Bearing overhaul
Huawei's 2010 annual report, released on April 18, marked a significant recovery in performance. The company reported sales revenue of 185.2 billion yuan, reflecting a year-on-year growth of 24.2%, and a net profit of 23.8 billion yuan, with a cash flow of 38.1 billion yuan. This data highlighted a clear rebound from the previous year, showing Huawei's resilience and strong market position.
The 2010 report, which spanned 76 pages—18 pages longer than its 2009 counterpart—demonstrated a more detailed disclosure compared to non-listed companies. While it still lacked the full transparency seen in publicly traded firms, it was a step forward in terms of information sharing. One of the most notable features of this report was the public announcement of the new Board of Directors, marking a shift toward greater openness.
For the first time, the board included 13 members who took office at the end of 2009. These individuals included Vice Chairmen such as Sun Yafang, Xu Zhijun, Hu Houkun, and Ren Zhengfei, along with Managing Directors like Xu Wenwei, Li Jie, Ding Wei, and Meng Wanzhou. The list also featured Directors including Chen Lifang, Wan Wei, Zhang Pingan, and Yu Chengdong. As the highest decision-making body, the board plays a critical role in shaping Huawei’s strategic direction, making the changes within it particularly significant for understanding the company’s future trajectory.
Comparing the old board, which had nine members, with the new one reveals an interesting generational shift. The new board includes five vice chairmen and vice presidents, with top leaders Ren Zhengfei and Sun Yafang both belonging to the pre-1960s generation. In contrast, three other vice chairmen—Xu Zhijun, Hu Houkun, and **—were born after 1960. Meanwhile, three former directors—Ji Ping, Fei Min, and Hong Tianfeng—were all from the 1960s.
Looking at the newly added directors, the trend is even more pronounced. Li Jie and Chen Lifang are considered post-1960s, while Ding Wei and Yu Chengdong were born in 1969. Meng Wanzhou, the daughter of Ren Zhengfei, has been involved in Huawei’s financial operations since 1993 and currently serves as CFO. Wan He and Zhang Pingan, both born in 1972, are among the youngest members of the board, highlighting the increasing presence of younger leadership.
This transition reflects a broader shift in Huawei’s leadership structure. The first-generation entrepreneurs, led by Ren Zhengfei and Sun Yafang, have gradually handed over power to the “post-60s†generation. These successors have gained extensive experience across key roles, such as Hu Houkun, who served as Sales President and CMO, and Xu Zhijun, who held positions as CMO and CTO. This rotation is supported by Huawei’s EMT (Executive Management Team) system, where each member rotates through deputy CEO roles and responsibilities, ensuring broad exposure to different areas of the business.
While the “post-70s†generation focuses on specialized areas—such as R&D, strategy, marketing, and terminal business—the overall leadership structure continues to evolve. This balance between continuity and fresh perspectives gives Huawei confidence in its future growth. However, the transition between generations remains a critical phase for any organization, and Huawei is no exception.
Despite its success so far, the company must continue to innovate and adapt. Its move towards customer-centric operation centers, including operator networks, enterprise services, and consumer terminals, has helped shift the company from manufacturing to service-oriented growth. These changes are aimed at elevating Huawei’s global standing.
At the same time, corporate governance, especially the role of the board of directors, will be crucial for Huawei’s long-term success. Currently, the board functions more as an internal body, composed largely of EMT members. This structure may limit the introduction of external ideas and perspectives. To foster innovation, Huawei could consider bringing in more diverse voices, such as overseas Chinese entrepreneurs or external advisors, to its board committees.
In conclusion, while Huawei has made a strong start in its leadership transition, the path ahead requires continued evolution, openness, and strategic thinking. The board will play a central role in determining whether Huawei can sustain its momentum and achieve its vision of becoming a truly global leader.
Freight Elevator,Heavy Duty Cargo Lift,Freight Lift Elevator,Vertical Cargo Lifts
APSL ELEVATOR TECHNOLOGY(SUZHOU) CO.,LTD. , https://www.fujiapsl.com