Corporate Governance Overview

The company only exists to serve its customers. The purpose of growing our harvest and increasing the fertility of our soil is to better serve our customers. "Staying customer-centric and creating value for customers" are the company's common values. The conferment of authority is required to drive the facilitation and implementation of the company's common values. However, without effective controls in place, authority un-checked will ultimately hinder such common values. The company has a well-developed internal governance structure, under which all governance bodies have clear and focused authority and responsibility, but operate under checks and balances. This creates a closed cycle of authority and achieves rational and cyclical succession of authority.

The company's fate cannot be tied to any single individual and the governance bodies of the company shall follow a model of collective leadership. This collective leadership model is created upon common values, focused responsibility, democratic centralized authority, checks and balances, and growth by self-reflection.

In addition, the company stays customer-centric, inspires dedication, and continuously improves its governance structure, organizations, processes, and appraisal systems to sustain its long-term growth.

The Shareholders’ Meeting is the company’s authoritative body, 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 customer and shareholder interests are protected.

The BOD and its Executive Committee are led by rotating chairs. During their terms, the rotating chairs 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 compliance.

An 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. KPMG has been Huawei's independent auditor since 2000.

To strengthen end-to-end operations management of our ICT infrastructure business, the company set up the ICT Infrastructure Managing Board, which is the primary owner of our business strategy, operations management, and customer satisfaction for ICT infrastructure business.

• 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.
• Network Products & Solutions is a department that provides integrated ICT solutions to carriers and enterprise/industry customers. This department is responsible for product planning, development, and delivery as well as for building product competitiveness. The goal of Network Products & Solutions is to deliver better user experiences, support customers' business success, and lead the world forward by building the best, most intelligent, and most cost-effective connections.
• The Cloud & AI BG is responsible for the competitiveness and success of Huawei's cloud and computing business. This BG is also responsible for the business's R&D, marketing, ecosystem building, technical sales, consulting, and integrated enablement services. This BG will focus on Kunpeng, Ascend, and HUAWEI CLOUD to build ecosystems and cultivate fertile soil, so that Huawei can become a cornerstone of the digital world.
• ICT regional organizations are the company's regional ICT business operations centers. They are responsible for developing and effectively leveraging regional resources and capabilities, and also for implementing the company's ICT business strategy in their regions. While establishing closer partnerships with customers and helping them achieve business success, ICT regional organizations will develop ICT management systems, cyber security and privacy protection management systems, and internal control systems in their regions, and will continue to support the company in achieving profitable and sustainable growth.
• The Intelligent Automotive Solution BU is an end-to-end organization responsible for the company's intelligent automotive business. This BU will help extend Huawei's strengths in ICT to the intelligent automotive sector by providing incremental ICT components and solutions. This BU's business goal is to use ICT to help automotive manufacturers produce even better products.

To strengthen strategy and risk management within our consumer business and increase the efficiency of its decision-making process, the company set up the Consumer Business Managing Board, which is the primary owner of consumer business strategies, operations management, and customer satisfaction.

• The Consumer BG focuses on serving device consumers and ecosystem partners, 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.
• The Consumer BG's regional organizations are responsible for their overall business results, consumer satisfaction, ecosystem partner experience, and the brand image enhancement of regional consumer business. They need to gain insight into environmental changes and competition dynamics for the consumer electronics industry, and develop and implement regional consumer business plans and resource investment strategies. These organizations are also responsible for launching products, managing product lifecycles, developing ecosystems, planning and implementing marketing events, and developing and managing channels, retail outlets, and services in their regions. They also need to develop and maintain partnerships, create a favorable business environment, and ensure operational compliance and sustainable development of regional consumer business.

To gradually build a shared service platform to support the development of our multiple businesses and create an anchor for corporate policy execution, the company set up the Platform Coordination Committee. This committee is designed to push group functions to optimize their execution and operations, simplify cross-function operations, and strengthen collaboration, so that group functions will become the best service organizations available to support and promote business operations. Group functions provide business support, services, and oversight. They are positioned to offer accurate, timely, and effective services to field offices and strengthen oversight while delegating sufficient authority to them.