Xu Zhijun: 2020 will be Huawei’s difficult year, survival is the first priority

On the morning of December 31, Huawei Chairman Xu Zhijun issued a New Year’s message, saying that 2019 is an extraordinary year for China, under the pressure of the U.S. government, all Huawei people face up to the difficulties, focus on creating value for customers, is expected to achieve full-year sales revenue of more than 850 billion yuan, This represents an increase of about 18% year-on-year. “Although it did not meet expectations at the beginning of the year, the company’s overall business was sound and largely stood the test. ”

Xu Zhijun: 2020 will be Huawei's difficult year, survival is the first priority

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In his New Year’s address, Xu said back in 2019, “We have for the first time released a computing industry strategy to launch the world’s fastest 910 AI processor and AI cluster training service.” The smartphone business has maintained steady growth, with more than 240 million units shipped, and the consumer-centric smart eco-layout of pCs, tablets, smart wearables, and smart screens has been further improved. Huawei has no miracles, and these achievements have not come easily. “

Xu said that 2020 will be a difficult year for Huawei, will continue to be under the “entity list”, without the rapid growth in the first half of 2019 and the second half of the market inertia, in addition to their own struggle, the only thing that can rely on is the trust and support of customers and partners.

“Survival is our first priority, we must continue to adhere to customer-centric, striving-oriented, continue to create value for customers, focus on maintaining growth, promotion, excellent organization, risk control.” “

The following is the full text of the message:

Without a cold bone, how to get plum blossoms nose. 2019, huawei is an extraordinary year, under the pressure of the U.S. government, all Huawei people to meet the difficulties, a total of difficult times, focus on creating value for customers, is expected to achieve full-year sales revenue of more than 850 billion yuan, an increase of about 18% year-on-year. Although did not meet expectations at the beginning of the year, but the company’s overall operation is sound, basically withstood the test.

Carrier services lead the global 5G business process. Enterprise business to help customers build a digital transformation base, more than 700 cities around the world, the world’s top 500 enterprises in 228, choose Huawei as its digital transformation partner. For the first time, we have launched our computing industry strategy, launching the world’s fastest 910 AI processor and AI cluster training service. The smartphone business has maintained steady growth, with more than 240 million units shipped, and the consumer-centric smart eco-layout of pCs, tablets, smart wearables, and smart screens has been further improved. Huawei has no miracle, these achievements are hard-won, on the occasion of the New Year, I would like to on behalf of the company’s board of directors, thank customers and partners for their trust and support! Thanks to hundreds of millions of consumers for huawei and the glory brand’s love! Thank you to our employees around the world for their hard work and their support and dedication! Special thanks to those who are fighting in the first line of the hole staff and family members!

We firmly believe that in the next 30 years, human society will inevitably enter the intelligent society. Digital technology is reshaping the world, and we want to benefit everyone and ensure full digital inclusion. With the mature commercialization of new technologies such as 5G, cloud computing, AI, and blockchain, digitalization in the industry is entering a period of rapid development with great potential. But the external environment is more complex, the downward pressure on the world economy increases, we will be long-term in the United States on the leading technology continued to suppress the adversity to survive and seek development. Huawei is also focused on the digitalization of ICT capabilities across industries, bringing the digital world to everyone, every car, every home, every organization, and building an intelligent world of the Internet of Everything. We should seize the long-term development trend, focus on strategy, turn the crisis into an opportunity.

2020 will be a difficult year for Huawei, we continue to be under the “entity list”, without the rapid growth in the first half of 2019 and the second half of the market inertia, in addition to their own struggle, we can only rely on the trust and support of customers and partners. Survival is our first priority, we must continue to adhere to the customer-centric, striving-oriented, continue to create value for customers, focus on maintaining growth, capacity, excellent organization, risk control:

To protect growth: to cultivate digital opportunities, enhance business capabilities, proactiveplanning and improve the business environment, for customers and society to create greater value. Operator business should actively promote the development of global 5G, seize the network construction opportunities brought about by 5G development, enterprise business should optimize the focus on the industry, focus on customers, focus on the region, continue to focus on data communications, storage, cloud services to achieve growth, consumer business around the whole scenario of intelligent life strategy, Build quality and enhance the user experience.

After years of efforts, we have established a relatively perfect “more food” mechanism, but “increase the fertility of land” mechanism has not been established, in 2020 to establish and implement the “increase dwelling of land” mechanism. At the same time, each business unit, representative office to further improve the quality of contract and delivery efficiency to improve the quality of operation, to allocate resources based on the essence of the business, and budget and budget implementation as an effective means to improve operations.

The construction and development of HMS Ecology is a necessary condition for the overseas sales of smart terminals, and in 2020 we will make every effort to build HMS Eco, support the overseas sales of smartphones, and promote innovation among application partners. The construction of Yipeng and Yan Teng Ecology is the foundation of Huawei’s cloud and computing industry development, attracting and helping as many software and applications as possible to run on the Yipeng and Yi Teng processors and obtain commercial success is the direction of our efforts, 2020 to be based on The Peng and Yan Teng processor products as an important growth direction.

As a non-market factor, the business environment has surpassed the traditional four elements of marketing and become the key to our growth. All regions should strengthen and improve the business environment, strengthen the trust of local governments and partners in us, enhance Huawei’s reputation in the region, and continue to better create value for customers and society.

Competence: Full ability to enhance professional ability, complement the key competency elements. The environment is changing, technology is changing, the industrial situation is changing, although we have high morale, strong will, but our ability and customer expectations, with the stage of business development, with the challenges of the living environment, with our pursuit, there is a huge gap. All staff should strive to improve the professional ability required for the position, the first-line chief officer to improve leadership, insight and comprehensive management ability, professional supervisors, experts to upgrade the field of professional standards, employees to enhance the professional ability required by the position. We will optimize the standard of service, improve the assessment requirements, improve the responsibilities, rank and power of experts and front-line. Encourage all employees to work valiantly, strive to progress, reach new heights of competence, encourage excellent employees to bravely run to the front line, the general in the front line, not in the office.

For the future, supply chains must embrace globalization, including U.S. companies, and build our competitiveness with products in the global industrial chain. Not only do we have to build the world’s leading products, but we also need to “root down” to build continuous supply, and we need to “break the sky up” with theoretical breakthroughs, technological inventions, pioneering products and business models. We will continue to improve our software engineering capabilities and continue to implement our five-year, $2 billion investment to build trusted, high-quality products and solutions.

Excellent organization: optimize the battle formation and combat sequence, stimulate the vitality of the organization. The main purpose of organizational change is to enhance combat capability and avoid bureaucracy. We should merge and reduce all the institutions that are not adapted to enhance the competitiveness of the main battle and the improvement of strategic support services, and shift the number of personnel to the main route of survival. The goal of ICT organizational transformation is to support the commercial success of the cloud and computing industries, focusing on the professionalism and efficiency of the industrial dimension, focusing on the improvement of industry competitiveness, and to have a rhythm to promote the conclusion of contracts in the representative office, to achieve the representative office self-management, independent decision-making. To stimulate the team of experts, really give experts decision-making power. Strengthen the reasonable flow of research and development team, promote metabolism. Strengthen the construction of local talent team, give full play to the value of local talent, so that local talent become the company’s business development in the middle of the mainstay, become a real local operation of the iron market. To promote the stability of professional teams, solid company business operations base.

Set up the correct guidance, eliminate mediocre cadres, eliminate idle staff, activate the organization. Cadres and employees should eliminate their own idle behavior. It is necessary to strengthen AT responsibility and improve AT operation. AT does not work well, first of all, the RESPONSIBILITy of the AT director, at the same time, to do not seek progress, comfortable with mediocrity, dare not manage the AT team members replaced. AtS at all levels should truly establish a team that is guided by cadres, selected by cadres, guided by the team and inspired and passed on values. Senior cadres can not “design their own life”, to always listen to the company’s call. Cadres at all levels should focus on the overall situation of the company, on the fire line, down the trenches, to the most needed places for business, to the hard areas to fight. To achieve the normalization of “up and down”, boldly in the fire line selection, promotion in the trenches, to let excellent personnel directly cross up, to really help customers succeed, historical planting and continue to contribute to the promotion of people who contribute to key positions; Do the report to sit on the management post, the history of digging the cadres to withdraw. To actively plan the team’s echelon construction, the cadre team should maintain a 10% elimination rate. To build a strong style, can win the battle of cadres and staff, the organization is full of vitality, the team is full of fighting passion and has a high standard of professional ability.

Risk control: Ensure supply security and business continuity, enhance cyber security and privacy protection, and comply with all applicable laws and regulations. To enhance the company’s ability to diversify its supply and ensure supply security. Business continuity risk is related to the survival of the company, we have to race against time, can not have any illusions; Think based on the bottom line, do a good job of risk response plan, flexible allocation of resources, agile response to uncertainty risk. Compliance with all applicable laws and regulations is the consistent compliance tone of the company’s management and is the cornerstone of Huawei’s global compliance operations. We want to further strengthen cyber security and privacy protection, to ensure compliance with local laws and regulations.

Difficulties have always been a prelude to greater victory, and the challenge is the grindstone of a strong team. The U.S. government’s containment of China is strategic and long-term. For China, it is a good opportunity to self-inspire and strengthen our health, so that we are more united, more combative and better able to meet the challenges of the future. Narrow road meet the brave win, as long as Huawei all staff unity, with the support of customers, partners and consumers around the world, solidly create value for customers, for society, any hardships can not stop our progress.

Finally, I wish you all a happy New Year!

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