Huawei 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 Huawei annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Huawei Investment & Holding Co., Ltd. 2011 Annual Report

Table of contents

  • Page 1
    Huawei Investment & Holding Co., Ltd. 2011 Annual Report

  • Page 2
    ...shrinking world is enabling knowledge and business platforms to expand, to create new values, and to harvest new rewards. Huawei imagines a future that is bountiful and exciting, where connections between people and businesses will be seamless, helping everyone to communicate and to collaborate from...

  • Page 3
    Huawei R&D Campus

  • Page 4

  • Page 5
    ... 2011 Five-Year Financial Highlights Letter from the Chairwoman 09 10 27 31 32 Vision, Mission, and Core Values Management Discussion and Analysis Market Trends Independent Auditor's Report Consolidated Financial Statements Summary and Notes 61 67 69 85 Company Information Risk Factors Corporate...

  • Page 6
    ...of the BOD is universally applicable. CEOs are a group of moving professional executives who have profound knowledge, a global view, and an open mind while staying abreast of the latest changes to technologies and business. It might be practical for an enterprise that has resources and privileges to...

  • Page 7
    ...though. Huawei's BOD has made it clear that it will not make maximizing the interests of shareholders or stakeholders (including employees, governments, and suppliers) its goal. Rather, it holds on to the core corporate values that are centered on customer interests and encourage employee dedication...

  • Page 8
    ... broadband. In carrier software and core networks, Huawei provides end-to-end solutions and services for more than 310 carrier customers worldwide. In the enterprise business area, Huawei has become a mainstream supplier of information and communication technologies (ICT) solutions for enterprises...

  • Page 9
    ... company to succeed as we expand our business into new areas around the world. In terms of investments and corporate culture, we will effectively deploy talent around the world; we will share our expertise, experiences, and resources globally; and we will establish extensive partnerships. At Huawei...

  • Page 10
    ... technologies across various industries. By the end of 2011, we had helped customers around the world build 20 cloud computing data centers. Driving innovation Huawei integrated several departments and functions to establish the 2012 Laboratories, the innovation, research, and platform development...

  • Page 11
    ... Financial Highlights / 06 Five-Year Financial Highlights CNY Million Revenue Operating profit Operating margin Net profit Cash flow from operating activities Cash and short term investments Working capital Total assets Total borrowings Owner's equity Liability Ratio 2011 (USD Million)* 32,396...

  • Page 12
    ... system, which covers policies, organizations, processes, management, technology, and standards. We are working closely with governments, customers, and industry partners from different countries in addressing cyber security challenges. The new BOD started to convene in 2011. We further optimized...

  • Page 13
    ... the digital divide, conserving energy and protecting the environment, managing suppliers' CSR, caring for employees, and contributing to society, we strive to fulfill our CSR strategy, proactively give back to society, and create a harmonious business ecosystem. strengthened the support, service...

  • Page 14
    ... challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers. Core Values Our core values are deeply rooted in every aspect of our business. They are the internal driving force for the company and are our commitments to the...

  • Page 15
    ... of smart devices, as well as new-generation business platforms and applications to offer users an efficient, environmentally friendly, and innovative information-based experience. Huawei will remain focused on customer needs as we continue to innovate, openly cooperate with partners, and deepen our...

  • Page 16
    ...and Analysis Business Review 2011 Huawei's well-balanced presence around the world helped the company achieve healthy growth in the carrier network, enterprise, and consumer businesses. Annual sales revenue amounted to CNY203,929 million, an 11.7% increase over the previous year. Sales revenue from...

  • Page 17
    ...all customers while consolidating our position as an industry leader. Wireless Networks In 2011, Huawei's Wireless Networks business achieved a sales revenue of CNY45,911 million. The popularity of smartphones and totally revamped applications are creating a strong momentum for mobile data services...

  • Page 18
    ...,000 Mini-shelter units have been deployed worldwide, making Huawei a global leader in green site construction. Fixed Networks Sales revenue in our Fixed Networks Unit was CNY49,761 million in 2011. Rapid developments in cloud computing and over-the-top (OTT) video services are driving application...

  • Page 19
    / 14

  • Page 20
    ...of end-to-end networks and services. Through close strategic collaboration with customers in completing seamless evolutions, improving user experiences, achieving operational excellence, and increasing revenue, Huawei provides efficient, innovative service solutions and new business models to assist...

  • Page 21
    ... scenario, any technology, and end-to-end ICT solution delivery". Carrier Software & Core Networks Sales revenue in Huawei's carrier software and core networks business was CNY19,768 million in 2011. The company focused on converged communications, such as fixed mobile convergence (FMC), operation...

  • Page 22
    ... at work, mobile offices, and enterprise social networking requires integrated transmissions of voice, video, and data to achieve the "One World, One Office" objective. Such requirements have promoted the rapid development of the unified communications and collaboration (UC&C) field. In 2011, Huawei...

  • Page 23
    ... the world's leading mobile phone brand within the next three years. Huawei mobile phones have comprehensively appealed to the high-end, mid-range, and low-end markets. Our smartphones are emerging as a new force, while the data card business remains a global leader. Huawei's innovative products are...

  • Page 24
    19 / Management Discussion and Analysis Results of operations CNY Million Revenue Gross profit Gross margin Total operating expenses and other income as % of revenue Operating profit Operating margin Net finance expense Income tax expense Net profit Sales revenue for 2011 amounted to CNY203,929 ...

  • Page 25
    ...operating expenses and other income as % of revenue In 2011, the company expanded its investment in the consumer and enterprise business segments. Total expense ratio increased by 1.2 percentage points year-on-year. This increase was mainly attributable to a 1.9 percentage points Net finance expense...

  • Page 26
    ...cash to revenue ratio was 30.6% at the end of 2011 compared to 30.4% at the end of 2010, an increase of 0.2 percentage points. Trade receivables increased by 15.2% year-on-year. The company maintained its refined management of trade receivables and improved its collection efficiency as sales revenue...

  • Page 27
    ...Risk Management In 2011, Huawei further amended and improved its financial risk management policies and processes to enhance the company's ability to withstand financial risks and better strategize to achieve business development goals. Liquidity Risk Huawei has a well functioning cash flow planning...

  • Page 28
    ... organizations in which it holds more than 180 positions. In 2011, Huawei was awarded six top LTE awards from around the globe which served as the industry's affirmation of our continued investment and significant contributions to the research and development of LTE technology, commercial...

  • Page 29
    ... in our process management system, business decision-making system, and even to our employee business conduct guidelines. Huawei has always been open and transparent in its collaboration with all parties involved in addressing the global issue of cyber security, and work with these partners...

  • Page 30
    ... as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer's ability to pay. The company's provision for doubtful accounts was CNY1,481 million and CNY2,929 million for fiscal years ended December 31, 2011 and...

  • Page 31
    ...on associated material costs, technical support labor costs, and associated overheads. The provision for product warranties issued for fiscal years ended December 31, 2011 and December 31, 2010 was CNY2,449 million and CNY1,962 million respectively. If the company experiences an increase in warranty...

  • Page 32
    ... access mobile networks. This in turn drives current and future industry development, which will result in a flourishing information age. User experience drives industry development In today's world, millions of services and applications are close at hand, enabling a constant, 24-hour online digital...

  • Page 33
    / 28

  • Page 34
    ... fundamental human nature. User experience and progress in network technologies are inextricably linked: User experience drives network development, and progress in network technologies guides improvements in user experience. As an improved user experience coincides with cutting-edge mobile networks...

  • Page 35
    ... in networks, and both network quality and Quality of Service (QoS) assurances are dynamic. By analyzing "big data", carriers can provide insights into networks and user requirements, build adaptable enterprises, offer better user experiences and services, and explore more business opportunities...

  • Page 36
    ...") for the financial year ended December 31, 2011. We have issued an unqualified audit report dated March 12, 2012 on the audited consolidated financial statements of the Group for the financial year ended December 31, 2011. Huawei Investment & Holding Co., Ltd. is not a public company and is not...

  • Page 37
    ... Statements Summary and Notes / 32 Consolidated Income Statement Note 2011 CNY'million 2010 CNY'million 182,548 102,195 80,353 Revenue Cost of sales Gross profit 2 203,929 127,481 76,448 Research and development expenses Selling, general and administrative expenses Other operating expenses...

  • Page 38
    ... and Notes Consolidated Balance Sheet Note 2011 CNY'million 2010 CNY'million Assets Property, plant and equipment Intangible assets and goodwill Trade and other receivables Investments in associates and jointly controlled entities Available-for-sale equity investments Loans receivable Deferred...

  • Page 39
    ... of Cash Flow Note 2011 CNY'million 2010 CNY'million Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Other operating cash flows Net cash from operating activities Net cash generated from / (used in) investing activities Net cash used...

  • Page 40
    ... intended users of the consolidated financial statements summary can obtain access to the audited consolidated financial statements for the year ended December 31, 2011 upon consent of the Group's Management through the email address, [email protected]. (b) Functional and presentation currency...

  • Page 41
    ...liability. For each business combination, the Group can elect to measure any non-controlling interests either at fair value or at their proportionate share of the subsidiary's net identifiable assets. Non-controlling interests are presented in the consolidated balance sheet within equity, separately...

  • Page 42
    ...for any excess of the Group's share of the acquisition-date fair values of the investee's identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post acquisition change in the Group's share of the investee's net assets and any impairment loss...

  • Page 43
    ...improvements 20 years 5% 3 ~ 10 years 5% 5 years 2 ~ 5 years 5% Nil Both the useful life of an item of property, plant and equipment and its residual value, if any, are reviewed annually. (i) Intangible assets i) Goodwill Goodwill that arises on the acquisition of subsidiaries is presented with...

  • Page 44
    ... cost or are classified as available-for-sale securities are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. Objective evidence of impairment includes observable data that comes to the attention of the Group about one or more of the following...

  • Page 45
    ... present value using a pre-tax discount rate that reflects current market assessments of time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group...

  • Page 46
    ... less recognised losses and progress billings, and are presented in the consolidated balance sheet as the "Gross amount due from customers for contract work" (as an asset) or the "Gross amount due to customers for contract work" (as a liability), as applicable. Progress billings not yet paid by the...

  • Page 47
    ...benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine the present value and the fair value of any plan assets is deducted. The discount rate is the yield at the balance sheet date on high quality corporate bonds that...

  • Page 48
    ... benefits is remote. (t) Income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognised in profit or loss except to the extent that they relate to a business combination or...

  • Page 49
    ... value of the consideration received or receivable. Provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably, revenue is recognised in profit or loss as follows: i) Sale of goods and services rendered Revenue from...

  • Page 50
    ... balance sheet. Excess of carrying amount of trade receivables over cash received from the banks or financial institutes arising from factoring without recourse is included in the "Other operating expenses" of the consolidated income statement. 2011 CNY 'million Sales of goods and services...

  • Page 51
    ... 2011 CNY 'million Interest income Dividend income Net realised and unrealised gains on financial assets held for trading Net gain on disposal of available-for-sale equity investments Finance income Interest expense Net foreign exchange loss Impairment of available-for-sale securities Bank charges...

  • Page 52
    ... Taxation in the consolidated income statement represents: 2011 CNY 'million Current tax PRC enterprise income tax - current year - (over) / under-provision in respect of prior years Overseas tax - current year -over-provision in respect of prior years 1,490 (113) 2,839 Deferred tax Origination and...

  • Page 53
    ... range of wireless networks, fixed networks, telecom software & core networks, as well as services solutions to telecommunications operators. Enterprise Business Develops integratable information and communications technology ("ICT") products and solutions including enterprise network infrastructure...

  • Page 54
    ...charge for the year Disposals At December 31, 2010 At January 1, 2011 Exchange adjustment Depreciation charge for the year Disposals At December 31, 2011 Carrying amounts: At December 31, 2010 At December 31, 2011...and leasehold Investment properties improvements CNY'million CNY'million Total CNY'...

  • Page 55
    ... December 8. Intangible assets and goodwill 2011 is estimated by the directors to be CNY478,684,000 (2010: CNY493,913,000). The fair value is calculated by management based on the discounted cash flow analysis. The fair value of investment property is determined by the Group internally by reference...

  • Page 56
    ... and Notes 9. Available-for-sale equity investments 2011 CNY 'million Available for sale equity securities: - unlisted stated at cost Cost of individually impaired available-for-sale equity securities - unlisted As at 31 December 2011 and 2010, the Group's availablefor-sale equity securities were...

  • Page 57
    ...(i) Loans receivable due from related parties have an annual interest rate of 3% and mature within one year. (ii) Long-term loans receivable consist of loans made to customers principally to support their operations. At 31 December 2011, all the Group's loans receivable are not due except for those...

  • Page 58
    ... for accounts receivable, because management believes that these provisions are unlikely to be allowed for tax deduction by the tax authorities. 12. Financial assets held for trading Financial assets held for trading mainly comprise investments in wealth management products issued by banks.

  • Page 59
    ... 78,977 998 79,975 14. Trade and other receivables 2011 CNY 'million Trade receivables due from related parties Other trade receivables Gross amount due from customers for contract work Non-trade receivables due from related parties Other non-trade receivables Pledged deposit 613 54,746 3,075...

  • Page 60
    ... and reversed during the year Uncollectible amounts written off At December 31 4,147 1,481 (2,080) 3,548 2010 CNY 'million 4,343 2,929 (3,125) 4,147 15. Cash and cash equivalents 2011 CNY 'million Fixed deposits with banks Cash and bank balances Cash and cash equivalents in the consolidated...

  • Page 61
    ... Financial Statements Summary and Notes / 56 16. Borrowings 2011 CNY 'million Non-current liabilities Unsecured bank loans Intra-group guaranteed bank loans 1,783 11,487 13,270 Current liabilities Unsecured short-term bank loans Intra-group guaranteed bank loans Current portion of unsecured long...

  • Page 62
    ... or less CNY 'million 1 to 5 years CNY 'million The carrying amount of the above loans and borrowings approximates to their fair value. All of the Group's bank facilities are subject to the fulfilment of covenants relating to certain of the Group's balance sheet ratios, as are commonly found in...

  • Page 63
    ... Financial Statements Summary and Notes / 58 17. Trade and other payables 2011 CNY 'million Trade payables due to related parties Other trade payables Bills payable and letter of credit payables Gross amount due to customers for contract work Non-trade payables due to related parties Other non...

  • Page 64
    ... the commercial agreements between Motorola and Huawei Tech to NSN and allows NSN to receive and use Huawei Tech's confidential information. (iii) On 22 February 2012, Creative Technology Ltd. and its subsidiary, Qmax Communications Pte. Ltd. ("Creative") filed a lawsuit against Huawei International...

  • Page 65
    ... The Group leases out certain of its properties under operating leases (see note 2). Non-cancellable operating lease rentals are receivable as follows: 2011 CNY 'million Less than one year Between one and five years Above five years 46 47 93 2010 CNY 'million 49 69 118 During the year ended 31...

  • Page 66
    ..., Huawei certification services, and Huawei education services Carrier software & core networks: BSS & OSS, service delivery platform (SDP), digital home, mobile broadband value growth solutions (MBB VGSs), cloud computing, RCS-e/RCS, unified communications, mobile office, IP contact center business...

  • Page 67
    ...: Smartphones and feature phones â- Mobile broadband devices: Data cards, wireless routers, and modules â- Enterprise networks: Access routers (ARs), NE core routers, campus switches, data center switches, WLAN, transport networks, access networks, and network management â- Home convergence...

  • Page 68
    ... Year Award for Financial Call Centers in China at the 5th Annual Summit for Financial Industry Call Center Development in China for its outstanding contributions to the financial customer service sector. On September 28, 2011, Huawei was awarded the 2011 Best Technology Solution in Customer Contact...

  • Page 69
    ... the sustainable development of the global economy. These enterprises serve as role models in driving new tracks for building wealth. On July 8, 2011, Huawei was awarded China's Best Customer Service Solution Supplier Award at the selection and award ceremony of the 6th Annual Best Customer Service...

  • Page 70
    ... Frost & Sullivan recognized Huawei's contributions to the contact center application market with the 2010 Asia Pacific Growth Strategy Leadership Award. On October 1, 2010, Huawei received the Red Dot Design Award for its PIVIT Optical Distribution Network Access Terminal Box. On September 30, 2010...

  • Page 71
    ... Information / 66 â- On June 17, 2009, Huawei was recognized for its contribution to the industry at Global Telecoms Business Innovation Awards 2009. On June 5, 2009, Huawei received three prestigious Asia Pacific telecom awards including 2009 Wireless Infrastructure Vendor of the Year, Broadband...

  • Page 72
    ... mentioned in this Annual Report, particularly those outlined in this section, refer to key future uncertainties that could have a material effect on the company's business objectives. They were identified from the company's strategic planning, business model, external environment, and financial...

  • Page 73
    ... to 23 of this Annual Report. Business continuity: Although Huawei strives to avoid single-source supplier solutions, it is not always possible. To find an alternative supplier or to re-design products may take significant time. As such, supply and delivery of our products to our customers could be...

  • Page 74
    ...EVPs Audit Committee Group Functions HR JCR Finance Corporate Development PR&GR Strategy Marketing BP&IT Cyber Security Ethics & Compliance Legal Affairs Internal Audit Service BG (SBG) 2012 Laboratories Huawei Machine Financial Investment Management Platform Carrier Network BG Enterprise BG...

  • Page 75
    ...the year, the BOD also reviewed and approved the annual business plan and budget, quarterly operational performance reports, the strategic direction and organizational setup for new businesses, investment and merger & acquisition projects, appointments and compensation policies for senior management...

  • Page 76
    ... health and safety of employees. Managing the strategic plans and key HR transformation activities. â- â- â- â- Aligning resources with business needs based on the company's resources and resource acquisition capabilities. Setting financial objectives for the growth and investment projects...

  • Page 77
    ... key strategic products. Managing the company's medium-to-long-term technology development plan, standards and patent strategy, and major technology investments. Managing the company's medium-to-long-term business transformation strategy, process and management system structure, and quality policies...

  • Page 78
    ... milestone plan, overseeing internal controls across the company, driving closed-loop issue management, and promoting management improvements. Monitoring the effectiveness of Huawei's ethics and compliance environment, and driving employees' compliance with Huawei's Business Conduct Guidelines (BCG...

  • Page 79
    ... Board, and the BOD Committees Members of the Board of Directors From the left in the first row: Mr. Hu Houkun, Ms. Sun Yafang, Mr. Guo Ping, Ms. Chen Lifang, Mr. Xu Wenwei From the left in the second row: Mr. Zhang Ping'an, Mr. Yu Chengdong, Mr. Xu Zhijun, Mr. Ren Zhengfei, Mr. Ding Yun, Ms...

  • Page 80
    .... Guo Ping Born in 1966, Mr. Guo holds a master's degree from Huazhong University of Science and Technology. Mr. Guo joined Huawei in 1988 and has served as an R & D project manager, General Manager of Supply Chain, Director of Huawei Executive Office, Chief Legal Officer, President of the Business...

  • Page 81
    ... Yu Chengdong (Richard Yu) Born in 1969, Mr. Yu holds a master's degree from Tsinghua University. Mr. Yu joined Huawei in 1993 and has served as 3G Product Director, Vice President of the Wireless Technical Sales Dept, President of the Wireless Product Line, President of the European Area, and Chief...

  • Page 82
    ... Optical Network Product Line, President of the Supply Chain Mgmt Dept, President of the Procurement Qualification Mgmt Dept, and currently, Chief Operations & Delivery Officer. Mr. Ren Shulu (Steven Ren) Born in 1956, Mr. Ren holds a bachelor's degree from Yunnan University. Mr. Ren joined Huawei...

  • Page 83
    ... an R&D project manager, Department Manager at Huawei Technologies India Private Limited, Deputy Chief of the Beijing Research Center, Director of the R&D Dept of the Data Communications Product Line, Deputy Director of the HR Branch of Products & Solutions, Vice President of the Human Resource Mgmt...

  • Page 84
    ..., President of the Wireless Network Business Dept, and member of the SDC. Mr. Song Liuping Born in 1966, Mr. Song completed his postdoctoral research at Beijing Institute of Technology. Mr. Song joined Huawei in 1996 and has served as Manager of the Product Strategy Planning Office, Director of the...

  • Page 85
    ... Network Product Line, member of the Human Resources Committee, and member of the SDC. Mr. Hou Jinlong Born in 1970, Mr. Hou holds a bachelor's degree from Shanghai Jiaotong University. Mr. Hou joined Huawei in 1996 and has served as an R&D project manager, Director of the Wireless Technical Sales...

  • Page 86
    ... the main driving force behind Huawei's operations. Each BG is responsible for ensuring effective growth and improving efficiency for the company as well as achieving business objectives and ensuring customer satisfaction for its business domain. Each BG has established an executive management team...

  • Page 87
    ... centers that provide end-to-end support and services for BGs. SBGs continuously increase efficiency and reduce operating costs. Huawei has established five SBGs: the 2012 Laboratories, Huawei Machine, Supply Chain Management Services, Huawei University, and Huawei Internal Services. The Group...

  • Page 88
    .../ Corporate Governance Report Alignment with Corporate Strategy Huawei utilizes balanced scorecards to manage its organizational performance. Corporate strategic goals are broken down into organizational performance goals at all levels to drive balanced development of customers, internal operations...

  • Page 89
    ... established an internal complaint channel, an investigation mechanism, and an accountability system. We have clearly defined guidelines in the Agreement on Honesty and Integrity which the company signs with its suppliers. Suppliers can report any improper conduct concerning Huawei employees through...

  • Page 90
    ...communications and information services. Protecting the environment is a core strategy of Huawei that focuses on providing the most competitive and efficient end-to-end green ICT solutions. Continuously focusing on supplier CSR management, safe operations, social contributions, caring for employees...

  • Page 91
    ... business environment. Environmental Protection Huawei actively communicates with customers on energy conservation and environmental protection. Huawei closely collaborates with enterprises across the value chain to build environmentally friendly networks and promotes sustainable development...

  • Page 92
    ..., Huawei actively provided customized services based on the business features of the project. The entire network is now integrated with green technology solutions in rural areas where the power supply is unreliable, helping promote sustainable business growth. Impacts and Benefits of the Phone Lady...

  • Page 93
    ...to grow, we care about employees' career development by offering different paths to diversified and local employees to realize their personal value. Case: Talent Management Huawei motivates employees to contribute to the company by clearly defining their career development path and designating their...

  • Page 94
    89 / Corporate Social Responsibility Fair Operations Aim: â- Case: Huawei's BCG Huawei's BCG provides the foundational principles for our general business conduct, which we expect all employees to follow. The BCG was developed by analyzing situations that occurred in our company and the global ...

  • Page 95
    ... networks and broadband access in fixed networks. Based on our analysis of our customers' energy consumption, we are focusing on the need for a more energy-efficient design of our networks: primarily our access network, core equipment room, and transport network. In 2011, Huawei reduced its power...

  • Page 96
    ... Coast to build a new ICT laboratory, provided training courses, and developed ICT talent for local enterprises, research institutes, and government. 2. Huawei donated equipment to the local hospital to improve medical conditions and healthcare technologies. Mali Huawei cared for women and children...

  • Page 97
    ... and support outstanding students. Latvia Huawei donated telepresence systems to improve medical services. Japan Huawei employees offered disaster relief assistance in response to the earthquake and tsunami, deploying equipment and emergency solutions to help restore communication networks. China...

  • Page 98
    ... CSR issues via innovative thinking To enable the sustainable development of the supply chain, Huawei works hand-in-hand with its suppliers to fulfill social responsibilities. We pay close attention to our suppliers' performance in the areas of ethics, the environment, health, safety, and labor...

  • Page 99
    ...layer customer-facing organizations and lines of communication, as well as through activities such as open discussions, annual meetings, third-party satisfaction surveys, service hotlines, receptions for customers who come to audit Huawei, summits, and routine visits. Huawei develops its management...

  • Page 100
    ... Vice presidents Fixed Broadband Fiber To The Home Gross Domestic Product Gigabit-Capable Passive Optical Network General Packet Radio Service Global System for Mobile communications GSM Association High-Speed Packet Access Information and Communications Technology Internet Data Center Institute of...

  • Page 101
    ... operations Support System Optical Transport Network Optical Transmission Technology Private Branch Exchange Patent Cooperation Treaty Research and Development Radio Access Network Storage Area Network Service Database Service Data Management Service Delivery Platforms Self-Organizing Network Total...

  • Page 102
    ... term investments Cash and cash equivalents plus financial assets held for trading Working capital Current assets less current liabilities Liability ratio Liability expressed as a percentage of total assets Days of sales outstanding (DSO) Trade receivables at the end of the year divided by revenue...

  • Page 103

  • Page 104
    ... © 2012 HUAWEI INVESTMENT & HOLDING CO., LTD. All Rights Reserved. GENERAL DISCLAIMER THE INFORMATION IN THIS DOCUMENT MAY CONTAIN PREDICTIVE STATEMENTS INCLUDING, WITHOUT LIMITATION, STATEMENTS REGARDING THE FUTURE FINANCIAL AND OPERATING RESULTS, FUTURE PRODUCT PORTFOLIO, NEW TECHNOLOGY, ETC...