the communications the area of expert, so I cast you only communications industry “to speak, has also led to the former Huawei’s business focus in the communications industry. But in fact the period in Huawei, enterprise management, global perspective, the internationalization process of learning should be the most important capital and wealth, believe in the future, the former Huawei person who can avoid Leisi oligopolistic industry will exploit the advantages of enterprise management , will be possible to achieve explosive success.
Personal Comments:
1.1 The chief, Huawei Human Resources has students from the University of name brands obsession, used to be rather non-communication electronic expertise to Tsinghua University, the University of communications professionals do not Ersan Liu; said to have even the selection of the Secretary of the famous colleges. Do not know if or case?
1.2 out of Huawei, it was found also among good company BYD, BYD’s founder and others are a bunch of Central South University students. Therefore, the lines need to drop people, is the case.
2.11997 years it will just joined the company, told the kitchen manager also science and engineering graduates, had to graduate. The Secretary and the prospects of operator (then called the lark), but also would have to be science and engineering.
Ren Zhengfei 1.42% stake
Huawei’s annual six Aspect
Yesterday, Huawei has come up with a very impressive earnings and revenue 149.059 billion yuan, up 19.0%, net profit of 18.274 billion yuan, up 132.8%, operating cash flow was 21.7 billion yuan, up 237% .
Last year, under the pressure of the global market, to achieve this result it is not easy, however, because Huawei is not a listed company, announced its financial results for the caliber will be adjusted as the business, sorry about that, because the domestic market last year The explosion and the shrinkage of the international market, Huawei’s international market share of income than 75% in 2008 dropped sharply, but even though it is to figures released over the years, but last year’s earnings, this figure does not reflect.
It is noteworthy that Huawei’s earnings report last year, first disclosed the company’s equity position, which in the past several years, has been as highly confidential and only remain in the rumor level. Foreign media have been questioned because of military or government backgrounds Huawei Huawei in earnings given a detailed description, perhaps reminiscent of the Huawei does in the market for entry into the United States to make preparations.
Annual report, Huawei Technologies Co., Ltd. is wholly owned by the Shenzhen Huawei Investment Holdings Limited, Huawei Holding is 100% privately held by the employees without any third party (including government) holding the shares held by Huawei.
As of December 31, 2009, Huawei controlling shareholders including Shenzhen Investment Holdings Co., Ltd. Huawei Ren Zhengfei trade union committee and the former was 98.58% stake, Ren Zhengfei 1.42% stake.
Huawei, Huawei holding by trade unions on employee stock ownership plan, ESOP number of participants was 61 457 at present, all employees from the company constituted. According to statements Yafang Sun, Huawei has 95,000 employees in total, the shareholding ratio reached 64.69 percent employees.
Not difficult to see from the annual report, net income and cash flow significantly increase the performance of Huawei are two major highlights in 2009. Since last year’s performance driven, Huawei’s performance over the past 5 years, compound annual growth rate (CAGR) has been greatly improved. According to Huawei’s 2008 earnings, from 2004 to 2008 in 5 years, the average annual compound revenue growth rate of 48%, profits 17% compound annual growth rate.
However, from 2005 to 2009 compound annual growth rate of revenue decline when compared with earlier, dropped to 33%, operating profit but never 17% compound annual growth rate almost doubled, reaching 33%, in addition to , cash flow from operating activities compound annual growth rate as high as 40%.
But the annual report also shows that to achieve 2009 net profit of 18.274 billion yuan, partly because revenue growth and operating margins improved, partly because of changes in exchange gains and losses increased 6.937 billion yuan profit, excluding the impact of this factor so, Huawei in 2009 net profit rose 26.5%.
In the past year, due to financial crisis, Huawei’s cash flow and other financial conditions of concern. Huawei’s operating cash flow in 2009 was 21.7 billion yuan, up 237%, in particular, the cash received from customers reached 165.802 billion yuan, compared with an increase of 44.7% in 2008, showing conditions of payment, be greatly improved.
However, Huawei’s asset-liability ratio in 2009 is still not optimistic, though only 68.3% compared with 2008 increased by 0.7 percentage points, but also reached a high of 69%, and the proportion from the past five years has been increased to 2009 record high.
However, Huawei’s credit structure has been greatly improved. In 2008, Huawei’s short-term borrowing in total debt in the proportion as high as 92.7%, which makes Huawei the short-term financial risk to increase. In 2009, Huawei’s short-term liabilities decreased by 39.3%, while the long-term loans grew by 727.5 percent, and the proportion of total debt increased from 7.3% to 51.8%. Greatly mitigate the risk of short-term debt.
Meanwhile, Huawei’s accounts receivable turnover days than in 2008, a decrease of 2 days, heaven from 127 to 125 days, but the total amount of accounts receivable increased by 17.1%, reaching 51.875 billion yuan. From multiple indicators, Huawei in 2009 to enhance management efficiency and optimization are obvious, and that the performance of Huawei had a significant impact.
Red flag in the Indian market Biancha equipment manufacturers in China, recently met the Indian side of anti-dumping trade protectionism, “anti.”
India’s Ministry of Finance announced that originated in China will be synchronous digital transmission equipment (SDH) to impose provisional anti-dumping duties of up to 236% the price of imports. One of Shanghai Bell, the anti-dumping duty levied at 29%; Huawei, 50%; ZTE, Fiberhome also be harsh to 236% of the heavy taxes.
According to sources, because of India’s 3G market will start next year, the anti-dumping on Chinese equipment manufacturers will have a negative impact no knowing. But the Ministry of Commerce has been in close communication with the manufacturers, brewing of uniform measures to deal with.
The maximum weight is 236% tax levy
Because India TejasNetworks
Ltd. Complaint behavior of Chinese exporters have lower prices, India’s anti-dumping cum Joint Tax Department on April 21 of this year to begin originating in or imported from China, SDH transmission equipment to anti-dumping investigation.
India’s Ministry of Finance on December 8 issued a notice through its website, will be exported to India and Shanghai Bell SD H
(Synchronous digital hierarchy) equipment levy 29% of the anti-dumping duties. This is the lightest penalty, a — Huawei SD
H equipment will be charged 50%; ZTE and Fiberhome 236% more was imposed. An Israeli company’s subsidiary in Hangzhou, China Communication Co., Ltd. according to race was in accordance with the prices of imports 93% of revenue.
“Voice of China, India, recently a lot of anti-dumping possible that this phase reflects the mentality.” ZTE executives to newspaper said the Indian company in a weak competitive equipment, operators, if not to buy Chinese equipment manufacturers products, is facing significant cost pressures.
ZTE in India has more than 1,000 employees, including nearly 90% of staff localization. ZTE’s sales in India this year, about 10 billion U.S. dollars, ZTE is one of the biggest overseas market. ZTE executives said, ZTE sold in India, SD
H product of about 200 million “a very small amount.”
Huawei spokesman Yan light before said that the Government of India Huawei is seeking an explanation on anti-dumping issues. Last year, Huawei’s contract sales of 1.7 billion from India.
At present, Huawei has 4,000 employees in India, Huawei plans within the next 18 months, added 2,000 employees in India. “It’s something we are still internal communication, to understand the situation.” Huawei insiders said so.
It is said that Huawei SD H product sales in India, nearly 10 million U.S. dollars is about, but Huawei officials did not confirm this data.
Shanghai Bell stressed that product prices reflect the economic reality, the company’s actions fully comply with competition-related laws and regulations. “We are working actively with the parties concerned to work together to solve this problem.”
To enter the 3G market may affect India
This year, Indian officials on China’s telecommunications companies become more rigorous, in addition to blocking cell phone outside the cottage, in June, the Indian Defense Ministry grounds of national security interests against the use of state-owned telecommunications company Huawei and ZTE’s equipment; December 7, Huawei received equipment orders totaling 2 billion yuan by the Indian operator BSN
L unilaterally cancel.
With industry are concerned that the Indian government imposed temporary anti-dumping duties reflected in the attitude, it will affect next year’s 3G tender. India delays 3G licenses in more than a year to determine next year on January 24 auction, expected next year, Indian carriers will be substantial increase in spending for 3G network construction.
KGI is expected before this year, ZTE 10% -15% of some revenue from the Indian market; if India’s 3G license issuance, the company’s contribution to the Indian market is expected to account for more than 20% of total revenue. But now, can not be too optimistic.
“This is not business to business problem, and rose to between countries.” Sources, the Ministry of Commerce has been in close communication with the vendors, preparation of uniform measures to deal with.