Corporate Governance

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href="https://consumer.huawei.com/en/accessories/?ic_medium=hwdc&ic_source=corp_header_consumer" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2c', 'nav_name':'b2c_accessories'});" target="_blank"> <span class="huawei-iconfont iconaccessories-new"></span> <p>Accessories</p> </a> </li> <li class="col-md-3 col-sm-4 col-xs-4"> <a href="https://consumer.huawei.com/en/?ic_medium=hwdc&ic_source=corp_header_consumer" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2c', 'nav_name':'b2c_all_products'});" target="_blank"> <span class="huawei-iconfont iconMore"></span> <p>All Products</p> </a> </li> </ul> </div> <div class="col-md-6"> <a href="https://consumer.huawei.com/en/phones/pura70-ultra/?ic_medium=hwdc&ic_source=corp_header_consumer" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2c', 'nav_name':'b2c_img_Pura70'});" target="_blank"><img data-src="//www-file.huawei.com/-/media/corp2020/home/nav/pura70.jpg?la=en" 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href="https://e.huawei.com/en/products/storage" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_product_computing_data_storage'});" target="_blank">Data Storage</a></li> <li><a href="https://e.huawei.com/en/products/computing/ascend" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_product_computing_ascend'});" target="_blank">Ascend Computing</a></li> </ul> </div> </div> <div class="col-md-4"> <div class="list-nav"> <h4>Cloud</h4> <ul class="list-unstyled"> <li><a href="https://intl.huaweicloud.com/en-us/?utm_medium=menu&utm_source=corp_huawei&utm_campaign=allwayson" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_product_cloud_hwcloud'});" target="_blank">Huawei Cloud</a></li> </ul> </div> </div> </div> </div> <div class="col-md-3"> <h3 class="collapsed" data-toggle="collapse" data-target="#header-list-2" aria-controls="header-list-2" 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aria-controls="header-list-3" aria-expanded="true">Industry Solutions<span class="iconfont icon-arrow-down"></span> <div class="line"></div> </h3> <div class="list-nav collapse navbar-collapse" id="header-list-3"> <ul class="list-unstyled"> <li><a href="https://carrier.huawei.com/en/" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_telecommunications'});" target="_blank">Telecommunications</a></li> <li><a href="https://e.huawei.com/en/industries/education" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_education'});" target="_blank">Education</a></li> <li><a href="https://e.huawei.com/en/industries/finance" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_finance'});">Finance</a></li> <li><a href="https://e.huawei.com/en/industries/grid" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_electric_power'});">Electric Power </a></li> <li><a href="https://e.huawei.com/en/industries/manufacturing" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_manufacturing'});" target="_blank">Manufacturing</a></li> <li><a href="https://e.huawei.com/en/industries/aviation" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_airport'});" target="_blank">Airport</a></li> <li><a href="https://e.huawei.com/en/industries/urban-rail" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_urbanrail'});" target="_blank">Urban Rail</a></li> <li><a href="https://e.huawei.com/en/products-and-solutions" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'b2b', 'nav_name':'b2b_industry_seemore'});" target="_blank" class="read-more"><span>See More</span><span class="iconfont 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onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'support', 'nav_name':'support_carrier_group-space'});">Group Space</a></li> <li><a href="https://support.huawei.com/carrier/navi#col=bulletin" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'support', 'nav_name':'support_carrier_bulletins'});">Bulletins</a></li> <li><a href="https://support.huawei.com/carrier/navi#col=other/pigeon&path=PAN-DE" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'support', 'nav_name':'support_carrier_documentation_express'});">Documentation Express</a></li> <li><a href="https://support.huawei.com/carrier/hdxDownload" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'support', 'nav_name':'support_carrier_hedex_lite'});">HedEx Lite</a></li> <li><a href="https://support.huawei.com/carrierindex/" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'support', 'nav_name':'support_carrier_supporthome'});" class="read-more"><span>See More</span><span class="iconfont icon-arrow-right"></span></a></li> </ul> </div> </div> </div> <a href="javascript:;" class="btn-close-nav-ani hidden-sm hidden-xs"><span class="iconfont icon-close"></span></a> </div> </div> </div> </li> <li class="menu-list hover-open "> <a href="javascript:;" target="" onclick="if(!this.parentNode.classList.contains('active')){utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_open'});}" class="btn-next collapsed hw-navbar-text"> Partners & Developers <span class="iconfont icon-arrow-right hidden-md hidden-lg"></span> </a> <div class="nav-open help menu-fixed-right"> <a href="javascript:;" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_back_to_main_menu'});" class="btn-nav-back hidden-md hidden-lg"> <span class="iconfont icon-arrow-lift"></span> Back to Main Menu </a> <div class="nav-ani"> <div class="title hidden-md hidden-lg">Partners & Developers</div> <div class="mask"></div> <div class="container-custom"> <div class="row"> <div class="col-md-4"> <h3 class="collapsed" data-toggle="collapse" data-target="#header-list-8" aria-controls="header-list-8" aria-expanded="true">Partners<span class="iconfont icon-arrow-down"></span> <div class="line"></div> </h3> <div class="list-nav collapse navbar-collapse" id="header-list-8"> <ul class="list-unstyled"> <li><a href="https://partner.huawei.com/#/en/web/worldwide" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_enterprise_business'});">Enterprise Partners</a></li> <li><a href="https://www.huaweicloud.com/intl/en-us/partners/" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_huaweicloud'});">Huawei Cloud Partners</a></li> <li><a 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'nav_name':'partner_dev_dev_hwcloud'});">Huawei Cloud Developers</a></li> <li><a href="https://www.hikunpeng.com/en/developer" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_dev_kunpeng'});">Kunpeng Developers</a></li> <li><a href="https://www.hiascend.com/en/" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_dev_ascend'});">Ascend Developers</a></li> <li><a href="https://developer.huawei.com/en/" target="_blank" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'partner_dev', 'nav_name':'partner_dev_dev_home'});" class="read-more"><span>See More</span><span class="iconfont icon-arrow-right"></span></a> </li> </ul> </div> </div> <div class="col-md-4"> <h3 class="collapsed" data-toggle="collapse" data-target="#header-list-9" aria-controls="header-list-9" aria-expanded="true">Training & Certification<span 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aria-controls="header-list-12" aria-expanded="true">About Us<span class="iconfont icon-arrow-down"></span> <div class="line"></div> </h3> <div class="list-nav collapse navbar-collapse row" id="header-list-12"> <ul class="list-unstyled col-md-4"> <li><a href="/en/corporate-information" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'abouthuawei', 'nav_name':'abouthuawei_about_corporateinfo'});">Our Company</a></li> <li><a href="/en/annual-report" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'abouthuawei', 'nav_name':'abouthuawei_about_annualreports'});">Annual Reports</a></li> <li><a href="/en/corporate-governance" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'abouthuawei', 'nav_name':'abouthuawei_about_corporategovernance'});">Corporate Governance</a></li> <li><a href="/en/executives" onclick="utag.link({'tealium_event':'megamenu_click', 'nav_category':'abouthuawei', 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name="DREDATE" content="03/28/2024">  <meta name="DOC_LANGUAGE" content="en">  <meta name="DOC_KEYWORDS" content="">  <meta name="DOC_DESCRIPTION" content="Huawei stays customer-centric, inspires dedication, continuously improves its governance structure, organizations, processes, and appraisal systems">  <meta name="DOC_MODIFY_DATE" content="1711584000">  <meta name="DREDATE_YEAR_MONTH" content="2024-03">  <meta name="RESERVE_FIELD1" content="corp-en">  <meta name="RESERVE_FIELD2" content="others">  <meta name="RESERVE_FIELD11" content="03/28/2024">  <meta name="RESERVE_FIELD19" content="">  <meta name="RESERVE_FIELD22" content="">  <meta name="RESERVE_FIELD32" content="">   <div id="content_0_divImageBanner" class="h1style content-img-box mb70"> <img src="//www-file.huawei.com/-/media/corp2020/banner/corporate-governance-pc.jpg" class="bg hidden-sm hidden-xs js-no-zoom" alt="corporate governance pc"> <img src="//www-file.huawei.com/-/media/corp2020/banner/corporate-governance-m.jpg" class="bg hidden-md hidden-lg js-no-zoom" alt="corporate governance m"> <div class="content-box"> <div class="vertical-middle-sm "> <div> <h1>Corporate Governance</h1> <div class="subtitle mb30 p1"> 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. </div> </div> </div> </div> </div> <div class="container-custom content-box ul-list-style mb70"> <ul class="nav nav-tabs mb70 js-tablist-hash nav-fixed-tabs" role="tablist"> <li role="presentation" class="active"> <a href="#corporate-governance" aria-controls="corporate-governance" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'corporate-governance'});">Overview</a> </li> <li role="presentation"> <a href="#board-of-directors" aria-controls="board-of-directors" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'board-of-directors'});">Board of Directors</a> </li> <li role="presentation"> <a href="#supervisory-board" aria-controls="supervisory-board" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'supervisory-board'});">Supervisory Board</a> </li> <li role="presentation"> <a href="#the-shareholders-meeting-and-the-representatives-commission" aria-controls="the-shareholders-meeting-and-the-representatives-commission" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'the-shareholders-meeting-and-the-representatives-commission'});">Shareholders & Representatives</a> </li> <li role="presentation"> <a href="#independent-auditor" aria-controls="independent-auditor" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'independent-auditor'});">Independent Auditor</a> </li> <li role="presentation"> <a href="#internal-control" aria-controls="internal-control" role="tab" data-toggle="tab" aria-expanded="false" onclick="utag.link({'tealium_event' : 'anchor_click','anchor_name': 'internal-control'});">Internal Controls</a> </li> </ul> <div class="tab-content nav-fixed-content"> <div role="tabpanel" class="tab-pane active" id="corporate-governance"> <div class="content-row img-a-ul-m"><h2>Corporate Governance Overview</h2><p>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.</p> <p>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.</p> <p>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 and profitable growth.</p> <p>The Shareholders' Meeting, the company's authoritative body, decides on the company's major matters such as capital increases, profit distribution, and election of the members of the Board of Directors and the Supervisory Board.</p> <p>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.</p> <p>The BOD and its Executive Committee are led by rotating chairs. During their term, each rotating chair serves as the foremost leader of the company.</p> <p>As Huawei's highest oversight body, the Supervisory Board exercises the authority of oversight on behalf of the company's shareholders. Its core authorities are reflected in leader management, business reviews, and strategic vision.</p> <p>KPMG has been Huawei's independent auditor since 2000. 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. </p> <div class="photo-box"> <img src="//www-file.huawei.com/-/media/corp2020/images/corporate-governance/business-structure-2023-en.jpg?la=en" alt="corporate governance"> </div> <p>As one of Huawei's core businesses, the ICT Infrastructure Business comprises the Carrier Business, the Enterprise Business, and ICT Infrastructure. By working on information distribution, interaction, transmission, processing, and storage, Huawei helps customers build CT and IT infrastructure with its leading, innovative products, solutions, and services.</p> <ul> <li>In the carrier market, Huawei continuously innovates with leading carriers, to explore business scenarios and verify key technologies, thus helping carriers constantly enhance their core digital infrastructure capabilities, growing together with them in their new business domains, and serving as an enabler of carriers' digital and intelligent transformation.</li> <li>In the enterprise market, Huawei works to build a "partner + Huawei" open cooperation system for NAs and the commercial and distribution segments. With a focus on industries' valued scenarios, Huawei provides integrated solutions to accelerate the digital and intelligent transformation of industries, and creates new value together with them.</li> <li>ICT Infrastructure comprises Connectivity, Computing, Data Storage, and Carrier Software and Service. In Connectivity, Huawei proactively works with industry partners to define 5.5G and build leading, innovative network infrastructure based on wireless, optical, intelligent IP, and cloud core networks, as part of the effort to continuously drive the connectivity industry forward. In Computing, Huawei works alongside its partners around the world to develop digital infrastructure ecosystems based on Kunpeng, Ascend, and foundational software like Euler, CANN, and MindSpore, establishing the computing backbone for the digital world. In Data Storage, Huawei proactively embraces new media and new applications, and builds a secure, reliable, green, and efficient storage pedestal for a rich variety of application scenarios. In Carrier Software and Service, by focusing on the entire lifecycle of ICT infrastructure, including planning, construction, network O&M, optimization, and operations, Huawei works with its partners to deliver users better service experience and facilitate carrier and enterprise customers' business success.</li> </ul> <p>The Consumer Business continues to put consumers at the center of everything it does. By focusing on quality products, the Consumer Business aims to create an inspired AI experience across all scenarios and build a brand that has a human touch and is liked and trusted by consumers. The Consumer Business also works to build a prosperous HarmonyOS ecosystem and achieve business success together with its partners.</p> <p>Huawei Cloud Computing provides stable, reliable, secure, trustworthy, and innovative cloud services to customers. Huawei Cloud Computing aims to deliver Everything as a Service, accelerate intelligence, reshape industries, and build the cloud foundation for an intelligent world with ubiquitous cloud and pervasive intelligence.</p> <p>Digital Power offers enterprise and industry customers products and solutions like smart PV, smart charging networks, data center facility, critical power supply, and DriveONE. Digital Power is committed to integrating digital and power electronics technologies to provide customers with high-quality, highly-efficient, green, and low-carbon power electronics products, facilitating customers' business success.</p> <p>The Intelligent Automotive Solution Business has brought Huawei's expertise in ICT to the intelligent automotive sector, providing new components for intelligent connected vehicles and helping car OEMs build better vehicles with ICT technologies.</p> <p>HiSilicon provides board-level chipsets and module solutions to sectors like smart devices, home appliances, and automotive electronics. It offers end-to-end technological capabilities like sensing, connectivity, computing, and display to help devices go digital, connected, intelligent, and low-carbon. Based on chipsets and components, HiSilicon works to empower connected smart devices, enable innovations across different sectors, and help customers achieve business success.</p> <p>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 operates a Platform Coordination Committee. This committee is designed to drive 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.</p></div> </div> <div role="tabpanel" class="tab-pane " id="board-of-directors"> <div class="content-row img-a-ul-m"><h2>Board of Directors</h2><p>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.</p> <p>The main responsibilities of the BOD are to:</p> <ul> <li>Develop proposals for corporate governance.</li> <li>Review proposals to increase or decrease the company's registered capital, as well as proposals related to profit distribution and loss recovery.</li> <li>Review the company's stock options plan and other long-term incentive plans. </li> <li>Review or approve the company's plans for entering and exiting different industries, and approve the company's strategic plan.</li> <li>Approve major organizational restructuring, management system development, and business transformation.</li> <li>Approve major financial policies, financial plans, and business transactions.</li> <li>Approve the company's annual budget proposal, annual operations report, and annual audit report.</li> <li>Approve the appointment/removal, compensation, and long-term incentives of senior management.</li> <li>Approve major HR policies and plans at the corporate level.</li> <li>Approve proposals for managing major risks and crises, and manage major emergencies.</li> <li>Approve the development of internal controls and compliance systems.</li> </ul> <p>In 2023, the BOD held 12 meetings. At the meetings, the BOD reviewed and approved matters such as the company's medium-to-long-term strategic plan, as well as the company's annual business plan, audit report, profit distribution, and capital increases.</p> <p>The BOD has 17 members, who are elected by the Commission and then voted in by the Shareholders' Meeting. In March 2023, a new BOD was elected, resulting in a new set of regular and alternate directors. The BOD elected deputy chairs and executive directors, and determined the directors who will attend BOD Executive Committee meetings as non-voting attendees.</p> <p>Members of the current BOD are as follows:</p> <ul> <li>Chairman: Mr. Liang Hua</li> <li>Deputy Chairs/Rotating Chairs: Mr. Xu Zhijun, Mr. Hu Houkun, and Ms. Meng Wanzhou</li> <li>Executive directors: Mr. Wang Tao, Mr. Zhang Ping'an, Mr. Yu Chengdong, and Mr. Li Jianguo</li> <li>Directors who will attend BOD Executive Committee meetings as non-voting attendees: Ms. He Tingbo and Mr. Zheng Liangcai</li> <li>Directors: Mr. Ren Zhengfei, Mr. Tao Jingwen, Mr. Peng Bo, Mr. Zha Jun, Mr. Hou Jinlong, Mr. Yang Chaobin, and Mr. Ying Weimin </li> </ul> <p>In the event that there is a vacancy in the BOD, alternate directors will take up the vacancy in a predetermined sequence. Alternate directors are Mr. He Gang, Mr. Bai Yi, Mr. Cao Jibin, Mr. Zhou Hong, Mr. Bian Honglin, Mr. Jin Yuzhi, Mr. Lu Yong, Mr. Zou Zhilei, Mr. Jiang Yafei, Mr. Hu Kewen, and Mr. Wang Huanan.</p> <p>The BOD has established the Executive Committee, which acts as the standing executive body of the BOD. Entrusted by the BOD, the Executive Committee examines and reflects on major issues within the company, decides on issues authorized by the BOD, and oversees their execution. In 2023, the BOD Executive Committee held 17 meetings.</p> <p>Members of the current BOD Executive Committee are Mr. Xu Zhijun, Mr. Hu Houkun, Ms. Meng Wanzhou, Mr. Wang Tao, Mr. Zhang Ping'an, Mr. Yu Chengdong, and Mr. Li Jianguo.</p> <p>The BOD and its Executive Committee are led by rotating chairs. During their term, each rotating chair serves as the foremost leader of the company. The term of each rotating chair lasts six months.</p></div> </div> <div role="tabpanel" class="tab-pane " id="supervisory-board"> <div class="content-row img-a-ul-m"><h2>Supervisory Board</h2><p>As Huawei's highest oversight body, the Supervisory Board exercises the authority of oversight on behalf of the company's shareholders. The Supervisory Board is responsible for the company's survival, development, and long-term prospects. Its core authorities are reflected in leader management, business reviews, and strategic vision. Through the observation of managers and cultivation of managerial candidates, the Supervisory Board promotes the development of leadership pipelines, aiming to ensure that the company has qualified successors. By establishing a rule-based, systematic oversight framework, the Supervisory Board comprehensively oversees matters such as the responsibility fulfillment of BOD directors and other executives, the company's operating and financial status, and compliance and internal control systems, gradually guiding the company to change from experience-based management to rule-based management and enabling businesses to operate freely within preset boundaries.</p> <p>In 2023, the Supervisory Board improved its basic institutions and organization, observed managers, managed the resource pool of managerial candidates, inspected and examined major areas with potential risks, oversaw the company's operations management, and guided and managed the development of subsidiary boards. In 2023, the Supervisory Board held 18 meetings, and its members attended all BOD meetings as non-voting participants, overseeing and reviewing BOD responsibility fulfillment, and overseeing and assessing the responsibility fulfillment of BOD directors and other executives.</p> <p>The Supervisory Board has 15 members, who are elected by the Commission and then voted in by the Shareholders' Meeting. On March 29, 2022, a new Supervisory Board was elected, resulting in a new set of regular and alternate members.</p> <p>Members of the new Supervisory Board are as follows:</p> <ul> <li>Chairman: Mr. Guo Ping</li> <li>Deputy Chairman: Mr. Li Jie</li> <li>Executive members: Ms. Chen Lifang, Mr. Yao Fuhai, Mr. Li Dafeng, Mr. Li Yingtao, and Mr. Ma Qingqing</li> <li>Members: Mr. Song Liuping, Mr. Ren Shulu, Mr. Tian Feng, Mr. Peng Zhongyang, Ms. Shi Yanli, Ms. Yang Li, Mr. Lyu Ke, and Mr. Li Peng</li> </ul> <p>In the event that there is a vacancy in the Supervisory Board, its alternate members will take up the vacancy in a predetermined sequence. Currently, the Supervisory Board has four alternate members: Mr. Wei Chengmin, Mr. Xu Qinsong, Mr. Wu Qinming, and Mr. Gao Ji.</p> <p>The Supervisory Board has established the Executive Committee, which acts as the standing executive body of the Supervisory Board. Entrusted by the Supervisory Board, the Executive Committee examines and reflects on major issues within the company, decides on issues authorized by the Supervisory Board, and oversees their execution. In 2023, the Executive Committee of the Supervisory Board held 20 meetings.</p> <p>Members of the Executive Committee of the Supervisory Board are Mr. Guo Ping, Mr. Li Jie, Ms. Chen Lifang, Mr. Yao Fuhai, Mr. Li Dafeng, Mr. Li Yingtao, and Mr. Ma Qingqing.</p></div> </div> <div role="tabpanel" class="tab-pane " id="the-shareholders-meeting-and-the-representatives-commission"> <div class="content-row img-a-ul-m"><h2>The Shareholders' Meeting and the Representatives' Commission</h2><p>The Shareholders' Meeting, the company's authoritative body, comprises two shareholders: the Union and Mr. Ren Zhengfei.</p> <p>The Representatives' Commission (the "Commission") is the organization through which the Union fulfills shareholder responsibilities and exercises shareholder rights. The Commission consists of no more than 115 representatives of shareholding employees ("Representatives") and exercises rights on behalf of all shareholding employees. In 2023, the Commission held one meeting. At the meeting, a new Board of Directors was elected, resulting in a new set of regular and alternate directors. The Commission also reviewed and approved the report from the Board of Directors on the company's financial and operating results, the work report from the Supervisory Board, and proposals for matters such as annual profit distribution and annual capital increases.</p> <p>The Representatives and Alternate Representatives are elected by the shareholding employees with voting rights, and serve for a term of five years. In the event that there is a vacancy in the Commission, the Alternate Representatives shall take up the vacancy in a predetermined sequence.</p> <p>The shareholding employees with voting rights elect the Commission on a one-vote-per-share basis, after which the Commission elects the company's Board of Directors and Supervisory Board on a one-vote-per-person basis. The Commission, along with the Board of Directors and Supervisory Board, decides on, manages, and monitors major company matters.</p> <p>Members of the current Commission are:</p> <p>Mr. Ren Zhengfei, Ms. Sun Yafang, Mr. Liang Hua, Mr. Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun, Ms. Meng Wanzhou, Mr. Yu Chengdong, Mr. Wang Tao, Ms. Chen Lifang, Mr. Peng Zhongyang, Ms. He Tingbo, Mr. Li Yingtao, Mr. Yao Fuhai, Mr. Tao Jingwen, Mr. Yan Lida, Mr. Li Jie, Mr. Ren Shulu, Mr. Li Dafeng, Mr. Song Liuping, Mr. Tian Feng, Mr. Yi Xiang, Mr. Li Jianguo, Mr. Peng Bo, Ms. Zhao Minglu, Ms. Shi Yanli, Ms. Zhang Xiaoqing, Mr. Yang Shubin, Mr. Zou Zhilei, Mr. Lu Yong, Mr. Yang Yougui, Mr. Li Peng, Mr. Cao Jibin, Mr. Wu Weitao, Mr. Chen Hao, Mr. Wang Shengniu, Mr. Wang Jianfeng, Mr. Chen Lei, Mr. Wu Hui, Mr. Meng Ping, Mr. Lyu Ke, Mr. Jiang Xisheng, Mr. Pan Shaoqin, Mr. Jiang Yafei, Mr. Wang Weijian, Mr. Su Liqing, Mr. Luo Wencheng, Mr. Zhang Hongxi, Mr. Xiong Lening, Mr. Ying Weimin, Mr. Wu Kunhong, Mr. Wei Chengmin, Mr. Wu Qinming, Mr. Xie Guohui, Mr. Wang Kexiang, Mr. Tang Qibing, Mr. Sun Fuyou, Mr. Ma Yue, Mr. Zhou Jianjun, Mr. Xun Su, Mr. Lu Qi, Mr. Lin Baifeng, Mr. Shen Huifeng, Mr. Zheng Liangcai, Mr. Ma Qingqing, Mr. Wang Hua'nan, Mr. Bai Limin, Ms. Yang Li, Mr. Hou Jinlong, Mr. Hu Kewen, Mr. Zhang Shunmao, Mr. Zha Jun, Mr. Zhou Hong, Mr. Ma Haixu, Mr. Liu Shaowei, Mr. Tang Xinhong, Mr. Yang Chaobin, Mr. Gong Ti, Mr. Cai Changtian, Mr. Gao Ji, Mr. Xiong Yan, Mr. Wang Yixiang, Mr. Li Zhoujian, Mr. He Gang, Mr. Zhang Ping'an, Mr. Bian Honglin, Mr. Xu Qinsong, Mr. Li Xiaolong, Mr. Zhu Ping, Mr. Shao Yang, Mr. Zhu Yonggang, Mr. Chen Yue, Mr. Bai Yi, Mr. Wu Congcheng, Ms. Song Yanling, Mr. Zuo Defeng, Mr. Xia Jian, Mr. Wang Nanbin, Mr. Zheng Pingfang, Ms. Cao Yi, Mr. Ran Weidong, Mr. Du Yanxin, and Mr. Wang Yanmin.</p></div> </div> <div role="tabpanel" class="tab-pane " id="independent-auditor"> <div class="content-row img-a-ul-m"><h2>Independent Auditor</h2><p>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.</p> <p>The scope of the financial audit and the annual audit results are subject to review by the Audit Committee. Any relationship or service that may potentially affect the objectivity and independence of the independent auditor must be discussed with the Audit Committee. The independent auditor may discuss any issues identified or any difficulties encountered during the course of the financial audits with the Audit Committee. </p> <p>KPMG has been Huawei's independent auditor since 2000. </p> </div> </div> <div role="tabpanel" class="tab-pane " id="internal-control"> <div class="content-row img-a-ul-m"><h2>Internal Controls</h2><p>Huawei continued to design and implement an internal control system based on its organizational structure and operating model. The internal control framework and its management system apply to all business and financial processes of the company and its subsidiaries and business units. The internal control system is based on the five components of the COSO framework: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring. It also covers internal controls of financial statements to ensure their truthfulness, integrity, and accuracy.</p> <h4>Control Environment</h4> <p>A control environment is the foundation of an internal control system. Huawei is committed to a corporate culture of integrity, business ethics, and compliance with laws and regulations. Huawei has issued the BCGs to identify acceptable business conduct. The BCGs must be observed by all employees, including senior executives. Regular training programs are offered, and all employees are requested to sign the BCGs to ensure that the BCGs have been read, understood, and observed.</p> <p>Huawei has implemented a mature governance structure, with clearly defined authorization and accountability mechanisms. The governance structure comprises the Board of Directors (BOD), its committees, group functions, and multi-level management teams. Huawei clearly defines the roles and responsibilities of its organizations to ensure the effective separation of authority and responsibilities as well as checks and balances through mutual oversight. The CFO of Huawei is in charge of internal controls. The internal control management department reports to the CFO for any possible defects and improvements already made in terms of internal controls, and assists the CFO in building the internal control environment. The internal audit department independently monitors and assesses the status of internal controls for all business operations.</p> <h4>Risk Assessment</h4> <p>Huawei has a department dedicated to internal controls and risk management to regularly assess risks to the company's global business processes. This department identifies, manages, and monitors significant risks, forecasts potential risks caused by changes to the internal and external environments, and submits risk management strategies along with risk mitigation measures for decision making. All process owners are responsible for identifying, assessing, and managing business risks and taking necessary internal control measures. Huawei has instituted a mechanism for improving internal controls and risk controls to efficiently manage critical risks.</p> <h4>Control Activities</h4> <p>Huawei has established the Global Process Management System and the Business Transformation Management System, released the global Business Process Architecture (BPA), and appointed Global Process Owners (GPOs) in line with the BPA.</p> <p>Responsible for building processes and internal controls, GPOs:</p> <ul> <li>Identify key control points and the Separation of Duties Matrix for each process, and apply these to all regional offices, subsidiaries, and BUs.</li> <li>Conduct compliance tests on key control points and issue test reports to ensure the effectiveness of internal controls is continuously monitored.</li> <li>Optimize processes and internal controls based on business pain points and key requirements for financial statements. The aim is to improve operating efficiency and financial results, ensure compliance and the accuracy and reliability of financial statements, and help achieve business objectives.</li> <li>Perform annual assessments of internal controls, comprehensively assess overall process design and process execution within each business unit, and then report the results to the Audit Committee (AC).</li> </ul> <h4>Information & Communication</h4> <p>Huawei has developed multi-dimensional information and communication channels to ensure the timely acquisition of external information from customers, suppliers, and other parties. It has also created formal channels for transferring internal information, and offered an online space, the Xinsheng Community, for employees to freely communicate their thoughts and ideas. Corporate management holds regular meetings with departments at all levels to effectively communicate management orientation to employees and ensure effective implementation of management decisions. All business policies and processes are available on the company's Intranet.</p> <p>Managers and process owners regularly organize training programs on business processes and internal controls to ensure that up-to-date information is made available to all employees. The company has established a mechanism for process owners at all levels to regularly communicate with each other, review the execution of internal controls, follow up on internal control issues, and implement improvement plans.</p> <h4>Monitoring</h4> <p>Huawei has established an internal complaint channel, an investigation mechanism, an anti-corruption mechanism, and an accountability system. The Agreement on Honesty and Integrity that Huawei has signed with its suppliers clearly stipulates that suppliers may report improper conduct by Huawei employees through the channels stipulated in the Agreement to assist the company in monitoring the integrity of its employees. The internal audit department independently assesses the overall status of the company's internal controls, investigates any suspected violations of the BCGs, and reports the audit and investigation results to the AC and senior management. Huawei has also implemented a mechanism for internal control appraisals of GPOs and regional managers, holding them accountable and pursuing impeachment when and where necessary. The AC and the CFO regularly review the company's internal control status, and listen to and review reports on action plans for improving internal controls and plan execution progress. Both have the authority to request the relevant GPOs or business executives to explain their internal control issues and take corrective actions.</p></div> </div> </div> </div>  </div>  <a href="javascript:;" class="btn-go-top"><span class="iconfont icon-arrow-up" onclick="utag.link({'tealium_event' : 'side_button_click','button_name': 'scroll_to_top'});"></span></a> <div class="popup-icon" onclick="utag.link({'tealium_event':'side_button_click','button_name':'customer_service'});"> <img src="/Assets/corp/2020/img/index/popup-icon.jpg" alt="online services"> </div> <div class="popup-service"> <img src="/Assets/corp/2020/img/media-gallery/maskpop.png" class="mask-img" alt="mask"> <div class="service-box"> <h2>Online Services</h2> <div class="row"> <div class="col-xs-12 col-md-3"> <div class="img-box"><img data-src="/Assets/corp/2020/img/index/popup-icon1.png" class="lazyload" alt="consumer"></div> <h4>Consumer Products</h4> <div class="btn-box"> <a 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