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.

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.

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 and Cloud & AI Products & Services are organizations that provide integrated ICT solutions to carriers and enterprise/ industry customers. They are responsible for product planning, development, and delivery as well as for building product competitiveness to deliver better user experience and support business success. The goal of Network Products & Solutions is to build the world’s best, most intelligent, and most cost-effective connections. The goal of Cloud & AI Products & Services is to create Huawei’s “fertile soil” for computing and cloud services to help build a fully connected, intelligent 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. The company has continuously optimized regional organizations and accelerated the delegation of more authority to field offices. Command and on-site decision making authority has gradually been delegated to representative offices. To further improve efficiency and responsiveness to customer needs, the company is now piloting contract approval at the representative office level in some countries. 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, internal control systems, and compliance systems in their regions, and will continue to support the company in achieving profitable and sustainable growth.

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

• 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.
• The Consumer BG’s regional organizations are responsible for their overall business results, consumer satisfaction, 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, 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.