Huawei 2012 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2012 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 122

  • 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
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

Management Discussion and Analysis
27
Credit Risk
The company has established and implemented
globally consistent credit management policies
and practices, processes, IT systems, and credit
risk assessment tools. In addition, dedicated credit
management organizations have been established
across all regions and business units. The company
has used risk assessment models to determine
customer credit ratings and credit limits. It has also
implemented risk control points over key processes
along the end-to-end sales cycle to manage credit
risks in a closed-loop manner. Huawei’s Credit
Management Dept regularly assesses global credit
risk exposures, estimates potential losses, and
determines bad debt provisions as appropriate.
In the event that a credit risk for a specific
customer or outstanding trade receivable becomes
inappropriately high, a special handling process is
initiated to mitigate the risk.
Sales Financing
With global coverage, Huawei’s sales financing
team maintains close contact with customers to
understand their financing needs and taps into
diversified financing resources around the world.
As a bridge for communication and cooperation
between financial institutions and customers, the
sales financing team provides customers with
professional financing solutions that continuously
contribute to customer success. Third-party
financial institutions engage with Huawei in export
credit, leasing, and factoring activities to obtain
benefits and they bear the associated risks. Huawei
has established systematic financing policies and
project approval processes to strictly control
financing risk exposures.
Research and Development
Huawei has over 70,000 product and solution R&D
employees, comprising more than 45% of our total
workforce worldwide. We have set up 16 R&D
centers in countries that include Germany, Sweden,
the US, France, Italy, Russia, India, and China.
To gain a distinct competitive edge in the future,
we have set up the 2012 Laboratories, which
functions as the innovation, research, and platform
technology development arm of the company.
We focus on making continuous investments in
key technologies, architectures, and standards
in the ICT field and are dedicated to providing
broader, smarter, and more energy-efficient pipes
that require zero wait time, thereby creating a
better experience for users. We work closely
with partners from the industry, academia, and
research institutes. Our goal is to take the lead
in research, innovation, and implementation of
future networks. Huawei has also set up 28 joint
innovation centers with leading carriers to translate
leading technologies into a competitive edge and
business success for customers.
As of December 31, 2012, Huawei had filed 41,948
patent applications in China, 12,453 under the
Patent Cooperation Treaty (PCT), and 14,494
outside China. Among these applications, 30,240
patents have been granted.
As an important contributor to the ICT industry,
Huawei applies standards to the industry in
key standards organizations and key standards
projects, participates in and supports mainstream
international standards, and makes a variety of
positive contributions. At the ITU, for example,