Founded in 1987, Huawei is a leading global provider of information and communications

2020
2019
USD depreciates by 5%
1,350
2,427
EUR depreciates by 5%
270
117
Interest Rate Risk
Interest rate risks mainly arise from Huawei’s long-term borrowings. By analyzing interest rate exposure, the 
company uses a combination of fixed-rate and floating-rate financing tools to mitigate these interest rate risks.
1.  Major interest-bearing long-term financial instruments held by the company as at December 31, 2020
2020
2019
Effective 
Interest Rate 
(%)
(CNY million)
Effective 
Interest Rate 
(%)
(CNY million)
Fixed-rate long-term financial instruments:
Long-term borrowings
3.85
44,261
3.99
37,338
Floating-rate long-term financial 
instruments:
Long-term borrowings
3.01
97,009
3.82
67,193
Total
141,270
104,531
2.  Sensitivity analysis
Assuming that the interest rate increased by 50 basis points on December 31, 2020 and other variables remained 
unchanged, the company’s net profit and equity would decrease by CNY388 million (in 2019, the amount decreased 
by CNY264 million).
Credit Risk
The company has established and implemented globally consistent credit management policies, processes, IT 
systems, and quantitative credit risk assessment tools. It has established dedicated credit management teams across 
all regions and business units, and set up centers of expertise specializing in credit management in Europe and 
Asia Pacific. The company uses quantitative risk assessment models to determine customer credit ratings and credit 
limits and quantify transaction risks. It has also set risk control points for key activities across the end-to-end sales 
process to manage credit risks in a closed loop. Huawei’s Credit Management Department regularly assesses global 
credit risk exposures and develops IT tools to help field offices monitor risk status, estimate potential losses, and 
determine bad debt provisions as appropriate. To minimize risk, a special process is followed if a customer defaults 
on a payment or poses an unacceptably high credit risk.
Sales Financing
With its global coverage, Huawei’s sales financing team maintains close contact with customers to understand 
their financing needs and taps into a wide range of financing resources around the world. As a bridge for 
communication and cooperation between financial institutions and customers, the sales financing team provides 
customers with specialized financing solutions that contribute to ongoing customer success. To transfer risks, 
Huawei arranges for third-party financial institutions to provide sales financing, such as export credit facilities, 
leasing, and factoring. These institutions bear the associated risks and profit from these operations. Huawei has 
established systematic financing policies and project approval processes to strictly control financing risk exposures. 
Huawei only shares risks with financial institutions on certain projects, and measures and recognizes the risk 
exposures to ensure that business risks are under control.

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80
       
Huawei Investment & Holding Co., Ltd.
The audited consolidated financial 
statements and our report thereon
We expressed an unmodified audit opinion on the 
audited consolidated financial statements for the year 
ended December 31, 2020 in our report dated March 
25, 2021.
Management’s responsibilities for 
the consolidated financial statements 
summary
Management is responsible for the preparation of 
the consolidated financial statements summary in 
accordance with the basis described in note 2 to the 
consolidated financial statements summary.
Auditors’ responsibilities
Our responsibility is to express an opinion on whether 
the consolidated financial statements summary is 
consistent, in all material respects, with the audited 
consolidated financial statements based on our 
procedures, which were conducted in accordance with 
International Standard on Auditing 810 (Revised), 
Engagements to Report on Summary Financial 
Statements
.
KPMG Huazhen LLP
Certified Public Accountants
15th Floor, China Resources Tower
2666 Keyuan South Road
Shenzhen 518052, China
March 25, 2021