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

Financial Risks 
For further information on financial risks, see pages 78 to 79 of this Annual Report.

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2020 Annual Report
 
       
135
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.
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.
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.
135
Shareholders
136
The Shareholders’ Meeting and the 
Representatives’ Commission
137
Board of Directors
142
Supervisory Board
145
Independent Auditor
145
Business Structure
146
Improving the Internal Control System
Shareholders 
Huawei Investment & Holding Co., Ltd. is a private 
company wholly owned by its employees. Huawei’s 
shareholders are the Union of Huawei Investment & 
Holding Co., Ltd. (the “Union”) and Mr. Ren Zhengfei.
Through the Union, the company implements an 
Employee Shareholding Scheme (the “Scheme”), which 
involved 121,269 employees as of December 31, 2020.
The Scheme effectively aligns employee contribution 
and development with the company’s long-term 
development, fostering Huawei’s continued success.
Mr. Ren Zhengfei is the Company’s natural person 
shareholder and also participates in the Scheme. As of 
December 31, 2020, Mr. Ren’s investment accounts for 
nearly 0.90% of the Company’s total share capital.
Corporate Governance Report

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136