Huawei 2014 Annual Report Download - page 147

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145Abbreviations, Financial Terminology, and Exchange Rates
Abbreviation Full Name
PON Passive Optical Network
PRM Partner Relationship Management
PSIRT Product Security Incident Response
Team
ROADS Real-time, On-demand, All-online,
DIY, Social
ROI Return on Investment
RPO Recovery Point Objective
RTO Recovery Time Objective
SACA Semi-Annual Control Assessment
SAN Storage Area Network
SBC Session Border Controller
SCMA Sparse Code Multiple Access
SDN Software-defined Networking
SDP Service Delivery Platform
SOC Service Operation Center
SPO Lab Service Provider Operation Lab
SSC Shared Services Center
TMO Technical Management Office
T-SDN Transport-SDN
TUP Time-based Unit Plan
UMTS Universal Mobile Telecommunications
System
UPS Uninterruptible Power Supply
vDC virtual Data Center
VGS Value Growth Solution
VoLTE Voice over Long Term Evolution
WAN Wide Area Network
WDM Wavelength Division Multiplexing
ZOOM Zero-touch Orchestration, Operations
and Management
Financial Terminology
Operating profit
Gross profit less research and development expenses,
selling and administrative expenses, plus other
(expenses)/income, net
Cash and short term investments
Cash and cash equivalents plus other current investments
Working capital
Current assets less current liabilities
Liability ratio
Total liabilities expressed as a percentage of total assets
Days of sales outstanding (DSO)
Trade receivables at the end of the year divided by
revenue, and multiplied by 360 days
Inventory turnover days (ITO)
Inventories at the end of the year divided by cost of
sales, and multiplied by 360 days
Days of payables outstanding (DPO)
Trade payables at the end of the year divided by cost of
sales, and multiplied by 360 days
Cash flow before change in operating assets and
liabilities
Net profit plus depreciation, amortization, unrealized
exchange loss, interest expense, loss on disposal of fixed
and intangible assets, and other non-operating expense,
less unrealized exchange gain, investment income, gain
on disposal of property, plant and equipment and
intangible assets, and other non-operating income.
Exchange rates
Exchange rates used in the annual report:
CNY/USD 2014 2013
Average rate 6.1701 6.1424
Closing rate 6.1958 6.0569