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

Summary Consolidated Statement of Financial Position
(CNY million)
Note
December 31, 
2020
December 31, 
2019
Assets
Goodwill and intangible assets
14
9,169
8,822
Property, plant and equipment
15
118,378
97,719
Right-of-use assets
29
18,423
17,417
Interests in associates and joint ventures
16
1,839
731
Other investments and derivatives
17
10,244
7,266
Deferred tax assets
18
10,748
10,877
Contract assets
20
1,648
2,200
Trade and bills receivable
21
3,963
4,540
Other assets
22
11,048
5,196
Non-current assets
185,460
154,768
 
Inventories and other contract costs
19
167,667
167,390
Contract assets
20
51,954
50,812
Trade and bills receivable
21
74,741
85,525
Other assets
22
39,442
29,126
Other investments and derivatives
17
184,692
200,356
Cash and cash equivalents
23
172,898
170,684
Current assets
691,394
703,893
 
Total assets
876,854
858,661
 
Equity
Equity attributable to equity holders of the Company
330,325
295,106
Non-controlling interests
83
431
Total equity
330,408
295,537
 
Liabilities
Loans and borrowings
24
141,270
104,531
Deferred government grants
546
1,013
Deferred tax liabilities
18
1,921
1,755
Lease liabilities
6,608
6,413
Other liabilities
27
3,769
3,157
Non-current liabilities
154,114
116,869
Loans and borrowings
24
541
7,631
Employee benefits
105,245
98,375
Income tax payable
3,979
3,909
Trade and bills payable
25
78,977
142,185
Contract liabilities
26
71,948
69,327
Lease liabilities
3,042
3,274
Other liabilities
27
104,308
106,005
Provisions
28
24,292
15,549
Current liabilities
392,332
446,255
 
Total liabilities
546,446
563,124
 
Total equity and liabilities
876,854
858,661
The notes on pages 85 to 131 form part of this consolidated financial statements summary.

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84
       
Huawei Investment & Holding Co., Ltd.
Summary Consolidated Statement of Cash Flows
(CNY million)
Note
2020
2019
Cash flows from operating activities
Cash receipts from goods and services
989,447
959,785
Cash paid to suppliers and employees
(1,010,231)
(929,482)
Other operating cash flows
56,002
61,081
Net cash generated from operating activities
35,218
91,384
Net cash used in investing activities
(30,793)
(145,001)
Net cash generated from financing activities
1,653
37,744
 
Cash and cash equivalents
Net increase/(decrease)
6,078
(15,873)
At January 1
23
171,070
184,106
Effect of foreign exchange rate changes
(4,098)
2,837
At December 31
23
173,050
171,070
The notes on pages 85 to 131 form part of this consolidated financial statements summary.

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2020 Annual Report
 
       
85
The preparation of consolidated financial 
statements in accordance with IFRSs requires 
management to make judgements, estimates 
and assumptions that affect the application 
of policies and reported amounts of assets, 
liabilities, income and expenses. Estimates 
and associated assumptions are based on 
historical experience and various other factors 
that are believed to be reasonable under the 
circumstances. Actual results may differ from 
these estimates.
Estimates and underlying assumptions 
are reviewed regularly and revised when 
required. Revisions to accounting estimates 
are recognised in the period in which the 
estimate is revised if the revision affects only 
that period, or in the period of the revision 
and future periods if the revision affects both 
current and future periods.
Judgements made by management in the 
application of IFRSs that have significant effect 
on the consolidated financial statements and 
major sources of estimation uncertainty are 
discussed in note 5.
(b) Functional and presentation currency
All financial information in the consolidated 
financial statements summary is presented in 
millions of Chinese Yuan (CNY), which is the 
Company’s functional currency.
(c) Consolidation
(i) Business combinations
The Group accounts for business combinations 
using the acquisition method when the 
acquired set of activities and assets meets the 
definition of a business. To be considered a 
business, an acquisition would have to include 
an input and a substantive process that 
together significantly contribute to the ability 
to create outputs.
The Group may determine that an acquired 
set of activities and assets is not a business 
if substantially all of the fair value of the 
gross assets acquired is concentrated in a 
single identifiable asset or group of similar 
identifiable assets.
Notes to the Consolidated Financial Statements Summary
1  Reporting entity
Huawei Investment & Holding Co., Ltd. (the Company) 
is a limited liability company established in Shenzhen 
in the People’s Republic of China (PRC). The 
Company’s registered office is at Building 1, Zone B, 
Huawei Base, Bantian, Longgang District, Shenzhen 
City, PRC.
The Company and its subsidiaries (the Group) 
principally provide end to end information and 
communication technology solutions. This includes 
the research, design, manufacture and marketing 
of telecom network equipment, IT products and 
solutions, cloud technology and services and 
smart devices for telecom carriers, enterprises 
and consumers. The principal activities and other