Daughter of Huawei founder unveils company's secrets
- By Chen Xia
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E-mail China.org.cn, January 23, 2013
Huawei has no skeletons in the cupboard, said Cathy Meng, CFO of the Chinese telecom giant and daughter of company's founder, during her first media briefing on Jan. 21.
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Cathy Meng, CFO of Huawei Technologies Co. [file photo] |
In 2012, the company took US$35.4 billion in revenue and turned that into a US$2.48 billion profit. This is likely to make it the world's biggest telecom equipment maker, beating Sweden's Ericsson AB.
However, much of the company is shrouded in secrecy as it is not a listed company, and has a corporate culture that lacks clear communication channels to the outside world.
Shareholding structure
At the briefing, Meng revealed that her father Ren Zhengfei, a former military officer who seldom makes public appearances, owns a 1.4 percent stake in the company and the remaining shares are divided amongst some 60,000 company employees.
She dismissed suspicions that the "employee ownership" is an illegal fundraising practice, saying it serves as a stimulus to employees.
In 1987, Ren registered Huawei with 20,000 yuan (US$ 3,215) in capital. According to Meng, Huawei's success today should be attributed to the "employee ownership" model, because it integrates employees' personal interests with the company's long-term prospects.
Details on the precise ownership structure will be released later this year, Meng said.
