Built on Value: The Huawei Philosophy of Finance Management by Weiwei Huang

PART I
 Expansion and Control
 To achieve sustainable and profitable growth, we need to consider financial 
indicators in the short term; in the medium term, we need to look at capa-
bility improvement; in the long term, we need to focus on the industry 
landscape, the health of the business ecosystem, and the sustainability of the 
industry. Business success will always be an issue of concern throughout our 
company’s lifecycle. Management is about weighing the present against the 
future, balancing the short term and the long term. – Ren Zhengfei

CHAPTER 1
 Huawei’s Business Goal
 A company must first have a clear business goal. Huawei’s business goal is 
to make itself more competitive, build trust among its customers, and 
survive market competition. These are actually the most basic goals of any 
enterprise. Without any of the three, an enterprise will find it hard to sur-
vive. An enterprise should first ensure that its most basic goals are continu-
ously achieved, rather than seeking to meet a certain target or maximize 
the interests of a certain group. In reality, any attempt to maximize inter-
ests will yield the opposite result.
 Huawei pursues sustainable and profitable growth, rather than maxi-
mizing the interests of its shareholders or employees. Huawei only exists 
to serve its customers. Financially speaking, this refers to the value created 
for the company. For Huawei, a non-public company, value is not the 
same as capital market valuation. Rather, it relates to the deeper essence of 
value, reflecting the company’s current and potential capabilities to 
make profits.
 At Huawei, sustainable and profitable growth first means that business 
performance is robust, with profitable revenue, healthy cash flow, and 
light assets. Second, sustainable and profitable growth means the company 
is constantly enhancing its core competencies. Third, it means building a 
healthy and friendly business ecosystem. Business performance must be 
steady and balanced if it aims to support the company’s long-term survival 
and development. Huawei’s business model is one that maintains a long- 
term state of hunger for the company and doesn’t seek to make big money.

Built on Value: The Huawei Philosophy of Finance Management by Weiwei Huang