Huawei’s rotating chairman Xu Zhijun issued a new year speech on the 31st, stating that in 2019, it is expected to achieve sales revenue of more than 120 billion dollars, an increase of about 18% year-on-year. Although it did not meet the expectations at the beginning of the year, the company’s overall operation was stable and basically withstood the test. Among them, the smartphone business maintained steady growth, with shipments exceeding 240 million units. The speech stated that, in 2020, we will make every effort to build the HMS ecosystem and support the sale of smartphones overseas. At the same time, we will consider products based on Kunpeng and Shengteng processors as an important growth direction in 2020.
Without a bit of coldness, how can plum smell. 2019 is an extremely extraordinary year for Huawei. Under the pressure of the U.S. government, all Huawei people face difficulties and overcome the difficulties. Focus on creating value for customers. It is estimated that the annual sales revenue will exceed 120 Billion dollars, an increase of about 18% year-on-year. Although it did not meet the expectations at the beginning of the year, the company’s overall operation was stable and basically withstood the test.
Carrier business leads to the global 5G commercial process. Enterprise business helps customers build a base for digital transformation. There are already 228 of the world ’s top 500 companies in more than 700 cities around the world. Huawei has been selected as its digital transformation partner. We first announced the computing industry strategy, launching the world’s fastest Ascension 910 AI processor and AI cluster training services. The smartphone business maintained steady growth, with shipments exceeding 240 million units; the consumer-centric full-scenario smart ecological layout such as PCs, tablets, smart wearables, and smart screens was further improved. Huawei has no miracles. These achievements did not come easily. On the occasion of the new year, I would like to represent the company’s board of directors and thank customers and partners for their trust and support! Thanks to hundreds of millions of consumers for their love for Huawei and Glory! Thank you for your hard work and support and dedication from your family! Special thanks to those employees and their families who are struggling in the front line!
We firmly believe that human society will inevitably enter the intelligent society in the next thirty years. Digital technology is reshaping the world, and we want to benefit everyone and ensure comprehensive digital inclusion. With the mature commercialization of new technologies such as 5G, cloud computing, AI, and blockchain, industry digitalization is entering a period of rapid development with great potential. But the external environment is becoming more complex and the downward pressure on the world economy is increasing. We will survive and seek development in the adversity of the United States’ continued suppression of leading technologies. Huawei is still focusing on continuously extending the capabilities of ICT to the digitalization of all walks of life, bringing the digital world to everyone, every car, every family, every organization, and building a smart world where everything is connected. We must seize the long-term development trend, focus on strategy, and turn crisis into opportunity.
2020 will be a difficult year for Huawei. We continue to be under the “physical list”. Without the rapid growth in the first half of 2019 and the market inertia in the second half of the year, apart from our own struggles, the only thing we can rely on is our customers and partners. Trust and support. Survival is our first priority. We must continue to be customer-centric and striver-oriented, continue to create value for customers, and focus on ensuring growth, improving capacity, optimizing organization, and controlling risk:
Ensuring growth: Deeply digging digital opportunities, improving business capabilities, proactively planning and improving the business environment, and creating greater value for customers and society. Operator business should actively promote global 5G development and seize network construction opportunities brought about by 5G development; corporate business should optimize focus on industries, customers, and areas based on changes in the environment, and continue to focus on data communications, storage, and cloud services to achieve growth; the consumer business revolves around a full-scenario smart living strategy to create quality products and enhance user experience.
After many years of efforts, we have established a relatively complete “more food” mechanism, but the “increasing land fertility” mechanism has not been established. In 2020, we will establish and implement a “land fertility” mechanism. At the same time, each business unit and representative office should improve the quality of operations by further improving the quality of contracts and delivery efficiency, allocate resources based on the substance of the business and use budgets and budget execution as effective means to improve operations.
The construction and development of the HMS ecosystem is a necessary condition for overseas sales of smart terminals. In 2020, we must fully build the HMS ecosystem, support the sale of smartphones overseas, and promote the innovation of application partners. The construction of Kunpeng and Shengteng ecology is the foundation for the development of Huawei’s cloud and computing industry. Attracting and helping as many software and applications as possible to run on Kunpeng and Shengteng processors and achieve commercial success is the direction of our efforts. Products based on Kunpeng and Shengteng processors are an important growth direction.
As a non-market element, the business environment has surpassed the traditional four elements of marketing and has become the key to our growth. All regions should comprehensively strengthen and improve the business environment, strengthen the trust of local governments and partners in us, enhance Huawei’s local reputation, and continue to create value for customers and society.
Capability enhancement: All employees improve their professional capabilities and supplement key competency elements. The environment is changing, the technology is changing, and the industrial situation is changing. Although we have a high fighting spirit and strong will, our ability is compared with customer expectations, compared with the stage of business development, compared with the challenges of the living environment, and with us. There is still a huge gap in the pursuit ratio. All employees must work hard to improve the professional capabilities required for the positions they hold. Front-line chiefs must improve leadership, insight, and comprehensive management capabilities. Professional supervisors and experts must improve the level of professionalism in their fields. Employees must improve the professional capabilities required for their positions. We will optimize employment standards, raise assessment requirements, and increase the responsibilities, ranks, and powers of experts and frontline. Encourage all employees to fight bravely and make progress, to reach new levels of competence. Encourage outstanding employees to bravely move forward, with the generals at the front and out of the office.
Facing the future, the supply chain must resolutely embrace globalization. Globalization includes American companies, and we use the products of the global industry chain to build our competitiveness. We must not only build global leading products but also “down root to root” and build continuous supply; at the same time, we must “upward the sky” with theoretical breakthroughs, technological inventions, groundbreaking products and business models. We must continue to improve our software engineering capabilities, continue to implement a $ 2 billion investment over five years, and build credible, high-quality products and solutions.
Optimized organization: Optimize the formation and sequence of operations to stimulate organizational vitality. The main purpose of organizational change is to enhance combat capabilities and avoid bureaucracy. It is necessary to merge and reduce all agencies that are not adapted to enhance the competitiveness of the main battle and to improve the strategic support services, and change their personnel to focus on the main channel centered on survival. The goal of ICT organizational change is to support the commercial success of the cloud and computing industries, focusing on the professionalism and efficiency of the industrial dimension, and improving the competitiveness of the industry; there must be a rhythm to promote the conclusion of contracts at the representative office, and achieve independent operation and decision-making of the representative office. It is necessary to inspire experts and truly empower experts to make decisions. Strengthen the rational flow of research and development teams and promote metabolism. Strengthen the construction of local talent teams, give full play to the value of local talents, and let local talents become the mainstay of the company’s local business development, and become an iron market for realizing local operations. Promote the stability of professional teams and strengthen the company’s business operation base.
Establish correct guidance, eradicate mediocre cadres, eliminate idle employees, and activate the organization. Cadres and employees should eliminate their sluggish behavior. It is necessary to strengthen AT responsibilities and improve AT operations. AT didn’t work well. First of all, it was the responsibility of the AT director. At the same time, the AT team members who did not seek progress were mediocre, and did not dare to manage were replaced. ATs at all levels must truly establish a team of cadre orientation, cadre selection, motivation guidance, and team motivation and inheritance of values. Senior cadres cannot “design their lives” by themselves and must always heed the company’s call. Cadres at all levels should focus on the overall situation of the company, go to the front and down the trenches, go to the places where the business is most needed, and fight in difficult areas. To achieve the normal “up and down”, boldly select in the line of fire, promote in the trenches, let excellent people directly pass through, and truly help customers succeed, plant trees in history and continue to contribute. Those who have contributed to the post are promoted; at the same time, the elimination of mediocre cadres is speeded up, and cadres who do not think ahead, rely on mixed relationships, make reports in management positions, and have historically dug pits are retired. To actively plan the echelon construction of the team, the care team must maintain a 10% elimination rate. It is necessary to build a contingent of cadres and employees who have a strong work style and can win battles. The organization is full of vitality, the team is full of fighting passion and has high-level professional capabilities.
Control risks: ensure supply security and business continuity, strengthen network security and privacy protection, and comply with all applicable laws and regulations. It is necessary to enhance the company’s ability to diversify its supply and ensure supply security. Business continuity risk is related to the life and death of the company. We must race against time without any illusions. Each regional department and representative office set the role of business continuity management and fulfills its responsibilities. Based on the bottom-line thinking, we must prepare a good risk response plan, allocate resources flexibly, and respond quickly to uncertain risks. Compliance with all applicable laws and regulations is the compliance tone that the company’s management has always adhered to, and the cornerstone of Huawei’s global compliance operations. We need to further strengthen network security and privacy protection to ensure compliance with local laws and regulations.
Difficulties are always the prelude to greater victory, and challenges are the sharpening stones of a strong team. The US government’s containment of Huawei is strategic and long-term. For Huawei, it is a good opportunity for self-excitation and physical fitness, making us more united, more combative, and better able to meet future challenges. Meet the brave on the narrow road, as long as all of Huawei’s employees are united, and with the support of customers, partners and consumers around the world, we can create value for customers and society in a solid way.
Millions and thousands of hits are still strong, and all winds from east to west and north to south.
Finally, I wish you all a Happy New Year!