資料內(nèi)容文稿案例2013annual report huawe

1、Investment & Holding Co.,2013 Annual Report.ContentsLetter from the CEOLetter from the Rotating and Acting CEO Business Highlights in 2013Five-Year Financial HighlightsLetter from the Chairwoman210141516Core ValuesManagement Discussion and Analysis Industry TrendsIndependent Auditors ReportConso

2、lidated Financial Statements Summary and Notes2021495455Risk FactorsCorporate Governance Report Sustainable Development106108129Abbreviations, Financial Terminology, and Exchange Rates1432Letter from the CEOLetter from the CEOApply the spirit of the tortoise to catch up with the Dragon spacecraftThe

3、re is a fable about the race between a tortoise and a hare. The hare was born a fast runner, but during the race, it had a rest from time to time, taking an afternoon tea or having a nap on the grass. The tortoise surpassed the hare and wonthe race in the end.I. Large companies are not necessarily s

4、ynonyms for complacency or conservativeness; it is not inevitable for them to perish, orotherwise we would not strive to be one.Can BMW match Teslas pace? This has been anissue of debate for some time atbelieve that Tesla vehicles represent a. Mostdisruptiveis like a big tortoise. In the past 25 yea

5、rs, we have crawled along, not seeing the flowers on the road. While many people have become rich, riding on the rising economy over the last two decades, we still are on our journey of hard work and dedication. When we look up to find in front of us the likes of Dragon spacecraft and Tesla, and loo

6、k at ourselves the clumsy way we move ahead, we cant help but think, “Can we catch upand surpass them?”innovation and will surpass BMWs. I think that BMW may not lose the game if they take an open approach to improve themselves. We know there are several elements of a car: powertrain, smart driving

7、(from on-line map, automatic shifting, bump shielding, all the way to unmanned driving), mechanical wearing, and safety and comfort. BMW is strong in the last two areas, and they cancatch up too on the first two if they are openLetter from the CEO3and progressive. You could argue of course that Tesl

8、a can buy the capabilities they dont have, but Im not saying BMW has to reinvent the wheel to establish themselves in the first two areas. BMW needs success, not a narrow sense of pride that everything has to come through its owninnovation.1. We must stay focused. We are a company with limited capab

9、ilities and resources. We can only catch up with or surpass US companies within limited areas. A force applied over a smaller surface area can get us larger pressure, and then breakthroughs would be possible. The Strategy & Development Committee proposed the idea of surpassing US companies and e

10、njoying the ride, and I guess maybe thats because they are confident in our profitability in the next few years and want to invest more in the strategic areas. However, we can possibly surpass US companies only when our area of focus is as big as the tip of a needle. If we enlarge the focus area to

11、the size of the head of a match or the end of a stick, surpassing US companies will be out of thequestion.is like BMW, in that we are also a big company. We live in an information society that is fast-changing with lots of disruptive innovations. Can we continue to survive? Admit it or not, this is

12、a question right in front of us. It took us 25 years to build a good platform and accumulate some resources. Those are our treasures, as they came after loads of money being wasted by our executives and experts into projects and products that had failed. Of course the money wasted comes from what yo

13、u have earned in the first place, and more importantly without such wastes, we would not be where we are today. We value the success we have gained through learning from our failures. If we continue to be progressive,with the courage to shatter our own vestedWe only allow employees to leverage their

14、 initiative and creativity along the main route, or in other words in areas of our strategic business focus. Blind innovation would simply disperse our investment and energy. Businesses that are not on the main route have to learn from successful companies, maintain stable and reliable operations, a

15、nd keep the management system rational, effective, and simple. We must avoid innovating blindly. If there is cry for innovation everywhere, that will be adeath song for erest and embrace new things,may notnecessarily lag behind. When we spot a strategicopportu, we can catch up quickly by pouri

16、ngin tons of resources. Different ways of investment can be used, not just by piling up people. This is quite different from the way small companies approach innovation. People are the most valuable. Employees who are open-minded, progressive, brave to break established advantages and keep up with t

17、he times are our most solid cornerstone. With such people in the company, we can possiblycatch up with the Teslas of the world.The age of Big Data might be terrifying, because nobody knows exactly what is Big Data, and data traffic will be incredibly huge. The Big Data Ive been talking about is diff

18、erent from the industry definition. The industry looks at Big Data frominformation search, not data size, point of view.4Letter from the CEOAs Wu Hequan from theAcademy ofThe network might loosen what has kept people within bounds. Without this bondage, can we still press forward like a torrent? Man

19、y people are amazed when they hear us sing the songPeople. They wonder why so many people are stillEngineering said, data creates value only when it is mined, analyzed, inducted, and utilized. By Big Data, I mean the surging and overwhelming data streams, and the fact that no one knows how much data

20、 has to be transmitted and stored. Of course, we hope what is transmitted is all useful information, but we cannot stop garbage from being transmitted and stored back and forth, which makes Big Data even bigger. Dont get lured by the success of the Internet. We are an Internet company too, in the se

21、nse that we produce “iron sheet” for pipes that transmit data streams for the Internet. Moving forward, there will be fewer companies that can produce “iron sheet” for pipes as wide as the Pacific Ocean; companies that run the pipes will be in the number of hundreds, and companies managing informati

22、on in the number of thousands. Dont envy the prominence of others; dont get so stirred about the Internet. Employees who have such passion should come down-to-earth and try to use the Internet approach to optimize our internal supply transactions toward higher efficiency and timely and accurate oper

23、ations. Our annual turnover of commercial notes, including internal handovers, has exceeded CNY2,500 billion, expected to reach 5,000 billion pretty soon. And we have more than 5,000 points of supply. There is significant value there, from improving contract accuracy and reducing waste via thorough

24、analyses of contract scenarios. Why not do the “Internet” internally to better connect our operations? We have to remain focused, for decades, on improving our capability for the information pipes. Dont towour huge ship away from the main route.singing such a song in such an age. Atwestill have a nu

25、cleus of several thousand people.United together, they rally and lead the rest of 150,000 employees. We will definitely win.2. We must continue to be dedicated. The tortoisein the fable is a symbol of persistent effort, andsuch a spirit ofmust not change. Thetortoise spirit also means that our effor

26、t and dedication should be sensible. We dont need our people to have their blood boiled up because that cannot power up the base stations. What we need is a controlled passion that allows our people to work intensely but with order. Value creation hasto be the yardstick for everything we do.We must

27、be conscious of the power of the United States. They have advanced systems, flexible mechanisms, clear property rights, and respect and protection of individual rights. With such a sound business ecosystem, the US has attracted the worlds best talent, in the number of hundreds of millions, to invent

28、 and innovate on the American soil. The light that never goes out in the SiliconValley continues to shine. The US is not laggingbehind; it is still a mfor us to learn from. IsntTesla a good example? Catching up will never be as easy as coining catchwords. Too many catchwords are a waste in managemen

29、t. “Enjoying the ride” as Eric Xu put it, means we make constant effort for development, fearless of failures or sacrifices. Allthe work has to be measured by the value created.Letter from the CEO5Will ultra-broadband be the last battle in the electronic equipment manufacturing industry? I dont know

30、 what others think about it; but to me, it will. If we fail in the ultra-broadband age, we will have no more chance to turn it around. I was in Moscow not long ago. I told our people there that the city of Moscow is one circle after another, and the countrys most powerful and wealthiest people live

31、in the area encircled byMKAD (the Moscow Ring Road). For more thanWith the establishment of the 2012 Laboratories, we intend to use the tool of self-criticism to question ourselves, our status quo, our future thoughts, and the questioning itself. 2012 Laboratories is studying the approaches of adapt

32、ing to disruptive technical innovations, as well as the ways of applying sustaining innovations to todays technologies in order to make them future-proof. In the age of Big Data, we must move decisively to seize the high ground and create high-end products that meet customer needs. With regard to ou

33、r low-and-mid-ranged products, consumer electronics from Germany and Japan should be the benchmark for the hardware, which ideally does not need any maintenance throughout the service life; the software can be upgraded online. Our high-end products are not absolutely stable,so our services have to c

34、ome along.ten years however, noequipment has beendeployed within MKAD. Can our ultra-broadband prosper in Siberia? If we cannot grab opportunities in high-value locations with massive data traffic, then our business in that market will eventually shrink and we will be marginalized. Today the paradig

35、m of value distribution is being redefined. To survive, we must strive to establish ourselves at high-value regions with massive data traffic. Our technology is being used in Tokyo, London, and many other major cities. I believe we will also buildour presence within MKAD of Moscow.The times are movi

36、ng way too fast. If we are complacent and stand still just for three months, we will be erased from history. We survive till today because we have been embracing self-criticism since a long time ago. In 2013, our Boardmembers reflected on the companys problems3. Self-criticism is the most important

37、behavior for survival. It has started in our company since we embraced the beliefs that “from the ashes the phoenix is reborn” and “those who climbed out of the pit of setbacks are sages”. Such self-correction has helped us to maintain steady growth over theyears.in the Bombardingseries; our mid- an

38、dsenior-level managers wrote and published Management Issues in Our Eyes. There were a mountain of such introspective articles. I reviewed and edited every piece of them before being published. Our people can also post their critical opinions at our online forum. Sooner or later there will be depart

39、ments coming out to resolve theseissues. The company will keep improving itself.Our company moves forward on two wheels: technology innovation based on customer needs, and scientific exploration into the longer future. must have the courage to embrace disruptive innovations through self-reinvention

40、and self-criticism. While fully tapping into the value of our installed business, we should not be pushing away disruptive innovations in the fear they mightsmash our “golden bowl”.6Letter from the CEOII. Core values are the heart and soul of an organization. The organizational structure in the futu

41、re must fit in with the information society. Organizational setup is meant to servenimble strategies and tactics.soldiers in huge number. The CC3s in our company today are mobilizing the resources they need through prompt and accurate calibration using the corporate platform. And the support to the

42、frontline, be it sales, delivery, services, or finance, is being provided remotely. CC3s are not alone in the field; on project estimation, bidding, delivery, or finance, they have with them the support from hundreds in the back office via the network. This is what Ken Hu has described as “the squad

43、 leaders”. Leaders at CC3s should have the courageOver the past 25 years, with the help of Western consulting firms and the efforts of several thousandHR professionals, business managers and experts,we have established a pyramid mfor humanresources management as Ken Hu described. This has helped us

44、to reach almost USD40 billion in sales revenue. The several thousand outstandingmanagers and experts who have developed andto; they should also keep the big picturein mind with the ability of strategic thinking. Thats why we put forward the concept of “major-general-company-commanders”. Why not colo

45、nel-company-commanders? Its a deliberate exaggeration to make it more eye-catching. They are not real major generals of course. Nobody can grant you that title. Unless you buy some buttons and have them sewn on your collar. One button will make you a major general, and two will makeyou a lieutenant

46、general.evolved the pyramid mare great ones. Weshould grant them the honor of “human resources heroes”. Without their efforts and success, todays pyramid restructuring would have been impossible. Pyramid-styled management is right for mechanized warfare in the past, in which the cannon-shot was near

47、 and communication systemsnot as advanced. Soldiers as a result mustface-to-face. When teral on the top of thepyramid signaled “Go” with his hand, tankmen1. The difference in compensation to employees needs to be widened, based on the value they each contribute. “Engines” in the organization have to

48、 be fueled to the full so that they can pull the train to run faster and deliver more. To live our core values, we must have a group of people who set the example. Peoples compensation is not based on their scope of management; it has to be based on their contribution and responsibility-adjusted res

49、ult in the first place, and then their dedication. Now the direction of our human resources policy has been set. For next steps, we need to allow some flexibility in HR policies at different scenarios,environments and regions.at the bottom drove thousands ofontothe battlefield; and soldiers in tens

50、of thousandscharged forwarding enemies eye-to-eye. Thiswas the only way to have enough firepower. In modern warfare however, as powerful long-range weaponry is available, operations are done using satellites, broadband, Big Data, missiles, airplanes, aircraft carriers, and many more. Electromagnetic

51、 waves become the new battlefield. Those whocall for and command all the resources maynot be teral atop the pyramid, but CC3s(Customer Centric 3) right at the frontline. Thepower projected from a thousandis more effective than the face-to-faceawayofLetter from the CEO7I introduced the second law of

52、thermodynamics from natural science into social science. The intention is to widen the compensation gap so that we will have a nucleus of several thousand people to lead the rest of us forward. We must always keep our team active to avoid “entropic death”. We will never allow the “black hole” to exi

53、st in our organization. Slacking off is that “black hole”. We must not let it suck away our light, heat,and vitality.3. The internal talent market and the Strategic Reserves are established as an important means to improve capability. Bench resources are developedthrough real projects in the field.T

54、he internal talent market is a place for findingGarcia and for dedicated employees, not a cradlefor the laggards. Thent flow it facilitateswill allow employees to find the most suitable positions and also drive managers to improve their management. When things get moved, vitality isgained.2. We will

55、 experiment with the idea of “major-general-company-commanders”. Projects should be staffed with the right management and expert teams based on project value and difficulty as well as the value and contribution that the projects have delivered. In the traditional pyramid, those at the bottom are peo

56、ple of the lowest levels. But those are also the people who face customer CEOs, confront complex projects, and deal with extreme difficulties. People that were staffed at this level were far away from what theyshould be.Through the Strategic Reserves like the “Tiger Teams”, the strategic competition

57、 department, and project managers, we aim to expedite the circulation of organizations, talents, technologies, management approaches, and experience in the course of project operations. Also from project operations, we can identify more outstanding managers and experts to lead our company towardfutu

58、re progress.We would like everyone to understand that hope is in their own hands. If they work hard, they will get good results. If they are made of gold, they will shine sooner or later. Do not moan or live in memories; keep striving forward. For those who are united as a team in both good times and bad, their names and their deeds may very likely not appear on the stone tablet of merits; such tablets record the achievements of generals. However, those who have nothing engraved on the stone tablet