Corporate Governance Overview

By staying customer-centric and inspiring dedication, we have sustained long-term growth through continuous improvement of our corporate governance structure, organizations, processes, and appraisal systems.

（As of December 31, 2017）

The Shareholders’ Meeting is the company’s authoritative body, making decisions on making decisions on major issues such as the company's capital increase, profit distribution, and selection of the members of the Board of Directors/Supervisory Board.

The Board of Directors (BOD) is the highest body responsible for corporate strategy, operations management, and customer satisfaction. The BOD’s mission is to lead the company forward. It exercises decision-making authority for corporate strategy and operations management, and ensures the protection of customer and shareholder interests.

The BOD and its Executive Committee will be led by rotating chairmen. During their terms, the rotating chairmen will serve as the foremost leader of the company.

The key responsibilities of the Supervisory Board include overseeing the responsibility fulfillment of BOD members and senior management, monitoring the company’s operational and financial status, and supervising internal control and legal compliance.

KPMG has been Huawei's independent auditor since 2000. The independent auditor is responsible for auditing a company's annual financial statements. In accordance with applicable accounting standards and audit procedures, the independent auditor expresses an opinion as to whether the financial statements are true and fair.

The company has established a business structure that focuses on three dimensions: customers, products, and regions. All organizations jointly create value for customers, and are responsible for the company’s financial results, market competitiveness, and customer satisfaction.

• The Carrier BG and the Enterprise BG manage and support solution marketing, sales, and services that target carrier customers and enterprise/industry customers respectively. The two BGs provide innovative, differentiated, and advanced solutions based on the business characteristics and operational patterns of different customers while continuously improving the company’s industry competitiveness and customer satisfaction. The Consumer BG focuses on serving device consumers and deals with all aspects of the consumer domain. This BG is responsible for business performance, risk controls, market competitiveness, and customer satisfaction in the consumer business.
• In 2017, Huawei established the Cloud BU, a business unit responsible for end-to-end management of Huawei’s offering in the cloud services industry. It is tasked with enhancing competitiveness in cloud services, and ensuring customer satisfaction and business success in this domain.
• Products & Solutions is an organization that provides integrated ICT solutions to carriers and enterprise/industry customers. In addition to product planning, development, and delivery, this organization is also responsible for developing product competitiveness in order to deliver a better user experience and support the company’s business success.
• Regional organizations are the company’s regional operations centers. They are responsible for developing and effectively leveraging regional resources and capabilities, and also for the execution of corporate strategy in their regions. The company has continuously optimized regional organizations and accelerated the delegation of authority to field offices. Command and on-site decision making authority has gradually been delegated to representative offices. Currently, to improve efficiency and responsiveness to customer needs, the company is piloting contract approval at the representative office level in some countries. While establishing closer partnerships with customers and helping them achieve business success, regional organizations will continue to support the company in achieving profitable and sustainable growth.
• Group Functions provide business support, services, and supervision. They are positioned to offer accurate, timely, and effective services to field offices and strengthen supervision while delegating sufficient authority to them.