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

2020
2019
YoY
Net foreign exchange loss
1,638
1,340
22.2%
Other net finance gains
(1,271)
(1,518)
(16.3)%
Total net finance expenses
367
(178)
(306.2)%
Net finance expense in 2020 amounted to CNY367 million, a YoY increase of CNY545 million. Due to currency 
fluctuations in emerging markets, net foreign exchange losses increased by CNY298 million in 2020.
Financial Position
(CNY Million)
December 31, 
2020
December 31, 
2019
YoY
Non-current assets
185,460
154,768
19.8%
Current assets
691,394
703,893
(1.8)%
Total assets
876,854
858,661
2.1%
Among which: Cash and short-term investments
357,366
371,040
(3.7)%
Trade receivables
75,026
85,294
(12.0)%
Contract assets
53,602
53,012
1.1%
Inventories and other contract costs
167,667
167,390
0.2%
Non-current liabilities
154,114
116,869
31.9%
Among which: Long-term borrowings
141,270
104,531
35.1%
Current liabilities
392,332
446,255
(12.1)%
Among which: Short-term borrowings
541
7,631
(92.9)%
Trade payables
74,865
135,654
(44.8)%
Contract liabilities
71,948
69,327
3.8%
Equity
330,408
295,537
11.8%
Total liabilities and equity
876,854
858,661
2.1%
As of December 31, 2020, the balance of cash and short-term investments reached CNY357,366 million, down 3.7% 
YoY.
At the end of 2020, Huawei’s trade receivables balance was CNY75,026 million, a YoY decrease of 12.0%. Thanks 
to faster payment collection, DSO was reduced to 52 days, 6 days faster than in 2019. The balance of inventories 
and other contract costs climbed to CNY167,667 million, a YoY increase of 0.2%, and ITO reached 107 days, 4 
days faster than in 2019. Trade payables balance dropped to CNY74,865 million, a 44.8% YoY decrease, and DPO 
reached 48 days, 43 days faster than in 2019.
As of December 31, 2020, total short-term and long-term borrowings amounted to CNY141,811 million, an increase 
of 26.4% YoY. The primary purpose of these borrowings was to continue with our already heavy investment in key 
businesses and future-oriented research and innovation as well as investment in other key areas such as branding, 
ecosystem building, and business continuity.

---

78
       
Huawei Investment & Holding Co., Ltd.
Cash Flow from Operating Activities
(CNY Million)