LongBench v2 / 66ed168b821e116aacb1ea8c / Which of the following is NOT a key business development that Huawei has…

Huawei Investment & Holding Co., Ltd.
2023 ANNUAL REPORT


Who is Huawei?
Founded in 1987, Huawei is a leading 
global provider of information and 
communications technology (ICT) 
infrastructure and smart devices. We 
have approximately 207,000 employees 
and we operate in over 170 countries 
and regions, serving more than three 
billion people around the world. We are 
committed to bringing digital to every 
person, home and organization for a 
fully connected, intelligent world.
Walking the walk for steady, 
long-term growth
Laying the groundwork for an intelligent world
In 2023, we witnessed rapid advancement in emerging 
technologies like artificial intelligence (AI) and nonstop innovation 
in new applications for business. AI development has evolved 
from customization on a small scale to massive application at 
an industrial level, while digital technology has become more 
deeply integrated with every aspect of our lives. This digital and 
intelligent transformation is bringing new value to individuals and 
breathing new life into enterprises. We want to help all industries 
make the most of these new developments. So we are leveraging 
the collective strengths of our business portfolio, backed by a 
solid grasp on complex hardware and software platforms, to build 
a solid foundation for a digital and intelligent world.
Delving deep into basic research and driving technological 
innovation
Huawei values research and innovation, and we take an 
open approach to both. We continue to delve deep into basic 
scientific and theoretical research, and are working closely with 
academia and the industry to push innovation forward. Together 
with our customers and partners, we are pushing the limits of 
technology to address broader industry challenges. We also 
develop innovative products and solutions to address the unique 
problems our customers face. We want to create greater value 
for the world.
For the past three years, we have invested more than 20% of our 
annual sales revenue back into research and development. Our 
aim is to drive industry development to help pave the way for the 
imminent arrival of an intelligent world – one with 100 billion 
connections and a universal 10 gigabit experience.
Prioritizing security and trustworthiness, succeeding through 
quality
Cyber security and privacy protection are Huawei's top priorities. 
We continue to build up and improve on our end-to-end 
cyber security assurance system, embedding cyber security 
requirements into all aspects of our operations, including policy, 
management, and technology. Through industry exchange and 
international cooperation, we also share best practices and work 


with stakeholders to build a secure, trustworthy, and intelligent 
world. Our efforts have earned worldwide recognition, and we 
continue to maintain a solid track record in cyber security in over 
170 markets around the world. Customer trust is the most solid 
testament to the security of our products and services.
Quality is our path to success. Over more than three decades 
in the ICT domain, we have built up significant capabilities 
and experience in quality management and are adapting this 
experience to meet the needs of new business domains. We are 
also sharing these capabilities with our suppliers, channel partners, 
and other partners. Through end-to-end quality management 
systems, we provide our customers with more competitive 
products and solutions.
Building up thriving ecosystems for a more dynamic industry
Digital, intelligent, and low-carbon transformation will continue to 
be major development trends moving forward. We will continue to 
maintain strategic focus while supporting free trade, open markets, 
and fair competition. We are committed to driving healthy 
industry development and creating value for our customers, 
partners, and the world. To make this happen, we are working to 
promote a more open, diverse, and inclusive ecosystem.
We value openness and collaboration and work hard to help 
others succeed. In particular, we are actively developing platform 
capabilities for ecosystem-centric domains like HarmonyOS, 
Kunpeng, Ascend, and cloud computing, and we are combining 
strengths across the industry to promote the development 
of business ecosystems. By enabling ecosystem partners and 
enhancing experience for developers, we hope to stimulate 
innovation and drive shared success.
Powering sustainable development with technology
We use advanced ICT solutions to help industries reduce their 
carbon emissions and accelerate the construction of new energy 
infrastructure. This is part of our broader efforts to foster a more 
circular economy and maximize the value of digital technology in 
powering green development.
We do our best to give back, and hope to make the intelligent 
world a more inclusive, sustainable place. In particular, we are 
using technology like broadband, cloud, and AI to promote 
equitable and quality education, environmental protection, 
and balanced development. We have also expanded our talent 
development program – Seeds for the Future – to help foster the 
next generation of digital talent. Through this program, we are 
nurturing digital leadership, helping young people build digital 
skills, and upskilling ICT professionals. To date, this program has 
benefited more than 3.4 million people from around the world.
Contents
Message from the Rotating Chairman
Business Highlights in 2023
Five-Year Financial Highlights
Message from the Chairman
02
05
07
08
12
17
91
92
135
Industry Trends
Management Discussion and Analysis
Independent Auditors' Report

Consolidated Financial Statements 
Summary
Risk Factors
138
155
189
Corporate Governance Report
Sustainable Development

Abbreviations, Financial Terminology, 
and Exchange Rates


02       Huawei Investment & Holding Co., Ltd.
Message from the Rotating Chairman
We've been through a lot over the past few years. But 
through one challenge after another, we've managed 
to grow.
We rounded off 2023 with CNY704.2 billion in revenue. 
Our ICT infrastructure business remained solid, and our 
consumer business met expectations. Both our cloud 
computing and digital power businesses grew steadily, 
and our intelligent automotive solution business began 
large-scale delivery.
The trust and support of our customers, partners, 
and friends around the world is what helped us keep 
going, keep surviving, and keep growing. On behalf 
of Huawei, I'd like to extend our heartfelt gratitude to 
everyone for your ongoing support.
Throughout the past year, the entire team at Huawei 
has been forging ahead, working closely with partners 
to drive shared success and create value for our 
customers.
In the ICT infrastructure domain, we worked side-by-
side with our carrier customers to maximize returns on 
their 5G network investment and steadily advance the 
commercial deployment of 5.5G.
In the enterprise domain, we differentiated our 
products, portfolios, and industry solutions based on 
the unique needs of different types of customers, 
including named accounts, SMEs, and MSMEs.
In the consumer domain, the HUAWEI Mate 60 Series 
and the HarmonyOS ecosystem received wide acclaim.
In cloud computing, we moved ahead with our AI for 
Industries strategy. We launched innovative products 
like our Pangu Models 3.0 and Ascend AI cloud service, 
which are designed to provide all industries with a 
solid cloud foundation for going digital.
In the energy domain, Huawei Digital Power continues 
to use digital technology to help power the world's 
green and low-carbon development. In 2023, we made 
tremendous progress in areas like smart PVs and 
liquid-cooled ultra-fast charging.


2023 Annual Report
        03
And in the automotive domain, our solutions like 
intelligent driving and intelligent cockpits saw large-scale 
adoption in a growing number of automotive brands.
Open innovation for an intelligent 
world
In today's world, emerging technologies progress 
by leaps and bounds, with nonstop innovation in 
new business applications. AI models have moved 
beyond small-scale customization and are now seeing 
massive development on an industrial level. Looking 
ahead, it's clear that digitalization, intelligence, and 
decarbonation are the path forward. An intelligent 
world is coming fast, and it will bring countless new 
opportunities for the ICT industry.
Open innovation is critical for social development and 
technological progress, and it's built into Huawei's 
very DNA. We are actively working with other industry 
players and academia to advance technology and help 
different industries modernize.
Huawei has built up an extensive range of ICT 
technologies, and we will continue to invest heavily 
in R&D while strengthening strategic synergy across 
hardware, software, chips, devices, networks, and cloud.
Despite a number of immense challenges over the past 
three years, we continue to innovate based on two 
core drivers: science and technology, and customer 
needs. Throughout this time, we have invested over 
20% of our annual revenue back into R&D to ensure 
the competitiveness of our products and solutions.
To meet industry demand for green transition, for 
example, we recently launched a "0 Bit 0 Watt" 
wireless solution, which helps carriers strike the 
optimal balance between mobile network experience 
and energy consumption.
Huawei Cloud's Pangu-Weather model is another 
great example. Featured in Nature, Pangu-Weather is 
the world's first AI model that delivers more accurate 
weather forecasts than traditional numerical prediction 
methods.
Huawei's foundational software, including openEuler 
and GaussDB, has also seen broad application in 
multiple industries.
These are all the result of innovation between Huawei, 
different industries, and the academic community.
Platform capabilities for thriving 
ecosystems
Trees need deep roots to grow a dense canopy 
of leaves. Likewise, our industry needs the active 
participation of many partners and developers in order 
to thrive.
At Huawei, ecosystem development is a key long-
term strategy. We advocate for open collaboration 
and helping others succeed. With this approach, we 
focus on developing core ICT technologies, as well as 
building up platform capabilities for complex hardware 
and sophisticated software, which we then open up to 
our partners to promote shared success.
We have fostered a robust device ecosystem based on 
HarmonyOS and Kirin, a general computing ecosystem 
based on openEuler and Kunpeng, an AI computing 
ecosystem based on CANN and Ascend, and a 
multiplatform developer ecosystem with Huawei Cloud 
as a unified portal.
To date, HarmonyOS has been deployed on more than 
800 million devices, and more than 6,300 partners 
have joined our computing ecosystems. Among these, 
the Ascend-based AI computing ecosystem has grown 
particularly fast. We look forward to joining forces with 
other industry players to drive large-scale adoption 
of these technologies, optimize them, and move the 
industry forward.
As for the developer ecosystem, we have attracted more 
than 9.5 million developers to HarmonyOS, Kunpeng, 
Ascend, and Huawei Cloud. We provide a rich array 
of development tools on Huawei Cloud, making it 
easier for application, operating system, and database 
developers to do what they do best. The end goal is to 
stimulate innovation across the entire ecosystem.


04       Huawei Investment & Holding Co., Ltd.
Succeeding through quality and 
achieving quality growth
These days, digital technology is tightly integrated 
with every aspect of industry – and every aspect of our 
lives. In effect, ICT infrastructure has become the very 
backbone of an intelligent world, so ensuring quality is 
more important than ever. At Huawei, quality isn't just 
about meeting customer needs. It's our responsibility. 
We remain committed to succeeding through quality, 
and are working hard to make quality one of our core 
competitive strengths.
Building a robust quality management system requires 
concerted effort across the entire value chain. Huawei 
has built up decades of experience and capabilities 
managing quality in the ICT sector, and we are 
working to extend this experience to new domains 
like digital power and intelligent automotive solutions. 
We also hope to share these capabilities with our 
suppliers, channel partners, and ecosystem partners up 
and down the value chain. Together, we can promote 
quality growth across the industry.
Promoting digital inclusion and 
creating social value
Huawei's vision and mission is to bring digital to every 
person, home and organization for a fully connected, 
intelligent world. We want to help more people reap 
the benefits of digital technology.
Back in 2019, we launched our TECH4ALL digital 
inclusion program, which focuses on four domains: 
education, environment, health, and development.
In education, working together with a wide range of 
customers, partners, and NGOs, we use innovative 
digital technology to make quality education more 
accessible and equitable. To date, we have launched 
digital skills training programs in 630 schools around 
the world, providing learning opportunities for more 
than 400,000 people.
In addition, we continue to implement Huawei ICT 
Academy programs and hold Huawei ICT Competitions 
around the world to provide young people with digital 
training and the opportunity to connect. To date, 
these programs have benefited more than 1.1 million 
students from over 100 countries and regions.
When it comes to the environment, we're using digital 
technology to promote nature conservation efforts in 
53 of the world's protected areas, covering endangered 
species like Hainan gibbons and jaguars, as well as 
ecosystems like tropical rainforests and estuaries.
Through these programs and more, we're taking 
concrete action to make the world a better, more 
sustainable, and more inclusive place for all.
A new journey awaits us in 2024. We will create 
greater value for our customers and society by driving 
open innovation, building thriving ecosystems, and 
succeeding through quality. Here I'd like to thank 
those who have joined us – and will join us – along 
the way. Together, let's make something extraordinary. 
Let's build a fully connected, intelligent world.
Hu Houkun
Rotating Chairman


2023 Annual Report
        05
Business Highlights in 2023
 Driving Ubiquitous 
Connectivity
■	 We worked with carriers and partners around the 
world to continue securing 5G's business success. 
By the end of 2023, the number of 5G users 
across the globe had exceeded 1.5 billion, and 
5G networks built by Huawei had continued to 
deliver leading experiences. Innovative applications, 
such as naked-eye 3D, New Calling, and cloud 
phones, have comprehensively upgraded personal 
service experiences. And 5G has enabled the 
large-scale digitalization of industries, with more 
than 50,000 5G applications being put into use 
in many different industries. In addition, Huawei 
actively worked with other industry players to 
drive the development of 5.5G, and partnered 
with leading carriers around the world to promote 
the technological verification and commercial 
deployment of 5.5G and accelerate rollout.
■	 We helped our carrier, government, and enterprise 
customers build ubiquitous optical networks and 
intelligent IP networks as well as 10 gigabit smart 
homes, High-Quality 10 Gbps CloudCampus, Super-
Connectivity 400GE CloudFabric, and Converged IP 
Transport Network. This infrastructure will create a 
solid foundation for the digital transformation and 
intelligent upgrade of all industries.
■	 We deepened cooperation with international 
organizations to provide connectivity to remote 
areas and continuously increase the access of 
remote communities to digital technology.
 Enabling Pervasive 
Intelligence
■	 Digital, intelligent, and low-carbon transformations 
are continuing to gain traction. Therefore, Huawei 
unveiled its All Intelligence strategy this year in 
order to support a vast range of AI models and 
applications for all industries and accelerate their 
intelligent transformation. The Kunpeng and 
Ascend ecosystems continued to grow steadily, 
attracting more than 5.7 million developers and 
6,300 partners, and more than 17,400 solutions 
have been certified. Huawei also released a 
reference architecture that will drive industrial 
intelligent transformation, as well as a number 
of related solutions and a white paper titled 
Accelerating Intelligent Transformation, which offer 
practical advice and references that help industries 
make the most of intelligence.
■	 We released Pangu Models 3.0 to dive deep 
into industries and develop tailored models and 
capability sets for a wide range of industries, 
including finance, government services, 
manufacturing, mining, meteorology, railways, 
automobiles, and healthcare. These models 
combine industry know-how with foundation model 
capabilities, reshaping industries and boosting 
productivity and efficiency.
■	 In the intelligent automotive solution domain, we 
worked with more than 300 partners to build an 
intelligent industry ecosystem. Together, we have 
created experience benchmarks for intelligent 
driving, intelligent cockpits, and intelligent vehicle 
control and contributed to industry standards and 
key technologies, jointly expanding the market and 
accelerating the intelligent transformation of the 
automotive industry.
In 2023, our ICT infrastructure business remained solid, and our consumer business met expectations. Both our 
cloud computing and digital power businesses grew steadily, and our intelligent automotive solution business 
began large-scale delivery.


06       Huawei Investment & Holding Co., Ltd.
 Delivering a Personalized 
Experience
■	 In the consumer business, we have continued to 
innovate by focusing on consumers, creating an 
inspired AI experience across all scenarios and 
building a high-end brand that has a human 
touch and is liked and trusted by consumers. We 
have also worked with our partners to build a 
prosperous HarmonyOS ecosystem and achieve 
business success.
■	 We launched smartphones like the HUAWEI Mate 
60 Series and unveiled a new ultra-high-end 
brand ULTIMATE DESIGN, all winning high acclaim 
from consumers. By the end of 2023, Huawei had 
shipped a grand total of over 100 million tablets 
and over 150 million wearables around the world, 
and served more than 450 million users in the 
fitness and health domain. Under the Huawei 
Zhixuan model, we worked with partners around 
the Harmony Intelligent Mobility Alliance (HIMA) 
to launch products that deliver ever-improving 
experiences.
■	 We officially launched HarmonyOS 4 in 2023, 
and by the end of the year HarmonyOS had been 
deployed on more than 800 million devices.
 Building a Digital Platform
■	 As industries rush to embrace digital and intelligent 
transformation, Huawei Cloud continued to 
implement its Everything as a Service strategy, 
helping customers unleash the power of digital 
faster. By the end of 2023, Huawei Cloud 
was providing customers from more than 170 
countries and regions with stable, reliable, secure, 
trustworthy, and sustainable cloud services.
■	 Huawei Cloud also actively innovated and launched 
the Ascend AI cloud service as well as the GaussDB 
distributed database, more than 20 software 
development tools, and products like the CraftArts 
hardware development pipeline, to help industries 
go digital and intelligent faster.
■	 Huawei Cloud envisions an ecosystem that is Of 
All, By All, and For All. We aggregate applications 
for numerous industries and empower developers 
and partners around the world. By the end of 2023, 
over six million developers and 40,000 partners 
were working with Huawei Cloud to jointly build a 
thriving ecosystem for innovation on the cloud.


2023 Annual Report
       07
Five-Year Financial Highlights
2023
2022
2021
2020
2019
(USD Million)
(CNY Million)
(CNY Million)
Revenue
99,448
704,174
642,338
636,807
891,368
858,833
Operating profit
14,744
104,401
42,216
121,412
72,501
77,835
Operating margin
14.8%
14.8%
6.6%
19.1%
8.1%
9.1%
Net profit
12,280
86,950
35,562
113,718
64,649
62,656
Cash flow from operating 
activities
9,859
69,807
17,797
59,670
35,218
91,384
Cash and short-term 
investments
67,128
475,317
373,452
416,334
357,366
371,040
Working capital
59,550
421,662
344,938
376,923
299,062
257,638
Total assets
178,454
1,263,597
1,063,804
982,971
876,854
858,661
Total borrowings
43,556
308,414
197,144
175,100
141,811
112,162
Equity
71,682
507,568
437,076
414,652
330,408
295,537
Liability ratio
59.8%
59.8%
58.9%
57.8%
62.3%
65.6%
Note: The financial information is in accordance with IFRS Accounting Standards, and converted into United States dollars ("USD") using the 
closing rate at the end of 2023 of USD1.00 = CNY7.0808.
CNY Million
CNY Million
CNY Million
Revenue
Operating profit
Cash flow from 
operating activities
CAGR: (5)%
891,368
636,807
704,174
858,833
0
200,000
400,000
600,000
800,000
1,000,000
CAGR: 8%
77,835 72,501
121,412
104,401
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
CAGR: (7)%
91,384
35,218
59,670
69,807
0
20,000
40,000
60,000
80,000
100,000
120,000
19
20
21
22
23
19
20
21
22
23
19
20
21
22
23
642,338
42,216
17,797


08       Huawei Investment & Holding Co., Ltd.
Message from the Chairman
Pressing ahead to achieve our 
business development goals
In 2023, all hands were on deck to achieve our 
business development goals, and our performance was 
in line with forecast. I'd like to thank our customers, 
partners, and friends from all over the world for their 
ongoing trust and support.
Over the past year, we invested more in technological 
innovation and continued to deliver high-quality 
products and services. We also buckled down to 
enhance our overall competitiveness. Our ICT 
infrastructure business remained solid, and our 
consumer business met expectations. Both our cloud 
computing and digital power businesses grew steadily, 
and our intelligent automotive solution business began 
large-scale delivery. All the while, we have worked 
hard to drive digital inclusion and promote green and 
sustainable development.
In 2024, we will continue to forge ahead, united as 
one, investing strategically and strengthening the 
capabilities we need to ensure sustainable survival 
and hone our overall competitiveness. We will focus 
on creating greater value for our customers, partners, 
and society as we work to achieve steady, long-term 
growth.
Promoting sustainable development 
through digital inclusion
Everyone should have access to stable connectivity. 
We believe that connectivity is not just a basic right 
for every person, but also a cornerstone of the digital 
economy.
For decades, Huawei has been committed to pushing 
the boundaries of ICT and promoting its global 
adoption. We have actively promoted the deployment 
of digital infrastructure and interconnectivity to 


2023 Annual Report
        09
bring more people into the digital fold. And now, 
we are extending these efforts by innovating in both 
connectivity and computing to provide our global 
customers with leading ICT solutions.
Huawei is also an active member of the International 
Telecommunication Union's Partner2Connect Digital 
Coalition. After joining the coalition, as of 2023 our 
ICT solutions have brought connectivity to 90 million 
people in remote regions in nearly 80 countries around 
the world.
When Türkiye was struck by a catastrophic earthquake, 
we worked side-by-side with our carrier customers to 
rebuild over 1,900 sites within 72 hours. Together, we 
got the damaged networks back online so that people 
in affected areas could access critical network services.
In Pakistan, we worked together with international 
organizations and local governments to connect 
remote communities, giving residents access to 
telemedicine services through broadband networks and 
bringing online education to students through a smart 
classroom platform.
In China, when Jishishan County in Gansu Province 
was rocked by a massive earthquake, we immediately 
set out to affected areas in both Gansu and Qinghai. 
Alongside our carrier customers, we quickly restored 
communications at more than 100 key sites in Gansu, 
and recovered all disrupted services in Qinghai 
Province within 16 hours, helping people re-connect 
with their loved ones.
In addition to connectivity, we are working to drive 
broader digital inclusion through our TECH4ALL 
program. This program has brought about long-term 
positive change to remote areas and a wide range 
of environmental protection efforts. As of the end 
of 2023, our TECH4ALL education programs have 
benefited 630 schools and more than 400,000 people. 
In 53 of the world's protected areas, we are also using 
digital technology to increase biodiversity, enhance 
natural resource sustainability, and improve natural 
resource utilization.
Enabling digital industries for an 
intelligent world
Digital, intelligent, and low-carbon transformation is 
picking up speed around the world. Breakthroughs in 
AI technology and applications are enabling industries 
to go intelligent faster. Mobile networks are evolving 
towards 5G and 5.5G. Smart device ecosystems for 
all scenarios are converging faster than ever, the 
automotive industry is well on the way to going 
intelligent, and the transition to clean energy is 
gaining traction. As the intelligent world takes shape, 
ICT will be further integrated into all industries, and 
computing will become a fundamental driver of 
productivity, helping the digital economy take flight.
Huawei will delve deeper into industry digitalization, 
accelerate the construction of computing 
infrastructure, and promote digital and intelligent 
transformation in all industries. Together with our 
global customers and partners, we want to build 
a leading computing backbone that will power the 
intelligent world.
Powering green and low-carbon 
development with digital technology
Green and low-carbon development has become an 
important part of socioeconomic transformation on 
a global scale. At Huawei, we believe that digital 
technology is an effective tool to fight climate 
change, protect the environment, and enable green 
development. Digitalization and decarbonization can 
work hand-in-hand, propelling and reinforcing each 
other to help build a greener world.


10       Huawei Investment & Holding Co., Ltd.
In Saudi Arabia, for example, our latest energy-
saving technologies were used to build nearly 100 
wireless sites in the NEOM project. Furthermore, 
our cooperation with Zain KSA has helped cut their 
wireless network energy consumption by nearly 28%.
In China, we also launched our green Wi-Fi solution 
for smart campuses, which uses innovative algorithms 
to cut the average annual power consumption of 
campus Wi-Fi networks by about 20%.
Renewable energy will be crucial for green and 
sustainable development. At Huawei, we continue 
to increase the use of renewable energy in our own 
operations. Our digital power business is also working 
to drive the transition to renewable energy in all 
industries by focusing on areas like clean power 
generation, mobility electrification, and green ICT 
power infrastructure. By the end of 2023, our digital 
power solutions have helped customers generate 997.9 
billion kWh of green power and save 46.1 billion kWh 
of electricity. These efforts resulted in a reduction of 
495 million tons in CO2 emissions.
Green and low-carbon solutions are providing new 
momentum for sustainable development. Industries 
are also embarking on a new journey that combines 
digital, intelligent, and green transformation. This will 
stimulate innovation and encourage efforts to build 
next-generation digital and energy infrastructure that 
supports green and low-carbon development.
Growing together with partners 
through open innovation
Huawei delves deep into research and innovation, 
and we take an open approach to both as we work 
with our partners worldwide to probe the frontiers of 
science and technology. 
As part of our broader collaboration efforts, we closely 
engage with academic associations around the world 
to explore the challenges that industries face. We 
have also released more than 70 new research topics 
through academic platforms in an effort to drive 
advancements in computer science and AI.
In 2023, Huawei and its partners held multiple 
competitions and training activities, including ICPC 
Training Camps, the ICPC Challenge Championship, 
and various bootcamps. Through these programs, 
we shared our industry know-how with academia 
and learned from their expertise. Together, we are 
invigorating academic pursuits and encouraging 
students and researchers to unleash their full potential.
We are also working with global partners and 
developers to improve the device ecosystem based 
on HarmonyOS and Kirin, the general computing 
ecosystem based on openEuler and Kunpeng, as 
well as the AI computing ecosystem based on CANN 
and Ascend. Together, we are working to stimulate 
innovation across ecosystems and achieve shared 
success.
By the end of 2023, HarmonyOS was deployed on 
more than 800 million devices, and the HarmonyOS 
ecosystem attracted more than 2.2 million developers.
The Kunpeng ecosystem has also been developing 
steadily. To date, we have worked with more than 
4,700 partners to launch over 14,500 industry-specific 
solutions.
In computing, we have joined forces with industry 
partners to drive the development of the openEuler 
operating system, the openGauss database, and 
the MindSpore AI framework. We have also further 
enhanced all-scenario collaboration for openEuler, 
and by the end of 2023, over 50% of the industry's 


2023 Annual Report
        11
major foundation models were natively trained on 
MindSpore. The MindSpore open source community 
now serves more than 5,500 enterprises.
For Ascend, we continue to build leading AI training 
clusters and a complete series of inference products. 
We further opened up the heterogeneous compute 
architecture – CANN 7.0. And by the end of 2023, 
more than 1,600 independent software vendors (ISVs) 
have used Ascend to launch over 2,900 industry-
specific AI solutions.
On the operations side, Huawei is committed to 
globalized operations and diversifying our supply 
chains to ensure long-term, continuous, and stable 
supply, and to lay the foundations for more sustainable 
development. We have established long-term 
partnerships with over 10,000 suppliers and partners 
around the world. Through open collaboration, we 
strive to overcome all manner of difficulties and 
challenges over the course of development. We are 
confident that our work with partners will drive shared 
growth and benefits, and help forge a secure, reliable, 
competitive, and healthy value chain. Ultimately, this 
will allow us to provide higher-quality products and 
services for customers around the world.
Enhancing corporate governance and 
ensuring operational compliance to 
better serve our customers
A robust corporate governance system is the 
cornerstone of sustainable development. In 2023, we 
continued to build up and optimize our corporate 
governance system. Last year, our Representatives' 
Commission held one meeting where a new Board of 
Directors was elected, resulting in a new set of regular 
and alternate directors.
In 2023, our Board of Directors held 12 meetings 
where they reviewed and approved matters such as 
the company's medium-to-long-term strategic plan, 
as well as the company's annual business plan, audit 
report, profit distribution, and capital increases.
At Huawei, we believe that legal compliance is a 
bulwark against the uncertainties of international 
politics. We are committed to conducting business with 
integrity, adhering to business ethics, and observing 
all applicable laws and regulations in the countries 
and regions where we operate. This is a core guiding 
principle upheld by our management team. For 
years, we have worked hard to build a compliance 
management system that aligns with industry best 
practices and embeds compliance management into 
our business activities and processes. These efforts 
continue to this day. We work hard to create a culture 
of integrity, and require all employees to comply with 
our Business Conduct Guidelines (BCGs).
We continue to communicate openly and embrace 
transparency so that our customers, partners, and the 
rest of the world can see what we truly stand for. We 
welcome stakeholders – including governments, the 
media, researchers, and experts – to visit our company 
to strengthen mutual understanding and trust.
No matter what changes come our way, we will stay 
committed to openness, collaboration, and innovation. 
We will continue to press ahead against all manner of 
difficulties and stay true to our vision and mission – to 
bring digital to every person, home and organization 
for a fully connected, intelligent world.
Liang Hua
Chairman of the Board


12       Huawei Investment & Holding Co., Ltd.
Industry Trends
The Age of Intelligence Is Coming – and Fast
Digital Infrastructure and Smart Devices Will Evolve Rapidly
The world is full of uncertainty these days. Economic 
instability, geopolitical risks, climate change, and 
all manner of challenges have left us in a state of 
global flux. Against this backdrop, however, there is 
one thing we can be certain about: Major trends like 
digitalization, intelligence, and decarbonation are 
taking hold – and gaining momentum all around us.
This momentum was especially clear throughout 2023 
as the world made incredible progress towards a new 
age of intelligence. We now find ourselves in the midst 
of a new industrial revolution where AI is penetrating 
the fabric of all sectors at an incredible rate, taking 
productivity and creativity to new heights.
Renowned futurist Kevin Kelly has characterized AI as 
a type of artificial power, one that can eventually be 
tapped – as easily as electricity – to cognify everything 
around us. In the next 100 years, he said in a 2023 
interview, artificial intelligence will exceed anything 
that other artificial powers can accomplish.
AI will fuel the convergence of the digital and physical 
worlds, redefining everything and changing how we 
live and work, both as individuals and as industries. It 
will bring unprecedented challenges and opportunities.
The focus of network build-out has shifted from 
straightforward connectivity to center around 
experience itself. In the age of intelligence, 5.5G 
networks – the next evolution of 5G – will take it one 
step further: They will be productivity-centric, helping 
all industries vastly enhance their ability to create. 
5.5G will deliver universal 10 Gbit/s access for digital 
services, elastic ultra-broadband transport, and massive 
computing power from hyper-converged data centers. 
It will be the cornerstone of new digital infrastructure 
To bring the full value of intelligence to industries, we 
need to make all things connectable, all applications 
modellable, and all decisions computable.
■	 All things connectable: Not just physical objects, 
but also logical and virtual objects, including both 
digital equipment as well as traditional terminals 
and devices. With everything connected, data can 
be passed up and intent can be passed down.
■	 All applications modellable: Broad adoption of AI 
foundation models will bring the benefits of smart 
applications to people, homes, and organizations 
more rapidly than ever.
■	 All decisions computable: An accessible, ubiquitous 
supply of computing power will make intelligence 
more readily available wherever it's needed and 
help unleash the full potential of data.
AI is giving rise to a staggering array of innovative 
applications. It's also stimulating across-the-board 
changes to devices, networks, computing, and cloud, 
taking us one step closer to a truly momentous 
intelligent world.
and drive the digital economy forward. But evolving to 
these productivity-centric networks will require effort 
in several areas:
■	 Ubiquitous 10 Gbit/s ultrabroadband access: This 
upgrade will provide universal 10 Gbit/s broadband 
access to mobile users everywhere they go, and 
bring ultrafast connectivity to every nook and 
cranny of homes around the world. Enterprises will 
also benefit from an enhanced 10 Gbit/s experience 
Connectivity: Full speed ahead with 5.5G


2023 Annual Report
        13
on their campus networks, as well as 10 Gbit/s 
elastic private line services with higher throughput 
for growing computing needs. Universal high-speed 
connectivity will be vital to accelerate the adoption 
of digital services across all sectors of society.
■	 400G converged transport networks: Upgrading 
converged transport networks to 400G will increase 
transport power and, with end-to-end optical 
cross-connect (OXC), will guarantee experience for 
latency-sensitive services across different latency 
circles (e.g., 1 ms for access networks, 5 ms for city 
networks, and 20 ms for nationwide networks).
■	 Advanced hyper-converged architecture for data 
center networks: Based on this architecture, 800GE 
Breakthroughs in AI technology and applications are 
driving industrial transformation at a rate and scale 
never seen before. In particular, foundation models 
have brought artificial intelligence to an inflection 
point, where AI is going beyond perception and 
analysis to generate new content entirely; where 
multi-modal models are taking precedence over 
single-modal models; and where special-purpose AI 
is giving way to more general-purpose application. AI 
applications themselves have gone beyond consumer 
domains to support core industrial scenarios. Over the 
next two years, AI applications will create even greater 
value in more than 50% of core industrial scenarios. 
To help industries maximize the value of AI, we need 
to adapt computing infrastructure in two major ways:
■	 Adopting new computing architectures that 
cater to diverse computing needs: Demand for 
heterogenous computing capabilities is changing 
the way data centers are designed, and demand 
for AI computing is growing exponentially fast. 
We estimate that, between 2020 and 2030, global 
demand for general computing power will increase 
tenfold to reach 3.3 ZFLOPS, while demand for AI 
computing power will grow by a factor of 500 to 
hit 105 ZFLOPS. The world will generate roughly 1 
yottabyte of data annually, a 23-fold increase over 
Computing infrastructure: Making computing power and intelligence available wherever it's needed
interconnection will help fully unlock the potential 
of general computing, AI computing, high-
performance computing, and storage. Congestion 
notification algorithms will ensure zero packet loss, 
and network-scale load balancing algorithms will 
help increase the training efficiency of AI cluster 
networks by 20%.
■	 Telecom foundation models: AI models specifically 
designed for telecom networks will enable carriers 
to evolve towards L4 autonomous driving networks 
(ADNs) that are more autonomous, digitalized, 
and intelligent than ever, allowing network 
management engineers to double their efficiency.
2020. To address these diverse needs for massive 
computing power, we need to replace CPU-
centric computing architecture with peer-to-peer 
architecture – structures that help us overcome 
limitations in conventional architectures, boosting 
both computing bandwidth and performance while 
reducing latency.
■	 Breaking through bottlenecks in large-scale 
computing: Computing power is crucial for AI 
innovation. The amount of computing power 
available determines the speed of AI iteration 
and innovation, and massive amounts are needed 
to train foundation models. Through systematic 
design, we can evolve data centers into de facto AI 
supercomputers that tightly integrate computing, 
storage, networking, and power supply. Data 
centers like this can deliver incredible amounts of 
computing power with greater availability, better 
energy efficiency, and a more stable environment 
for long-term model training. This will lay the 
groundwork for developing a wide range of AI 
models and applications.


14       Huawei Investment & Holding Co., Ltd.
All industries are actively embracing AI, infusing their 
know-how and ingenuity into foundation models 
that help them tackle complex issues, including those 
in research, production, supply, sales, and service. 
New innovations in AI and foundation models are 
emerging every day, and as AI theory gains more 
practical application, developments in this sector will 
turbocharge the intelligent transformation of industries.
But to speed up the transformation process, there 
are a number of technical gaps that industries need 
to overcome. On the cloud front, AI is reshaping 
the technical stack, redefining the cloud's unique 
strengths, and transforming cloud infrastructure – as 
well as the applications running on it. To keep up with 
these trends, cloud service providers (CSPs) need to 
revamp their architecture, their computing and storage 
systems, the relationship between data and AI, app 
development, and their overall security posture.
■	 Architecture: CSPs will need to move from CPU-
centric client-server architecture towards peer-
to-peer architecture that can keep up with more 
diverse computing needs.
■	 Computing and storage systems: CSPs will need to 
shift from general computing to high-performance 
AI computing, and upgrade from data lake storage 
to AI-native intelligent storage.
As more and more consumer devices make use of 
AI, we will see greater convergence in multiple fields: 
chip architectures, operating systems, and device 
ecosystems across different scenarios. Formerly 
disparate ecosystems will begin to converge at a 
growing rate, such as mobile device ecosystems, office 
device ecosystems, and IoT device ecosystems. This 
trend promises huge benefits: Users will receive a 
smarter, more intuitive experience across all scenarios 
– one characterized by a larger variety of services, 
greater convenience, and better security. At the same 
time, developers will see a boost in their productivity 
and returns.
With AI, smartphones, personal computers, and tablets 
will provide a far superior experience, even for basic 
functions like taking photos, processing images, 
communications, entertainment, and productivity. On-
Smart devices: Providing an intelligent experience across all consumer scenarios
■	 Data and AI: CSPs will need to move towards "Data 
for AI" and "AI for Data" approaches, where data 
and AI work more seamlessly together to create 
greater value.
■	 App development: CSPs will need to transition from 
full-code development to low-code or zero-code 
development, and further towards AI-assisted or 
even autonomous development.
■	 Security posture: CSPs will need to go beyond 
traditional network and information security and 
focus on building zero-trust systems. Embracing 
zero-trust will help them better align with 
ever-growing customer requirements for cyber 
security and privacy protection, and contribute to 
trustworthy cloud services.
Accelerating intelligent transformation will also 
require an entirely new tech ecosystem. Innovating 
around industry needs raises the bar for the quality 
and efficiency of R&D tools. Developers will need 
cloud-native core software and development 
toolchains (e.g., software code repositories, hardware 
development pipelines, and software development 
pipelines). Building these tools will take more in-depth 
collaboration across the entire value chain, including 
industry, academia, researchers, and users alike. 
Collaboration is the driving force behind a truly robust 
tech ecosystem.
device AI assistants will be better able to understand 
user intent and provide people with exactly what they 
need. Users will be able to accomplish what they want 
faster and let their creativity run wild.
New ways of human-computer interaction (e.g., spatial 
computing, gesture tracking, and eye tracking) and 
new form factors (e.g., foldable phones, augmented 
reality and virtual reality devices, robots, and intelligent 
cockpits) will keep emerging in greater numbers.
And with greater convergence across different scenarios 
(like fitness, office, travel, and home), users will have 
access to an intuitive, consistent, and intelligent 
experience across devices that work seamlessly together 
with AI-native technology. Greater convergence will 
also allow for better personal data management and a 
smarter experience across the board.
Cloud: Providing Everything as a Service to accelerate industrial intelligence


2023 Annual Report
        15
Electrification, intelligence, and connectivity are 
megatrends in the automotive industry. In 2023, 
global production and sales of new-energy vehicles 
reached record highs, and China's automotive market 
in particular performed remarkably well. Now with 
electrification well underway, carmakers are shifting 
gears towards intelligence.
We will see a dramatic upgrade in mobility experience 
as vehicles integrate new ICT technologies. These 
include radar, new electrical/electronic architectures, 
autonomous driving platforms with massive computing 
power, intelligent cockpits for more intuitive 
interaction with on-board systems, and intelligent 
communications modules. Equipped with these 
technologies, intelligent electric vehicles will deliver 
safer and more comfortable mobility – and a more 
personalized experience along the way.
The UAE Consensus was signed in 2023, representing 
another significant global push for decarbonation. 
The transition to clean energy is picking up speed 
worldwide. For solar energy, advancements in 
photovoltaics and energy storage technology are 
driving down both the levelized cost of storage (LCOS) 
and the levelized cost of energy (LCOE). New energy 
sources, solar and wind power in particular, will take 
center stage – a trend that will bring huge changes 
to conventional electric power systems based on fossil 
fuels. As digital and AI technologies continue their rapid 
advance, digital will further weave its way into the 
energy domain, supporting three new types of energy 
infrastructure that will power the intelligent world.
■	 New energy infrastructure for power systems: 
Grid forming technology will play a central role in 
these systems, fueling the adoption of new energy 
and shifting their role from secondary sources to 
primary sources.
■	 New energy infrastructure for electric vehicles 
(EVs): Electric vehicles and charging piles are 
Intelligent vehicles: Bringing ICT technology on board to redefine the mobility experience
Intelligent driving will continue to gain traction. 
According to a recent report on consumer preference, 
intelligent vehicle controls, intelligent driving, and 
intelligent cockpits have become more important 
factors in purchase decisions. This is especially true of 
functionality like mapless navigation, which enables 
intelligent vehicles to effectively navigate in all types 
of unknown environments, whether it be highways, 
ring roads, or even urban streets. At the same time, 
the intelligent cockpit sector will continue to grow and 
expand to cover a wider range of mobility scenarios, 
including various types of vehicles, high-speed trains, 
and ships. Going intelligent is an unstoppable trend in 
the mobility industry.
Digital power: Building three new types of energy infrastructure to power the intelligent world
essential components of new power systems, so 
coordinated development of EVs, charging piles, 
and charging networks will be vital moving forward. 
Electricity will play a dominant role in the energy 
sector, with its share in final energy consumption 
rising sharply.
■	 New energy infrastructure for the digital industry: 
New power supply systems, especially those for 
large low-carbon data centers, will use green 
energy to provide more eco-friendly computing 
power for digital and intelligent transformation.
New power systems will increasingly depend on 
renewables, power electronics equipment, and high-
density energy storage systems with large capacity. 
This means the end-to-end quality and safety of these 
power systems will be more important than ever. The 
three new types of energy infrastructure outlined 
above will operate with enhanced quality, safety, and 
reliability to power the intelligent world.


16       Huawei Investment & Holding Co., Ltd.
Building an intelligent world will take concerted effort 
from a wide range of stellar players.
Over the past 30 years, from the information age to 
the digital age, Huawei has never stopped imagining 
what the future might hold. More importantly, we've 
never stopped working to make that future happen. 
Back in 2003, we introduced our All IP Strategy to 
boost connectivity. In 2013, we announced the All 
Cloud Strategy to expedite digitalization. In 2023, we 
took yet another huge step forward, unveiling our All 
Intelligence Strategy in a bid to accelerate intelligence. 
Exploring Nonstop for a Fully Connected, Intelligent World
Moving forward, we will support a vast range of AI 
models and applications across industries by driving AI 
innovation across all aspects of our organization, from 
theory, architecture, and engineering to our products, 
portfolios, and business models.
On a river with a hundred ships, those who paddle 
the hardest will take the lead. So let's take the same 
ship. Amidst the rising tides of intelligence, if we work 
together and keep exploring, we can chart a solid 
course towards a fully connected, intelligent world.


2023 Annual Report
        17
Management 
Discussion and 
Analysis
18
Our Vision, Mission, and Strategy
21
2023 Business Review
22
ICT Infrastructure Business
22  Carrier Market
30  Enterprise Market
37  Connectivity
40  Computing
41  ICT Services and Software
44
Cloud Computing Business
49
Digital Power Business
54
Consumer Business
62
Intelligent Automotive Solution 
Business
64
Research and Innovation
68
Improving the Management System
77
Cyber Security and Privacy 
Protection
82
Openness. Collaboration. Shared 
Success.
87
Results of Operations
89
Financial Risk Management


18       Huawei Investment & Holding Co., Ltd.
Our Vision, Mission, and Strategy
Huawei's mission is to bring digital to every person, home and organization for a fully connected, intelligent world. 
To this end, we will:
■ Drive ubiquitous connectivity and promote equal access to networks to lay the foundation for the intelligent 
world
■ Provide diversified computing power to deliver ubiquitous cloud and intelligence
■ Redefine user experience with AI, offering consumers a more personalized and intelligent experience across all 
scenarios, including home, travel, office, entertainment, and fitness & health
■ Build powerful digital platforms to help all industries and organizations become more agile, efficient, and 
dynamic
A new digital wave is sweeping the globe. Digital 
and AI technologies are helping all governments 
and enterprises become more agile, efficient, and 
dynamic. Open, secure, flexible, and easy-to-use 
digital platforms are facilitating innovation and 
transformation in all industries. They will be the 
bedrock and the fertile ground for our digital 
society to flourish.
Using AI, cloud, and big data technologies, 
enterprises can better understand their 
customers' needs and innovate with greater 
agility to craft a more personalized experience. 
Coordination and collaboration across 
industries will drive innovation at scale. With 
the continuous evolution of smart devices, a 
seamless experience across all scenarios will 
become the foundation of an intelligent life.
In the digital economy, computing power is a 
new driver of productivity. Data itself is a core 
asset, and cloud and AI are the new tools of 
productivity. Moving forward, AI computing will 
account for more than 80% of a computing 
center's capacity, providing the muscle for 
practical AI applications in all areas of life. To 
deliver ubiquitous cloud and intelligence, we will 
need to provide diversified computing power.
Every person has the right to be connected. 
Connectivity is the foundation for social 
progress and economic growth. Connections 
will soon become a natural and ubiquitous 
resource, provided by networks that proactively 
sense changes and user needs. These networks 
will offer intelligent, seamless, and secure 
connections to people and things whenever and 
wherever they want. With the advent of 5G, we 
begin a new chapter in this story.
Ubiquitous Connectivity
Pervasive Intelligence
Digital Platform
Personalized Experience
Building a Fully 
Connected, 
Intelligent 
World


2023 Annual Report
        19
Ubiquitous Connectivity
Connectivity has extended from people to things and 
from our homes to the factory floor. Now it's the 
foundation of everything in an increasingly intelligent 
world. Huawei is doing what it can to help our 
customers get ready for the future.
For mobile and home users, Huawei teams up with 
carriers to provide an ultra-broadband experience 
across all aspects of everyday life.
For governments and enterprises, Huawei works 
with our partners to enable digital and intelligent 
transformation in different industries. We provide 
intelligent connectivity solutions for different industrial 
scenarios, including ubiquitous ultra-broadband, 
deterministic experience, and hyper-automation, to 
support the diverse needs of all customers.
We are working to push connectivity to its limits with 
products and solutions like 5.5G, simplified green sites, 
fully-converged cloud-native core networks, best-in-
class Wi-Fi 7, Super-Connectivity 400GE CloudFabric, 
optical cross-connect (OXC), fiber to the room 
(FTTR), and green data centers. We are also actively 
collaborating with the industry to define its next steps 
and drive the advancement of connectivity. To better 
meet connectivity requirements in industrial scenarios, 
we are using AI to enable hyper-automation of 
network O&M and developing new algorithms to pave 
the way for truly deterministic IP networks.
As green development becomes the clear path 
forward for all industries, the compounding forces of 
digitalization and decarbonization will drive us ever 
closer to a sustainable future. Huawei works closely 
with customers and partners on nonstop innovation 
for new digital and energy infrastructure. We aim to 
provide green ICT that will enable green development 
and bring greener connections to all parts of the world.
Pervasive Intelligence
Data has become a valuable raw material, and 
computing power has become the new driver of 
productivity. The amount of data we produce will 
explode as more and more of the devices around us 
become smart, and more industries will need massive, 
intelligent storage capabilities to handle these new 
resources. Abundant and affordable computing power 
will determine the future of the digital economy.
Through nonstop innovation in data storage, 
diversified computing, and cloud services, Huawei is 
helping industries go digital and intelligent by making 
pervasive intelligence possible. Together we will build 
a fully intelligent world.
In data storage, Huawei provides customers with 
products and solutions that span all domains and 
scenarios, in a bid to satisfy requirements for sufficient 
storage, free mobility, and the full utilization of 
mass data. Our goal is to build a high-performance, 
reliable, green, and secure data storage foundation for 
customers.
In computing, Huawei sticks to our strategy of "open 
hardware, open source software, partner enablement, 
and talent cultivation". We are developing the 
Kunpeng, Ascend, and openEuler ecosystems as part of 
our efforts to bring more diversified computing power 
to the whole world.
In cloud computing, Huawei Cloud is focusing on AI 
for Industries and AI for Science. We are diving deep 
into industrial scenarios and harnessing AI to help 
enterprises tackle their biggest challenges, thereby 
reshaping industries with AI.
Personalized Experience
The physical and digital worlds are converging, and 
the process is speeding up. Mass production is giving 
way to mass customization, leading to greater business 
innovation, closer collaboration across ecosystems, and 
a richer user experience.
Using new technologies like AI and cloud, 
enterprises can better understand their customers' 
needs and innovate with greater agility to craft a 
more personalized experience. Coordination and 
collaboration across industries will drive innovation at 
scale.
In our user-centric intelligent world, usage scenarios 
and experiences are evolving. The boundaries between 
products and services continue to break down, 
with many converging scenarios, including home, 
travel, office, and fitness & health. Soon all content 
and services will travel with users for a completely 
seamless, holistic experience. Smart collaboration 
between software and devices will give users an 
intelligent experience across all scenarios.


20       Huawei Investment & Holding Co., Ltd.
We will continue working closely with partners across 
our software, service, and hardware ecosystems to both 
integrate existing technology and drive innovation to 
better serve consumers. Our "1 + 8 + N" Seamless AI 
Life strategy is centered on smartphones and touches 
on five major scenarios: Smart Office, Fitness & Health, 
Smart Home, Easy Travel, and Entertainment. Through 
HarmonyOS, we empower our ecosystem partners 
to provide consumers with a superior, intelligent 
experience across all scenarios.
Digital Platform
Data volumes are growing exponentially as more and 
more industries embrace intelligence. Enterprises are 
applying digital and intelligence to a growing array 
of scenarios as cutting-edge technologies, innovative 
models, and intelligent algorithms continue to 
emerge. All of this is creating a multiplying effect of 
accelerated innovation.
From video data and industrial data to personal data 
and consumption data, all data is coming from more 
sources and in more forms and is becoming more 
fragmented. Powerful digital platforms are needed to 
integrate this data.
New technologies in connectivity, cloud, AI, computing, 
and industry applications are converging to support 
comprehensive intelligent connections between 
people, things, and information at multiple levels. 
These technologies will help industries expand their 
traditional boundaries, and enable enterprises to 
expedite intelligent upgrade. Enterprises will have 
to adapt their strategies, organization, processes, 
marketing, services, manufacturing, and R&D to 
cope with changes. To do so, enterprises need to 
synergize the cloud, networks, edge, and devices 
to build an open, powerful digital platform with 
multidimensional perception, all-domain collaboration, 
accurate judgment, and continuous evolution. With 
cloud as the foundation and AI at its core, this digital 
platform helps users accumulate industry know-how, 
rapidly innovate their core business processes, and 
quickly iterate to respond to changes in their business 
environments.
A digital platform is one of the core engines that 
drives success in digital and intelligent transformation. 
New information technologies can make organizations 
more efficient through intelligent management of their 
physical assets like buildings, factories, production 
lines, and utilities. At the same time, advanced digital 
technologies in connectivity, cloud, AI, and computing 
can change the way organizations operate and create 
new business models. This is the process of digital and 
intelligent transformation. An organization's IT systems 
and the corresponding operational methods combine 
to form a digital platform.
Together with its ecosystem partners, Huawei provides 
innovative technologies, products, and solutions that 
help its customers build open, secure, flexible, and 
easy-to-use digital platforms. With its digital platform, 
Huawei assists customers in crafting their own 
intelligent solutions, and enables industries to navigate 
digital transformation and intelligent upgrade. 
Huawei's digital platform is injecting new momentum 
into the digital economy.


2023 Annual Report
        21
67% China
21% EMEA
6%
Asia Pacific
5% Americas
2023 Business Review
In 2023, Huawei maintained strategic focus and fully leveraged the collective strengths of our business portfolio, 
our ability to innovate, and our grasp on complex software and hardware platforms. This allowed us to keep 
providing our customers with high-quality products and services alongside our ecosystem partners. In 2023, 
Huawei's annual revenue was CNY704,174 million, an increase of 9.6% year-over-year. Our overall performance 
was in line with forecast.
■ In the Chinese market, industries were going 
digital, intelligent, and low-carbon at a faster 
rate. To adapt to this market trend, we improved 
our ability to integrate software, hardware, chips, 
edge, devices, and cloud, and fully leveraged 
our collective strengths in computing, storage, 
networks, digital power, devices, and intelligent 
automotive solutions. As a result, Huawei saw 
growth in all of its business domains in China. Our 
revenue from the Chinese market was CNY471,303 
million in 2023.
■ In Europe, the Middle East, and Africa (EMEA), ICT 
infrastructure such as 5G and optical networks was 
being constructed rapidly and industries sped up 
digital, intelligent, and low-carbon transformation. 
As a result, our cloud computing business grew 
rapidly, our ICT infrastructure business remained 
steady, and the performance of our digital power 
business was in line with forecast. In addition, our 
consumer business remained focused on building 
out the HMS ecosystem and developing converged 
products. Huawei's revenue from this region was 
CNY145,343 million in 2023.
■ In the Asia-Pacific Region, industries stepped up 
their efforts in digital, intelligent, and low-carbon 
transformation. As a result, our digital power and 
cloud computing businesses continued to grow, our 
consumer business ramped up innovation and saw 
a rapidly growing ecosystem, and the performance 
of our ICT infrastructure business was in line with 
forecast. Huawei's revenue from this region was 
CNY41,041 million in 2023. 
■ In the Americas, customers increased investment 
and industries accelerated digital, intelligent, and 
low-carbon transformation. Our ICT infrastructure 
business grew steadily, our digital power and cloud 
computing businesses continued to grow, and our 
consumer business remained focused on developing 
converged products. In 2023, our revenue from this 
region was CNY35,362 million.
By business segment
(CNY Million)
2023
2022
YoY
ICT Infrastructure
361,997
353,978
2.3%
Consumer
251,496
214,463
17.3%
Cloud Computing
55,287
45,342
21.9%
Digital Power
52,607
50,806
3.5%
Intelligent 
Automotive 
Solutions
4,737
2,077
128.1%
Other
8,624
3,978
116.8%
Elimination
(30,574)
(28,306)
8.0%
Total
704,174
642,338
9.6%
 
 
 
 
By region
(CNY Million)
2023
2022
YoY
China
471,303
403,999
16.7%
EMEA
145,343
149,206
(2.6)%
Asia Pacific
41,041
48,048
(14.6)%
Americas
35,362
31,898
10.9%
Other
11,125
9,187
21.1%
Total
704,174
642,338
9.6%
 
 
 
 


22       Huawei Investment & Holding Co., Ltd.
ICT Infrastructure Business
ICT is the core engine that drives the development of the digital and intelligent economy. It is a key technology 
that drives industry upgrade and high-quality development for enterprises. As digital, intelligent, and low-carbon 
transformations continue to gain traction, Huawei has focused its efforts in the ICT infrastructure business on 
information distribution, interaction, transmission, processing, and storage. This allows us to provide leading 
products and solutions for telecom carrier, government, and enterprise customers around the world and support 
the digital and intelligent transformation of numerous industries.
We provide high-quality services to the carrier, 
government, and enterprise markets and create 
new value for customers:
■ Carrier market: We work to build ubiquitous 
connectivity and enable pervasive intelligence, 
in order to help our carrier customers achieve 
business success. Together, we are accelerating the 
commercial deployment of 5.5G, taking digital and 
intelligent transformation to the next level, and 
leading humanity to an intelligent world faster.
■ Government and enterprise market: To facilitate 
digital and intelligent transformation, we have 
launched a collaborative, open, agile, and 
trustworthy reference architecture for intelligent 
transformation. We have become a reliable partner 
for intelligent transformation across industries 
by providing digital and intelligent products and 
solutions that enable industries to go intelligent 
faster.
We are continuing to invest in the ICT industry 
to lead industry development and technological 
innovation. In 2023, we worked with other industry 
players to drive connectivity to new heights. As part 
of this, we also explored the evolution to 5.5G and 
helped establish 10 gigabit showcase cities around 
the world. In addition, we have worked to nurture the 
Kunpeng and Ascend ecosystems in order to support a 
vast range of AI models and applications that will help 
all industries thrive.
We also provide ICT services and software to 
support the digital and intelligent transformation 
of our carrier, government, and enterprise 
customers in operations and maintenance (O&M). 
In the ICT services and software domain, we have 
called upon our more than 30 years of experience 
in ICT services to provide a broad portfolio of digital 
and intelligent ICT service and software solutions by 
focusing on the entire business process that covers 
everything from network planning and construction to 
O&M, optimization, operations, and training. We aim 
to facilitate the digital and intelligent transformation 
of carrier, government, and enterprise customers 
by building green, efficient, secure, and robust ICT 
infrastructure that provides the ultimate experience.
Carrier Market
In 2023, Huawei remained customer-centric and continued to innovate. We enabled carriers to maximize the value 
of networks and explore potential monetization channels. We worked alongside carriers to expand the boundaries 
of their business and achieve sustainable business growth, and helped carriers achieve a positive business loop with 
5G and explore the opportunities of 5.5G.
Since 5G networks were put into commercial use five 
years ago, they have been deployed by more than 300 
carriers in more than 100 countries. There are now 
more than 1.5 billion 5G users. It took nine years – 
almost twice as long – for 4G to get to that level.
In the tests conducted by global authoritative 
institutions in 2023, Huawei helped multiple carriers 
around the world rank first in mobile network 
experience. We helped carriers start 5.5G commercial 
verification and testing in multiple cities around the 
world, and worked with them to fully explore five 
connectivity businesses to connect people, homes, 
things, vehicles, and industries. In 10 gigabit smart 
home scenarios, we helped carriers accelerate the 
upgrade to the 10 gigabit experience and explore new 
business opportunities.
Huawei helps carriers upgrade and build their network 
infrastructure and software systems into intelligent 
ones that have the capacity to evolve and support 
robust networks, converged cloud, and intelligence. 
Huawei Cloud works with carriers on cloud 
transformation and helps carriers seize new business 
opportunities that arise from intelligent upgrade 
through a variety of industry APIs and B2B practices.


2023 Annual Report
        23
2024 will mark the first year of 5.5G commercial use. 
Huawei will work with carriers to actively explore 
the evolution to 5.5G, build efficient, coordinated, 
green, stable, and intelligent networks which feature 
ubiquitous 10 gigabit access and offer a premium 
experience. This type of collaboration will take digital 
and intelligent transformation to a new level and 
propel us towards an intelligent world.
Driving Ubiquitous Connectivity to Help 
Customers Achieve Business Success
Huawei continues to innovate our products and 
solutions. We have worked with carriers and industry 
partners to explore service applications and verify 
key technologies, help carriers achieve business 
success with 5G, and unlock new applications and 
opportunities in 5.5G. 
Jointly Creating New Value with 5G and Fueling 
New Business Growth
In 2023, Huawei actively helped carriers accelerate 5G 
monetization, including traditional traffic monetization 
and monetization through differentiated experiences 
and converged new services, and this helped to 
further unleash 5G potential and facilitate ongoing 5G 
business success.
■ In terms of traffic monetization, by the end 
of 2023, many global carriers served by Huawei 
had invested in 5G construction and user base 
expansion. In China, the proportion of 5G package 
subscribers exceeded 70%, and this fueled the 
development of the digital economy. In markets 
outside China, Huawei helped carriers deploy 5G 
fixed wireless access (FWA) services that provided 
100 Mbit/s wireless home broadband access to 
millions of households. These 5G FWA services 
significantly increased carriers' overall revenue 
growth.
■ In terms of experience monetization, Huawei 
worked with carriers to shift towards 5G experience 
operations based on network capabilities such 
as rates, uplink, and latency. 5G experience 
operations have become a key driver of new 
growth. Deterministic rates have become a new 
paradigm for rate monetization. In markets outside 
China, FWA offerings have shifted from rate-based 
packages to experience-guaranteed packages, and 
this has increased the average revenue per user 
(ARPU) by about 25%. In China, carriers were some 
of the first to launch 5G livestreaming packages, 
which provided ultra-high uplink rates and VVIP 
services and increased the ARPU by more than 
70%. Carriers also launched 5G packages with 
faster network access for gamers and financial 
investors to deliver a differentiated user experience 
and further increase ARPU. In markets outside 
China, carriers released 5G hotspot acceleration 
packages which supported on-demand and time-
based subscriptions and these packages increased 
the ARPU by about 23%.
■ In terms of monetization through new services, 
Huawei recognizes the fact that the applications 
of new technologies such as 5G, cloud, and AI 
are converging quickly, and that this is leading to 
a wide variety of new services and bringing new 
value to the industry in the following two domains:
– In individual-facing domains, Huawei has 
actively supported carriers in developing 
converged applications such as cloud phones, 
New Calling, and naked-eye 3D. Chinese carriers 
have attracted a large number of new subscribers 
to the cloud phone service. Through cloud 
phones, individual users can access computing 
power. Cloud phones have become the portal 
to hallmark 5G applications. The first carrier to 
launch New Calling with visualized voice calling 
services has attracted many new customers. The 
average minutes of use (MOU) per customer 
increased by about 21% and the video call 
penetration rate increased by about 24%.
– In industry-facing domains, Huawei has 
worked alongside carriers to facilitate large-
scale industry digitalization through 5G. 5G 
has been applied at scale in industries such 
as oil and gas, mining, ports, manufacturing, 
and healthcare. In China, more than 1,000 
fully connected 5G factories have been built. 
In markets outside China, 5G has enabled 
remote assistance through augmented reality 
(AR) for offshore oil and gas platforms, and 
this has significantly improved these platforms' 
operating efficiency.
Building 5G Networks to Deliver Exceptional 
Experience and Facilitate Ongoing Business 
Success
Huawei continues to innovate to help carriers build 5G 
networks that are highly coordinated, green, stable, 
intelligent, and capable of delivering exceptional 
user experiences. We also facilitate evolution to 5.5G 
by helping carriers build networks that deliver a 10 
gigabit experience. These networks offer ten times 


24       Huawei Investment & Holding Co., Ltd.
stronger capabilities and create a new space with 
hundreds of billions of connections.
■ Huawei helped carriers provide exceptional 
user experiences and meet differentiated 
service requirements. In markets outside China, 
the rapid increase of 5G users has brought higher 
requirements on consistent indoor and outdoor 
experiences. Huawei deployed large-capacity, wide-
coverage MetaAAUs on a large scale to deliver 
an exceptional and ubiquitous experience. In 
China, Huawei provided a 5.5G solution to deliver 
new capabilities such as ultra-high-speed uplink 
and downlink, deterministic experiences, and all-
scenario Internet of Things (IoT). These have 
opened up a new market where all things are 
connected and intelligent.
■ Huawei helped carriers greatly improve 
operational and energy efficiency and 
maximize spectrum utilization. In markets 
outside China, Huawei helped carriers deploy 
the ultra-broadband, energy-efficient GigaGreen 
solution to deliver consistent, high-quality 5G 
experiences across urban and suburban areas. 
This solution increased the camping ratio of 5G 
users to 98% and drastically improved the uplink 
experience. Huawei's energy-efficient Eco antennas 
reduce the power consumption of each site, which 
leads to a lower operating expenditure (OPEX) for 
carriers. As traditional frequency band resources 
become increasingly insufficient, it becomes more 
difficult to meet ultra-high-bandwidth backhaul 
requirements in the 5G era. Huawei's innovative 
microwave solution helped carriers implement 
long-distance, large-capacity backhaul, which 
greatly improved spectrum utilization and reduces 
energy consumption.
■ Huawei helped carriers relieve network 
congestion to accelerate growth in dataflow 
of usage (DOU) and ARPU. In markets outside 
China, the number of users and the network traffic 
demand increased sharply, and most networks in 
urban areas became congested. Huawei's Massive 
multiple-input multiple-output (MIMO) solution 
with large capacity and multi-band integration 
increased the network capacity several-fold and 
shortened the return on investment (ROI) cycle 
for carriers. In densely populated areas, networks 
generally carry heavy loads and traffic demand is 
increasing rapidly. Huawei's innovative intermediate 
frequency (IF) solution helped carriers quickly 
upgrade their networks to almost double the 
capacity and reduce energy consumption by 27%. 
The solution also primed the carrier networks for 
5G evolution.
■ Huawei helped carriers deploy 5G core 
networks with carrier-class stability and 
reliability. In markets outside China, Huawei 
launched a six-dimensional high-stability core 
network model to solve the problem of frequent 
signaling storms on carriers' 5G networks. By 
detecting and eliminating potential risks in 
advance, this network model helped carriers build 
an AI-native, stable 5G core network. 
Huawei also worked with customers to innovate 
and leverage the intelligent network functions 
of 5G core networks. Together, we implemented 
differentiated experience assurance that can be 
evaluated in real time, optimized dynamically, and 
monetized to achieve business profitability, thereby 
enabling monetization across multiple dimensions 
such as network traffic, rates, and latency.
Leading the Way to Intelligent Connectivity with 
5.5G and Jointly Exploring New Businesses
In 2023, Huawei worked with leading carriers around 
the world and industry partners to innovate and meet 
the requirements arising from new 5.5G applications 
and scenarios. Together, we promoted 5.5G technology 
verification and network deployment, and explored 
new business opportunities for 5.5G.
■ Individual- and home-facing applications: 
Huawei has helped multiple carriers around the 
world verify 10 Gbit/s downlink and 1 Gbit/s uplink 
rates of 5.5G, to deliver exceptional experiences 
with FWA services. In October 2023, Huawei helped 
a carrier outside China launch the world's first 5.5G 
smart home service, featuring brand-new services 
such as naked-eye 3D, home care, and whole-
house intelligence, which further unleashed the 
business potential of smart homes.
■ Industry-facing applications: Huawei used 
5.5G network technologies to support carriers 
in exploring and verifying digital and intelligent 
transformation in multiple sectors, such as 
manufacturing, mining, and transportation. In 2023, 
in the field of automobile manufacturing, Huawei 
worked with Chinese carriers to build flexible 
production lines based on 5.5G technologies, which 
reduced downtime in high-end core manufacturing 
processes and improved manufacturers' delivery 
capabilities. In the field of mining, Huawei helped 
a carrier build the world's first 5.5G smart mining 


2023 Annual Report
        25
pilot network with an uplink rate of 1 Gbit/s. This 
network implemented panoramic visualization and 
remote control of fully mechanized underground 
core mining operations, thereby improving the 
safety of mining. In the field of transportation, 
Huawei worked with carriers to complete the 
verification of the low-latency 5.5G IoV solution 
on the wide area network (WAN). The solution is 
expected to be put into commercial use in 2024, 
and estimates suggest that it will reduce urban 
traffic congestion by about 20%.
Enabling 10 Gigabit Smart Homes to Help 
Carriers Achieve FBB Business Success
According to third-party statistics, by the end of 2023, 
there were more than 200 million gigabit broadband 
users, and more than 50 carriers had released 
5-Gbit/s-or-higher packages. This was the perfect 
time to release 10 gigabit offerings. Drawing on 
our innovation capabilities in the optical broadband 
domain, Huawei helped carriers achieve fast coverage 
of 100 Mbit/s fiber to the home (FTTH), smooth 
upgrade to gigabit FTTH, and large-scale deployment 
of 10 gigabit smart homes, which led to business 
success in fixed broadband (FBB).
■ For 100 Mbit/s coverage, Huawei used the central 
office (CO) + AirPON all-scenario solution to 
effectively reuse existing resources, implement fast 
network construction at low costs, reduce carbon 
emissions, and provide users with a high-quality 
network access experience. Currently, this solution 
has been deployed at scale in multiple countries 
and regions around the world.
■ For upgrades to gigabit, Huawei provided the 
gigabit access solution to facilitate a smooth 
evolution to gigabit services. This solution has been 
used by many carriers around the world to improve 
user experiences and achieve stable ARPU growth.
■ For 10 gigabit smart homes, Huawei leveraged 
the FTTR F30 solution's new capabilities such as 
whole-house coverage and beyond-gigabit to solve 
problems in indoor Wi-Fi coverage. In markets 
outside China, Huawei helped carriers explore 
opportunities to monetize new services, such as 
ultra-fast cloud-based network-attached storage 
(NAS) and gaming, as well as smart care. As a 
result, carriers were able to attract new users and 
increase the ARPU of home broadband services.
Building Converged Bearer Networks with the 
Best Experience to Facilitate 5G Business Success
New scenarios, such as 10 Gbit/s access and 
enterprises' digital and intelligent transformation, 
require bearer networks with higher bandwidth, lower 
latency, and higher reliability. Huawei helped carriers 
build congestion-free, low-latency, scalable, and highly 
reliable bearer networks. These networks facilitate the 
development of emerging services and help carriers 
achieve business success with 5G.
■ In the all-optical domain, Huawei helped carriers 
build ubiquitous all-optical foundations with 
solutions such as optical cross-connect (OXC) and 
Alps-WDM. Globally, Huawei's Alps-WDM solution 
helped carriers increase deployment efficiency, 
lower overall costs, and streamline the O&M of 
Huawei and a Chinese carrier were 
among the first to deploy a 5.5G 10 
gigabit network and quickly incubate 
new businesses and ecosystems.


26       Huawei Investment & Holding Co., Ltd.
optical cables. In China, we have helped carriers 
build more than 60 all-optical cities, and these 
have consolidated the network foundation for 
developing the digital and intelligent economy.
■ In the data communication domain, Huawei's 
NetEngine series routers, which feature large 
capacity, tight integration, ultra-high stability, 
and high energy efficiency, have been deployed 
by many carriers around the world to help them 
build converged bearer networks oriented to all 
services. In addition, carriers used the routers' 
new capabilities such as network slicing to ensure 
user experiences and improve user satisfaction. 
In addition, Huawei's Network Digital Map 
Solution enables multi-dimensional visualization, 
management, and optimization of networks, 
and this improves network O&M efficiency and 
accelerates network resource monetization.
■ In the IP+optical converged bearer domain, to 
help carriers resolve cross-domain O&M difficulties, 
Huawei used the iMaster NCE-Super solution to 
implement end-to-end IP+optical orchestration 
and unified cross-domain management. This 
solution covers network planning, construction, 
maintenance, and optimization, and offers benefits 
such as visualized O&M, improved network 
orchestration efficiency, and significantly lower 
OPEX.
Inspiring New Growth with XtoB
In 2023, Huawei helped carriers around the world 
focus on sectors such as government services, 
education, healthcare, industrial, finance, and 
small- and medium-sized enterprises (SMEs). By 
taking differentiated measures such as enhancing 
connectivity, diving deep into campus scenarios, 
and developing cloud services, Huawei has helped 
address the challenges faced by numerous industries, 
including diverse scenarios, complex requirements, 
difficult maintenance, and multiple risks. Together, we 
helped enterprises make progress on their digital and 
intelligent transformation and achieve new business 
growth.
■ Enhancing connectivity – Maximizing network 
monetization through differentiated private 
line solutions: Different enterprises have different 
requirements on private line services, such as 
reliability, latency, and service provisioning speed. 
In markets outside China, Huawei helped carriers 
deploy premium international private lines to 
connect multiple adjacent countries in the region, 
build international latency circles of 3, 6, and 9 ms, 
provision services about 50% faster, and enable 
the digital and intelligent transformation of large 
enterprises in the region. Huawei's innovative 
secure software-defined wide area network (SD-
WAN) solution helped configure networks in 
minutes, made them capable of self-healing in 
seconds, and made them over 30% more secure.
■ Diving deep into campus scenarios – Opening 
up new campus spaces with scenario-based 
services: Enterprises in the production and 
manufacturing sector have requirements for co-
existing services such as keeping their core data 
within their campuses while using cloud-based 
office services. In China, Huawei helped carriers 
provide one-stop services including campus 
networking and edge IT, so that manufacturing 
enterprises could store their core design data 
assets securely on campus while enjoying remote 
offices on the cloud. The one-stop services 
improved productivity by more than 20% and 
reduced the TCO by about 50%. Campus scenarios 
such as education, healthcare, culture and tourism, 
and sports usually face challenges such as the 
coexistence of multiple networks and complex 
delivery. In markets outside China, Huawei worked 
with a carrier to provide a campus network 
solution that integrates 5G, Wi-Fi, optical fibers, 
and IoT technologies for stadiums. This solution 
improved the campus network delivery efficiency by 
more than 30% and more than tripled the carrier's 
revenue.
■ Developing cloud services – Providing one-stop 
value-added cloud services to improve service 
stickiness: Based on the extensive enterprise 
broadband networks, carriers leveraged the strong 
capabilities of Huawei's localized service teams 
to provide scenario-based and standardized one-
stop cloud network services for SMEs and the 
commercial market to solve problems such as 
numerous scenarios and difficult maintenance. 
In China, Huawei helped carriers release value-
added cloud services for the commercial market 
such as small office and home office (SOHO), and 
these services doubled the ARPU and increased 
the proportion of first-time users to 60% of all 
new package users in one year. For chain retail 
enterprises in markets outside China, Huawei 
provided carriers with the Easy Branch solution. 
This integrated solution is designed for the multi-


2023 Annual Report
        27
branch scenario. It integrates a smart retail 
solution from Huawei Cloud and an electronic price 
tag solution from a third-party partner, and helps 
carriers increase their cloud service revenue.
Enabling Pervasive Intelligence to Lead 
the Way to an Intelligent World
Intelligence will greatly improve user experiences and 
energy efficiency for the telecom industry. In 2023, 
through non-stop innovation, Huawei provided carriers 
around the world with intelligent, efficient, and secure 
data storage products and solutions; helped carriers 
build DC-centric, agile, lossless, and elastic networks; 
and offered carriers one-stop, cloud-based application 
delivery solutions and Autonomous Driving Network 
(ADN) solutions, in order to continue to facilitate 
carriers' digital and intelligent transformation and 
accelerate our journey towards an intelligent world.
Enabling Carriers to Unleash Data Potential with 
Intelligent Data Infrastructure
Huawei provides the OneStorage 2.0 storage data 
lake solution. The solution realizes the transformation 
from device management to data management. It uses 
an innovative global file system (GFS) to implement 
visible, manageable, and flexibly flowing data, and 
helps carriers manage data elements as assets to 
unleash the value of data. By the end of 2023, Huawei 
had provided intelligent, efficient, and secure data 
storage products and solutions for many carriers.
■ In China, carriers' intelligent computing centers 
have hybrid load requirements for data training 
in AI scenarios. Huawei provided an innovative 
storage solution to upload massive amounts of 
training data much more efficiently.
■ In markets outside China, Huawei provided a 
state-of-the-art active-active storage solution 
featuring reliable network-attached storage (NAS). 
The solution ensures that enterprise resource 
planning (ERP) analysis reports run smoothly and 
improves system speeds by about 50%, to meet 
carriers' requirements for accelerated and stable 
core systems on the IT cloud. To meet carriers' 
requirements for developing 4K HD video services, 
Huawei provided a distributed storage solution for 
videos. This solution takes up 66% less equipment 
room space and reduces the energy consumption 
of data storage infrastructure by 12%. To meet 
carriers' constantly increasing requirements for 
backing up live-network core service data, such 
as billing data, Huawei provided a backup storage 
solution which builds a unified backup pool to 
make backup 50% faster.
Enabling Intelligent Networks with ADN
Building intelligent networks is an important strategy 
for carriers. 91% of carriers worldwide have 
incorporated automation into their corporate strategies 
and are aiming to reach Level 3 Autonomous 
Networks or above by 2025. By the end of 2023, 47 
leading enterprises around the world had signed the 
Autonomous Networks Manifesto. Huawei uses its 
own ADN technology to help carriers improve network 
intelligence and accelerate the evolution toward highly 
autonomous networks.
■ In China, Huawei worked with carriers to focus 
on increasing quality, revenue, efficiency, 
environmental sustainability, stability, and 
simplicity. Huawei has actively explored 
foundational technologies such as telecom 
foundation models and native intelligence for 
network elements (NEs), and implemented more 
than 10 technological innovations to evolve toward 
Level 4 Autonomous Networks.
■ In markets outside China, Huawei has helped 
carriers deploy over 70 ADN applications, such 
as network energy saving, user experience 
assurance, intelligent troubleshooting, high-
value customer exploration, and agile service 
provisioning. The iPowerStar solution has reduced 
power consumption for wireless networks. The 
intelligent Fault Management (iFM) solution has 
helped multiple carriers improve troubleshooting 
efficiency by 80%. The cell outage detection and 
compensation (CODC) solution has enabled base 
stations to automatically compensate for signals 
in poor weather conditions, ensuring uninterrupted 
network connectivity and improving customer 
satisfaction.
Enabling Carriers' Digital and Intelligent 
Transformation with Huawei Cloud Stack
In 2023, Huawei Cloud provided a distributed cloud 
foundation for global carrier customers on Huawei 
Cloud Stack. With its flexible deployment modes and 
business models, Huawei Cloud Stack helped carriers 
accelerate innovation in key internal IT applications, 
consumer-/home-/business-facing services, and 
intelligent services and increase revenue.


28       Huawei Investment & Holding Co., Ltd.
■ Accelerating carriers' migration of key internal 
IT applications to the cloud: In markets outside 
China, carriers have used Huawei's full-stack, one-
stop delivery services to smoothly migrate their 
core business systems, such as the billing system, 
to Huawei Cloud. Since then, they have been able 
to add advanced capabilities such as cloud-native 
services and big data to their systems, and realize 
their strategy of 100% internal applications on 
the cloud. By doing this, they greatly improved 
operational efficiency, and were able to roll out 
new services more than 30% faster.
■ Helping carriers increase the revenue from 
consumer-/home-/business-facing services: 
Carriers in markets outside China used the 
ecosystem capabilities of Huawei Cloud's 
KooGallery to quickly replicate more than 120 
services through software as a service (SaaS) 
applications, including digital government, smart 
education, and smart agriculture. In this way, 
carriers have helped accelerate the digital and 
intelligent transformation of numerous industries 
and have increased the revenue from consumer-/
home-/business-facing services.
■ Facilitating carriers' innovation: In China, 
Huawei has helped carriers innovate in fields such 
as operation, customer service, and R&D to improve 
user experiences. These innovations include smart 
assistants for cloud drives and gesture-based 
interactions on cloud phones. As a result, carriers 
were able to attract more than 10 million new 
users each year and increase the dataflow of usage 
(DOU) by more than 30%.
Enabling New Momentum in the AI Era with DC-
centric Efficient Networks
Huawei helped carriers build DC-centric, agile, lossless, 
and elastic networks to meet industries' requirements 
for large computing power and large transport power 
and to help them stay competitive in the intelligent era.
■ Within data centers, Huawei used its brand-
new CloudEngine series switches and autonomous 
driving capabilities to provide customers with a 
hyper-converged data center network solution that 
helped carriers seize new opportunities presented 
by enterprise cloudification and computing power 
rental. The innovative network-scale load balancing 
(NSLB) algorithm nearly doubled network 
throughput and improved training efficiency by 
about 20% with the same number of servers.
■ Between data centers, Huawei's elastic DCI 
solution provides customers with agile transport 
power services based on the all-optical foundation, 
intelligent elephant flow identification, and precise 
scheduling of tens of millions of flows, thereby 
improving network resource utilization from 40% 
to about 60%. One carrier has used this solution 
to transmit 500 TB of media materials to the 
data center for a film and television production 
company. Compared with the traditional solution, 
Huawei's solution shortened the transmission time 
from two weeks to just one day, and as such was 
able to meet user requirements for differentiated 
timeliness services of TB-level data.
Facilitating Digital and Intelligent 
Transformation to Enable New Growth
In 2023, Huawei set carrier transformation benchmarks 
for revenue increase from digital and intelligent 
transformation services, upgrades to O&M models 
for digital and intelligent transformation, and green 
and simplified infrastructure deployment. In addition, 
Huawei worked with carriers to unveil seven showcases 
in digital and intelligent transformation in O&M. These 
initiatives helped carriers accelerate their digital and 
intelligent transformation and create greater business 
value.
Tapping into the Potential of Innovative Digital 
Services to Increase Revenue
In 2023, Huawei launched the Mobile Money solution 
to help carriers improve the conversion rate of high-
value users and accelerate the development of 
Micro Finance services. Huawei also launched the 
intelligent cloud customer service center based on 
converged data, and this has effectively improved 
user experiences in customer services and driven new 
revenue growth in carriers' business-facing services. 
In addition, Huawei launched the convergent billing 
solution, which uses intelligent technologies to help 
carriers monetize digital services more efficiently.
■ In markets outside China, an auxiliary operation 
solution enabled by converged data rapidly 
converted about 57% telecom users into Mobile 
Money users and helped carriers develop more 
than 3 million Micro Finance users in two years. 
The convergent billing solution enabled a carrier to 
integrate multiple billing systems into one, which 
facilitated the launch of new converged marketing 
products within days. The number of new users 
increased six-fold in the first month after the 
product's launch.


2023 Annual Report
        29
■ In China, Huawei helped carriers expand the 
business-facing service market using the intelligent 
cloud customer service center solution. This 
solution provided omni-channel, intelligent 
professional services for multiple industries such as 
government services, finance, retail, transportation, 
manufacturing, and energy, and helped carriers 
substantially increase their revenue.
Upgrading O&M Models to Enable Service 
Development and Experience Improvement
Carriers are leveraging converged data and foundation 
models to transform their O&M models from being 
network-centric to being service-centric. In 2023, 
Huawei built an intelligent operation engine based on 
SmartCare. By converging the data from the operations 
support system (OSS), business support system (BSS), 
and third-party public sources, the engine helped 
carriers optimize end user experiences and their 
network net promoter scores (NPS) and enabled service 
development. By the end of 2023, Huawei's digital and 
intelligent transformation solution for O&M had been 
applied in more than 200 projects around the world, 
continuously helping carriers achieve business growth.
■ In markets outside China, Huawei's comprehensive 
digital and intelligent transformation solution 
for O&M, which features the collaboration 
of SmartCare, intelligent O&M, and network 
optimization, increased network traffic by about 
8%, improved customer-experienced rates by 
about 40%, and shortened the mean time to repair 
(MTTR) by about 40%. In addition, the SmartCare-
based intelligent operation engine helped carriers 
develop Mobile Money users, increasing the 
conversion rate of high-value users more than 
tenfold.
■ In China, our customers used Huawei's network 
satisfaction modeling for end-to-end mobile 
network problem demarcation, location, 
rectification, and result evaluation to proactively 
manage network satisfaction problems and improve 
satisfaction rates.
Injecting Momentum into Infrastructure with 
Green Development
In 2023, Huawei provided a three-layer solution 
encompassing green sites, green networks, and green 
operations to systematically improve network energy 
efficiency and help carriers achieve More Bits, Less 
Watts. We helped carriers build simplified, efficient, 
intelligent, and low-carbon target networks. We 
worked together to apply this solution first to sites and 
then to networks, and we optimized target networks 
first in individual domains and then on a systematic 
basis. Huawei helped customers build new green data 
centers that anticipate the exponential growth of 
computing power in the future. 
■ In markets outside China, Huawei worked with 
carriers to digitally reconstruct the power systems 
of base stations using an intelligent optimization 
solution that coordinates the main equipment and 
auxiliary equipment. This greatly improved the 
stability and efficiency of the power supply for base 
stations. The power availability (PAV) increased to 
99%, and the network traffic increased by more 
than 50%, which helped carriers increase revenue. 
Huawei also worked with carriers to successfully 
deploy 5G zero-carbon sites. Powered by solar 
power systems and lithium batteries, the sites are 
managed in real time by an intelligent network 
management system (NMS) which visualizes site 
energy efficiency (SEE) and helps significantly 
reduce annual carbon emissions.
■ In 2023, Huawei released a full series of green data 
center solutions, including the hybrid architecture 
for air and liquid cooling and the converged 
power supply system. These solutions helped 
carriers deploy green data centers featuring high 
power density, the lowest possible power usage 
effectiveness (PUE), high reliability, and the ability 
to provide general and intelligent computing 
power. In China, carriers used our solutions to build 
efficient and reliable cloud data centers with high 
power density and diversified computing power. Our 
cabinets provide about 30% more capacity, which 
means there is more space for IT and this maximizes 
business value. Our efficient, energy-saving cooling 
systems help to reduce the annual PUE.
Staying Customer-centric and Providing 
Carriers with Services That Have a Positive 
Impact
In 2023, Huawei stayed customer-centric and provided 
our carrier customers with services that have a 
positive impact on the environment, society, and 
business. Huawei is proud to be the most trusted 
partner of carriers worldwide, and has continued 
to build a comprehensive service system of experts, 
talent, partners, platforms, and processes, while also 
continuing to create value for customers. Together, we 
are working tirelessly towards the goal of building a 
fully connected, intelligent world.


30       Huawei Investment & Holding Co., Ltd.
■ Huawei continued to explore delivery modes 
that leverage digital and intelligent technologies, 
and built delivery capabilities suited to diverse 
scenarios. Our exploration and practices helped 
carriers efficiently build high-quality, green, 
simplified, resilient, and reliable ICT infrastructure 
to facilitate digital and intelligent transformation.
■ Huawei worked with carriers to ensure the stable 
running of more than 1,500 networks around the 
world. Our stable and reliable communication 
assurance services have enabled users to enjoy 
high-quality networks at over 200 sports events 
and major activities. We worked side by side with 
our customers to overcome challenges during 
disaster relief efforts. Our agile and professional 
services helped to quickly recover network 
communication and reduce losses.
■ Huawei helped carriers provide network services 
of high quality and exceptional experience. 
According to tests run by third-party authoritative 
institutions, carriers who used the products and 
network optimization services provided by Huawei 
ranked top in terms of network quality and user 
experience.
Enterprise Market
A new chapter in intelligent transformation is unfolding. And so, Huawei is working with customers and partners 
around the world to deeply integrate ICT with industry scenarios and spearhead the kind of innovation in ICT 
infrastructure that will drive digital and intelligent transformation and support a vast range of AI models and 
applications for all industries. Together, we are helping all industries go intelligent, and helping them do it faster.
Driven by customer scenarios and technological 
innovation, and always starting from top-level 
design, we focus on creating value for customers and 
guiding them throughout their digital and intelligent 
transformation journey. These efforts cover numerous 
sectors such as smart cities, finance, transportation, 
energy, manufacturing, education, healthcare, and 
Internet services. Based on our extensive experience 
in industrial intelligence, we have released a reference 
architecture that will drive industrial intelligent 
transformation, as well as a number of related 
solutions and a white paper titled Accelerating 
Intelligent Transformation, which offer practical advice 
and references that help industries make the most of 
intelligence.
We are committed to strengthening the breadth and 
depth of our strategy and have increased investment 
in the small- and medium-sized enterprise (SME) 
market. We have continued to optimize our "partner 
+ Huawei" sales and service system and develop 
marketable products and solutions. In addition, we 
have launched HUAWEI eKit, a sub-brand dedicated 
to SMEs and micro enterprises, to better meet their 
requirements for digital and intelligent transformation.
A thriving and sustainable ecosystem is crucial for 
digital and intelligent transformation across industries. 
As such, we team up with partners to build a healthy 
ecosystem that advocates open collaboration for 
shared success, and grow with partners with shared 
benefits as the bridge, integrity as the foundation, and 
rules as the guarantee. We have developed more than 
40,000 partners worldwide to help customers achieve 
business success.
A Wealth of Experience in Helping 
Governments and Enterprises Go Digital 
and Intelligent
Smart Cities
Huawei released the Architecture for Intelligent 
Transformation of Public Services in order to 
accelerate the intelligent transformation of public 
services to drive a cognitive society. We support the 
digital and intelligent transformation of government 
services, more efficient public services, and innovation 
in scientific research and help governments and public 
service customers around the world go intelligent, 
making public services fairer and more inclusive. We 
currently serve over 700 cities across more than 100 
countries and regions.
We use "City Intelligent Twins" and a universal 
reference architecture and integrate multiple 
technologies to build new infrastructure that can 
act as the digital foundation for cities. We enable 
service innovation and work alongside partners to 
develop tailored solutions that significantly expand 


2023 Annual Report
        31
the adoption of digital and intelligent technologies 
in public services. Focusing on the goals of ensuring 
high-quality and intelligent government services 
and improving service handling efficiency, we 
released foundation models for government services, 
government office applications, and city governance. 
We also continued to optimize our One-Stop Public 
Services Solution and Intelligent City Governance 
Solution. These models and solutions have significantly 
enhanced government service efficiency.
We have worked with customers and partners to build 
"City Intelligent Twins" and accelerate the intelligent 
transformation of cities. By the end of 2023, our "City 
Intelligent Twins" solutions had been implemented in 
more than 220 urban districts and cities across China 
as well as a number of cities outside China, creating 
people-friendly cities that can sense, think, and evolve.
Finance
Huawei jointly innovates and openly collaborates with 
financial institutions and partners, serving over 3,300 
financial customers from more than 60 countries and 
regions.
■ In the infrastructure domain, we help financial 
institutions build digital infrastructure that is 
highly stable, resilient, elastic, and agile by 
integrating multiple innovative technologies, thus 
comprehensively improving user experience, system 
resilience, and service security.
■ We have delved deep into architecture 
transformation by releasing our Financial PaaS 
and fully upgrading the Digital CORE Solution 3.0, 
supporting the application modernization of more 
than 150 financial customers around the world.
■ We released the Finance Foundation Model 
Solution and launched an upgraded version of 
the Financial Data Intelligence Solution 3.0. With 
these solutions, we have built enterprise-level data 
intelligence platforms for more than 200 financial 
institutions, making their decision-making and 
operations systems more intelligent.
■ Our financial warehouse solution for inventory 
financing enables industrial finance innovation and 
drives growth of the real economy.
■ We have stayed focused on the securities and 
insurance domains. Our next-generation core 
transaction solution for securities helps modernize 
core transaction systems, serving more than 10 
stock exchanges and 100 securities traders around 
the world. We are also working with insurance 
customers to build their digital foundations.
Transportation
Huawei has continued to build its in-depth 
understanding of the transportation industry. We 
currently adopt an innovation-driven approach based 
on customer needs that focuses on transportation hubs 
and networks, as well as movement of passengers and 
goods to build a digital and intelligent foundation for 
comprehensive transportation and logistics systems. 
These are intended to support secure and efficient 
operations of both supply chains and value chains.
We work with partners to develop scenario-based 
solutions that create value for customers, facilitate 
smooth mobility and logistics, and help customers 
succeed through digital and intelligent transformation. 
We currently serve over 210 airports, airlines, and 
air traffic management authorities, more than 300 
urban rail lines across over 70 cities, over 150,000 
km of railways, a road network covering more 
than 200,000 km, and over 100 waterway and port 
customers. We help these customers continuously 
improve their transportation capabilities, supporting 
the transportation economy and ensuring digital 
transportation solutions remain secure.
Urban transportation and roads:
■ We worked with customers to build an Intelligent 
Transportation System (ITS) that has continuously 
improved the management of urban traffic, 
improving overall traffic efficiency by 15%.
■ We built a comprehensive transportation big data 
system along with a new management, control, 
and service model for integrated transportation.
■ We expanded the adoption of intelligent 
technology in emergency response services related 
to in-service roads, reconstruction and expansion of 
roads, and toll systems to improve the safety and 
efficiency of the road network.
■ We also built digital and intelligent platforms and 
conducted converged data governance to maximize 
data value and boost the transportation economy.
Urban rails and railways:
In 2023, we worked with customers and partners to 
expand the adoption of ICT in rail transportation, 


32       Huawei Investment & Holding Co., Ltd.
aiming to build a secure and reliable digital and 
intelligent foundation which would further improve 
O&M efficiency.
■ We launched the Urban Rail Cloud 3.0 solution 
which can help build fully connected urban rail 
networks that are secure, reliable, and simplified.
■ We launched the Future Railway Mobile 
Communication System (FRMCS) solution that 
helps railway customers build high-reliability, high-
bandwidth, and future-oriented train-to-ground 
wireless broadband networks.
■ Our Smart Railway Trouble of moving Freight 
car Detection System (TFDS) Solution triples the 
operational efficiency of manual operations and 
has a comprehensive fault identification rate 
exceeding 99.3%.
■ We also launched the Smart Railway – Perimeter 
Detection Solution to improve the security of 
railway assets and operations.
Aviation:
■ We developed an Airport Cloud Solution that offers 
high-performance computing power and an open 
intelligent platform to support the secure migration 
of core airport services to the cloud.
■ We also developed the Perimeter Security with 
Fiber Sensing Solution for smart airports. This 
solution guarantees full coverage over long 
distances, increases the optical fiber signal 
collection rate to 99.9%, and reduces false alarms 
by approximately 90%, ensuring 24/7 operational 
safety for airports.
Waterways and ports:
■ We worked with customers to build multi-level 
port operations management platforms that enable 
digital, centralized, and cloud-based management 
of ports.
■ Our Smart Gate Solution for smart customs 
leverages Huawei's products and services that 
offer powerful computing and low latency and 
support unified O&M. The solution slashes the 
average vehicle processing time at gates from 15 
minutes to 10 seconds, significantly reducing port 
congestion during peak seasons.
■ Our logistics cloud solution works together with 
customers' campus management solutions to 
improve logistics service experiences.
Energy
Electric power: 
Huawei combines ICT with industry best practices and 
digital platforms for electric power scenarios. We have 
worked with partners to provide digital and intelligent 
solutions and services to nearly 200 power companies 
based on our Spark architecture, helping them move 
towards secure, efficient, green, and sustainable 
development.
Our foundation model for electric power has been 
successfully adopted in multiple scenarios, and our 
intelligent substation inspection solution has been 
put into use, successfully eliminating data silos and 
supporting real-time intelligent O&M.
■ Our electric power communication network solution 
integrates the main communication network and 
power distribution communication network to build 
a scenario-based target communication network 
for customers, which delivers 99.9999% reliability 
and supports 1 ms latency in urban areas.
■ We helped customers deploy more than 1,000 
substations in China with our solutions like secure 
Grid Wireless LAN, field operations management, 
and edge intelligence, enabling a 60% jump in 
O&M efficiency.
■ Our Intelligent Distribution Solution (IDS) helps 
customers enhance transparent sensing in 
distribution transformer districts and reduce the 
average outage duration by 42% and line loss 
by 1.4%, enabling a transition from single-point 
digitalization to architecture-based digital and 
intelligent transformation that is open, evolvable, 
and systematic.
■ We worked with power companies to explore 
a new model of one fiber for multiple services, 
helping one customer expand its home broadband 
user base by 150%.
■ An industrial park project that adopted Huawei's 
intelligent net-zero carbon campus solution won 
the 2023 Energy Globe World Award.


2023 Annual Report
        33
Mining:
Huawei has worked with customers and partners 
in the mining, smelting, and chemical industries 
to accelerate the realization of secure, green, and 
efficient operations.
■ Our Pangu Mine Model now supports more than 
40 application scenarios across nine specialized 
domains.
■ We helped a steel company implement the world's 
first AI foundation model in the steel industry, 
which will soon support the implementation of 42 
models targeting 21 scenarios.
■ We worked with customers and partners to develop 
innovative applications for MineHarmony to rapidly 
drive the large-scale adoption of MineHarmony-
powered equipment.
■ Our remote control and autonomous driving 
solutions for open-pit mines have reduced the 
number of on-site workers by 80%.
■ Our low-frequency 5.5G solution customized for 
mining was commercially deployed for the first 
time in 2023, supporting intelligent applications in 
five mining scenarios (i.e., transportation, mining, 
excavation, auxiliary transport, and power supply & 
drainage).
■ We developed the Edge Intelligence Cloud (EIC) 
and Huawei Metaworks Digital Twin Platform 
in order to build next-generation integrated 
management and control platforms for mining.
Oil & gas:
Huawei launched an intelligent architecture for oil and 
gas, providing a new methodology for the industry's 
intelligent transformation.
■ Exploration and development: We helped customers 
develop well logging foundation models to boost 
assessment efficiency and accuracy.
■ Production: We launched the Intelligent Oil and 
Gas Fields Solution that covers wellsites and 
facilities to drive the optimization of oil and gas 
production and management.
■ Storage and transportation: Our pipeline 
monitoring and warning solution provides warnings 
and prevents oil theft through the drilling of holes. 
This solution identifies different types of intrusions 
with an accuracy of over 95%, providing enhanced 
protection for oil and gas pipelines.
■ Refinery: Our smart refining solution has helped 
customers build fully-connected 5G factories, 
improving product shipping and transportation 
efficiency by 30%, increasing the effectiveness of 
security risk management by 18%, and reducing 
carbon emissions and energy consumption by 15%.
Manufacturing, Retail, Real Estate, and Other 
Related Domains
Huawei leverages its own experience in digital and 
intelligent transformation and works with partners to 
support customers in manufacturing, retail, real estate, 
and other sectors as they continue their transformation 
journeys. Our solutions have been implemented by 
over 8,000 manufacturers and in numerous other 
domains like retail and real estate.
■ Manufacturing R&D design: Huawei's R&D digital 
platform solution supports the end-to-end R&D 
process from defining product requirements to 
releasing products, helping carmakers, electronics 
companies, and many other companies boost 
product development efficiency.
■ Manufacturing production: Our Intelligent Factory 
Solution architecture streamlines engineering 
data flows, business information flows, and 
production process flows. We also work with 
partners to implement intelligent applications such 
as advanced production scheduling, quality issue 
tracing, and digital twins, which support production 
model transformation, productivity improvement, 
and green and sustainable development.
■ Retail: We have worked with our partners to 
develop a digital platform solution for sales. 
Based on the cloud-edge synergy model between 
Huawei's retail cloud and smart retail stores, the 
solution helps companies reduce construction costs, 
improve the operating efficiency and service quality 
at stores, and increase consumer satisfaction.
■ Construction and real estate: We have worked 
with customers and partners to develop solutions 
for multiple scenarios like intelligent construction 
and intelligent buildings, in order to drive the 
intelligent, efficient, green, and low-carbon 
development of the construction industry.


34       Huawei Investment & Holding Co., Ltd.
Education
Huawei applies ICT to education to bridge the digital 
divide, drive equity in education, cultivate high-
quality talent for universities and vocational schools, 
and accelerate innovation in teaching and scientific 
research. To date, we have served more than 5,000 
education ministries, administrative organizations at all 
levels, colleges and universities, and research institutes 
in over 120 countries and regions.
■ In higher education, we help universities build 
smart campuses and cultivate ICT talent for 
the future intelligent world. We are also driving 
industry-academia collaboration to bring research 
and application closer together. By the end of 
2023, more than 40 of the QS World University 
Rankings' top 100 universities had chosen Huawei 
as their partner for intelligent transformation.
■ In primary and secondary education, our solutions 
for high-speed inter-school network, education 
cloud platform, and smart classroom are helping 
drive equity and accessibility in education.
Healthcare
Huawei's intelligent healthcare solutions have served 
more than 5,000 medical institutions in over 110 
countries and regions.
■ In China, Huawei is contributing to digital and 
intelligent healthcare by participating in the 
construction of national health information 
platforms. Our solutions have been used in 
more than 600 telemedicine platforms as well as 
healthcare security information platforms at the 
national, provincial, and city levels and served more 
than 1,800 tertiary hospitals. Huawei has served 
97 of the top 100 hospitals on the 2022 China 
Hospital Rankings list released by the Hospital 
Management Institute of Fudan University.
■ In regions outside China, Huawei is helping 
healthcare customers consolidate the foundation 
of digital transformation and drive universal 
healthcare access. We also support efficient and 
stable 24/7 operations for hospital core service 
systems and protect medical data throughout its 
lifecycle.
Internet Services
Huawei is committed to creating innovative technical 
solutions that make the most of our vast portfolio to 
provide Internet service providers (ISPs) and Internet 
companies with leading products, solutions, and 
services. To date, we have served more than 5,900 ISPs 
and Internet companies from more than 100 countries 
and regions, helping them build 10 gigabit, service-
oriented, and intelligent ICT infrastructure.
■ Home broadband: We have a full portfolio of 
home broadband products and solutions that 
help ISPs build elastic ultra-broadband networks 
capable of delivering superior service experiences 
and supporting intelligent operations. These 
offerings include solutions for gigabit fiber to the 
room, intelligent and simplified metropolitan area 
networks (MANs), and ultra-broadband backbone 
networks.
■ Hosting services: Our network hosting and data 
center infrastructure hosting solutions help 
managed service providers (MSPs) build efficient, 
intelligent, and secure hosting service platforms for 
business success.
■ Internet content services: Our solutions, like 
data center multi-architecture computing and 
ultra-broadband network, support collaborative 
innovation with Internet public clouds to help 
e-commerce, video, and other customers achieve 
service agility and rapidly expand their business.
Intelligent Campus
Huawei's portfolio solutions for intelligent campuses 
pre-integrate ICT technologies for campus scenarios 
to support industry digitalization. Together with our 
partners, we have used these solutions to serve more 
than 1,000 customers across various sectors, including 
government, education, healthcare, manufacturing, 
and stadiums, helping them build efficient, green, and 
convenient digital campuses.
In 2023, Huawei was named a leader in China's 
intelligent campus solution market by IDC 
MarketScape, thanks to its leading technology and 
architecture, full-lifecycle services, comprehensive 
ecosystem, large-scale commercial practices, and 
overwhelming influence on the industry. Other 
standout projects in 2023 included:
■ In China, we worked with partners to help one 
large stadium go intelligent. We interconnected 
more than 40 of the stadium's subsystems and 
18,000 of its device locations to provide first-
class communications and security assurance, 
service and spectating experiences, and operations 
management for the stadium.


2023 Annual Report
        35
■ In regions outside China, we worked with partners 
to build intelligent campuses for manufacturing 
companies by providing end-to-end campus 
portfolio solutions. For example, we helped 
customers build ICT infrastructure for campus 
management systems, access management systems, 
and campus networks that could be used to 
effectively manage the security of key assets, such 
as substations and pumping stations, and meet 
future business development needs.
Data Centers
Huawei has launched a series of portfolio solutions 
for scenarios like Centralized Cloud-DC, MultiDC, and 
LightDC to serve more than 300 customers in finance, 
government, and other sectors. These solutions will 
help build new green data centers that are more 
intelligent, more efficient, and more reliable.
We released the industry's first multilayer ransomware 
protection (MRP) solution based on network-storage 
collaboration to make data centers more secure and 
reliable.
The High Performance Database Solution (HDBS) 
provides another database option for customers' 
critical systems to support their business innovation. 
This year, we also worked with industry partners and 
customers to release the White Paper on Database 
Transformation of Open Financial Platforms which 
details the future trends we expect to see in the 
financial database sector.
We also released the Data Center 2030 report, which 
proposes a reference architecture for new data centers 
that will drive the innovation and development of data 
centers worldwide.
Digital Sites
Huawei has developed a series of portfolio solutions 
for digital sites such as Digital Pole Site and Digital 
Pipeline to address customer needs like long-
distance accurate sensing, intensive deployment of IoT 
networks, and edge intelligence. These solutions are 
leading the digital and intelligent transformation of 
outfield infrastructure.
■ In intelligent highway and urban transportation 
scenarios, our Radar- and Video-based 
Management Pole Site Portfolio Solution supports 
travel safety by enabling long-distance sensing that 
is up to 95% accurate at 1,000 meters.
■ In airport perimeter, railway protection, and oil and 
gas pipeline inspection scenarios, our Perimeter 
Protection Site Portfolio Solution improves security 
by supporting multi-dimensional sensing and 
accurate protection and has proven to reduce 
safety incident response times by 30%.
WANs
Huawei has developed WAN solutions for customers 
in multiple sectors including government, finance, 
manufacturing, energy, transportation, and ISPs. These 
solutions help customers build high-quality and easy-
to-use networks.
We help government customers design the top-
level blueprint and target architecture of "One City, 
One Network" to unify top-level plans and evolution 
paths regarding city networks and support the 
collaborative development of digital government, 
digital economy, and digital society. We have also 
released a "One Enterprise, One Network" target 
architecture and solution for large enterprises to 
support the intensive construction and service-oriented 
operations of networks, accelerating enterprises' digital 
transformation.
Helping SMEs Go Digital and Intelligent
In 2023, we continued to increase our investment 
in the SME market. We adopted a partner-centric 
approach where we worked closely with partners 
to help SMEs accelerate their digital and intelligent 
transformation.
Commercial Market
In the commercial market, our partner-centric strategy 
focuses on continuously optimizing our partner 
sales and service systems so that we can provide 
comprehensive sales and delivery support to our 
partners. This makes it easier for them to use Huawei 
products and solutions to independently serve their 
customers. In addition, we have created IT platforms 
for these partners, such as the eFly app and the 
official website for partners, based on their business 
journeys, making it easier for partners to attract new 
customers and provide quality services to customers.
We have focused on building an effective partner-
led business model and helping SMEs rapidly go 
digital and intelligent by simplifying the integration, 
delivery, and O&M of our products and improving their 
cost effectiveness. In 2023, we customized a series 
of products and solutions for SMEs to better meet 
specific industry scenarios.


36       Huawei Investment & Holding Co., Ltd.
Distribution Business
In 2023, Huawei unveiled HUAWEI eKit, a sub-brand 
dedicated to SMEs and micro enterprises. This brand 
offers products designed for scenarios such as SME 
offices, budget hotels, and primary and secondary 
schools. Our HUAWEI eKit official website and 
HUAWEI eKit app provide a one-stop digital platform 
that supports the efficient operations of distribution 
partners.
Following the "distribution partner-led and 
subcontractor-centric" model, HUAWEI eKit has 
established a comprehensive distribution partner 
system and a healthy market and offers marketable 
products and portfolio solutions that are easy to 
buy, sell, install, maintain, learn, and use, as well as 
digital platforms and services. Through these actions, 
we aim to help our distribution partners tap into the 
unlimited business opportunities created by SMEs and 
micro enterprises going digital. Currently, Huawei's 
distribution business spans more than 70 countries and 
regions.
A Thriving, Symbiotic Partner Ecosystem 
and Global Service Capabilities
As always, Huawei works with our partners to 
consistently provide high-quality services to customers.
Partner Strategy
In the enterprise market, Huawei is committed to our 
long-term "Being Integrated" strategy, and adopts fair, 
just, transparent, and simple partner policies. We team 
up with partners to build a healthy ecosystem that 
advocates open collaboration for shared success, and 
grow with partners with shared benefits as the bridge, 
integrity as the foundation, and rules as the guarantee.
We have over 40,000 partners in the enterprise market, 
including more than 33,000 Acceleration Partners (i.e., 
Distributors, Resellers, Registered Sales Partners, and 
Distribution Partners) and more than 7,000 Association 
Partners (i.e., Consulting and Planning Partners, 
Solution Development Partners, Service Partners, and 
Business Operation Partners). Huawei and partners 
stay customer-centric and strive to co-build 
a customer-centric culture and mechanism. We aim 
to create a healthy business environment to grow 
together with partners and help customers succeed.
Huawei is committed to working with partners 
to develop leading industry solutions, integrating 
resources and complementing capabilities in the areas 
of market expansion, consulting and planning, solution 
development and integration, and delivery verification. 
As part of these efforts, we have opened 14 OpenLabs 
where we have collaborated to develop more than 200 
scenario-based solutions.
Enterprise Services
Huawei's customer-centric core value inspires us to 
constantly improve the customer experience. Currently 
we collaborate with over 6,600 service and operation 
partners to provide a global service system for our key 
accounts, the commercial market, and the distribution 
business. Together, we consistently provide high-
quality services to more than 56,000 customers 
worldwide, and support the secure and stable 
operation of over 120,000 customer networks. In 2023, 
we launched the online O3 Community through which 
we share our wealth of knowledge and experience with 
customers around the world. We have built a one-stop 
management platform for partners, to assist them with 
network operations and help them deliver world-class 
services to customers.
We will continue to increase our investment into 
services that drive digital and intelligent transformation 
across industries, improve our service capabilities, and 
develop ever more competitive service solutions, tools, 
and platforms. We aim to provide customers with 
a complete range of services for the entire solution 
lifecycle, from consulting, planning, design, and 
implementation to O&M support and optimization. In 
addition, we will continue to develop more training 
and certification services to cultivate more skilled 
professionals for industry digitalization and help 
accelerate industrial intelligent transformation.


2023 Annual Report
        37
Connectivity
As we stride towards an intelligent world, individuals, homes, and industries will raise unprecedented new 
requirements for connectivity. Individuals will need ubiquitous 10 Gbit/s connections for extended reality (XR), New 
Calling, and other emerging services. Homes will need 10 Gbit/s all-optical networks to support a growing range 
of smart services. As industries embrace digital and intelligent transformation, they will need a growing number 
of higher-quality connections, as well as differentiated experiences. At the same time, industries will raise new 
requirements for intelligent scheduling of computing power.
Wireless Network
■ Continuing to lead value creation in the 
wireless industry
– 5G is developing rapidly. By the end of 2023, 
more than 260 carriers were offering 5G 
services to more than 1.5 billon users in over 
90 countries and regions. It took nine years for 
4G to reach this number of users, but just five 
years for 5G to do the same.
– 5G continues to drive digital transformation 
in a variety of industries. By the end of 2023, 
more than 65,000 5G private network projects 
and over 50,000 5G industry applications had 
been deployed around the world.
– 5.5G is the next step of 5G evolution, and the 
industry has hailed the dawn of the 5.5G age. 
Evolving to 5.5G will benefit carriers because it 
will protect their existing investments in 5G and 
improve their network performance tenfold. 
New technologies, particularly passive IoT, will 
open up a new market of over 100 billion IoT 
connections, putting the industry on a path to 
realize a new development vision.
■ Full-series 5.5G products and solutions: 
Improving network capabilities tenfold, 
delivering optimal network efficiency, and 
enabling carriers' efficient and smooth 
evolution to 5.5G
– Huawei advocates "Native 10 Gbps", "Native 
Green", and "Native Intelligence". These are 
the key capabilities that carriers will need for 
multipath evolution to 5.5G across all available 
bands. Huawei's 5.5G GigaGreen full-series 
products and solutions can boost network 
performance tenfold through the use of state-
of-the-art integrated software and hardware 
technologies, particularly the "Native 10 Gbps" 
ultra-wideband and multi-antenna technologies.
– Huawei is committed to making 5.5G accessible 
in all scenarios. Our LampSite series solutions 
bring incredible 5.5G capabilities to indoor 
scenarios, addressing the needs of both 
consumer applications and a diverse range of 
industrial scenarios. In rural areas, our RuralLink 
solution eliminates the need for fiber cables 
and equipment rooms, providing ubiquitous 
coverage at an ultra-low cost and with minimal 
power consumption.
– Huawei has translated its systematic innovations 
into the "Native Green" capabilities to realize 
"0 Bit 0 Watt", where wireless networks can 
work around the clock with minimal power 
consumption.
– Huawei's IntelligentRAN enables carriers to 
upgrade to L4 autonomous networks that 
offer gains in cost reduction and efficiency 
improvement.
■ The world is ready for 5.5G: Global 
commercialization of 5.5G commences in 2024
– The characteristics of 5.5G have been defined: 
10 Gbit/s downlink, 1 Gbit/s uplink, 100 billion 
connections, and native intelligence. 5.5G is ten 
times more capable than 5G in multiple areas 
while also offering various new capabilities. 
As a result, 5.5G is ideal for better connecting 
people, homes, things, industries, and vehicles.
– The first commercial uses of 5.5G have already 
occurred outside China, and Huawei has been 
working with carriers to verify 5.5G's 10 Gbit/s 
capabilities and other key technologies (e.g., 
passive IoT) in commercial scenarios, in 
preparation for 5.5G commercialization in 2024.
Cloud Core Network
The large-scale commercial application of 5G gives 
rise to new services and scenarios, which in turn raise 
new requirements for networks. After more than 
two years of technological exploration, ecosystem 


38       Huawei Investment & Holding Co., Ltd.
building, and standardization, breakthroughs have 
been made in 5.5G intelligent core networks, including 
in key technologies for 10 Gbit/s experiences and 
native intelligence. 5.5G intelligent core networks can 
provide service intelligence, network intelligence, and 
O&M intelligence to create new business value for 
customers. Extensive verification is underway around 
the world.
■	 Service intelligence: New Calling is an innovation 
born from service intelligence and has been 
commercialized in China. An open network 
architecture can transform conventional audio 
and video communications, making ultra-HD, 
interactive, and intelligent calling a reality.
■ Network intelligence: An intelligent personalized 
experience solution can enable carriers to eliminate 
barriers to their experience-based operations, and 
better monetize services for which people expect 
differentiated experiences. Carriers can also provide 
ubiquitous 10 Gbit/s experiences by using high-
throughput user plane functions (UPFs).
■ O&M intelligence: Technologies like digital twin 
and foundation models are transforming O&M 
from a reactive approach, where engineers have 
to rely on disparate tools, to a more proactive 
approach, where engineers work more efficiently 
with intelligence. This transition makes delivery 
more agile and networks more resilient. Foundation 
models create multiple benefits for customers: 
They accelerate service rollout and guarantee 
operational security during network changes. 
They support digital employees that improve 
the efficiency and quality of O&M. In addition, 
foundation models can facilitate simulations to 
help customers identify network bottlenecks in 
advance and defend against signaling storms.
Optical
Huawei continues to innovate in optical transmission, 
optical access, enterprise optical networks, and many 
other areas. By cooperating with our customers, 
partners, and industry organizations, we are supporting 
the sustainable development of a green all-optical 
industry and turbocharging digital and intelligent 
transformation.
In November 2023, the European Telecommunications 
Standards Institute (ETSI) released F5G Advanced 
(F5G-A) standards. To address the needs of smart 
home and enterprise applications, Huawei has 
proposed a F5.5G all-optical target network 
architecture to provide 10 Gbit/s ultra-broadband. 
Huawei has also launched a range of technologies and 
products to bring F5.5G to life.
■ Optical transmission
In the age of intelligence, networks will need larger 
bandwidth, lower latency, and higher reliability 
than ever before. Huawei addresses these needs 
with Kepler, a DC-oriented OTN product. With the 
support of Kepler, a single subrack can deliver 
the required capacity to handle traffic surges. The 
product's innovative technology greatly increases 
network availability, reduces power consumption, 
and boosts network capacity and efficiency for 
better computing.
Huawei has partnered with multiple carriers 
to commercialize 400G for ultra-long-haul 
transmission and 800G for medium-to-long-haul 
transmission.
For the third consecutive year, GlobalData has 
ranked our OptiX OSN 9800 as the leader in 
its Core Packet-Optical Platform: Competitive 
Landscape Assessment and Metro Packet-Optical 
Transport: Competitive Landscape Assessment 
reports, and our OptiX OSN 1800 as the leader in 
its Packet-Optical Access: Competitive Landscape 
Assessment report.
■ Optical access
In response to new requirements for smart home 
connectivity, Huawei has upgraded its lineup of 
FTTR OptiXstar F30 products with enhancements in 
aesthetics, data rates, coverage, roaming, support 
for concurrent access requests, and service quality. 
Together with carriers, Huawei has delivered one-
stop, premium services to bring more convenient 
digital lifestyles to end users. We have also 
unveiled the FTTR-B OptiXstar B30 series products, 
which make superior Wi-Fi connectivity available to 
micro and small businesses.
We have also launched the industry's first 
commercial 50G PON solution, which supports 
GPON, 10G PON, and 50G PON on one port to 
enable smooth evolution towards 10 Gbit/s all-
optical access networks.


2023 Annual Report
        39
At Network X 2023 (formerly Broadband World 
Forum), Huawei was honored with the Outstanding 
FTTH Service Award in recognition of its sustained 
leadership in the optical access industry.
■ Enterprise optical networks
Huawei has released the FTTO 2.0 solution for 
campus scenarios to create green, 10 Gbit/s all-
optical campus networks. We have also unveiled 
an end-to-end optical service unit (OSU) solution 
to drive the evolution of production networks in 
various industries. To support industrial networking, 
we have launched the Lossless Industrial Optical 
Network solution to increase production quality 
and efficiency in industrial settings.
Huawei's FTTO solution received the Outstanding 
POL Use Case Award at Network X 2023.
Data Communication
As digital and intelligent transformation continues 
across sectors, the data communication industry is 
reshaping network connectivity, experience, security, 
and O&M. Huawei is committed to making IP on 
Everything a reality. To this end, we provide customers 
with products and solutions – including High-Quality 
10 Gbps CloudCampus, Super-Connectivity 400GE 
CloudFabric, Converged IP Transport Network, and 
Integrated Network Security – as well as Real-Time 
Network Digital Maps, which are instrumental to 
intelligent ultra-broadband network infrastructure. 
We have continued to work with customers, partners, 
and industry organizations to promote an industry 
consensus on Net5.5G and accelerate innovation in 
related business scenarios.
■ High-Quality 10 Gbps CloudCampus
The focus of campus network build-out has 
shifted to experience as enterprises continue to 
adopt digital and intelligent technologies, and 
new services and applications keep emerging. 
Huawei's High-Quality 10 Gbps CloudCampus 
solution stands out by offering three types of 
experience upgrade, namely wireless experience 
upgrade, application experience upgrade, and 
O&M experience upgrade. This solution is built on 
new technologies and capabilities like Wi-Fi 7 (for 
ultra-broadband access), audio & video experience 
assurance, and network digital map functionality. 
In 2023, Huawei's Wi-Fi 7 served customers in 
multiple industries, including education, healthcare, 
and public services. We received the Best Enterprise 
Wi-Fi Network Award from the Wireless Broadband 
Alliance (WBA).
■ Super-Connectivity 400GE CloudFabric
As foundation models gain traction and cloud-
based data center architecture becomes a 
new norm, customers are looking to build and 
maintain data center networks that support 
both AI computing and general computing 
infrastructure. Huawei addresses this need with 
the CloudFabric 3.0 solution, which delivers ultra-
powerful performance, ultra-fast deployment, 
ultra-high reliability, and ultra-intelligent O&M. 
CloudFabric 3.0 offers network-scale load balancing 
(NSLB), device-network collaboration, digital map 
functionality, and other advanced technologies that 
customers will need to build data center networks 
with high bandwidth, throughput, and reliability.
■ Converged IP Transport Network
Mobile broadband, home broadband, enterprise 
private lines, and enterprise campus services 
will gradually upgrade to 10 Gbit/s connections. 
Consequently, conventional IP transport networks 
need to evolve towards 400GE converged transport 
networks. This is where Huawei can help. Our 
full-service routers provide 400GE, SRv6, slicing, 
Network Digital Map, and other cutting-edge 
technologies that help carriers build networks 
with minimal TCO and achieve new growth in all 
of their service areas. In the enterprise market, 
Huawei's CloudWAN 3.0 – featuring a converged 
architecture – helps customers create agile, reliable, 
and intelligent WANs.
■ Integrated Network Security
Huawei HiSec 3.0 solution provides integrated 
security protection for clouds, networks, edges, and 
endpoints. This solution is a great fit for enterprise 
customers seeking to build resilient and secure 
networks.


40       Huawei Investment & Holding Co., Ltd.
Building the Foundation of the Computing 
Industry for a Digital and Intelligent 
Future Together
Over the past year, Huawei has continued to ramp up 
investment in the computing industry. Our strategy 
remained focused on "open hardware, open source 
software, partner enablement, and talent cultivation". 
With a focus on innovation in foundational software 
and hardware, we have worked with partners and 
developers to build a solid computing backbone that 
supports a vast range of models and applications and 
enables industries.
By the end of 2023, more than 6,300 partners and 
5.7 million developers had joined the Kunpeng and 
Ascend ecosystems, and over 17,400 solutions had 
been certified. In addition, over 6,000 instructors 
and 700,000 students had been trained under the 
Intelligent Base industry-academia collaboration 
program.
In Kunpeng, we continued to dive deep into industry 
digitalization by pursuing full-stack optimization, 
enabling partners, and serving users. We have worked 
with our more than 4,700 partners to launch over 
14,500 solutions that have been used extensively 
in core services across different sectors such as 
government, finance, and telecommunications. In 
2023, the Kunpeng DevKit and the Kunpeng BoostKit 
were upgraded to boost performance for eight 
major scenarios. This improvement makes native 
development more efficient and service launch faster.
In Ascend, we continued to build leading training 
clusters and a complete series of inference products. 
We further opened up the heterogeneous compute 
architecture CANN 7.0 to unlock computing power and 
enable developers to develop their own 
high-performance operators. The past year has 
also seen a new development in the programming 
language that has reduced the average development 
time for a complex operator from two person-months 
to two person-weeks. By the end of 2023, more than 
1,600 independent software vendors (ISVs) had used 
Ascend to launch over 2,900 industry solutions.
Huawei also continued to invest in open source 
communities, by working with industry partners to 
drive the development of the openEuler operating 
system, the openGauss database, and the MindSpore 
AI framework. By the end of 2023, the MindSpore 
open source community had served more than 5,500 
enterprises, supporting the native training of over 50% 
of the industry's major foundation models.
Continuously Innovating to Build a 
High-performance, Reliable, Green, and 
Secure Data Storage Foundation
Digitalization has resulted in massive amounts of 
unstructured data entering production systems and 
turning into hot data. Foundation models and new 
applications are driving a data awakening, where data 
is quickly turned into assets. As a result, much more 
warm and cold data is being stored. The need to 
protect data has made data storage more important 
than ever across all industries.
■ For critical enterprise applications, Huawei offers 
storage solutions that cover the entire data lifecycle, 

from data production to data backup and archiving. 
Our latest OceanStor Dorado All-Flash Storage 
powers the Geo-Redundant 4-Data-Center Disaster 
Recovery Solution that supports failover in seconds. 
In 2023, Huawei also made its CANTIAN storage 
engine open source in order to work alongside 
partners to build a new ecosystem around 
scale-out database storage that features 
storage-compute decoupling. To address the 
growing data security threats, Huawei's 
OceanProtect all-flash data backup appliance helps 
boost the security of data.
■ For mass unstructured data, Huawei OceanStor 
Pacific Scale-Out Storage reduces the five-year 
total cost of ownership (TCO) by 20% compared 
with storage using hard disk drives (HDDs). In 
2023, Huawei's OceanStor Pacific lineup topped the 
IO500 rankings.
Computing
An intelligent world is fast approaching, and we are seeing explosive growth in data and tremendous advancements 
in intelligent technologies. This has turned computing power into the new primary source of productivity. At 
Huawei, we are committed to open collaboration for shared success. Together with our partners around the world, 
we strive to build a solid computing backbone and a vibrant computing ecosystem.


2023 Annual Report
        41
For cloud and Internet data centers, Huawei 
launched OceanDisk Smart Disk Enclosure, a new 
type of disk enclosure that supports 
high-performance, energy-efficient, intensive, and 
robust storage and enables disks as storage media.
■ To address the explosive growth of foundation 
models, Huawei launched high-performance 
storage that makes foundation model training 
data globally visible, manageable, and available 
and doubles the efficiency of data aggregation, 
preprocessing, and training. In addition, Huawei 
launched the FusionCube training/inference hyper-
converged infrastructure (HCI) appliance to work 
with partners to develop solutions tailored for 
different industry scenarios. The appliance has 
lowered the threshold for the deployment and use 
of foundation models, which, in turn, accelerates 
their application in industries.
■ Huawei also launched a Datacenter Virtualization 
Solution (DCS) and hyper-converged products that 
have been built on virtualization and containers 
to support virtualization and full-stack data center 
scenarios. These comprehensive infrastructure 
as a service (IaaS) and platform as a service 
(PaaS) products support data collection, storage, 
computing, management, and usage.
In 2023, Huawei was recognized for the third year 
in a row as a Leader in the IDC PRC Software-
Defined Compute Market Overview and Analysis.
■ Our Data Management Engine (DME) helps 
customers more efficiently manage and optimize 
massive data assets by moving from equipment 
O&M to data management. DME delivers 
five-times higher O&M efficiency than traditional 
O&M methods.
Bringing Digital and Smart Office to Every 
Workspace and Every Person
In 2023, Huawei continued to explore smart office 
and smart education applications and launched its 
next-generation flagship IdeaHub ES2 Plus which is 
powered by an intelligent triple-lens camera and a 
high-precision PTZ. In addition, Huawei launched the 
dual-mode engine Multipoint Control Unit (MCU), 
adding to its diverse lineup of telepresence products. 
This engine supports collaborative office experiences 
for massive access with guaranteed security and 
reliability. It is already being used by customers across 
the globe.
In intelligent collaboration, Huawei is a forerunner 
in smart office and has been a leader in professional 
audiovisual conferencing systems in the Chinese 
market for 11 years in a row.
ICT Services and Software
Huawei ICT Services and Software strives to keep leading, be the most reliable service partner, and build an 
intelligent world with the ultimate experience. Focusing on the entire business process from ICT infrastructure 
planning and construction to O&M, optimization, operations, and training, Huawei ICT Services and Software 
innovates continuously to provide a series of digital and intelligent service and software solutions. It aims to 
facilitate digital and intelligent transformation across industries by building green, efficient, secure, and robust ICT 
infrastructure that provides the ultimate experience.
the energy efficiency of green networks. As part of this 
effort, we released the Green Management White Paper 
and the Resilient Network White Paper to help build 
green target networks capable of smooth evolution. In 
2023, our work helped reduce electricity consumption by 
around 640 million kWh.
Intelligent Connectivity Integration: 
Building Green, Simplified, and Resilient 
Networks
Energy efficiency and the ultimate experience are equally 
important for networks. Huawei has worked alongside 
industry partners to develop a standard for measuring 


42       Huawei Investment & Holding Co., Ltd.
By building simplified sites and introducing green 
power, we have reduced per-site energy consumption 
by over 35%. Through measures like modernization 
and smooth service migration in legacy networks and 
equipment rooms, we have helped customers reduce 
energy consumption by more than 30%, increase 
network traffic by over 15%, and explore ToH and 
ToB services. In addition, we have improved network 
architecture to enhance network resilience, further 
reducing the fault rate during network changes.
Intelligent IT Integration: Building 
Diversified Computing Centers in the 
Intelligent Era
Over the past year, Huawei has continued to innovate 
in terms of data center integration to meet the 
requirements for diversified computing power in the 
intelligent era, provide fast computing services for 
more than 1,000 enterprises, and help accelerate 
industry innovation. We have also continued to use 
innovative technologies such as prefabricated and 
assembled modules, full-stack liquid cooling, and 
multi-domain collaborative planning and integration 
to quickly build greener data centers that offer higher 
computing power. In 2023, Huawei was honored with 
the China Green Demonstration Project Award for its 
efforts in building data centers that provide optimal 
power usage effectiveness (PUE).
Customer Support: Underpinning 
Intelligent Connectivity
Relying on our global technical service centers and 
over 6,000 maintenance experts, Huawei provides 
24/7 support services for customer networks in nine 
different languages. We have worked with partners 
around the world to support the robust operations 
of thousands of networks for carrier and industry 
customers. We always go wherever our customers 
need us, offering warm and professional services that 
support robust network operations, even in the face 
of natural disasters such as earthquakes, typhoons, 
and floods, or during major sporting events. We have 
introduced new technologies such as AI and Digital 
Twin into our solutions to provide risk prediction and 
prevention capabilities. These efforts, alongside regular 
contingency plans and drills, have helped ensure 
network resilience.
Intelligent Operations: Advancing the 
Transformation from Network-Centric to 
Service-Centric O&M
In 2023, Huawei AUTIN™, along with TM Forum and 
leading carriers, released New-Generation Intelligent 
Operations: The Service-Centric Transformation 
Path. This white paper explores ways in which 
communications service providers (CSPs) can increase 
A green data center that uses new 
technologies, such as full-stack liquid 
cooling, to realize efficient integration 
and optimal PUE.


2023 Annual Report
        43
network benefits by transforming from network-centric 
to service-centric O&M. In 2023, Huawei continued 
working with carriers on projects to drive digital 
O&M. We received TM Forum's Excellence Award 
in the Market Innovation Category and the Driving 
Digital Transformation Award at the Global Telecoms 
(GLOTEL) Awards.
SmartCare: Delivering Leading Network 
Performance and the Ultimate Experience 
to Unleash the Value of Data
Huawei continued to innovate in terms of network 
performance and service experience to help carriers 
provide leading network performance and a superior 
user experience and protect brand value. Huawei 
and TM Forum jointly released the Digital Twin for 
Decision Intelligence (DT4DI) white paper which 
provides a reference architecture for the new phase 
of digital and intelligent transformation. In 2023, we 
worked to improve the user experience of typical 
over-the-top (OTT) applications, helping carriers 
monetize user experience. We also worked on 
converged data analysis and modeling to support 
marketing efforts and help quickly develop new users 
and services. In addition, we applied core technologies 
to a number of industry scenarios, such as smart 
mining and smart city, to enable digital and intelligent 
transformation and improve both efficiency and 
benefits. In 2023, Huawei was among the winners of 
the Future Enterprise Awards presented by IDC China 
for an intelligent management platform jointly built 
with a mining customer.
Intelligent Digital Service: Enabling New 
Growth
Huawei continued to innovate digital platforms and 
services to support new growth:
■ Huawei's new cloud-native convergent billing 
solution (CBS) comes equipped with intelligent 
offering design capabilities that significantly 
shorten the time to market (TTM) for new 
offerings. CBS was placed in the Leaders quadrant 
for competitiveness according to GlobalData's 
Revenue Management: Competitive Landscape 
Assessment.
■ By introducing new technologies like large 
language models, Huawei's AI contact center 
(AICC) solution helps customers from a range 
of sectors like communications, finance, and 
government redefine call center service experiences 
through upgrades to interactive user experiences.
■ Huawei Mobile Money provides innovative services 
such as mobile wallet and micro finance for 
emerging markets, enabling more users to enjoy 
inclusive financial services. In 2023, Huawei was 
the Gold Award Winner in the Best Mobile Money 
Offering Category presented by Juniper Research.
Huawei Learning: Cultivating New Talent 
with Digital Skills
In 2023, Huawei built systematic talent development 
services covering talent planning, cultivation, 
assessment, and operation, aiming to cultivate new 
talent needed for the intelligent era.
■ Talent cultivation for carriers: We worked 
with global carriers to provide workshops and 
enablement sessions on topics such as strategy 
and leadership. Through scenario-based hands-on 
practices and certification, Huawei cultivated over 
32,000 ToB professionals for carriers in 2023.
■ Talent cultivation for industries: Huawei provided 
training for various industries such as mining, 
finance, transportation, electric power, and 
manufacturing. In 2023, we cultivated over 
23,000 technical professionals for more than 100 
enterprises.
■ Talent cultivation for the public domain: Huawei 
developed a leading ICT talent cultivation system 
and related standards to help ICT professionals 
advance their careers. In 2023, more than 100,000 
participants of our training programs received 
Huawei's ICT certifications.
By the end of 2023, Huawei had cultivated more than 
3.3 million ICT professionals worldwide, with more 
than 850,000 participants receiving Huawei's ICT 
certifications.


44       Huawei Investment & Holding Co., Ltd.
Cloud Computing Business
We are fast approaching the intelligent world. Innovative ecosystems underpinned by cloud and technologies 
represented by foundation models are reshaping industries at an unprecedented speed and generating new 
momentum for building an inclusive, accessible, and resilient digital world.
Huawei Cloud is continuing to implement the Everything as a Service strategy and provide customers, partners, 
and developers with stable, reliable, secure, trustworthy, and sustainable cloud services. We strive to serve as the 
cloud foundation and enabler of industry digitalization, as well as to accelerate the intelligent transformation of 
industries and provide the fertile soil for a flourishing ecosystem.
Cementing Our Roles as the Cloud Foundation and Enabler of Industry 
Digitalization and Achieving Rapid Growth in the Global Market
Huawei Cloud's continuous investment in innovation has led to our rapid business growth in 2023. By the end of 
2023, Huawei Cloud had covered 30 geographical Regions and 84 availability zones (AZs), and provided services 
for customers in more than 170 countries and regions. 
In Latin America, Huawei Cloud is the cloud service 
provider with the most nodes in the region. Huawei 
Cloud promotes the digital transformation of 
thousands of local customers in industries such as 
finance, media, retail, logistics, and Internet. Chile's 
SMU Group, for example, has fully migrated their core 
systems to Huawei Cloud. They are now embracing a 
cloud-native upgrade and are able to carry out omni-
channel business innovation faster.
In the Middle East, 2023 marked Huawei Cloud's 
first year of local cloud services in Saudi Arabia. Our 
products offer exceptional reliability and network 
latency. Huawei Cloud has successfully delivered an 
Arabic natural language processing (NLP) model with 
100 billion parameters for one of our Saudi Arabian 
customers, and this has helped the customer build a 
green, intelligent, and efficient foundation that powers 
various applications. Huawei Cloud also helped the Al 
Jasser Group migrate its enterprise resource planning 
(ERP) system to the cloud, which increased the 
monthly transaction processing capacity by about 30% 
and enabled the rapid launch of new service outlets.
In Southern Africa, Huawei Cloud has become the 
first cloud service provider to operate local data 
centers. We provide cloud services for 14 countries in 
Southern Africa, in sectors such as government services, 
telecommunications, finance, manufacturing, mining, 
education, Internet, retail, and logistics. The University 
of Zululand (Unizulu) in South Africa, for example, 
migrated its service system to Huawei Cloud, and has 
since been able to significantly improve its teaching 
management, academic evaluation, exam management, 
anti-cheating management, and security management.
Within China, Huawei Cloud has been focusing on 
industry digitalization scenarios. We have already 
supported more than 800 e-Government cloud 
projects, and have helped more than 160 cities 
implement the One City, One Cloud initiative. We 
have served China's six major banks, 12 joint-stock 
commercial banks, and the top 5 insurance institutions. 
90% of the top 50 e-commerce companies, 90% of 
the top 50 gaming companies, and 90% of the top 30 
automakers in China have also chosen Huawei Cloud.
In markets outside China, Huawei Cloud continues to 
accelerate the construction of KooVerse, our global 
cloud infrastructure, in order to deliver quality cloud 
services and consistent experience globally. Huawei 
Cloud has taken a By Local, For Local approach and 
provided customers with cutting-edge technologies 
and localized services, to empower them on their own 
digital transformation journeys. In 2023, Huawei Cloud 
maintained rapid growth in regions outside China 
and has become a trusted cloud brand for customers 
in markets including Asia Pacific, Latin America, the 
Middle East, Africa, and Europe.
In Asia Pacific, Huawei Cloud has become one of the 
best partners for enterprise digital transformation. We 
have local service teams in more than 10 Asia-Pacific 
countries and regions. Thailand's Government Data 
Centre and Cloud Service (GDCC) project used Huawei 
Cloud Stack to build a National Telecom Cloud. This 
e-Government cloud has made it more convenient 
for Thai government departments to develop digital 
services and provide better public services.


2023 Annual Report
        45
In Northern Africa, Huawei Cloud launched innovative 
AI and big data services locally, including the Arabic 
automatic speech recognition (ASR) service that 
supports the Egyptian dialect, to help customers 
accelerate innovation and upgrades. In addition, 
Huawei Cloud worked with partners to build solutions 
for local enterprises. Huawei Cloud worked with 
Intella to build an Arabic model covering all 25 Arabic 
dialects, with a speech recognition accuracy of up to 
96% and a word error rate as low as 10%.
In Europe, Huawei Cloud started to provide local 
cloud services in Türkiye in 2023. So far, Huawei 
Cloud has worked with our partners to serve more 
than 3,000 enterprises in Europe. We have developed 
1,000 local partnerships, and these partners worked 
with us to provide stable, reliable, secure, compliant, 
and innovative cloud services for various industries in 
Europe, and to help European enterprises accelerate 
their digital and intelligent transformation.
Pressing Ahead with Tech Innovation to Give the World a Better Alternative
Huawei Cloud continues to invest heavily in R&D, and leverages Huawei's more than 30 years of ICT expertise 
and product solutions to build the best cloud foundation in the intelligent era through systematic innovation. 
We have built five pipelines for data governance, AI development, digital content production, software 
development, and hardware development, to make innovation easier and to accelerate industries' digital and 
intelligent transformation.
Systematic innovation: Building a solid 
cloud foundation for computing
In 2023, Huawei Cloud released the distributed 
QingTian architecture. QingTian goes beyond the 
boundaries of computing, storage, and networking, 
and implements a new-generation fully interconnected, 
peer-to-peer architecture for diversified computing 
power that will future-proof infrastructure for the all-
cloud era.
Huawei Cloud is also continuing to upgrade our basic 
cloud services. Our newest generation of computing 
instances deliver over 50% higher computing power, 
which translates into more cost-effective diversified 
computing services for customers. The AI cloud storage 
solution uses a three-layer cache architecture for 
associated acceleration, which enables 90% faster data 
preparation for AI training. This storage solution is a 
key component for the construction of the best data 
foundation for the AI era.
To provide a more secure and stable cloud experience, 
Huawei Cloud has built a security system with one 
center and seven lines of defense. The SecMaster 
security operations platform has a built-in AI security 
model which can handle 99% of alarms within 5 
minutes in a closed-loop manner. Our deterministic 
O&M system ensures over 99.99% service availability 
on live networks and safeguards networks and services 
around the clock.
The DataArts data governance pipeline: 
Data and AI convergence is helping 
enterprises to unlock data value faster
Huawei Cloud DataArts is a one-stop development 
and governance platform featuring data and AI 
convergence on the cloud. It provides enterprises 
with cloud-native, integrated lake-warehouse, and 
decoupled storage-compute cloud service portfolios. 
DataArts includes the GaussDB distributed database, 
the MapReduce Service (MRS) cloud-native data lake, 
the Data Lake Insight (DLI) fully managed serverless 
service, the GaussDB(DWS) all-scenario one-stop 
data warehouse, and the DataArts Studio, which is 
a service for data governance centers that we have 
designed based on Huawei's own experience in 
digital transformation. Huawei Cloud DataArts has 
helped to accelerate digital transformation in multiple 
industries including government services, finance, 
telecommunications, and the Internet industry.
In 2023, Huawei Cloud officially released GaussDB, 
the next-generation distributed database. GaussDB 
builds its core technical competitiveness around 
high availability, intelligence, elasticity, security, 
performance, ease of deployment, and ease of 
migration. It has passed the Common Criteria (CC) 
Evaluation Assurance Level 4+ (EAL4+) certification, 
which is the highest level available for database 
security, and has been widely used in many fields such 
as banking, insurance, and energy. MV, a Brazilian 
medical information company, migrated its database 
to GaussDB, and this improved its medical record 
query speed from 3 seconds to 0.5 seconds.


46       Huawei Investment & Holding Co., Ltd.
The ModelArts AI development pipeline: 
Lowering barriers to industry-specific 
application and accelerating innovation in 
foundation models
ModelArts is a one-stop AI development platform on 
Huawei Cloud. It provides enterprises with technical 
capabilities throughout the AI application development 
pipeline. These capabilities include data processing, 
algorithm development, model training, model 
management, and model deployment. Together, they 
have made AI application development faster and 
implementation easier.
In 2023, Huawei Cloud stayed true to our AI for 
Industries strategy, and released the Pangu Models 
3.0 and the Ascend AI cloud service. Pangu models 
focus on solving the complex, enterprise-level R&D, 
production, supply, sales, and service problems. 
Pangu has been implemented in multiple domains 
such as finance, government services, manufacturing, 
mining, automobiles, medicine, meteorology, and 
railway industries. It combines industry know-how 
with foundation model capabilities and is already 
dramatically reshaping entire industries.
In coal mining, the Pangu mining model has already been 
extensively used in eight mines. One model covers more than 
1,000 sub-scenarios in business processes such as mechanized 
mining, excavation, electromechanics, transportation, ventilation, 
and coal washing. It not only offers a more comfortable 
working environment for coal workers, but also greatly reduces 
the number of accidents, and also improves production quality 
and efficiency. 
Based on Huawei Cloud Stack, our hybrid cloud, Shandong 
Energy Group has successfully built the coal industry's first 
mining model – the Pangu mining model. It has been used to 
develop and implement AI applications in 26 of Shandong Energy 
Group's subsidiaries, and now covers more than 40 application 
scenarios in 9 business processes. This brings us one step closer 
to scenario-specific large-scale AI applications in the mining 
industry. For example, monitoring hole depth in anti-impact and 
pressure relief construction is a typical application in the coal 
mining industry. The Pangu model has been used to monitor 
hole drilling in real time, and it has reduced manual inspection 
workloads by 80%.
In meteorology, Huawei Cloud's Pangu weather model was the 
first AI model to be more accurate than traditional numerical 
forecasting methods. The Pangu weather model can provide 
global weather forecasts in just seconds. In July 2023, the 
esteemed science journal Nature published a paper about the 
research results derived using Huawei Cloud's Pangu weather 
model. The Pangu weather model is highly recognized as the 
research results clearly demonstrate how the Pangu weather 
model will revolutionize weather forecasting in the future, and 
that opening the model will drive the development of this field. 
On September 18, 2023, Huawei Cloud announced that it would 
work with the Meteorological Bureau of Shenzhen Municipality 
on regional weather forecast models. Global and regional 
analyses are used as real-time inputs into global and regional 
forecast models. These models can quickly generate local weather 
forecasts such as the next five-day temperature and rainfall 
forecasts for Shenzhen and surrounding areas, with a spatial 
resolution of 3 km. In the future, these models will provide finer-
grained weather services for industries such as transportation, 
water services, and tourism.
Based on our three AI cloud computing centers in 
China's Gui'an, Ulanqab, and Wuhu, the Huawei Cloud 
Ascend AI cloud service provides massive, stable, 
reliable, and on-demand AI computing power for 
industries. The Ascend AI cloud service consistently 
offers a stability rate of up to 90% over 30 days for 
training foundation models, and recovery within 10 
minutes of an interruption, and as such it effectively 
supports the innovation of a wide range of models 
and applications in the AI era.
The MetaStudio digital content 
production pipeline: Building cloud-native 
media infrastructure to unleash digital 
content productivity
Huawei Cloud provides a full range of media service 
capabilities, including the MetaStudio digital content 
production pipeline, media engines, and media 
networks. Huawei Cloud also works with ecosystem 
partners to build scenario-specific solutions and foster 
a prosperous digital content ecosystem on the cloud.


2023 Annual Report
        47
Based on MetaStudio and the Pangu virtual human 
model, which has been trained using petabytes 
of audio and video data, Huawei Cloud provides 
services such as virtual human video production, 
video livestreaming, and intelligent interactions. 
These services have been widely used in industry 
scenarios to make marketing campaigns, support 
e-commerce livestreaming, and facilitate intelligent 
customer services. With the help of Huawei Cloud's 
virtual human services, many enterprises, such as 
Hsu Fu Chi and Wondershare, have used interactive 
24/7 livestreaming in multiple languages to 
create new growth in their retail and cross-border 
e-commerce businesses.
For media networks, Huawei Cloud has 2,800 content 
delivery network (CDN) edge nodes worldwide 
and a reserve of more than 180 Tbit/s bandwidth 
across all networks, which it uses to build a highly 
reliable, global, low-latency, real-time interactive 
media network. This network offers an end-to-end 
livestreaming latency of less than 500 ms. Huawei 
Cloud has provided scenario-based solutions such as 
edge security, efficient transcoding, and application 
acceleration for customers including China's Huya, 
Thailand's BBTV, and Türkiye's BluTV.
The CodeArts software development 
pipeline: Reshaping software development 
with full-stack intelligent toolchains
Huawei Cloud CodeArts is a one-stop software 
development platform. It integrates Huawei's more 
than 30 years of R&D best practices with the cloud 
to provide enterprises and developers with secure, 
trustworthy software development services throughout 
the entire development process. 
Based on the Pangu virtual 
human model, Huawei Cloud 
MetaStudio helped villagers 
in Danzhai, China's Guizhou 
province, to quickly build digital 
avatars. It only takes a five-
minute video of a person and 
one day to generate an avatar 
of that person for livestreaming. 
The avatar can accurately and 
fluently introduce the products 
and interact with audiences in 
real time.
In 2023, Huawei Cloud added more than 20 
innovative proprietary software tool services to 
CodeArts, including CodeArts Req (for requirement 
management), Check (for code check), and TestPlan 
(for test management). These tool services cover 
the entire software development lifecycle, from 
requirements, design, and development, to testing, 
deployment, and O&M, thereby building a fully cloud-
based software development process.
Huawei Cloud also released the CodeArts Snap 
intelligent development tool. CodeArts Snap is based 
on the Pangu R&D model and can generate code with 
just one instruction, comment out code and generate 
test cases after just one click, and intelligently deploy 
code upon just one command. It empowers each 
software developer by serving as their personal 
programming assistant.
The CraftArts hardware development 
pipeline: Building a new-generation 
industrial software system to improve 
hardware development efficiency and 
experience
In 2023, Huawei Cloud worked with industry partners 
to release the CraftArts hardware development 
pipeline to accelerate the building of a new-generation 
industrial software system. Based on a unified data 
foundation driven by data models, CraftArts provides 
enterprises with one-stop IT toolchain services for 
hardware design, development, simulation, and 
trial production. CraftArts includes the board-
level electronic design automation (EDA) toolchain, 
structure design toolchain, industrial simulation 
toolchain, and the design and manufacturing 


48       Huawei Investment & Holding Co., Ltd.
convergence platform. Through innovations in 
collaboration modes and by upgrading algorithm 
engines, CraftArts improves the efficiency of industrial 
software processing and enables efficient innovation 
Working with Partners and Developers to Build a Thriving Innovation 
Ecosystem on the Cloud
Huawei Cloud envisions an ecosystem that is Of All, By All, and For All. Huawei Cloud is accelerating the 
development of an ecosystem that aggregates industry applications and supports global developers and partners. 
Together, we are building a thriving ecosystem to facilitate innovation on the cloud. By the end of 2023, Huawei 
Cloud had developed more than six million developers around the world, attracted more than 40,000 partners to 
our ecosystem, and launched more than 10,000 applications in the KooGallery cloud marketplace.
Huawei Cloud has also been working with global customers and partners to provide eight industry aPaaS services 
for industries covering manufacturing, finance, government services, transportation, electric power, and mining. We 
also provide core aPaaS services including KooMap (for digital twins), KooPhone (for cloud phones), KooDrive (for 
cloud storage), KooMessage (for digital marketing), and KooVehicle (for commercial/dedicated-purpose vehicles). 
Together, we have released more than 150,000 APIs to help accelerate application innovation across industries.
in enterprise hardware R&D. Currently, about 
200,000 hardware developers are using the CraftArts 
development tools on Huawei Cloud every month.
Building a developer-centric, open ecosystem
In September 2023, Huawei Cloud announced the plan 
to build an open, dynamic, and innovative ecosystem 
for foundation models, and officially launched a 
dedicated zone for foundation models on the Ascend AI 
cloud service, as well as setting up a model community 
for developers. These initiatives support the Pangu 
foundation models, the industry's mainstream open-
source foundation models, and third-party commercial 
models. Enterprises and developers can quickly create 
their own model applications and as such can remain 
competitive in the foundation model era.
Using the cloud as a foundation, Huawei Cloud has 
continued to collaborate with the Kunpeng, Ascend, 
openEuler, HUAWEI Mobile Services (HMS), and 
HarmonyOS ecosystems to build a diversified developer 
ecosystem on the cloud. Through more than 160 
innovation centers around the world and the Huawei 
Cloud Developer Program, Huawei Cloud provides 
services such as Developer Technical Support Engineer 
(DTSE) and technical certification. In addition, through 
the Huawei Cloud Academy, Huawei Cloud cultivates 
developers and encourages them to join the Huawei 
Cloud ecosystem.
Building an ecosystem partner system for 
shared success
In 2023, Huawei Cloud established a Huawei Cloud 
partner system focused on customer scenarios and 
supported by ecosystem solutions. Partners have 
already built 324 joint solutions with Huawei Cloud. 
Huawei Cloud launched the Service Partner Program 
to recruit and cultivate more service partners with core 
cloud capabilities. We released the System Integrator 
(SI) Path to help partners quickly build end-to-end 
capabilities for industry digital transformation using 
Huawei Cloud. We also launched the Partner Customer 
Engagement (PCE) program to align our business 
goals with those of our partners and share market 
opportunities. In addition, Huawei Cloud released the 
Go Cloud, Go Global ecosystem plan in regions such 
as the Middle East, Latin America, and Europe to share 
our localization experiences and global ecosystem 
capabilities with our partners.
For startups, Huawei Cloud has invested more than 
CNY100 million in building a global startup ecosystem 
that has helped more than 3,000 startups around 
the world innovate using Huawei Cloud. More than 
100 Chinese startups have also expanded to markets 
outside China with the help of this ecosystem.
The KooGallery marketplace: Building the 
best application distribution platform on 
the cloud
Huawei Cloud is determined to develop KooGallery 
into the best platform for application distribution and 
one-stop B2B application purchases. By the end of 
2023, more than 7,000 stellar partners had launched 
applications in Huawei Cloud's KooGallery. They had 
released more than 10,000 applications in more than 
60 categories, covering over 10 industries including 
manufacturing, education, government services, 
mining, and finance, and serving more than 500,000 
enterprises and developers worldwide.


2023 Annual Report
        49
Digital Power Business
Carbon neutrality will drive a profound transformation in both society and the economy. It will require a robust 
energy infrastructure that powers decarbonization, electrification, digitalization, and intelligence. We are entering a 
new world where digital energy will play a key role. Huawei Digital Power integrates bit, watt, heat, and battery (4T) 
technologies to develop new energy infrastructure for power systems, electric vehicles (EVs), and the digital industry. 
We focus on renewable energy, mobility electrification, and digital transformation to drive carbon neutrality.
By the end of 2023, Huawei Digital Power has helped customers generate 997.9 billion kWh of green power and 
save 46.1 billion kWh of electricity. These efforts have reduced CO2 emissions by 495 million tons, equivalent to 
planting 680 million trees.
New Energy Infrastructure for Power Systems
We have launched FusionSolar smart PV and energy storage system (ESS) solutions that address utility-scale plant, 
commercial & industrial (C&I), and residential scenarios. These solutions are helping to develop a new energy 
infrastructure for power systems.
■ Huawei's smart string & grid-forming ESS solution 
significantly improves a power grid's ability to 
integrate renewable energy by reshaping voltage, 
frequency, and power angles. This can help address 
challenges arising from having high shares of 
renewable energy integrated into the grid at 
utility-scale plants. We have also combined IoT, big 
data, AI, and other new ICT solutions to improve 
O&M by automating the fault diagnosis process for 
smart power plants.
■ For C&I scenarios, we have developed a one-stop 
C&I Smart PV & ESS Solution that delivers active 
safety, optimal electricity costs, long-term reliability, 
simplified O&M, and optimal revenue. This solution 
includes optimizers, smart PV controllers, ESSs, 
chargers, electrical loads, smart microgrids, and 
smart PV management systems. The solution is 
designed to support sustainable business operations, 
and help industries go green and low-carbon.
■ For residential scenarios, we have created a 
Residential One-fits-all Solution with a "1 + 4 + 
X" design that can help users increase their own 
utilization of PV power and transform households 
from energy consumers to energy prosumers. This 
solution includes an inverter ("1"), optimizers, 
ESSs, chargers, and management systems ("4" core 
products), and the ability to enable an unlimited 
number ("X") of home appliances. One villa in 
Spain, for example, has used Huawei's one-fits-
all solution to increase the share of green power 
in its total power mix and achieve a solar self-
consumption rate of nearly 100%. This solution 
includes a 6 kW PV system, optimizers configured 
for all PV modules, a 10 kWh ESS, chargers, and 
an energy management assistant (EMMA). The 
optimizers have helped increase the installed PV 
capacity by about 60% by fully utilizing all available 
roof area, which is shaded by the air conditioners 
and parapet walls. EMMA's intelligent energy 
scheduling function allows it to flexibly optimize 
the scheduling of generated PV power according 
to changes in local electricity prices and weather, 
and power consumption load, thus maximizing the 
value of the PV and ESS systems. Furthermore, 
the PV Power Preferred mode can be enabled for 
chargers, ensuring PV power is preferentially used 
for charging.
Safety is the cornerstone of high-quality development 
within the PV industry. Huawei has implemented a 
four-dimensional safety solution to ensure the long-
term safety and stability of power systems. We will 
continue to work with industry partners, customers, 
and ecosystem partners to build a new power system 
based on renewable energy, and help make PV a main 
energy source.


50       Huawei Investment & Holding Co., Ltd.
The Red Sea Project in Saudi Arabia is the world's first GW-level standalone microgrid project that is fully powered by renewable energy. 
The project uses Huawei's FusionSolar smart PV and ESS solution, including a 400 MW PV system and a 1.3 GWh microgrid ESS that were 
successfully connected to the grid in October 2023. To cope with the complex local power grid environment, the project has used Huawei's 
smart string & grid-forming ESS to build an independent and resilient power grid that can adapt to changing conditions. This project will 
supply power to over one million tourists every year.
In January 2023, Huawei, together with China Resources Power, China 
Electric Power Research Institute, and the Electric Power Research 
Institute of State Grid Qinghai Electric Power Company, piloted the 
world's first grid-forming battery energy storage system (BESS). 
They completed more than 180 grid connection tests, including for 
large frequency disturbances and large voltage disturbances, for 
strong grids. In October 2023, Huawei, China Energy Qinghai Electric 
Power Company, China Electric Power Research Institute, and the 
Electric Power Research Institute of State Grid Qinghai Electric Power 
Company jointly completed a series of tests on the grid-forming 
BESS for weak grids. This has set a global benchmark for large-scale 
integration of renewable energy into power grids.
Mahidol University in Thailand has built Asia-Pacific's largest single-
site C&I PV and ESS plant, which includes a 12 MW PV system, a 
600 kWh ESS, and optimizers configured for all PV modules from 
Huawei FusionSolar. The plant fully complies with Thailand's new 
national electrical safety code, setting a milestone for the large-
scale application of PV and ESS integration in Thailand.
New Energy Infrastructure for EVs
Huawei has positioned itself as a provider of e-Mobility and Smart Charging Network solutions in the mobility 
electrification industry. Our collaborative development approach focused on quality has allowed us to launch hyper-
converged e-Mobility solutions and fully liquid-cooled ultra-fast charging solutions. These solutions are accelerating 
mobility electrification by building a new energy infrastructure for EVs that makes charging as easy as refueling.
Smart Charging Network
Huawei is committed to building a high-quality smart charging network that delivers superior user experiences and 
excellent benefits. Together with our customers and partners, we want to make high-quality charging resources 
available everywhere. We have already worked with various industry associations to release industry white papers 
and standards, such as the White Paper on the Sustainable Development of High-Quality Charging Facilities and 
the Specifications for Grading and Evaluating Electric Vehicle Charging Station Facilities and Services. These are 
part of our broader efforts to promote the sustainable development of high-quality charging facilities.


2023 Annual Report
        51
In September 2023, Huawei and its partners deployed fully liquid-cooled ultra-fast charging stations in Tianquan, Litang, and Sangdui, 
creating a Super Charging Green Corridor along the high-altitude G318 Highway. Heat dissipation is often a bottleneck in environments 
with low air pressure. Huawei has developed an innovative liquid-cooled technology that ensures ultra-fast high-power charging in these 
types of places. This technology can also improve long-term equipment reliability.
November 2023 marked the one-year anniversary of Huawei's launch 
of the world's first fully liquid-cooled ultra-fast charging station 
at the Waxi (Eastward) Service Area of the Shantou-Zhanjiang 
Expressway. Since its launch, the station has experienced no service 
disruptions, and its O&M cost has dropped by about 90% year-on-
year. By the end of November 2023, this station had provided a total 
charging capacity of approximately 1.16 million kWh and served more 
than 40,000 cars. Its turnover rate had more than doubled, setting 
an industry benchmark for fully liquid-cooled ultra-fast charging 
demonstration sites.
DriveONE
Huawei DriveONE has created ePowertrain, on-board 
charging system, DriveONE-Cloud, and other solutions 
for Class-A and Class-B battery EVs and extended 
range EVs. This is intended to help carmakers build 
better vehicles and improve driving experiences.
■ Range: Equipped with silicon carbide (SiC), our 
ultra-high-efficiency, high-voltage ePowertrain 
platform enables ultra-long ranges, and supports 
dynamic voltage scaling between 750 V and 
about 900 V. This platform can minimize energy 
consumption and increase vehicle efficiency to 
92% according to the China light-duty vehicle test 
cycle (CLTC).
■ Power: Our high torque output motor and 
intelligent oil cooling system 2.0 can enable cars 
to accelerate from 0 to 100 km/h in about 3 
seconds. In this way, standard vehicles can achieve 
sports-car-like acceleration for inspired driving 
experiences.
■ Intelligence: Our iTRACK algorithm enables 
ePowertrain systems to deliver active intelligence 
through microsecond-level ultra-fine road 
perception and millisecond-level real-time torque 
adjustments.
■ Safety: We are actively promoting cloud-based 
AI, data collaboration, and device-cloud synergy 
in the e-Mobility domain. This can visualize the 
health status of e-Mobility systems, issue real-time 
warnings, and enable quick fault diagnoses.


52       Huawei Investment & Holding Co., Ltd.
New Energy Infrastructure for the Digital Industry
We have continued to build new energy infrastructure for the digital industry as part of our commitment to 
delivering more bits with less watts and fewer carbon emissions. This infrastructure includes data center facility and 
site power facility solutions. We want to reduce the energy consumption and carbon emissions of every bit of data 
generated, and bring the world more green computing power and connections.
(Left) The AITO M9 runs on a Huawei DriveONE high-efficiency ePowertrain, which can allow the car to accelerate from 0 to 100 km/h 
in 4.3 seconds. Our cloud-based battery management system (BMS) and AI analysis also support real-time vehicle safety warnings and 
comprehensive battery safety.
(Middle) The AVATR 12 comes equipped with Huawei's DriveONE intelligent software algorithm iTRACK that enables active intelligence 
through microsecond-level ultra-fine road perception and millisecond-level real-time torque adjustments.
(Right) The LUXEED S7 comes equipped with Huawei's DriveONE high-voltage SiC ePowertrain that offers robust power with its high-
efficiency SiC modules.
Data Center Facility and Critical Power
Huawei has developed reliable, green, and low-carbon 
solutions for large data centers, small- and medium-
sized data centers, and critical power. These are 
used to build data center facilities and critical power 
supplies that are reliable, green, simple, and smart. Our 
ultimate purpose is to power the digital era forward.
■ Large data centers:
– FusionPower6000 3.0 (for both indoor and 
outdoor scenarios) is a worry-free power supply 
and distribution solution that reduces footprints 
and saves power and time, setting the trend 
for integrated power supply and distribution 
systems for data centers.
– Huawei's indirect evaporative cooling solution 
(EHU) can be used to build ultra-reliable, 
high-efficiency, and energy-saving data center 
cooling systems.
– Huawei's prefabricated modular data center 
solutions support fast delivery of simplified, 
low-carbon, and energy-saving data centers.
■ Small- and medium-sized data centers: 
FusionModule2000 is a one-stop solution for small- 
and medium-sized data centers, helping industries 
go digital faster.
■ Critical power: Huawei's SmartLi UPS is an 
intelligent power supply and distribution solution 
that features high reliability and high efficiency, 
providing continuous power for critical equipment.
In 2023, Huawei worked with industry associations 
to publish several industry standards, such as the 
Specification for the Design of Indirect Evaporative 
Cooling System in Data Center and the Standard for 
Design of Lithium-ion Battery Rooms in Data Centers. 
These achievements are an important part of our 
larger efforts to promote quality development of the 
data center industry.


2023 Annual Report
        53
China Unicom Guangzhou's Internet Data Center (IDC) building, 
located in China-Singapore Guangzhou Knowledge City, uses 
Huawei's FusionCol8000-C fan wall air conditioners that support 
inlet water temperatures of up to 20°C and reduce the overall 
energy consumption by more than 20%. This project also uses 
Huawei's UPS5000-H, which features a unique S-ECO mode that 
can increase power supply efficiency up to 99.1%. In addition, 
Huawei's iCooling@AI energy efficiency optimization solution has 
helped reduce the project's power usage effectiveness (PUE) to 
less than 1.3, cutting electricity consumption by about 13.245 
million kWh and carbon emissions by about 7,695 tons each year.
The Felipe Ángeles International Airport (AIFA) in Mexico used 
Huawei's FusionModule2000 solution to build a smart modular 
data center that has highly integrated cooling, cabinet, and aisle 
systems. The project was delivered in only three months, about 
30% faster than conventional solutions could deliver, and slashed 
OPEX by about 30% and PUE by about 25%.
In partnership with the China Mobile Design Institute and 
China Mobile Zhoushan, Huawei has deployed a green site on 
Zhuzishan Island in Zhejiang province. The site has an installed 
PV capacity of 26.4 kWp, with over 90% of its energy used 
coming from green sources. All surplus power generated is stored 
in the ESS, which can be used to supply power to the green 
site. The site also uses a 36 kW high-density eMIMO intelligent 
power system that is only 5 U in height and supports intelligent 
scheduling and seamless switching between solar power, stored 
energy, and fuel. The system can keep the site running for up to 
20 days, even under continuous overcast and rainy conditions.
Site Power Facility
Huawei is also working to help carriers and tower 
companies transition from energy consumers to 
energy prosumers.
■ For energy consumers, we have developed 
green and low-carbon networks that minimize 
total cost of ownership (TCO): 
– Our trend-setting "one cabinet one site" and 
"one blade one site" solutions are redefining 
simplified sites and improving site energy 
efficiency to about 97%.
– Our simplified equipment room solution ensures 
smooth capacity expansion without adding new 
equipment rooms, increasing energy efficiency 
to about 75%.
– Our smart site solution supports intelligent site 
O&M and visualizes energy efficiency.
■ Energy producers can use Huawei solutions 
to benefit from energy production and power 
dispatching.
– Our iPV intelligent optimization technology can 
increase energy yields by about 20%.
– Our intelligent algorithm for PV and ESS 
synergy can increase green power utilization 
rates while reducing the levelized cost of 
electricity (LCOE) for green site power.
– Our CloudLi energy storage system supports 
precise backup power and engages sites in 
power services like intelligent peak staggering 
and virtual power plants.
Carbon neutrality is a journey that all industry players 
are on together. Huawei Digital Power will innovate 
nonstop in both technologies and products, and 
working with partners to create value for customers 
and the industry. Together with our partners, we will 
build a digital energy industry ecosystem and promote 
high-quality industry development.


54       Huawei Investment & Holding Co., Ltd.
Consumer Business
In 2023, Huawei's Consumer BG continued to deliver a Seamless AI Life experience to consumers around the world by 
focusing on consumers and constantly optimizing our hardware and software ecosystems across all scenarios. Specifically:
■ We launched a Pioneer Program for the Chinese market, which supported the launch of smartphones like the 
HUAWEI Mate 60 Series and HUAWEI Mate X5, reinforcing Huawei's status as a high-end phone brand and 
showcasing Huawei's technical strengths.
■ We hit multiple shipment milestones, with over 100 million Huawei tablets being shipped by the end of 2023, 
and over 2.5 million HUAWEI WATCH GT 4 units shipped within three months of its launch.
■ By the end of 2023, HarmonyOS had been deployed on more than 800 million devices.
■ We launched a new ultra-high-end brand ULTIMATE DESIGN, which pays tribute to the extraordinary – not 
those who are born, but those who dare to be.
■ The Harmony Intelligent Mobility Alliance (HIMA) was established to support vehicle upgrades under our 
Huawei Zhixuan model and empower carmakers to successfully launch multiple new models.
■ In the smart home domain, we continued leading efforts to develop smart spaces.
■ In markets outside China, Huawei's mindshare as a high-end brand continued to increase, and our business 
results improved significantly.
"1 + 8 + N" Seamless AI Life Strategy: Continuous Innovation in Five Scenarios
Huawei has now pursued a smartphone-centered "1 + 8 + N" Seamless AI Life strategy for several years. We have 
continued to enhance the presence of Huawei devices across all scenarios, aiming to deliver a seamless, intelligent 
experience for consumers across five major scenarios: Smart Office, Fitness & Health, Smart Home, Easy Travel, 
and Entertainment.
Huawei launched a Pioneer Program in the Chinese market in 2023. Smartphones like the HUAWEI Mate 60 Series have received accolades 
from numerous consumers.


2023 Annual Report
        55
Smartphones
Despite a tough external environment, we continued 
to lead the industry in technological innovation, with 
Huawei smartphones winning high acclaim from 
numerous consumers. Our work has drawn extensive 
attention to the development and innovation of 
Chinese smartphone manufacturers.
As part of our Pioneer Program, which targets the 
Chinese market, we launched the HUAWEI Mate 60 
Series, HUAWEI Mate X5, and HUAWEI nova 12 Series 
smartphones.
The HUAWEI Mate 60 Series is the most powerful 
Mate model ever, and has established itself as a 
paradigm-shifting product. Standout features of these 
phones include:
■ Concentric designs and the earth color palette that 
creates breathtaking visuals inspired by magnificent 
mountains and rivers
■ The ability to support satellite calling, making 
them the first consumer smartphones to make 
and receive calls even when no terrestrial network 
is available, thanks to Huawei's breakthroughs in 
satellite communications
■ The groundbreaking super-reliable Xuanwu 
architecture that offers multiple layers of 
safeguards for ultimate security and reliability
In the foldable phone market, Huawei's innovative 
solutions have set industry benchmarks through 
continuous breakthroughs in design, reliability, 
and performance. The flagship HUAWEI Mate X5, 
for example, leads the way in the foldable phone 
market thanks to its lightweight design and superior 
all-round experiences. Its exterior screen is made 
of super durable Kunlun Glass with crystal armor 
scratch-resistant technology1, and its interior screen 
is made of impact-resistant non-Newtonian fluid 
materials, providing solid and durable protection. It 
also combines AI algorithms and innovative antenna 
technology to give consumers more stable network 
connections even in weak-signal scenarios.
In 2023, HUAWEI XMAGE made great strides in 
technological innovation, user experience, and 
cultural development. Multiple flagship smartphones 
were launched this year with HUAWEI XMAGE 
onboard, such as the HUAWEI P60 Series which has 
been a balanced fusion of imaging intelligence and 
technological art. This series comes with an innovative 
Ultra Lighting Telephoto Camera with Multiple Lens 
Groups which produces vivid photos in low-light 
settings. The HUAWEI XMAGE Trend Report 2023 
was released during MWC Barcelona 2023. Winners 
of the XMAGE Awards 2023 contest were announced, 
and 10 standout submissions to the XMAGE Awards 
were showcased at exhibitions in multiple cities across 
China. Through these efforts, we aim to ignite a wave 
of enthusiasm for mobile imaging, inspiring people to 
express their emotions and build confidence through 
"the power of image".
To deliver the best possible experience to consumers, 
we have worked tirelessly to build a high-end brand. 
After years of hard work, in 2023 we launched 
our new ultra-high-end brand ULTIMATE DESIGN, 
which offers ultimate aesthetics, craftsmanship, and 
innovation. The HUAWEI Mate 60 RS | ULTIMATE 
DESIGN was the first product launched under this 
brand with innovative, cutting-edge technologies and 
superior services. This smartphone is designed to pay 
tribute to the extraordinary – those who boldly lead 
our world forward.
1	
Actual configurations may vary. For more details, please refer to the official website.
"Dragon Clouds" by Domcar Calinawan Lagto (Philippines), 
a winner at the XMAGE Awards 2023
"Diving" by Li Lu (China), a winner at the XMAGE Awards 2023


56       Huawei Investment & Holding Co., Ltd.
Smart Office
In the smart office domain, Huawei continues to lead 
innovation through multi-device collaboration and 
ecosystem integration, enabling more convenient 
connectivity, smoother flow of information, and more 
intuitive human-machine interactions. By fusing 
aesthetics and technology, Huawei Smart Office 
products adopt premium and stylish industrial designs 
and provide portable and versatile solutions that 
help users stay creative and be more productive in 
immersive, professional scenarios.
Our flagship laptop, the HUAWEI MateBook X Pro, 
comes with a skin-soothing metallic body and a Super 
Turbo intelligent acceleration engine that intelligently 
schedules the laptop's performance through hardware-
system-scenario convergence to help users stay one 
step ahead at work.
2023 also marked the 10th anniversary of Huawei's 
tablet line. By the end of 2023, Huawei had shipped a 
grand total of over 100 million tablets. The HUAWEI 
MatePad Pro 13.2", our newest flagship tablet, has 
a 13.2-inch flexible OLED display and is the thinnest 
tablet ever made with the narrowest bezels and 
highest screen-to-body ratio1. The PaperMatteTM 
Display used on Huawei tablets provides paper-like 
viewing, with minimal glare and eye strain. Both the 
HUAWEI M-Pencil (3rd generation) and HUAWEI Smart 
Magnetic Keyboard are now powered by NearLink 
technology, allowing for finer strokes, faster typing, 
and more stable pairing.
In addition, HarmonyOS 4 on Huawei's Smart Office 
products comes with upgraded SuperHub and Show 
Comments functions, which allow data to flow 
seamlessly between multiple devices, including PCs, 
tablets, and monitors. This makes the real-time sharing 
of comments in different meeting scenarios a reality, 
significantly boosting productivity.
In 2023, we launched the GoPaint Worldwide Creating 
Activity, a digital creation event themed "Creation 
of Beauty" where consumers around the world paint 
using Huawei products, sharing the joy of creation and 
inspiring creativity.
We also officially launched Qingyun on the Chinese 
mainland, a device brand designed to cover all 
scenarios in the business domain. With proprietary 
full-stack technologies powered by the HarmonyOS 
digital ecosystem, the Qingyun brand will work with 
customers to create a fully connected digital future.
Fitness & Health
Since our entry into the fitness and health domain 
in 2014, Huawei has launched a broad portfolio 
of consumer products that provide innovative 
technologies, architecture, materials, processes, and 
business models. These quality products are targeted 
for certain demographics, so that everyone gets the 
support they need, including children, adults, and 
people with unique health management requirements.
Over the last decade, we have made one breakthrough 
after another in fitness and health monitoring, disease 
risk screening, and proactive health management by 
constantly improving accuracy and user experience 
regarding vital sign monitoring. By the end of 2023, 
over 150 million Huawei wearables had been shipped 
around the world, and we had served more than 450 
million users in the fitness and health domain.
In 2023, Huawei unveiled our "Fashion Forward" 
proposition for our wearables, combining elevated 
design features with powerful health and fitness 
functionalities to usher in a new era of stylish 
wearables:
■ Design: The HUAWEI WATCH GT 4's new geometric 
aesthetics encompasses a striking octagonal 
design and stunning ring bezel. The HUAWEI 
WATCH ULTIMATE DESIGN became Huawei's first-
ever gold smart watch, featuring 18K gold and 
zirconium-based liquid metal. Our flagship smart 
watches, the HUAWEI WATCH 4 Series, sported 
brand-new futuristic aesthetics paying homage to 
celestial bodies.
■ Health: The HUAWEI WATCH 4 Series offers 
the Health Glance feature2, making health 
management more effortless and accessible. The 
HUAWEI WATCH GT 4 comes with the improved 
Activity Rings and the Stay Fit app to help users 
build healthier lifestyles.
■ Fitness: The HUAWEI WATCH Ultimate is the first 
consumer smart watch to support two-way BeiDou 
satellite messaging on the Chinese mainland. 
Combined with 100-meter dive-level water 
resistance capabilities and an all-new expedition 
mode, it is a must-have companion for intrepid 
explorers scaling new heights, plunging to new 
depths, and exploring the unknown.
1	
As of March 2024.
2	
This feature is not medical software, and should not be used to treat medical conditions. Results are for reference only, and should not 
be used for medical diagnosis or treatment.


2023 Annual Report
        57
We have also continued to increase investment into 
R&D, with over 800 patent applications filed in the 
fitness and health domain by the end of 2023. On 
October 26, 2023, Huawei opened its third Health Lab 
in Helsinki, Finland. Relying on Huawei's more than a 
dozen R&D centers around the world, we have built 
a world-class R&D system and innovation platform 
for the fitness and health domain. We will further 
research and develop cutting-edge fitness and health 
technologies and accelerate the global layout of 
professional research in the wearables domain to help 
consumers around the world personalize their lifestyles 
with better fitness and health products and services.
Smart Home
In the Chinese market, HUAWEI Smart Space 
solutions continue to lead the smart space industry. 
We launched the Central Control Panel S2, the 
industry's first "space traversing" control panel, as 
well as innovative products such as the Mondrian 
Smart Switch and Smart MINI Pro. Together with our 
constantly-expanding subsystems and ecosystems, we 
aim to make the homes of the future smarter and 
more beautiful.
In 2023, we had more than 300 authorized smart 
home retail stores located across 145 cities in China. 
We also continued to support the development 
of standards and policies related to digital homes 
and space, and actively participated in driving the 
interconnection of smart home products. Furthermore, 
we partnered with major home decoration companies 
to provide users with more comprehensive and 
intelligent decoration services that make people's 
accommodations remarkably better.
We also launched a number of new smart home 
products in an effort to delight our consumers, including:
■ The HUAWEI Vision V5 Series which comes with 
a unique air gesture control function. Powered 
by HarmonyOS, the device can be easily and 
conveniently operated like a smartphone, 
essentially making it a super large-screen 
smartphone for intelligent interaction experiences.
■ The HUAWEI Gigahome Router Q6 (base-satellite 
router), powered by Gigahome technology, which 
can be flexibly deployed in homes without the 
need for cabling while delivering strong signals to 
every room.
■ The HUAWEI BE3 Pro, Huawei's first Wi-Fi 7 
router, which provides consumers with a super-fast 
connection experience.
Huawei appointed two new Wearable Product Ambassadors this year, four-time Olympic gold medalist Sir Mo Farah and fitness & lifestyle 
influencer Pamela Reif, to inspire consumers worldwide to stay healthy (photo taken on Sheikh Zayed Road, Dubai, the UAE).


58       Huawei Investment & Holding Co., Ltd.
■ The HUAWEI MemoSpace home storage device 
which offers an ultra-large-capacity home album 
and local audio and video library. Users can 
simply tap their phone against the device to 
establish an instant connection and automatically 
sync designated photos and videos to this home 
storage device.
■ The HUAWEI Smart Door Lock that has an electronic 
peephole function. Powered by HarmonyOS's strong 
Distributed Software Bus capabilities, this function 
allows users to conveniently and securely check 
real-time images from their doorstep on certain 
HUAWEI Vision products.
Easy Travel
We established the Harmony Intelligent Mobility 
Alliance (HIMA) to support vehicle upgrades under 
our Huawei Zhixuan model. Under this model, the 
automakers we work with successfully launched 
premium tech-enabled car models by leveraging 
Huawei's deep expertise in ICT. Our intelligent cockpit 
and intelligent driving solutions, as well as the 
intelligent and secure experiences they deliver, have 
drawn wide acclaim, and their reputation among users 
has continued to improve. In 2023, more than 90,000 
Huawei Zhixuan vehicles were delivered, consisting of 
various models including:
■ The AITO M9, a panoramic smart flagship SUV, 
which comes equipped with Huawei's full-stack 
automotive technologies. This model has been 
selling extremely well, with more than 30,000 
units sold within just one week of its launch, 
representing a breakthrough in the high-end 
new energy vehicle domain and making it a new 
benchmark of high-end intelligent vehicles.
■ The revamped AITO M7 which features intelligent 
technologies, large interiors, and superior safety, 
making it the perfect choice for families who need 
midsize and large SUVs. More than 120,000 units 
were sold within 100 days of its launch.
■ The Luxeed S7, the first all-electric sedan featuring 
large interiors, which is redefining the form factor 
of intelligent sedans by combining intelligent 
technologies, driving experience, and style. This 
model has been well received by younger consumers.
With the HUAWEI HiCar solution, we launched a 
converged desktop, which provides consumers with 
a smooth experience that seamlessly integrates the 
smartphone ecosystem and vehicle cockpits. This 
solution has been used by more than 50 automobile 
brands in more than 400 vehicle models. In a report 
on assessing the interconnection experience between 
smartphones and vehicles released by the Intelligent 
Car Connectivity Industry Ecosystem Alliance (ICCE), 
the HUAWEI HiCar solution ranked top in five 
experience scenarios and 11 experience indicators. 
Huawei's digital car key service has been used by 
more than 20 automobile brands, allowing users to 
conveniently and securely lock and unlock their cars 
from their smartphones or smart watches.
HMS for Car provides carmakers with global intelligent 
in-vehicle solutions that help them tap into the global 
market. In 2023, HMS for Car was newly adopted 
by more than 10 automakers, and installed on more 
than 17 million vehicles. HMS for Car works with 
Huawei's star products, such as Petal Maps, Celia, and 
AppGallery, to support the global business expansion 
of carmakers and create value for the global 
automotive industry.
Entertainment
Huawei has leveraged its global R&D network to create 
innovative technologies that deliver premium audio 
experiences for all consumer scenarios, including in-
ear earbuds, open-fit earbuds, open-ear earbuds, and 
glasses. Some of the products we launched include:
■ The HUAWEI FreeBuds Pro 3 adopt innovative 
ultra-hearing dual drivers to redefine sound fidelity, 
pushing industry standards to new heights. The 
earbuds enhance the call experience with Pure 
Voice 2.0 and noise cancellation with Intelligent 
ANC 3.0, while also taking advantage of smart 
connectivity for seamless listening. The combination 
of these features delivers the ultimate all-rounding 
earbuds for any modern, connected consumer.
In December 2023, Huawei unveiled its first open-ear earbuds, 
the HUAWEI FreeClip, alongside many other new products at a 
launch event in Dubai.


2023 Annual Report
        59
Huawei has pursued a smartphone-centered "1 + 8 + N" Seamless AI Life strategy and continued to enhance the presence of Huawei 
devices across all scenarios, aiming to deliver a seamless, intelligent experience for consumers across five major scenarios: Smart Office, 
Fitness & Health, Smart Home, Easy Travel, and Entertainment.
■ The HUAWEI FreeBuds 5 feature futuristic 
aesthetics. They come with seamless curves for 
optimal fit, combining fashion with an ultimate 
level of comfort, all while delivering robust bass.
■ Huawei's first open-ear earbuds, the HUAWEI 
FreeClip, feature an innovative C-bridge Design and 
combine comfort and style to provide an Open-ear 
Listening experience.
Continuous Evolution of HarmonyOS and a Thriving HarmonyOS Ecosystem
HarmonyOS 4 was officially launched in 2023, bringing consumers exquisite, personalized, smart, and secure 
experiences on their devices. HarmonyOS 4 provides new personalized themes for phone screens, including emojis 
and fun themes. With the help of the HUAWEI Ark Engine, devices powered by HarmonyOS 4 deliver significant 
performance improvements in six areas: graphics, multimedia, memory, scheduling, storage, and power consumption.
■ HUAWEI Eyewear 2 brings consumers a 
personalized, convenient, smart, and considerate 
interactive experience across all scenarios.
Huawei has continued to delve deep into AI 
technology, and our smart voice assistant has been 
enhanced by foundation models to better serve 
user needs. Powered by Huawei's Pangu models, 
HarmonyOS features new AI-native designs, and its 
system-level AI capabilities make our voice assistant 
more intelligent, capable, and considerate.
HarmonyOS 4 is built on a mature foundation 
comprised of more than 100 million lines of code 
and 20,000 APIs, providing consumers with a fully 
connected experience across all scenarios. We are 
currently focusing on building a brand-new app 
ecosystem around HarmonyOS.
At the Huawei Developer Conference 2023 (HDC.
Together), Huawei announced the HarmonyOS NEXT 
Developer Preview, which brings together all of the 
latest development capabilities to app developers. On 
September 25, we announced the upcoming launch of 
the new HarmonyOS NEXT.
By the end of 2023, HarmonyOS had been 
deployed on more than 800 million devices, and the 
HarmonyOS ecosystem had welcomed more than 2.2 
million developers. In addition, HarmonyOS Connect, 
the technology brand that supports the HarmonyOS 
ecosystem, had attracted more than 2,500 partners 
who released more than 7,000 ecosystem products in 
the Chinese market. In 2023 alone, over 180 million 
new devices in the HarmonyOS Connect ecosystem 
were shipped, covering all aspects of the Seamless AI 
Life and providing consumers with more convenient 
access to the digital world.
Huawei has invested heavily in the cultivation of 
talent for the HarmonyOS ecosystem. In the Chinese 
market, students from 305 universities had attended 
HarmonyOS events, and classes on HarmonyOS 
were taught at 135 universities by the end of 2023. 
Furthermore, 286 companies had run HarmonyOS 
ecosystem workshops, more than 380,000 developers 


60       Huawei Investment & Holding Co., Ltd.
had obtained HarmonyOS certification, and the 
number of industry-university partnership programs on 
HarmonyOS exceeded 150. These many achievements 
provide a sufficient talent pool that will support a 
thriving HarmonyOS ecosystem.
After three years, the OpenHarmony project has 
become a success thanks to the outstanding support 
of the OpenAtom Foundation, the industry, and 
academia. OpenHarmony has become the fastest-
growing open source operating system in the smart 
device domain and a digital foundation that empowers 
the development of numerous industries. By the end 
of 2023, more than 70 organization contributors 
and 6,700 individual contributors had participated 
in this project, submitting more than 100 million 
lines of code. More than 460 hardware and software 
products have passed OpenHarmony compatibility 
tests, covering key sectors like finance, transportation, 
education, energy, industry, aerospace, and healthcare.
Huawei has also curated a rich pool of apps and 
services to deliver users worldwide an intelligent 
experience across all scenarios. By the end of 2023, 
the number of monthly active users of HUAWEI Mobile 
Services (HMS) exceeded 580 million, and the number 
of monthly active users of HUAWEI ID, AppGallery, 
and Quick App surpassed 436 million, 580 million, 
and 210 million, respectively. In addition, the number 
of monthly active users of HUAWEI Music, HUAWEI 
Browser, HUAWEI Wallet, HUAWEI Assistant•TODAY, 
HUAWEI Mobile Cloud, HUAWEI Video, HUAWEI 
Books, HUAWEI Themes, AI Search, and HUAWEI 
Weather all exceeded 100 million. Furthermore, Petal 
Maps is now available in more than 160 countries and 
regions outside China, and supports over 70 languages, 
bringing its monthly active users to over 40 million.
Huawei currently works with content creators to 
provide consumers with high-quality, immersive, and 
reliable digital content. For example:
■ The HUAWEI Newsfeed Connect works with more 
than 500 premium content providers around the 
world to help content creators improve productivity 
with content creation tools powered by AI 
foundation models, and provide consumers with a 
vast library of content.
■ In 2023, HUAWEI Video added 40 new audio and 
video partners. The AiMax Cinema Zone is now 
available on mobile devices, and the HUAWEI 
MatePad Air became the first mobile device to 
support HDR Vivid, allowing consumers to enjoy 
cinematic masterpieces anytime, anywhere.
■ HUAWEI Music offers more than 10 million 
copyrighted songs at lossless audio quality and 
more than one million Hi-Res songs, offering an 
end-to-end HD music experience. In 2023, HD 
spatial audio services were provided to all HIMA-
powered vehicles, and the number of songs 
available increased by 300% year-on-year.
■ HUAWEI Books established partnerships with 
more than 50 top content providers in 2023, 
and released more than 100,000 new e-Books, 
audiobooks, comics, and more through a high-
quality smart reading platform.
■ The HUAWEI Mobile Cloud offers 350 million 
users worldwide personal digital asset 
management services, allowing users to sync their 
data between multiple devices, back up data, and 
search their devices.
The 5th Huawei Developer Conference (HDC.Together) opened on August 4, 2023. At the event, Huawei released a collection of leading 
technologies, including HarmonyOS 4, an upgraded version of the HarmonyOS development suite, and the HarmonyOS Next Developer 
Preview, to help developers build innovative smart devices and apps more efficiently and further improve the Seamless AI Life experience 
for consumers.


2023 Annual Report
        61
Building a Brand with a Human Touch Through Retail and Service Stores
We have continued to explore and develop new premium retail and service models that give our brand a human 
touch and optimize consumers' experience at our retail and service stores. By the end of 2023, we had more than 
60,000 retail stores, display zones, and display counters around the world, including over 5,500 HUAWEI Experience 
Stores and 2,100 Huawei Authorized Service Centers. Our service centers cover 50 countries and regions. In 2023, 
we organized service-focused events such as Service Day, Service Giving Season, and Battery Replacement to 
improve consumer satisfaction. Throughout the year, our offline service stores conducted more than 350 million 
consumer interactions.
We continue to build large HUAWEI Flagship Stores 
and HUAWEI Smart Life Stores in major cities around 
the world. These stores provide enhanced immersive 
experiences to local consumers across all scenarios, 
especially interactive car and home scenarios. By the 
end of 2023, Huawei had 15 Flagship Stores and the 
number of Smart Life Stores with a total floor space of 
over 500 square meters exceeded 300.
HUAWEI Flagship Stores are committed to 
continuously enhancing Huawei's brand image in 
the device domain. They deliver a new intelligent 
experience to local residents by integrating local 
culture into stores and building "urban living rooms" 
that allow consumers to get hands-on experience 
with our latest products and technologies. In 2023, 
our flagship stores opened a fitness & health section 
and a section dedicated to children, and started 
serving coffee to consumers, adding a more human 
touch to our consumer interactions. Consumers can 
also experience the accessibility features of Huawei 
devices in every flagship store, meaning visually- or 
hearing-impaired users can easily learn about Huawei 
devices and digital life stories. Our flagship stores have 
also organized a variety of events for running and 
driving enthusiasts and community concerts to boost 
engagement with consumers. HUAWEI Flagship Stores 
were frequented by more than eight million consumers 
in 2023.
Moving forward, the Consumer BG will continue to 
focus everything it does on consumers and double 
down on its commitment to pursuing technological 
innovation and building a brand that is trusted and 
liked by consumers, all while maintaining a human 
touch. Working with our partners around the world, 
we will redouble our efforts to build a thriving 
HarmonyOS ecosystem and continue delivering a 
Seamless AI Life experience to our consumers.
In 2023, new HUAWEI Flagship Stores were opened on Binjiang Avenue in Tianjin and Taikoo Li Qiantan in Shanghai. In the future, 
HUAWEI Flagship Stores will open in more cities to provide more convenient retail and service experiences to more consumers.


62       Huawei Investment & Holding Co., Ltd.
Intelligent Automotive Solution Business
In 2023, intelligent electric vehicles (EVs) continued to gain traction in China, with penetration rate exceeding 35%. 
Intelligence and connectivity have gradually become differentiating factors for vehicle performance. Huawei is 
determined to become a provider of new components for vehicles. In line with this strategic position, our intelligent 
automotive solution (IAS) business unit (BU) will continue to focus on providing intelligent automotive components 
for customers, and leverage Huawei's ICT expertise to improve driving safety and experiences as we work to create 
both business and social value.
After years of heavy investment, we have developed industry-leading solutions for intelligent driving, intelligent 
cockpits, and intelligent vehicle control, all of which are ready for large-scale delivery. We will continue to 
pursue technological innovation and industry leadership and prioritize quality, safety, and security, while enabling 
customers and working with industry partners to promote intelligent development.
Business Development
Our significant investments in recent years have enabled us to establish unique competitive advantages in 
intelligent automotive solutions and we are now seeing rapid growth in both sales orders and revenue. We 
are working with our partners to bring consumers an intelligent mobility experience and drive the intelligent 
transformation of the automotive industry.
We are continuing to increase our investment into 
R&D. To date, we have invested more than CNY30 
billion into the R&D of our IAS BU, and this BU 
currently has 7,000 R&D employees.
We are working hard to provide customers and 
partners with high-quality products, and our IAS 
business is growing rapidly. By the end of 2023, we 
had shipped more than three million sets of intelligent 
automotive components, which included products and 
solutions like intelligent cockpits, intelligent driving, 
intelligent vehicle control, intelligent vehicle cloud 
services, LiDARs, mmWave radars, cameras, gateways, 
augmented reality head-up displays (AR-HUDs), 
intelligent headlights, and T-Boxes.
In 2023, Huawei launched and commercialized the 
HUAWEI Advanced Driving System 2.0 (ADS 2.0), which 
delivers consumers an intelligent driving experience 
without the need for high-definition maps. This 
technology is now available throughout China, and the 
more consumers use it, the easier driving becomes. 
ADS 2.0 also supports functions like mechanical car 
parking and auto valet parking, and allows cars to 
park in tight spaces with ease. It is the first system in 
the industry to provide these functions. ADS 2.0 also 
features the industry's first comprehensive collision 
avoidance system (CAS), which offers the quickest 
automatic emergency braking (AEB) on the market. 
These functions help make driving safer and easier.
Huawei's HarmonyOS Intelligent Cockpit is one of 
the best cockpits on the market. In 2023, Huawei's 
intelligent cockpit system was upgraded to HarmonyOS 
4, which supports smoother system operations, 
stronger voice capabilities, and extraordinary 
experiences with functions like OneHop file sharing, 
super desktop, and intelligent vehicle finding.
In 2023, seven car models built as part of strategic 
cooperation with our IAS BU were launched and highly 
recognized by consumers. Intelligent driving and 
intelligent cockpits have become important factors in 
purchase decisions and have a bright future.
Quality, Safety, and Security
Quality, safety, and security are the lifelines of automotive products. Huawei pursues a zero defect system that 
puts safety, security, and quality first, and integrates these requirements into all business processes, from R&D and 
testing, to manufacturing, supply, and procurement.
■ Our Quality and Safety Committee is the highest 
decision-making organization regarding the quality, 
safety, and security for our IAS business, and 
ensures the Safety First concept is implemented 
through leadership and organizational measures.
■ We didn't stop at automotive-grade functional 
safety and cyber security certifications. Instead, 
in 2023, we continued to enhance our safety 
and security system, and passed internationally 
recognized certifications on the safety of the 
intended functionality (SOTIF).


2023 Annual Report
        63
■ We also set up a safety and security evaluation 
center to independently evaluate product safety 
and security and ensure that products meet 
Huawei's safety and security standards.
■ We continued to increase R&D investment and 
developed advanced technologies such as data-
driven and model-driven technologies to improve 
product quality, safety, and security.
Ecosystem Development
As part of Huawei's broader "Platform + Ecosystem" strategy, we are creating a digital foundation and development 
tools that can be used to build intelligent vehicles. By the end of 2023, we had brought together more than 300 
partners from across the automotive industry through the following four ecosystem platforms:
■ The intelligent digital vehicle platform (iDVP) 
ecosystem has attracted more than 100 partners, 
and our iDVP is already pre-integrated with 40 
tested equipment models from 20 vendors. 
■ The intelligent driving computing platform 
ecosystem has more than 70 partners who are 
helping enable intelligent driving pilots and 
commercial applications for passenger cars, ports, 
mining trucks, and campuses, among others.
■ Through our HarmonyOS Intelligent Cockpit 
platform, we have collaborated with over 150 
hardware and software partners to provide 
consumers with intelligent, personalized, and 
diversified service experiences.
■ Through the Intelligent Automotive Optics platform, 
we have established cooperation with more than 
10 tier-1 vendors.
Together, these four platforms form a larger 
ecosystem, expand the total addressable market, 
and accelerate the intelligent transformation of the 
automotive industry.
Huawei also actively contributes to industry standards 
and key technologies that support the development of 
the automotive industry.
■ Huawei has been deeply involved in the SparkLink 
Alliance, which is committed to driving innovation 
in next-generation short-distance wireless 
communications technology. To date, the alliance 
has brought together more than 240 member 
organizations across the value chain.
■ As a founding member of the Software-Defined 
Vehicle (SDV) Standards Committee under the 
Software Subcommittee of the China Association 
of Automobile Manufacturers, Huawei actively 
pools wisdom from across the industry to drive 
consensus and contribute to industry standards. 
In 2023, the SDV Standards Committee and over 
100 member organizations jointly released the 
social organization standard – API Specifications 
for Intelligent Connected Vehicle Services, in order 
to promote industry collaboration and address 
common industry issues. By June 2023, the SDV 
Standards Committee had published more than 
500 atomic service APIs and over 400 device 
abstraction APIs.
Industry Recognition
In 2023, Huawei's intelligent driving and intelligent cockpit solutions won multiple industry awards, setting new 
industry benchmarks.
■ Our intelligent driving solutions won three awards at 
the iVISTA Intelligent Connected Vehicle Challenge: 
Best Perception Award, Best Safety Award, and 
Special Automatic Emergency Braking Award.
■ Our intelligent solutions received the highest rating 
from the iVISTA China Intelligent Vehicle Index while 
dominating with intelligent safety and navigation 
cruise assist.
■ Our intelligent driving and intelligent cockpit 
solutions won three awards from the AutoLab 
Golden Flame Award: Intelligent SUV of the Year, 
Best Interconnectivity Experience of the Year, and 
Best Commuting Experience of the Year.
■ Huawei's HarmonyOS Intelligent Cockpit won the 
Mobility Technology Award.


64       Huawei Investment & Holding Co., Ltd.
Research and Innovation
The intelligent world is approaching, faster than ever before. This is creating unprecedented opportunities 
and challenges in terms of innovation. Huawei continues to invest in basic research and open innovation, and 
accommodates and addresses customer needs with an open mind, while steering these needs with science and 
technology. We have also built flexible business models and encourage numerous industries to adopt a vast 
range of models and applications. Through such initiatives, we are bringing digital to every person, home and 
organization for a fully connected, intelligent world.
Basic Research
In 2023, we continued to focus on basic research and strengthened efforts to steer customer needs with cutting-
edge technologies. We also pursued breakthroughs in innovation that will drive the entire industry and all of 
society forward.
■ When exploring the infinite possibilities of science, 
we remain dedicated to combining mathematics 
with modern information and communications 
technologies. In 2023, we further developed our 
basic research capabilities and broke through 
numerous bottlenecks plaguing the industry:
– In information theory coding, we extended the 
classical fast Fourier transform (FFT) algorithm 
to algebraic geometry codes by Goppa, 
reducing their complexity from O(n^2) to 
O(nlog n).
– In machine learning, we developed a new 
federated conformal prediction method based 
on quantile regression. This method addresses 
the label shift between agents and provides 
theoretical guarantees for both valid coverage 
of the prediction sets and differential privacy.
– In large language model training, we developed 
CAME, a novel memory-efficient optimizer that 
supports adaptive confidence-based updating 
and consumes over 50% less memory than 
the Adam optimizer. The paper we published 
on this optimizer was named one of ACL's 
(Association for Computational Linguistics) 
2023 Outstanding Papers.
■ We also ramped up efforts to apply our latest 
basic research results to industry. At Huawei, we 
refer to this as "laying eggs along the way".
– In wireless communications, we developed 
an energy-efficient low-order digital 
predistortion architecture to manage nonlinear 
power amplifier distortion in wideband 
massive multiple-input multiple-output 
(MIMO) systems. This design is based on a 
decomposition theory and can realize a 3–5 dB 
improvement in correction performance.
– In optical communications:
• 
We designed a simplified nonlinear 
fiber compensation algorithm, using the 
perturbation theory to solve nonlinear 
Schrodinger equations. This algorithm has 
helped extend the long-haul transmission 
distance of 800 gigabit fiber by about 20%.
• 
We also designed a metasurface-enabled 
light modulation model based on the finite-
difference time-domain (FDTD) method to 
address polarization dependence of liquid 
crystal on silicon (LCoS) – the engine for 
optical cross-connect (OXC). This model has 
allowed us to simplify wavelength selective 
switch (WSS) by anywhere from 50% to 75%.
– In artificial intelligence, we introduced Integral 
Neural Networks, a new family of networks 
featuring continuous layer representation 
to address the intense computing resource 
demands of generative model training. These 
networks support multi-process inference on 
a single XPU, multiplying inference efficiency 
without losing accuracy.
– In information retrieval, we proposed a new 
method for approximating data distribution 
through function mapping to handle possible 
explosions in index space triggered by rapid 
increases in high-dimensional data. This method 
can boost retrieval speed by an order of 
magnitude.


2023 Annual Report
        65
Open Innovation
We have continued pursuing open innovation along multiple paths in multiple waves, targeting multiple scenarios. 
The company works tirelessly to unleash the full value of its complete portfolio, address real business challenges, 
and create value for the industry.
■ Wireless Communications
– We field tested prototypes in 11 scenarios and 
managed to:
• 
Become the first to verify zero-overhead 
integrated sensing and communication 
capabilities for 6G networks on the 
centimeter wave (cmWave).
• 
Realize centimeter-level precision of multi-
object detection and decimeter-level 
reconstruction of outdoor environments on 
cmWave band.
• 
Verify polarization multiplexing and beam 
spatial division multiplexing technologies 
under ultra-large bandwidth on the 
terahertz frequency band, reaching a peak 
speed of over 400 Gbit/s at an outdoor 
distance of 500 meters.
– We were also the first to achieve 0.5 gigabit 
satellite communications based on cellular 
mobile broadband protocols while moving 
at speeds of 130 km/h, demonstrating the 
potential of satellite-based cellular mobile 
network enhancement.
■ Optical Networks
We continued to increase single-wavelength rate 
and channel capacity, allowing us to:
– Make breakthroughs in 222 gigabaud ultra-
high-speed optoelectronic modulator 
technology and propose a new key subcarrier 
algorithm and architecture to address coding 
modulation and power consumption in large 
throughput scenarios.
– Break new ground in the design and production 
of a new type of high density multi-element 
doped optical fiber.
– Commercially use erbium-doped fiber amplifiers 
(EDFAs) on ultra-wide gain spectrum: C6T + 
L6T (12 THz).
– Test and verify the first ever 400 gigabit 
quadrature phase shift keying (QPSK) system, 
which was able to deliver a capacity of 32T at a 
distance of 7,000 kilometers.
■ Carrier and Enterprise Networks
Our innovation in this domain in 2023 centered on 
three areas:
– We created a layered heterogeneous 
topology network architecture and a full-
path routing technology system that shorten 
the interconnection distance between nodes 
and reduce the use of optical components. 
Therefore, network costs now account for less 
than 20% of total costs and network reliability 
has been improved by an order of magnitude.
– We invented a global routing planning 
algorithm to increase network throughput to 
over 90%.
– We created the world's first non-uniform Bruck 
collective communications algorithm, which 
delivers 50% better performance than other 
mainstream algorithms in the industry.
■ AI Algorithms
Foundation models are driving us ever closer to 
a truly intelligent world, but they also present a 
number of new challenges. Our innovations in AI 
algorithms focus on transforming these challenges 
into opportunities. 
– To date, Ascend clusters have been used to 
train trillions of high-quality parameters for 
Pangu foundation models. This has helped us:
• 
Realize near-linear scaling of training for 
4,000 XPUs and address the technological 
challenges impeding training and inference 
acceleration and long sequences;
• 
Boost the 7-day retention rate of Celia 
users on Mate 60 phones by more than 10 
percentage points; and
• 
Use AI in Huawei Cloud EI and business 
process & IT services for applications in a 
dozen industries.


66       Huawei Investment & Holding Co., Ltd.
– The company also released simplified network 
architectures that best support Ascend, such as 
GhostNet v2 and VanillaNet, boosting efficiency 
by at least 50% while performing the same task 
to the same level of precision.
■ Computing
The demand for extreme-scale computing has 
become a core engine of AI development, so we 
innovated to achieve a number of breakthroughs in 
this area in 2023:
– We implemented a novel supernode architecture 
to realize unified memory addressing and 
resource scheduling.
– Our new liquid-cooling architecture pushed 
engineering to new heights in order to reduce 
footprint while increasing computing power for 
higher-density computing systems.
– We provide an open and easy-to-use framework 
for computing ecosystems and have released 
CANN 7.0, which enables developers to 
customize high-performance operators and 
acceleration libraries that directly schedule and 
manage computing resources.
– We upgraded the Ascend C programming 
language to simplify operator implementation 
logic, reducing operator customization time 
from weeks to days and accelerating AI model 
and application development.
■ Consumer Business
Throughout 2023, Huawei remained focused on 
deepening our roots in core technologies to provide 
users with industry-leading experience.
– We pioneered advanced imaging technologies 
such as the adjustable aperture and Super 
TeleMacro Camera on our phones. We also made 
groundbreaking efforts in related areas such 
as an ultra-high dynamic range in scenes with 
higher light-to-dark ratios, delicate bokeh effects, 
and multi-modal deblurring. These incredible 
XMAGE technologies have brought ultra vision 
photography experiences to our users.
– We became one of the world's first companies 
to launch a cloud enhancement function backed 
by technologies like on-cloud algorithms for 
foundation models trained with hundreds 
of millions of parameters, a hybrid network 
supporting both photo preview and sensing, 
and high image compression. It helps phones 
capture and recover details within images and 
deliver portraits of unparalleled clarity and 
fineness, pushing photography to new levels of 
precision and beauty.
– Huawei phones now automatically connect 
to the most optimal network they can find, 
providing better communications quality and 
throughput in weak-signal scenarios and 
delivering more stable network connections.
– We unveiled our next-gen, double-rotating, and 
multi-dimensional hinge that is able to deliver 
a free range of motion thanks to its dual-track 
driver structure and ultra-strong aluminum. This 
makes HUAWEI Mate X5 phones both incredibly 
light and exceptionally durable.
– We continued to work on materials and 
production methods for our phones, developing 
a number of new technologies, such as Kunlun 
Glass, whose upgraded formula and atomic 
structure enhancement make it 100% more 
drop resistant and 300% more scratch resistant.
– Our HongMeng Kernel was awarded the 
industry's first Evaluation Assurance Level 6 
Augmented (EAL6+) certificate as part of the 
Common Criteria for Information Technology 
Security Evaluation (CC), making Huawei the 
world's first smart device manufacturer to 
receive the certification in the commercial OS 
kernel field.
– The number of devices running on HarmonyOS 
rose to 800 million in 2023 thanks to the 
system's adoption across numerous industries.
– Following the revamped AITO M7's launch, over 
120,000 vehicles were sold in just 100 days. 
This achievement can be attributed to Huawei's 
three major proprietary technologies – General 
Obstacle Detection (GOD), Road Cognition & 
Reasoning (RCR), and decision making under 
uncertainty.
■ Foundational Software
In 2023, we continued pursuing innovation in 
foundational technologies in order to create a more 
solid foundation for the industry and ecosystems, 
resulting in numerous breakthroughs, including:


2023 Annual Report
        67
– Our proprietary GaussDB is becoming China's 
first database to support full-stack hardware-
software collaboration to enable strong dual-
cluster consistency, high elasticity for thousands 
of nodes, and full encryption.
– openEuler now comes equipped with 
unique new strengths to better address 
industrial latency, security, and resource 
utilization requirements, thanks to advances 
in deterministic low latency, confidential 
computing, and hybrid deployment and 
scheduling.
■ Software Engineering
Vulnerabilities from open source software are a 
major source of security threats for the software 
supply chain. Considering this, Huawei has 
developed an open source vulnerability knowledge 
library, and made significant headway into 
technologies like characteristic abstraction, analysis, 
and comparison, as well as vulnerability research 
and judgment. This has helped us detect and 
identify vulnerabilities originating from open source 
C, C++, and Java projects in advance.
■ Systems Engineering
In L3 and higher-level complicated autonomous 
driving scenarios, ensuring safety of the intended 
functionality (SOTIF) is a great challenge. To 
surmount this challenge, we:
– Built a simulation testing capability that covers 
both hazardous scenarios and fault injection, 
boosting end-to-end testing efficiency by at least 
five times.
– Achieved leapfrog development in the out 
of operational design domain (out-of-ODD) 
detection technology, with the accuracy of safe 
lane planning at intersections hitting 92%.
In 2023, our total R&D spending reached CNY164.7 billion, representing 23.4% of our total revenue. Our total R&D 
investment over the last decade now exceeds CNY1.11 trillion.
On December 31, 2023, 114,000 employees (about 55% of our workforce) worked in R&D.
Huawei is an industry leader in patents in multiple mainstream 
standards fields, including cellular network communications, 
short-distance communications, and audio and video codecs.
By the end of 2023, Huawei had signed over 200 patent 
licensing and cross-license agreements with many of the 
industry's largest patent holders.
Every year, Huawei invests over 10% of its sales revenue into R&D
Huawei's patents are broadly 
recognized across the industry
By the end of 2023, Huawei held a 
total of 140,000+ active patents.
Huawei has one of 
the world's largest 
patent portfolios


68       Huawei Investment & Holding Co., Ltd.
■ Stay customer-centric, build an ecosystem for 
shared success, and continue creating greater value 
for customers by meeting their needs and pursuing 
technological innovation
■ Effectively manage risks, and ensure operational 
compliance and business continuity
■ Guarantee the trustworthiness of both processes 
and results, and provide trustworthy, quality 
products
■ Pursue corporate social responsibility (CSR) 
initiatives and promote sustainable development
Quality and Customer Satisfaction
Quality lowers cost. At Huawei, we remain true to our core strategy of succeeding through quality. We strive to 
make quality our core competitive edge. Over the past year, we have further improved our quality culture and 
leadership. We have also strengthened our ISO 9000-based total quality management system and extended our 
quality management mechanisms and requirements to every part of our value chain. Together, we are working to 
deliver higher quality to our customers. As always, we have continued to work hard to make Huawei synonymous 
with high quality in the ICT industry.
In 2023, we achieved many quality breakthroughs, 
including the following: 
■ We improved quality leadership of management 
at all levels, improved the quality awareness and 
capabilities of all employees, strengthened the 
management of our quality objectives, and increased 
our quality-related incentives:
– We organized quality workshops for top 
management, and quality conferences, audits, 
and training for employees, while also awarding 
those who can serve as quality role models, to 
encourage all employees to pursue quality.
– We systematically improved the application 
of quality engineering methods, such as the 
Huawei hardware innovation and optimization 
approach (HINA), theory of inventive problem 
solving (TRIZ), and failure mode and effects 
analysis (FMEA), to drive the continuous 
improvement of our products and services.
– We doubled down on efforts to improve 
knowledge management and project 
retrospection and cultivated quality digitalization 
capabilities within our quality team.
These efforts have been and will continue to help 
the company succeed through quality.
■ We continued to roll out the ISO 9000-based 
total quality management system:
– We have built up significant experience and 
capabilities in quality management over the 
past 30+ years, and we are adapting this 
experience to address the unique characteristics 
of different business domains.
Improving the Management System
Our global management system supports the company-wide promotion of our corporate culture and the effective 
management of our business. Ultimately, we aim to:
– We have embedded quality requirements 
into every process of our business domains, 
ensuring all aspects of our operations 
are covered, including R&D, supply chain, 
service delivery, sales, and marketing. We 
have specifically focused on putting in place 
quality requirements that ensure compliance; 
trustworthiness; internal controls; cyber security 
and privacy protection; information security; 
business continuity; Environment, Occupational 
Health and Safety (EHS); and Corporate 
Sustainable Development (CSD).
The quality products and services we offer 
following these processes will help us continue 
winning customer trust and maintain our place as 
their preferred choice.
■ We extended our quality management 
mechanisms and requirements to suppliers as 
well as channel and ecosystem partners:
– We invested more into both general and 
targeted programs that help our suppliers and 
partners across the entire value chain improve 
their own quality management capabilities. This 
close collaboration has helped us all improve 
both our technologies and quality management 
capabilities so that we can deliver better quality 
to our customers together.
– We worked hard to capture more feedback from 
customers and partners through diverse channels.
– 
The management determined key areas for 
improvement through deep discussions and analyses 
of key issues, to improve customer satisfaction and 
achieve shared success with partners.


2023 Annual Report
        69
■ All aspects of Huawei's management system have 
been certified by leading industry organizations, 
including our systems for financial robustness, 
quality management, risk management, human 
resource management, service delivery, supply 
chain management, knowledge management, 
project management, trustworthiness and software 
engineering, cyber security and privacy protection, 
information security, functional safety, EHS, CSR, 
CSD, and business continuity management (BCM). 
This has brought us extensive recognition from 
customers. The company has been evaluated and 
certified by numerous independent third parties, 
receiving a number of certifications including:
– ISO 9001
– TL 9000
– IATF 16949
– ISO 13485
– ISO 10012
– ISO 14001
– ISO 14064-1
– ISO 45001
– IECQ QC 080000
Huawei quality experts working with partners across the value chain to deliver better quality
– ISO 50001
– ISO 22301
– SA 8000
– ISO 30415
– ISO 28000
– ISO/IEC 20000-1
– ISO/IEC 27001
– ISO/IEC 27017
– ISO/IEC 27034
– ISO/IEC 27018
– ISO/IEC 27701
– ISO/IEC 29151
– CSA STAR
– PCI DSS
– PCI 3DS
– SOC 1/2/3
– ISO 27799
– ISO 26262
– ISO 21448
– ISO/SAE 21434
– ASPICE
– TISAX
– NIST CSF


70       Huawei Investment & Holding Co., Ltd.
Regulatory Compliance
Huawei works hard to conduct its business with integrity and conform to business ethics standards and all 
applicable laws and regulations. This key principle is upheld by our highest levels of management. We have worked 
for years to build a compliance management system that aligns with industry best practices and embed compliance 
management into every aspect of our business activities and processes. These efforts continue to this day. Huawei 
emphasizes a culture of integrity and invests heavily to make it a reality. As such, every Huawei employee is 
required to strictly adhere to its Business Conduct Guidelines (BCGs).
■ Our Chief Compliance Officer manages the 
company's operational compliance, and reports to 
the Board of Directors. Every one of our company's 
business departments and subsidiaries has also 
established its own compliance team, taking 
responsibility for the management of its own 
operational compliance.
■ We identify and assess risk according to applicable 
laws and regulations and business scenarios. In 
addition, we have formulated control measures that 
have been incorporated into our business activities 
and processes. We also continuously optimize our 
management system through root cause analysis 
and targeted corrective action.
■ We attach great importance to and continuously 
enhance the compliance awareness of our 
managers and employees. Through publicity, 
training, exams, disciplinary action, and other 
related actions, we push all our employees to fully 
understand their own obligations as well as those 
of the company.
■ With an open mind, we proactively engage and 
work with customers, partners, regulators, and 
other stakeholders on compliance, to constantly 
enhance mutual understanding and trust.
Compliance Management by Domain
As always, Huawei is dedicated to improving 
compliance across multiple domains, including but 
not limited to trade compliance, financial compliance, 
anti-bribery compliance, intellectual property (IP) 
and trade secret protection, and cyber security and 
privacy protection. These compliance requirements 
are embedded into our policies, systems, and business 
processes.
Trade Compliance
Huawei has always endeavored to comply with the 
applicable laws and regulations of the countries 
and regions in which it operates. These include the 
applicable export control and sanction laws and 
regulations of the UN, China, the US, and the EU. 
We are committed to fulfilling our responsibilities 
and obligations related to export controls. We have 
invested immense effort over the years to establish 
a mature and sustainable internal system for trade 
compliance that aligns with industry standard 
practices, and worked tirelessly to constantly improve 
this system.
We have also established an integrated trade 
compliance management organization within the 
company. This organization manages trade compliance 
across both group functions and field offices. In 
addition, we have established specialist teams in our 
global offices that monitor changes to local laws 
and regulations; formulate and refine our trade 
compliance policies, systems, and processes; drive the 
implementation of these requirements in applicable 
business domains and group functions; and manage 
and oversee trade compliance in each link of our 
business operations, ranging from procurement, R&D, 
and sales, to supply and services.
Huawei continuously pushes employees to further their 
own trade compliance awareness. Employees must sign 
Huawei's BCGs each year, which include commitments 
to observing applicable export control laws and 
regulations. Huawei provides training sessions on 
trade compliance to managers and employees across 
the company, with training taking various forms 
across different sessions. These efforts, combined with 
targeted training for specific business scenarios, ensure 
employees fully understand their own responsibilities 
and obligations, as well as those of the company, 
regarding export controls. The company also regularly 
conducts internal evaluation and audits of our own 
trade compliance system.
Financial Compliance
As always, Huawei is dedicated to complying with 
applicable financial laws and regulations, and 
earnestly fulfilling its statutory obligations and 
social responsibilities. We attach great importance 
to the management of financial compliance risks, 
and building on our long-term investment into 
financial compliance, we have established a financial 
compliance management and control system that 


2023 Annual Report
        71
closely aligns with industry standard practices, and 
have launched improvement initiatives to ensure this 
system continuously improves.
Specifically, we manage financial compliance from 
end to end by considering factors such as regions, 
transaction objects, fund routes, and the risk appetite 
of banks. Our management also covers our partners. 
We have set control points for our processes for 
procurement, R&D, sales, supply, service, investment, 
finance, human resources, and more. All of this is 
managed through IT control tools that are constantly 
being upgraded and refined.
Beyond systems and tools, we also constantly work 
to increase employee compliance awareness through 
internal communications on financial compliance, 
including publicity, training, exams, and disciplinary 
action. This ensures that employees not only recognize 
the company's and their own compliance obligations, 
but also act in accordance with compliance 
requirements.
Anti-Bribery Compliance
Huawei has a zero-tolerance policy towards corruption 
and bribery. We have continued to develop our 
compliance management system and capabilities at 
both the group and subsidiary levels. Through this 
system, we constantly monitor and identify risks, embed 
new compliance controls into our processes, and 
drive the optimization of relevant business rules and 
processes. We have also invested heavily in building an 
atmosphere and culture of compliance and increasing 
employee compliance awareness. Internally, we work 
hard to ensure all employee conduct is above board, 
while externally, we pay special attention to third-
party compliance management. We have established 
compliance monitoring procedures that review the 
effectiveness of our risk controls and drive improvement 
of the company's anti-bribery system and the closed-loop 
management of compliance issues. The combination of 
these efforts allows us to effectively control anti-bribery 
compliance risks across the company.
IP and Trade Secret Protection
Respecting and protecting IP: Huawei is dedicated to 
its long-term investments into R&D and continuously 
enriching its IP portfolio. Huawei is one of the world's 
largest patent holders, and the company believes 
that respecting and protecting IP is the bedrock of 
innovation. As a follower, practitioner, and contributor 
of IP rules, as well as an innovator, Huawei invests 
heavily into IP protection and respects the IP of others. 
Huawei has reached cross-license agreements with 
major ICT companies around the world, and works 
tirelessly to cultivate an industry environment that 
protects innovation and IP across countries and regions.
Respecting and protecting the trade secrets of 
others: Huawei is committed to protecting its own IP 
and trade secrets, while respecting those of others. 
We explicitly prohibit our employees from improperly 
acquiring, disclosing, using, or disposing of the trade 
secrets of others.
The key measures Huawei has taken to protect the 
trade secrets of others include:
■ Issuing our Regulations on Respecting and 
Protecting Third Party Trade Secrets, which set out 
clear rules that employees must follow to respect 
and protect the trade secrets of others during 
business activities and ensure that employees carry 
out business activities legally and in accordance 
with our contracts
■ Embedding trade secret protection requirements 
into business processes such as R&D, sales, 
procurement, and human resources, conducting 
regular reviews, and continuously improving 
management mechanisms by taking away lessons 
and case studies from day-to-day operations
■ Organizing publicity, training, and exams on trade 
secret protection for all employees, so that they are 
fully aware of their obligations and responsibilities 
regarding trade secret protection compliance
■ Conducting supervision, including checks and 
audits, to examine efforts aimed at protecting the 
trade secrets of others and thus ensure effective 
implementation of our policies, rules, and processes
■ Establishing an accountability system based on 
official corporate policies such as the Accountability 
Protocol for Infringements of Other Parties' Trade 
Secrets and the Accountability Rating Criteria for 
Information Security Violations to hold violators 
accountable for any trade secret violations
Regional Compliance Management
For every country and region outside China where 
Huawei operates, we have appointed a compliance 
officer and a country board director responsible for 
compliance (dual role). They manage and supervise 
the compliance of subsidiaries through the following 
key measures to guarantee the operational compliance 
of our businesses:


72       Huawei Investment & Holding Co., Ltd.
■ Formulating subsidiary compliance management 
policies in accordance with applicable local laws 
and regulations, guided by the tone at the top of 
our organization; helping organizations internalize 
external laws and regulations; and arranging for 
subsidiaries in more than 130 countries and regions 
to publish their own compliance white papers 
which serve as a guide for professional compliance 
management activities
■ Fully identifying compliance risks related to sales, 
service, supply, R&D, and other business activities 
that may be caused by the ongoing influence 
of uncertainties from geopolitics and economic 
prospects, technical sanctions, or trade barriers; 
assigning compliance management responsibilities 
to business departments; implementing related 
regulations and processes; and carrying out 
checks and assessments to ensure that key control 
measures are effectively implemented
■ Providing compliance training for employees 
across the company. In 2023, compliance training 
attendance reached 186,200 for employees outside 
of China, and 70,800 compliance-related exams 
were taken. The company also works hard to build a 
corporate culture that values honesty, integrity, and 
regulatory compliance. These efforts are aimed at 
helping employees fully understand the compliance-
related obligations and responsibilities they hold, as 
well as those of the company
Management Transformations
The overall goal of transformation at Huawei is to "grow the harvest and increase soil fertility". Our transformations 
concentrate on the company's strategic businesses and aim to help us maintain policy consistency. Our digital 
transformations support our businesses and increase business resilience, ensuring stable day-to-day operations.
■ Huawei aims to build strong rep offices, small 
regions, a small HQ, and a large platform. As 
such, we continued with our Contract Reviews 
and Conclusions at Rep Offices Transformation 
Program in 2023 which is injecting vitality 
into rep offices and improving their operating 
efficiency and capabilities. Key steps taken this 
year include:
– Further streamlining our processes and 
organizations to make them more responsive to 
customers
– Driving further optimizations of regional and 
HQ organizations from the bottom up, so that 
regions and HQ can focus on supporting what 
is required by rep offices and cutting down on 
what is not required
■ To help the company achieve high-
quality development in 2023, our digital 
transformations were aimed at three areas:
– Proactively following up on the irreversible 
trends of digital, intelligent, and low-carbon 
transformation, further refining our business 
management, identifying common data 
governance requirements shared by our partners 
in different industries, and exploring approaches 
to streamlining large-scale, multi-format data 
management in different ecosystems in a 
proprietary and controllable way
– Building up capabilities related to controllable 
data exchange and trustworthy, controllable, 
and verifiable data space services, which has 
helped ensure the controllable exchange of 
more than 20,000 types of data, satisfying the 
data sharing and governance needs of both our 
business units at different granularities (e.g., 
the group, businesses, and field offices) and our 
ecosystem partners
• 
The reliable, complete, and accurate data 
supported sustainable development of our 
global supply chain.
• 
We performed sustainable development 
audits on over 1,600 of our major suppliers 
who support more than 90% of our total 
procurement.
• 
We also worked to ensure that all of our top 
100 and energy-intensive suppliers completed 
their carbon emission statistics and implemented 
carbon emission reduction projects.
– Tackling the challenges arising from the 
application of AI foundation models in 
enterprises by establishing professional, 
scenario-based, and data-focused management 
approaches and systems that clearly define data 
boundaries, model boundaries, and model use 
boundaries. These approaches and systems have 
helped the company address conflicts between 
the application of AI foundation models and 
data protection, fully unlocking the value of 
data elements and supporting the company's 
high-quality development


2023 Annual Report
        73
■ In 2023, we continued to resort to 
digitalization to make our businesses more 
resilient, avoid business interruptions, and 
safeguard stable business operations.
– Digital transactions: As of the end of 2023, 
our transaction system had been connected to 
those of 274 account groups, 180,000 enterprise 
partners, and 46,000 suppliers. In addition, 
our cloud-based Mobile World Congress and 
customer summit initiatives improved transaction 
quality, making it easier for customers, suppliers, 
and partners (including ecosystem partners) to do 
business with Huawei.
– Digital internal operations: Digitalization of our 
internal operations has helped the company 
realize "elite team" operations with a large 
platform. Digital transformation of our major 
businesses has shortened order fulfillment 
times and further automated purchase order 
and acceptance management, increasing 
both the quality and efficiency of day-to-day 
operations. In addition, the company eliminated 
a number of business continuity risks by 
replacing restricted software packages. The use 
of proprietary technology has already helped us 
prevent supply interruptions and safeguarded 
fund and asset security.
■ We also further iterated our digital 
transformations to better serve our customers 
and partners.
– In 2023, Huawei completed the large-
scale rollout of MetaERP, an advanced 
digital platform for enterprise operations 
and management. With this platform, the 
company has improved its ability to manage 
human resources, finances, supply chain, 
procurement, and other aspects. This allows 
us to efficiently allocate key resource elements 
while maintaining steady growth. MetaERP 
now covers 100% of our business scenarios 
and 96% of our business by volume. This has 
substantiated the availability and advancement 
of our proprietary technologies, architectures, 
and engineering approaches, supporting 
both business continuity and sustainable 
development.
– In the device business, we continued improving 
our sales, marketing, and service platform 
to deliver better end-to-end smart home 
experiences for consumers on both B2C and B2B 
sides. This has shortened partner registration 
and incentive settlement times, improved the 
management efficiency of our retail stores, 
and systematically built up service capabilities 
surrounding our "1 + 8 + N" strategy.
– In our carrier business, we continued to expand 
and deepen IT system integration for customer 
transactions and delivery, making it easier 
for customers to trade with us. In 2023, we 
connected our end-to-end transaction and 
delivery system with 34 new accounts and 
increased the number of accounts capable of 
supporting collaborative online transactions and 
delivery by 129.
– Our enterprise business launched a dedicated 
partner site and an official site for the new 
HUAWEI eKit sub-brand as well as related 
mobile gadgets, such as the Huawei eKit app, 
to help our distribution partners go digital and 
improve customer and partner satisfaction.
– In Digital Power, we continued to put safety and 
reliability first. We kept building up and refining 
our end-to-end quality management system 
to advance digitalization and we enhanced the 
digitalization capabilities of our entire value 
chain by helping partners go digital faster.
– In Huawei Cloud, we focused on products, 
customers, ecosystems, and resources 
that provide leading, all-online, intelligent 
experiences for customers, partners, and 
developers across all business domains. 
Our goal for this business continues to be 
providing a solid, secure, and high-quality cloud 
foundation for the intelligent world.
■ In 2023, Huawei continued to roll out its 
Transformation Program for Software 
Engineering Capability Enhancement, 
aiming to improve company-wide software 
engineering capabilities, create trustworthy, 
high-quality products, build trustworthiness 
in our management system, and realize the 
replication of successful experience.
– Competitive and trustworthy products:
• 
Trustworthy results: In 2023, we fixed 
100% of widely exploited vulnerabilities 
and prevented 100% of high risks identified 
during product threat analysis. Products 
within the scope of this Transformation 
Program have been verified by Huawei's 
Independent Cyber Security Lab (ICSL). Over 


74       Huawei Investment & Holding Co., Ltd.
the past year, the ICT business has also 
obtained 174 new external certifications and 
avoided all major security incidents.
• 
Trustworthy process: We have realized full 
integrity protection (preventing tampering, 
implantation, spoofing, and malicious code) 
and traceability for our software sources, 
the development process, and the supply 
chain process. This includes:
> Integrity protection for 100% of sources;
> Integrity for 100% of internal R&D 
operations;
> Integrity for 100% of deliverables to 
outside parties;
> Scanning of 100% of potentially 
malicious open source and third-party 
software;
> 100% binary equivalence for applicable 
products;
> End-to-end tracing for all requirements; 
and
> Backtracking to problematic lines of 
code for any online issues, with all 
backtracking data being visible.
• 
Clean code: We have also constructed 
new architectures and platforms for over 
80 products, and refactored all historical 
Huawei-developed code.
– End-to-end transformation for live-network 
risk mitigation:
• 
We can now identify affected products and 
customers within minutes of a high-risk 
vulnerability being detected, and technical 
investigations into vulnerabilities at the 
product level can now be finished within 
hours and patches can be provided within 
30 days. In addition, we help customers 
promptly respond to such vulnerabilities 
on live networks, so that they can quickly 
mitigate any attendant risks on their live 
networks.
• 
We have also improved our product 
certificate O&M, helping customers change 
their live network certificates whenever 
needed and mitigating risks stemming 
from information leaks related to their 
live-network certificates and certificate 
expiration.
• 
We have established a security configuration 
baseline and embedded it into processes 
to improve product security configuration 
capabilities. The professional security 
configuration services we provide support 
live network configuration of customers 
and help them quickly mitigate live network 
configuration risks.
• 
We are continuing to align contract and 
product lifecycles, and ensure that both of 
these lifecycles meet industry requirements. 
By fulfilling contract-related responsibilities 
on time, we help customers mitigate risks 
created by legacy equipment on their live 
networks.
– Trustworthiness built into management 
systems for sustainable development:
• 
Through this program, we have 
developed 306 built-in capability items 
and restructured the business capability 
framework for our Integrated Product 
Development (IPD) business. To date, 
we have replicated previous successes 
in building trustworthiness in multiple 
processes, including IPD, Lead to Cash, 
Channel Sales, Manage Client Relationship, 
Market to Lead, Service Delivery, Issue To 
Resolution, Supply, and Procurement.
• 
Critical R&D operations now run on only 
68 target systems, improving both R&D 
operating efficiency and experience.
– A culture that values both trustworthiness 
and software:
• 
Every one of our software managers and 
employees must now be certified in software 
trustworthiness before being appointed to 
their positions.
• 
Every new project leader (PL) must have 
experience as a committer.
• 
All committers must obtain their respective 
professional certifications.


2023 Annual Report
        75
• 
We have rolled out a white-box 
performance appraisal system across the 
company, with 84.3% of software employees 
being satisfied that their work contributions 
have been fairly assessed.
Thanks to these concrete steps, we have built 
a culture that values both trustworthiness and 
software.
■ AI Business Intent and Governance Principles: 
AI is driving technological changes that greatly 
improve efficiency, productivity, quality of life, and 
societal well-being. At the same time, it presents 
a fair share of ethical and governance challenges. 
Our company has done a significant amount 
of engagement and research to understand 
these challenges. As for implementation, we 
have established a company-wide set of rules, 
which include our AI business intent and six AI 
governance principles, to instruct related business 
domains in their research, planning, deployment, 
and adoption of AI. We have a dedicated task force 
to ensure that AI technologies are being designed, 
developed, deployed, and used properly. Their goal 
is to drive responsible and sustainable innovation 
in our AI business.
Organizational Vitality
Despite changes to our internal and external environments, the company has stayed true to its corporate 
culture and core values. We have flexibly pooled resources by business and continued efforts to develop 
organizations for diverse businesses and field offices. In addition, we have rolled out transformations 
related to organizations and talent to enrich talent and improve organizational capabilities and 
efficiency. In the face of uncertainties and ongoing challenges, our employees have stayed confident and 
our organization has remained dynamic.
In 2023, our initiatives for boosting organizational vitality focused on the following key areas:
■ Adapting our organizational structure to better 
match our business, increasing organizational 
agility and efficiency, and steadily advancing 
transformation:
– The company has continued refining and 
strengthening its organizational structure to 
better support a multi-business landscape that 
integrates our ICT infrastructure, consumer, 
digital power, cloud computing, and intelligent 
automotive solution businesses.
– We continued to roll out the Representative 
Office Full Autonomy Program globally, 
as scheduled, and piloted integrated 
transformations at select representative offices. 
This program gives representative offices greater 
autonomy, allowing them to independently 
operate, make decisions, fulfill contracts, and 
take responsibilities. This strengthens our 
representative offices and simplifies our HQ 
teams, and will ultimately help transform our 
organization into one with multiple elite teams 
supported by a large platform.
– We continued to develop new operating 
models for our integrated teams. By shortening 
management chains and leveraging the 
company's strengths as a solution and 
technology platform, we are able to better 
serve customers by more quickly meeting their 
requirements.
– We systematically organized campaigns 
in strategic areas of focus. This operating 
approach has helped us break down 
organizational boundaries and encourage closer 
collaboration between different departments 
through a systems engineering approach. Our 
global leadership continues to grow thanks to 
these integrated teams as they help us give full 
play to our complete business portfolio.
■ Keeping the business strategy in mind as we 
build up a team of managers who can lead the 
businesses towards global leadership through 
the following actions:
– We encourage managers to work together 
towards shared goals and deepen their 
understanding of the company's strategic intent.
– We stay true to the manager selection 
mechanism, focus on their responsibility 
fulfillment results and contributions, and 
continue to implement a manager resume 
system, in order to select the right commanders 
and managers and allow more bright minds to 
stand out.


76       Huawei Investment & Holding Co., Ltd.
– We have continued to implement the term 
of office system for managers and encourage 
them to grow through mobility programs, 
including vertical and horizontal rotations. This 
will allow the company to seize new industry 
opportunities and build a more dynamic 
management team.
– We continue to strengthen manager 
specialization by using exams to facilitate 
learning and combining training with practice. 
This aims to help managers better prepare for 
and fulfill their jobs.
– We encourage administrative teams to 
effectively fulfill their responsibilities and inspire 
passion across the organization.
■ Assigning employees to positions that best 
suit them, continuing to actively source 
outstanding talent from around the world, and 
unleashing the potential of current employees, 
to keep enriching talent and maintain the 
dynamics of teams across the company:
– We have continued to bring in talent from 
around the world, regardless of background or 
seniority. With top minds and high-end talent 
joining us, we will be able to lead technological 
innovation and guide future customer needs.
– We have adopted talent supply strategies 
that are tailored to our organizations and are 
working to create a diverse talent mix.
– We have strengthened the operations of 
our talent planning committees and steadily 
advanced an orderly mobility system for 
employees and a training and practice system 
through the Strategic Reserve in order to upskill 
and reskill employees. These efforts will help 
our employees unleash their potential.
– We continued to roll out the Professional Staff 
Transformation Program in 2023 to create a 
stable specialist team.
– We redoubled efforts to systematically 
strengthen locally-hired teams, providing local 
talent with well-paced upskilling, enabling them 
to maximize their value and act as a stronghold 
for local operations.
– With a focus on both performance and 
capabilities, we ramped up efforts to improve 
competency and qualifications (C&Q) 
management. We are also reinforcing the 
operations of profession committees and 
capability development committees to maximize 
the value of experts.
■ Continuing the implementation of the 
Contribute and Share system based on 
responsibility fulfillment results and 
developing a differentiated incentive 
mechanism:
– The company is encouraging employees at 
different levels to better fulfill their operational 
responsibilities, and the development of an 
incentive mechanism that varies by business, 
development stage, and employee group, as a 
way to help organizations and employees deliver 
greater value.
– We are also channeling more resources towards 
our dedicated employees on the front lines. This 
is encouraging outstanding employees to make 
more contributions and motivating employees 
to take up positions within our business teams 
that are highly challenging or urgently need to 
be filled, thus generating even greater value for 
our customers.
■ Staying customer-centric and inspiring 
dedication:
– Huawei has and always will live by its core 
values of customer centricity, dedication, 
perseverance, and growth through reflection.
– On this basis, we are making every effort to 
create a dedicated, enterprising, and dynamic 
organizational climate in line with our diverse 
business portfolio and talent mix.
– We care deeply about our employees and will 
continue to ensure their physical and mental 
wellbeing by constantly improving their working 
and living environments and organizing various 
wellness activities.


2023 Annual Report
        77
Cyber Security and Privacy Protection
Embracing Changes, Challenges, and Opportunities
Over the last year, we have come even closer to the digital world as emerging technologies like AI flourished 
and data volumes experienced explosive growth. An increasing number of industries are accelerating digital and 
intelligent transformation, driving new development within the real economy through deeper digital integration. 
The digital economy is growing rapidly thanks to digital and intelligent technologies.
However, the growing digital economy is also amplifying cyber security risks. The increasing popularity of open 
source has led to the outbreak of zero-day vulnerabilities, and there have been record numbers of data leaks and 
rampant ransomware attacks and telecom fraud. Mitigating security risks in cyberspace is increasingly difficult. 
Therefore, the question has now become: How can we build intrinsic security to support network operators and 
customers in responding to cyberattacks? How can we build data security and ransomware protection solutions to 
cope with the challenges standing in the way of digital transformation?
Over the past 30-plus years, Huawei has worked with carriers to build over 1,500 networks and help millions 
of enterprises go digital. During this time, we have connected over three billion people around the world and 
maintained a solid track record in security throughout. As digital transformation continues to pick up speed, we are 
acutely aware that cyber security and privacy protection will become key to business success in the future digital 
world. With this in mind, Huawei has continued to make cyber security and privacy protection a top priority. We 
strive to tackle both the challenges and opportunities this new age presents through management transformation, 
technological innovation, and open collaboration. We are committed to fostering a better life for all in the future 
digital world by offering secure and trustworthy products, solutions, and services, and by taking concrete steps to 
manage related risks in our supply chains. We also share our experiences and capabilities with our suppliers and 
partners so that we can strengthen cyber security and privacy protection capabilities together.
Cyber Security and Privacy Governance: Continuous Improvement to 
Provide Secure and Trustworthy Products, Solutions, and Services That 
Help Customers Build Network Resilience and Mitigate Risks
■ In 2023, we continued to enhance our end-to-end 
cyber security and privacy protection assurance 
system to ensure our efforts in this area were 
robust and up-to-date.
Our five-year trustworthiness transformation 
to improve software engineering capabilities: 
In late 2018, Huawei's Board of Directors kicked off 
our trustworthiness transformation with a dedicated 
five-year budget of more than US$2 billion. The 
goal of this transformation was to make Huawei the 
most trusted supplier and partner in the industry 
with secure, trustworthy, and high-quality products 
by systematically improving the company's software 
engineering capabilities. Over the past five years, 
we have successfully transformed and upgraded 
our entire Integrated Product Development (IPD) 
process. For example, in the design phase, we have 
adopted a security-by-design approach by defining 
security function requirements, security design 
patterns, on-shelf trustworthiness technologies, 
and other security-by-design specifications. In the 
development phase, we have developed secure 
coding rules such as the Huawei Clean Code Guide 
and gated check-in rules. In the testing phase, 
we have built new security testing models such 
as penetration testing, fault tolerance testing, 
and resilience testing. We have also incorporated 
security-related specifications into our R&D tool 
chains to further standardize our development 
practices. Furthermore, we have built transformation 
results and practices into our management systems 
and processes to protect the integrity of software 
at the development and supply stages, ensure that 
transformation achievements can be replicated, and 
continuously develop high-quality products that are, 
by default, secure and trustworthy.
Enhancing privacy governance to respect 
and protect user privacy: We have continued 
to improve and refine our privacy compliance 
framework and adapt and implement it worldwide 
to meet the compliance requirements of different 
regions and countries. In addition, Huawei 
Technologies has been ISO/IEC 27701 Privacy 
Information Management System Standard certified.


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We have continued to invest in privacy compliance 
IT tools and platforms that enhance the maturity 
of compliance management in complex scenarios 
such as cross-border personal data transfers and 
the personal data compliance management of 
our suppliers. Thanks to these efforts, we were 
named an Innovative Data Security and Personal 
Data Protection Practitioner by the Cyber Security 
Association of China and presented with the 
Xingyi Best Practice on Data Security for 2023 
award by the China Academy of Information and 
Communications Technology.
We also share our experience and thoughts 
regarding privacy governance solutions, platform 
building, and operational compliance with other 
industry players to contribute to privacy protection 
across the entire industry. In 2023, we worked 
tirelessly to protect the rights of personal data 
subjects by handling more than 29,000 requests 
in a timely and effective manner. We also carried 
out over 60 inspections and audits against industry 
best practices in multiple countries and business 
domains. These efforts have helped ensure the 
effective implementation of our corporate privacy 
protection policies.
Working with customers and partners to 
ensure secure and trustworthy delivery and 
service operations: We have continued to improve 
the security and trustworthiness of our service 
solutions and service delivery based on concrete 
external requirements by improving the reach of 
our global service center network and helping 
our customers make their own networks more 
resilient. We have built systematic IT management 
capabilities targeting multiple scenarios such 
as customer authorization, network operations, 
and cross-border data transfers to ensure that 
exceptions are successfully intercepted and every 
operation is system-based and recorded, making 
our delivery and service operations transparent 
and traceable. We have built a security and 
trustworthiness system for delivery and services 
based on the Enterprise Architecture approach by 
strengthening internal rules, processes, and digital 
capabilities. In 2023, we ensured the security and 
trustworthiness of 955,000 network operations 
worldwide, including network optimizations, 
upgrades, and changes.
As part of our commitment to ecosystem 
development, we shared the knowledge, 
experience, and tools we developed throughout this 
process by opening up our knowledge community 
to partners. Meanwhile, we organized more than 
300 Network Safety Day events with customers 
to strengthen cyber security awareness and 
capabilities and support secure and stable network 
operations together.
Strengthening cyber security risk management 
and capability building within our supply 
chains: We encouraged 80 logistics service 
providers and 180 warehouses around the world 
to perform security self-checks, with 26 key 
logistics nodes receiving ISO 28000 certification. 
We continued to identify, assess, and manage risks 
with relevant suppliers and inspected nearly 1,000 
suppliers for cross-border personal data transfer 
compliance. Through these actions, we helped 
suppliers standardize their own data retention and 
management systems and ensured their security 
and privacy compliance. We also collaborated with 
relevant suppliers on vulnerability management to 
mitigate vulnerability risks, and shared our cyber 
security experiences and capabilities with suppliers, 
channel partners, and ecosystem partners. We have 
developed more than 20 courses and, in 2023, 
provided cyber security training on topics like cyber 
security baselines and vulnerability management 
to more than 1,500 managers and engineers 
from core suppliers. Moreover, we opened up our 
engineering capabilities, such as cyber security tools 
and security test cases, to suppliers to help improve 
their cyber security capabilities.
Improving the expertise of staff working on 
cyber security and privacy protection and 
boosting awareness among all employees: We 
have initiated the development of a cyber security 
and privacy protection knowledge community that 
will help connect people, people and knowledge, 
and knowledge and business. The goal of this 
community is to facilitate rapid knowledge sharing 
and transfer and improve individual expertise of staff 
working on cyber security and privacy protection. 
In 2023, we also kicked off a cyber security and 
privacy governance training camp where our 
employees could grow faster by sharing knowledge 
and experience in business processes and scenarios 
through drills, role-playing, and expert lectures.
By the end of 2023, we had created more than 160 
cyber security and privacy protection enablement 
courses, which were attended over 200,000 
times. We also run a Cyber Security and Privacy 
Protection Awareness Month campaign targeting 
all employees, which features messages from top 
management, expert lectures, and knowledge 
quizzes. This year's event attracted extensive 
employee participation both online and offline.


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Continuous investment in independent 
third-party verification: We continued our 
cooperation with industry-recognized certification 
bodies to test the security capabilities of our 
products against international standards and best 
practices, providing customers with internationally 
recognized security assurance. By the end of 2023, 
we had obtained more than 540 security and 
privacy certificates. In 2023 alone, we obtained 57 
cyber security certificates. Most notably:
– The HongMeng Kernel received Common 
Criteria Evaluation Assurance Level 6 
Augmented (CC EAL6+).
– Huawei Cloud received the new ISO/IEC 
27001 certification from the British Standards 
Institution (BSI).
– Huawei passed the GSMA Network Equipment 
Security Assurance Scheme (NESAS) audit for 
5G base stations, core networks, and network 
management systems.
– Our in-house HiTLS module received ISO/IEC 
19790 certification from BSI.
– Huawei's major smart PV products received 
both IEC 62443 and ETSI EN 303 645 
certifications.
■ Huawei leverages the technical capabilities of our 
2012 Laboratories to innovate and build security 
into products and thus help customers cope with 
the cyber security and privacy challenges and risks 
they face. Major innovations made in 2023 include:
Confidential computing, AI security, and 
data security technologies developed by the 
2012 Laboratories: We developed a general, 
heterogeneous confidential computing platform 
supporting the full stack of Kunpeng and Ascend 
to ensure the running environment security of 
AI models. In addition, we have developed data 
asset security warehousing solutions to protect AI 
data and model assets throughout the lifecycle. 
At Huawei, we believe that the right approach to 
secure and trustworthy AI is through engineering, 
standardization, and certification. To improve 
data security, we have also developed trustworthy 
dataspace solutions that use a hierarchical policy 
model and control engine to control data in use.
Intrinsic security, ransomware protection, 
and HiSec 3.0 security service solutions for 
ICT infrastructure: We build security capabilities 
directly into our mobile communications 
services to create solutions that feature intrinsic 
security. By using technologies such as security 
configuration check, trustlist-based detection, 
and micro-segmentation, we have bolstered the 
comprehensive, in-depth defense capabilities of 
networks by enabling precise threat detection 
and rapid responses without service disruption. 
In addition, we have created a ransomware 
protection solution that helps customers transform 
reactive security into proactive defense strategies 
and improve data center resilience. This solution 
features network-storage collaboration, which 
means threat intelligence is shared at the network 
and storage layers so that unknown ransomware 
attacks can be more effectively detected.
In cloud security, Huawei has also launched a 
dozen SaaS-based Qiankun security services. In 
terms of network security, Huawei has released 
the HiSec SASE Security Solution which is 
based on a simplified network architecture that 
integrates management, control, analysis, and 
security, redefining enterprise security boundaries. 
In addition, Huawei has released Qiankun EDR, a 
lightweight security solution deployed at endpoints 
that boasts industry-leading ransomware 
protection capabilities.
Innovative technologies that safeguard 
consumer privacy and data: We are continuously 
upgrading the privacy and security assurance 
capabilities of our consumer devices. For devices 
like smartphones, we have followed the five 
principles of data protection – data minimization, 
on-device data processing, data transparency 
and controllability, identity protection, and data 
security assurance – to develop a variety of new 
protection functions, including the App Guard, the 
App Security Center, the Security & Privacy Center, 
and Image Privacy. This creates an end-to-end 
privacy and security assurance system that protects 
consumers while using devices. As mentioned 
above, Huawei's HongMeng Kernel has also been 
awarded the industry's first CC EAL6+ certification, 
the highest security level available in the field of 
operating system (OS) kernels.
Cloud-native security and cloud security 
services: Cloud security is said to be 30% R&D 
and 70% operations. Guided by this principle, we 
have built a cloud-native security architecture 
with a single security operations center and seven 
lines of defense. This architecture features unique 
capabilities such as situational security management 
and incident response automation to address 


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hundreds of billions of attacks every year. Huawei 
Cloud also offers the SecMaster security operations 
platform, over 20 cloud security services, and more 
than 700 ecosystem-oriented security products to 
provide customers with secure, stable, and high-
quality cloud services and support the development of 
their own security operation systems and capabilities.
Security for digital power: Based on our insight 
into the development trends of new power 
systems, we have worked to enhance the security 
of PV power stations by bolstering the intrinsic 
security of products and utilizing technologies 
like intrusion detection, secure boot, and digital 
certificate management. The security capabilities of 
our major PV products have been certified against 
internationally recognized standards including IEC 
62443 and ETSI EN 303 645.
Intelligent automotive components that ensure 
both security and privacy: We provide cyber 
security solutions such as Trust Ring to support the 
critical intelligent automotive components used to 
build intelligent driving and cockpit products. These 
solutions come with industry-leading security and 
privacy capabilities, helping carmakers make better 
cars. Our intelligent cockpit solution now supports 
account-dedicated isolation, allowing users to 
access personal data through zero-touch face 
authentication. In addition, a driver privacy mode 
and speech privacy shield have been introduced 
to protect privacy when multiple passengers 
are onboard, securing private conversations and 
business calls.
Shared Responsibility, Joint Capability Building, and Collaboration for 
Shared Success
Cyber security and privacy protection are common challenges for all as we stride towards a digital and intelligent 
world. These are challenges that all stakeholders – including governments, industry and standards organizations, 
and enterprises – have a shared responsibility to tackle. Huawei's cyber security principles are built upon 
integrity, trustworthiness, capability, accountability, openness, and transparency. Therefore, we welcome closer 
communication and collaboration with all stakeholders to jointly confront emerging risks and challenges during 
this world-changing transformation.
In 2023, we collaborated with external stakeholders 
around the world in many areas:
■ We continued to contribute security proposals 
to standards organizations that will drive the 
development of security standards in different 
industries.
Connectivity: We have contributed more than 
300 cyber security proposals to 3GPP and GSMA, 
maintaining our longstanding position as a leader 
in the industry. These include 3GPP Security 
Assurance Specifications (SCAS) for 5G-Advanced 
Management Function (MnF) and the Next 
Generation Real Time Communication (NG-RTC) 
security specifications.
Computing: We contributed security proposals, 
including an AI computing platform security 
framework, general confidential computing 
framework, and remote attestation procedures 
(RATS) architecture to ISO/IEC, ETSI, and the 
National Information Security Standardization 
Technical Committee of China (TC260), and worked 
with industry partners to drive the development 
and application of computing security technologies.
■ Our joint innovation with customers continued to 
evolve.
We deepened our joint innovation with China 
Mobile in the cyber security domain, expanding 
our cooperation beyond 5G security to also cover 
computing network security. We teamed up with 
China Mobile Zhejiang to create and test intrinsic 
security solutions for 5G networks and jointly build 
a global showcase of the 5G Mobile Cybersecurity 
Knowledge Base. In addition, we worked with China 
Mobile Fujian to provide security services such 
as device access control, dynamic access control, 
and security situational awareness by opening up 
5G network capabilities, thus meeting the security 
requirements of fully-connected 5G factories. Our 
joint project won the security track first prize in 
the Blooming Cup 5G Application Competition. We 
also worked with China Mobile Guizhou to explore 
and verify computing network security capabilities, 
such as a ransomware protection solution featuring 
network-storage collaboration, confidential 
computing, and data free flow with trust 
(DFFT), to meet the security and trustworthiness 
requirements of data sharing, exchange, free flow 
with trust, and trading scenarios in the context of 


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In Egypt, Huawei rolled out various programs for ICT talent 
ecosystem development, best practice sharing, and awareness 
enhancement to improve local cyber security readiness. At the 
2023 Egypt Edition of the Cybersecurity Innovation Series, Egypt's 
National Telecom Regulatory Authority presented Huawei with 
the Cyber Awareness Plan of Year 2023 award.
In Indonesia, we renewed the memorandum of understanding 
(MoU) on cyber security cooperation with the National Cyber 
and Crypto Agency (BSSN). We will strengthen cooperation with 
key stakeholders such as local governments, universities, and 
enterprises in talent cultivation and capability improvement to 
jointly address cyber security challenges.
the "Eastern Data, Western Storage" and "Eastern 
Data, Western Computing" initiatives. The project 
won second prize at the Huacai Cup Computing 
Power Innovation Application Competition.
In 2023, Huawei and PLN – Indonesia's national 
electric power company – entered a strategic 
partnership agreement and launched a joint 
innovation lab. This partnership aims to explore 
digital network operations and cyber security 
applications and conduct joint innovations in 
technologies such as in-depth application detection, 
digital map, network slicing, and situational 
awareness. Huawei is helping PLN devise a 
top-down plan for network architecture that will 
meet business development requirements over 
the next five years, build enterprise network 
construction standards and evolution solutions, and 
incubate innovative solutions for digital network 
operations. We are also working together on cyber 
security in core electric power production processes, 
including the meter data management system, 
to ensure digital operations security for customer 
networks and core applications.
Huawei and China CITIC Bank set up a Financial 
Digital Joint Innovation Lab to explore DFFT 
applications in the finance industry and develop 
secure data flow technologies. Based on key 
technologies such as data security modeling, 
core access control algorithms, and quantum 
key distribution, we have been able to deliver 
security features such as high-performance data 
use control engines, transparent data encryption 
and decryption, hardware-based trusted execution 
environments, and certificate storage and source 
tracing. We have also incubated new storage 
appliances and provided a shared space across 
hardware and software for DFFT and data use. 
Together, Huawei and China CITIC Bank released 
the Technical White Paper on Financial Data Free 
Flow with Trust which highlighted innovative 
practices in infrastructure construction to support 
the adoption of DFFT in the finance industry.
■ We actively worked with government organizations 
around the world to support local talent cultivation 
by sharing knowledge and experience.
In Thailand, Huawei actively participated in cyber 
security contests, organized cyber security training 
and enablement sessions, and won the Prime 
Minister Awards – Thailand Cybersecurity Excellence 
Award – for the second consecutive year.
In Malaysia, Huawei worked closely with the local 
government and carriers on talent cultivation and 
cyber security awareness and ecosystem building. 
In recognition of these contributions, Huawei 
received the Cyber Security Education Innovation of 
the Year 2023 award in Malaysia.
In Brazil, we worked with the local government on 
knowledge sharing and talent cultivation, driving 
the refinement and implementation of the Digital 
Brazil framework.


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■ We intensified cooperation with local universities and 
industry organizations to help improve cyber security 
capabilities and awareness in individual regions.
In the Middle East, as a commercial member of the 
Organisation of the Islamic Cooperation-Computer 
Emergency Response Team (OIC-CERT), we 
participated in the development of the 
OIC-CERT 5G Security Framework which contributes 
to the development of local cyber security 
certification guidelines, standards, and ecosystems. 
We also cooperated with the International 
Telecommunication Union Arab Regional 
Cybersecurity Centre (ITU-ARCC) to develop the 
Arab Cybersecurity Industry Development Strategy 
Maturity Module which helps local enterprises 
identify cyber security threats and enhance their 
response capabilities.
In Spain, we signed an MoU with the University 
of León to jointly build a 5G security lab and 
experience center. This partnership aims to provide 
a real-world environment for experimentation and 
training, and facilitate local cyber security research 
and talent cultivation.
In Africa, we inked MoUs or worked with the 
Communications Regulators' Association of 
Southern Africa, the East African Communications 
Organization, and the African Internet Governance 
Forum on cultivating local talent through 5G 
cyber security training and other projects. Huawei 
was also honored with the prestigious Advancing 
Internet Governance in Africa Contribution Award 
at the African Internet Governance Forum 2023.
Openness. Collaboration. Shared Success.
We are facing an increasingly complex environment, with new opportunities and segments emerging left and right:
■ Communications: We will begin to see 
large-scale adoption of 5.5G and new short-range 
communications technologies as the industry's 
vision for next-generation communications network 
standards gradually takes shape.
■ Computing: The Kunpeng and Ascend ecosystems 
are progressing day by day, and research into new 
computing architectures is expanding.
■ Audio and video: Technologies like ultra-high-
definition (UHD) audio and video, 3D audio, and 
graphics engines are thriving.
■ Smart devices: Seamless AI Life experience and 
HarmonyOS Connect will see broad adoption 
across many aspects of work and life.
■ Security: Countries and regions around the world 
are actively exploring ways to enhance network 
and data infrastructure security, learning from 
each other's experience, and looking for technical 
mechanisms to make security more controllable 
and manageable.
■ Industrial transformation: Industries are 
expanding the scope of digitalization, embarking 
on a new journey that combines digital, intelligent, 
and green transformation.
Over the next 10 to 20 years, communications and 
computing will become the two most important 
building blocks of a fully connected, intelligent world. 
Huawei will continue to openly collaborate with 
industry organizations and ecosystem partners across 
various domains, including the public and private 
sectors, academia, research institutes, and users. We 
will continue to make standards contributions, and 
share the industry insights and technical challenges we 
have identified, in order to drive industry development 
and technology advancement. We will also use a 
systems engineering approach to create greater synergy 
between software, hardware, chips, networks, cloud, 
edge, and devices, and promote integrated innovation 
together. This will help make our products and solutions 
more competitive. As always, we will continue to work 
with industry partners to cultivate thriving industry 
ecosystems and create an open and collaborative 
industry environment that thrives on shared success.
Huawei manages supply chain security risks from three aspects – supplier management, open source software 
management, and R&D and production management. We encourage close collaboration between upstream and 
downstream players throughout the industry so that we can jointly build a favorable cyber security environment 
conducive to development. A stronger industry in turn strengthens security. This is how we can drive the 
sustainable development of the digital economy. We look forward to closer communication and collaboration 
with all stakeholders in terms of security standards, technological innovation, security governance, testing, and 
verification. Together, let's build cyber security and privacy protection capabilities, share value, and foster a better 
life for all in the future digital and intelligent world.


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Group photos – 13th GIO Roundtable, MWC Barcelona 2024
Since 2018, Huawei has worked closely with leading industry organizations via the Global Industry Organizations (GIO) Roundtable to discuss 
the reference architecture, roadmap, pace, and best practices for digital transformation in various industries, and explore how we can better 
promote cross-domain and cross-technology information sharing and collaboration in various forms between industry organizations. Our 
ultimate purpose is to accelerate digital transformation across all industries. The roundtable pictured above focused on data elements, the 
outlook and path for unlocking their value, and their high-value application scenarios (e.g., manufacturing, healthcare, and transportation), as 
well as data exchange, data definition, and digital platform ecosystems.
Key Progress and Industry Contributions
Huawei actively works with global industry organizations, and we hold more than 450 key positions in 
nearly 800 academic associations, standards organizations, industry alliances, and open source communities. 
We foster deeper partnerships and mutual recognition of standards between industry organizations, and 
work hard to address industry challenges, breakpoints, and bottlenecks.
■ Standardization: We firmly support the unification 
of global standards and actively promote global 
consensus on connectivity through organizations like 
ITU, 3GPP, and GSMA. We are helping our partners 
ensure a smooth evolution towards 5.5G, F5.5G, and 
Net5.5G. In 2023 alone, we submitted nearly 12,000 
contributions to standards organizations worldwide.
■ Industry development:
– In the industrial software field, we joined 
forces with partners to release the Industrial 
Digital and Intelligent Transformation White 
Paper 2030.
– In the audio and video field, we promoted the 
release of HDR Vivid and Audio Vivid standards 
for devices, chips, vehicles, and many other 
domains.
– In the public sector, we proactively responded 
to input requests from different countries on 
industrial policy, such as China's five-year action 
plan for the national AI development strategy.
– In response to the Green Economy Initiative of 
the United Nations Environment Programme, we 
contributed to green standards, further improved 
the competitiveness of our green ICT and digital 
power products, and are working to embed new 
innovation into green industry practices.
■ Ecosystem development: We have fully defined 
our philosophy, approaches, guidelines, and 
processes for developing ecosystems in domains 
such as HarmonyOS, Kunpeng, Ascend, and cloud 
computing. We are working hard to cultivate 
thriving developer and university talent ecosystems, 
create more fertile ground for open source, and 
support the success of core open source projects. 
These are part of our broader efforts to offer the 
world another standards option.


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Academic Associations
Huawei embraces an open and diverse academic culture. We actively engage with global academic 
associations as part of our efforts to explore challenges that industries face and cultivate STEM talent. 
Together, we are invigorating academic pursuits while driving economic progress.
■ Probing the endless frontiers of science 
through sharing, exchange, and industry-
academia collaboration:
– In 2023, we shared our thoughts on the future 
of wireless, optical, and foundational software 
at international academic conferences, and we 
are working with researchers worldwide to draft 
a tech blueprint for the intelligent world.
– We worked more closely with organizations 
such as the China Computer Federation to 
release more than 70 new research topics in a 
bid to drive progress in computer science.
– We continue to support MindSpore-based 
academic research and have supported the 
publication of more than 900 papers at leading 
conferences to drive advancements in AI.
■ Contributing new ideas to academic associations: 
We have published more than 1,270 papers in high-
impact conferences and journals like the Association 
for Computing Machinery (ACM) and the Institute 
of Electrical and Electronics Engineers (IEEE). Among 
these papers, Accurate medium-range global weather 
forecasting with 3D neural networks was published 
in Nature and named one of the top 10 scientific 
advances in 2023 by Science.
■ Cultivating STEM talent through top 
competitions: To inspire and engage the next 
generation of STEM talent, we contribute real-
world industry challenges to multiple competitions 
hosted by academic organizations, such as the 
International Collegiate Programming Contest 
(ICPC), Computer Vision Foundation (CVF), and 
Society for Information Display (SID).
Standards Organizations
We actively contribute to standards organizations, work with customers and partners to drive 
technological upgrade in fields such as connectivity, media, devices, and computing, and are working to 
help all industries go digital, intelligent, and green.
■ We are promoting efforts to open up, 
co-develop, and share global standards, 
helping outline a new vision for the industry.
– Within 3GPP, we are actively contributing to 
5G-Advanced Release 19 through efforts like 
informing specifications with new-value use 
cases based on technical innovation, in order to 
drive the industry forward.
– Through the European Telecommunications 
Standards Institute (ETSI), we are supporting 
efforts to release F5G Advanced standards for 
the fixed network domain, guide the evolution 
from F5G to F5.5G, bring 10 gigabit experience 
everywhere, and drive industry progress.
– Within IEEE, as part of our broader efforts 
to enable industry upgrade, we are working 
together to drive the evolution of network 
standards for 400G/800G and time-sensitive 
networking (TSN) in order to support the 
evolution of carrier, enterprise, industrial, 
electric power, and vehicle-mounted networks.
– Within the ITU, we are exploring how to more 
effectively utilize global spectrum for international 
mobile telecommunications (IMT), and are 
helping upgrade optical industry standards.
– Within ISO/IEC Joint Technical Committee (JTC) 
1, we are contributing to standardization on 
AI-based image coding and decoding and 
trusted multimedia source tracing, in order to 
facilitate industry innovation.
– Within the World Wide Web Consortium (W3C), 
we are helping promote the release of MiniApp 
specifications that make it easier for developers 
to develop HarmonyOS apps.
– We promoted the release of audio and video 
standards such as HDR Vivid and Audio Vivid to 
build a new UHD industry ecosystem.
– We worked with partners to promote the 
large-scale application of computing 
performance benchmarks and the development 
of full-stack computing ecosystems.
– Our Pangu models received the industry's first 
"Excellent" rating in China, in recognition of 
their contribution to a thriving industry.
■ We are working to drive consensus on 
standards and help shape new ecosystems.
– We are contributing to unified global 
standards for AI management systems, working 
with others to build unified AI interface 
specifications and computing power benchmark 
specifications, and supporting the development 
of full-stack AI ecosystems.


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– Together with partners, we are developing 
standards for new electric power, PV power 
and energy storage system safety, mobility 
electrification, and green and low-carbon 
systems to bring safer renewable electric power 
to all industries.
– We are helping promote industry standards for 
5G, big data, AI, and foundation models to fuel 
industry digitalization.
Industry Alliances
Huawei is a committed partner in major industry alliances around the world. Together, we are working to 
promote sustainable industry development and help vertical industries go digital.
■ Promoting industry competitiveness and 
sustainable development: We are working closely 
with industry organizations such as GCC, UWA, 
WAA, GIIC, SparkLink Alliance, and WBBA, as well 
as partners all along the value chain, to promote 
industry-wide consensus, standards development, 
testing and certification, and talent cultivation. These 
efforts will promote sustainable development in 
industries such as diversified computing, audio and 
video, WLAN, IoT, short-range communications, and 
fixed networks.
Open Source Communities
Huawei is a firm supporter and major contributor to open source communities, where we advocate 
for inclusion, fairness, openness, solidarity, and sustainability. Through our work with developers and 
partners to build world-class open source communities, we aim to accelerate software innovation and 
create thriving industry ecosystems.
■ Huawei actively participates in major open 
source organizations and projects. We strongly 
advocate for open source software development. 
Huawei is a premium or founding member of more 
than 20 international open source foundations, 
including the Apache Software Foundation, the 
Linux Foundation, the Eclipse Foundation, the 
OpenAtom Foundation, the OpenInfra Foundation, 
the Cloud Native Computing Foundation (CNCF), 
and the PyTorch Foundation. We actively contribute 
to more than 200 open source communities. In 
particular, we serve in board member positions 
of dozens of open source communities and serve 
in hundreds of core roles, including Technical 
Steering Committee member, Project Management 
Committee member, Project Team Lead, 
Maintainer, and Core Committer.
■ With a focus on foundational software, Huawei 
has launched more than 10 influential open 
source projects to build a stronger foundation 
for digital infrastructure ecosystems. Huawei 
has launched multiple platform-level open source 
projects, such as KubeEdge, MindSpore, Volcano, 
openEuler, openGauss, OpenHarmony, Karmada, 
openGemini, and Kuasar. These foundational 
software projects have attracted an incredible 
■ Strengthening international industry collaboration 
to advance digital transformation: Huawei is an 
active partner in international industry organizations 
such as GSMA, CSIA, CCIA, CESA, GSA, AII, 5GAIA, 
5GDNA, and 5GAA. We actively contribute industry 
white papers, testbeds, and standards to support 
the development and application of new digital 
technologies in sectors such as communications, 
electronics, manufacturing, electric power, iron and 
steel, coal mining, oil and gas, and ports. Together, we 
are driving digital transformation forward.
number of contributors, including software 
vendors, developers, research institutes, and 
universities from all over the world. We have 
donated openEuler and OpenHarmony to the 
OpenAtom Foundation, and donated KubeEdge, 
Volcano, Karmada, and Kuasar to CNCF. These 
projects have united the contributions of global 
participants through a more open approach, and 
are further promoting the digital transformation of 
industries.
■ We are building a foundational software 
ecosystem with industry partners. Under the 
guidance of the OpenAtom Foundation, the 
OpenHarmony community has attracted more 
than 6,700 individual contributors and over 70 
organization contributors that have submitted 
more than 100 million lines of code. The openEuler 
community has rallied more than 1,300 organization 
members (e.g., top enterprises, research institutes, 
and universities), and over 16,800 individual open 
source contributors. openEuler itself has seen 
over two million downloads across more than 130 
countries and regions. Partners have released more 
than 20 commercial distributions of openEuler, with 
over 6.1 million commercial deployments in total.


86       Huawei Investment & Holding Co., Ltd.
■ We are helping to build sustainable and 
trusted open source communities. Huawei 
actively works with partners from the software 
security industry to improve the security of open 
source ecosystems and address increasingly 
complex security challenges. We are deeply 
engaged in the development and promotion 
of major global software supply chain security 
standards and specifications, such as OpenChain 
and SPDX. We continue to fulfill our corporate 
social responsibilities to help build globally trusted 
open source ecosystems.
Ecosystems
We openly collaborate with ecosystem partners and developers to create value and help others succeed. 
We are speeding up efforts to open up our platform capabilities to ecosystem partners and developers 
in areas like HarmonyOS, Kunpeng, Ascend, and cloud computing. Together, we will continue to improve 
development experience, enable innovation, and create value.
■ Increasing ecosystem investment to help 
partners create value. We are enabling ecosystem 
partners on all fronts, working together to drive 
shared success, and creating greater value for our 
customers. We have increased our support for 
ecosystem partners and invested tens of billions 
of yuan to stimulate application innovation based 
on Huawei's open capabilities. We are offering 
promotional support and sharing opportunities 
with ecosystem partners to help them achieve 
business success. By the end of 2023, we had 
worked with more than 46,000 ecosystem partners 
and developed more than 36,600 innovative 
applications together, accelerating innovation in 
industries like finance, energy, transportation, 
manufacturing, healthcare, and education.
■ Enabling developers to innovate and grow by 
sharing experience, opening up capabilities, and 
enriching development tools. To help improve 
development efficiency, we provide comprehensive 
toolsets to support different scenarios, including 
hardware, application, AI, data, and digital content 
development. We are also working to cultivate 
and enable developers through various activities 
and competitions. In 2023, we held 7 flagship 
contests, over 30 themed summits, and over 1,000 
online activities, reaching millions of developers 
worldwide. We also supported developer growth 
and innovation through programs like the Shining-
Star Program, the OpenMind Program, and the 
Innovation Support Program. By the end of 2023, 
we had opened up more than 100,000 APIs and 
served over 9.5 million developers.
■ Helping universities cultivate talent for digital, 
green, and intelligent transformation. Huawei 
has launched a variety of programs, including the 
100 Seed Schools Program, the OpenHarmony 
Stars program, our updated business-academia 
talent development program, and the talent 
development acceleration program. We have 
released a total of 67 textbooks. Through our 
Intelligent Base 2.0 program, we have expanded 
the scope of our technical cooperation with 
universities. In 2023, Huawei held 77 training 
sessions in the information field, and engaged 
in competitions such as the China International 
College Students' Innovation Competition, the 
Huawei ICT Competition, and other innovation-
oriented events, benefiting more than 4,600 
teachers and over 500,000 students. These are part 
of our efforts to cultivate next-generation talent 
for the industry.
Industrial Policies
We are working to help unleash the business and social value of the ICT industry by sharing digital 
economy best practices and promoting digital inclusion.
■ Sharing digital economy best practices to 
promote digital inclusion. Huawei and IDC 
worked together to propose the concept of "Digital 
First Economy", encouraging policymakers to 
introduce more favorable policies that support 
digital infrastructure, digital economy ecosystems, 
and digital talent development. We have also 
shared best practices from different countries and 
regions in advancing their digital economies. These 
are part of our broader efforts to create greater 
social and business value and promote sustainable 
development through digital inclusion. At the World 
Economic Forum, ITU, and other international 
organizations and open forums, we regularly share 
our experience and best practices in promoting 
digital transformation, digital inclusion, and more.
■ Advising on industrial policy to advance 
digital transformation. To promote inclusive 
and sustainable digital transformation around 
the world, we actively participate in public 
consultations on digital economy planning and 
industrial policy, sharing recommendations on 
digital development in the countries and regions 
where we operate.


2023 Annual Report
        87
Results of Operations
Financial Performance
(CNY Million)
2023
2022
YoY
Revenue
704,174
642,338
9.6%
Gross profit
325,364
281,925
15.4%
– Gross profit margin
46.2%
43.9%
2.3%
Total operating expenses
(283,644)
(271,279)
4.6%
– as % of revenue
40.3%
42.2%
(1.9)%
Other income, net
62,681
31,570
98.5%
Operating profit
104,401
42,216
147.3%
– as % of revenue
14.8%
6.6%
8.2%
Net finance expenses
(6,659)
1,018
(754.1)%
Income tax
(10,646)
(8,384)
27.0%
Net profit
86,950
35,562
144.5%
Huawei's total revenue in 2023 was CNY704,174 million, which was a 9.6% YoY increase. Our net profit was 
CNY86,950 million.
■ Due to industries' digital, intelligent, and low-carbon transformation and our more competitive products, our 
revenue continued to grow. 
■ The increase in our profit was mainly attributed to revenue growth, our improved product portfolio, higher-
quality operations, and gains from the sales of some businesses. 
Total operating expenses
(CNY Million)
2023
2022
YoY
Research and development expenses
164,721
161,494
2.0%
– as % of revenue
23.4%
25.1%
(1.7)%
Selling and administrative expenses
118,923
109,785
8.3%
– as % of revenue
16.9%
17.1%
(0.2)%
Total operating expenses
283,644
271,279
4.6%
– as % of revenue
40.3%
42.2%
(1.9)%
We continued to invest in future-oriented basic research and open innovation in domains such as cloud and 
computing, intelligent automotive components, and foundational technologies. However, since our revenue grew, 
our R&D expenses as a percentage of revenue declined YoY.
We also continued to invest in the development of new business domains, ecosystem building, and digital 
transformation, and our operating efficiency increased thanks to ongoing transformation. As a result, our selling 
and administrative expenses as a percentage of revenue decreased YoY.


88       Huawei Investment & Holding Co., Ltd.
Net finance expenses
(CNY Million)
2023
2022
YoY
Net foreign exchange losses
474
277
71.1%
Other net finance losses
6,185
(1,295)
(577.6)%
Total net finance expenses
6,659
(1,018)
(754.1)%
Huawei's net finance expenses in 2023 totaled CNY6,659 million. This change was mainly attributed to the increase 
in other net finance losses.
Financial Position
(CNY Million)
December 31, 
2023
December 31, 
2022
YoY
Non-current assets
390,503
289,008
35.1%
Current assets
873,094
774,796
12.7%
Total assets
1,263,597
1,063,804
18.8%
Among which: Cash and short-term investments
475,317
373,452
27.3%
                   Trade receivables
97,224
87,177
11.5%
                   Contract assets
53,886
52,527
2.6%
                   Inventories and other contract costs
154,558
163,282
(5.3)%
Non-current liabilities
304,597
196,870
54.7%
Among which: Long-term borrowings
291,688
183,183
59.2%
Current liabilities
451,432
429,858
5.0%
Among which: Short-term borrowings
16,726
13,961
19.8%
                   Trade payables
86,362
85,272
1.3%
                   Contract liabilities
95,101
87,575
8.6%
Equity
507,568
437,076
16.1%
Total liabilities and equity
1,263,597
1,063,804
18.8%
As of December 31, 2023, Huawei's balance of total assets had reached CNY1,263,597 million, which was an 
increase of 18.8% YoY. Our current assets accounted for 69.1% of our total assets. 
As of December 31, 2023, our total short-term and long-term borrowings increased by CNY111,270 million YoY. 
The primary purpose of these borrowings was to continue to invest in future-oriented basic research and open 
innovation.


2023 Annual Report
        89
Cash Flow from Operating Activities
(CNY Million)
2023
2022
YoY
Net profit
86,950 
35,562
144.5%
Adjustment for depreciation, amortization, impairment, 
net foreign exchange losses and non-operating income 
and expenses
(9,012)
8,353
(207.9)%
Cash flow before changes in operating assets and 
liabilities
77,938 
43,915
77.5%
Changes in operating assets and liabilities
(8,131)
(26,118)
(68.9)%
Cash flow from operating activities
69,807 
17,797
292.2%
In 2023, our cash flow from operating activities was CNY69,807 million, which was a YoY increase of 292.2%. This 
increase was attributed to growth in our profit and operating efficiency.
Financial Risk Management
In 2023, we closely monitored the changes in our external environment and proactively assessed their impact on 
Huawei using the financial risk management system we have built over the past years. In addition, we continued 
to amend and improve our financial risk management policies and processes to further enhance our ability to 
withstand financial risks and better support our business development.
Liquidity Risk
We have continuously worked to improve our capital structure and short-term liquidity planning, budgeting, and 
forecasting systems to better assess mid- to long-term liquidity needs and short-term funding shortfalls. We 
have implemented prudent financial measures to meet our liquidity needs and guarantee our company's business 
development, including maintaining a robust capital structure and financial flexibility, keeping a proper level of 
funds, gaining access to adequate and committed credit facilities, creating effective cash plans, and centralizing 
cash management. As of December 31, 2023, our cash and short-term investments amounted to CNY475,317 
million, which shows that we properly managed our liquidity risks.
(CNY Million)
2023
2022
YoY
Cash flow from operating activities
69,807
17,797
292.2%
Cash and short-term investments
475,317
373,452
27.3%
Short-term and long-term borrowings
308,414
197,144
56.4%
Foreign Exchange Risk
Our presentation currency is CNY, but we have foreign currency exposures related to buying, selling, and financing in 
currencies other than CNY. According to our established foreign exchange risk management policy, material foreign 
exchange exposures are hedged based on a comprehensive analysis of market liquidity and hedging costs. We have 
developed a complete set of foreign exchange management policies, processes, and instructions. These include:
■ 
Natural hedging: We structure our operations to match currencies between procurement and sales transactions, 
to the greatest extent possible.
■ 
Financial hedging: For certain currencies where natural hedging does not fully offset the foreign currency 
position, we hedge through forward foreign exchange transactions. In countries where local currencies 
depreciate sharply or that have strict foreign exchange controls, we manage foreign exchange exposures using 
different measures, including exchange rate protection and financial hedging. We have also adopted solutions 
like accelerating customer payment and promptly transferring cash out of these countries to minimize risks.


90       Huawei Investment & Holding Co., Ltd.
With other conditions remaining unchanged, exchange rate fluctuations would impact our net profit as follows:
(CNY Million)
2023
2022
USD depreciates by 5%
347
1,013
EUR depreciates by 5%
(28)
(106)
Interest Rate Risk
Interest rate risks mainly arise from Huawei's long-term borrowings. By analyzing interest rate exposures, the 
company uses a combination of fixed-rate and floating-rate financing tools to mitigate these interest rate risks.
1. Major interest-bearing long-term financial instruments held by the company as at December 31, 2023
2023
2022
Effective
Interest Rate(%)
(CNY Million)
Effective
Interest Rate(%)
(CNY Million)
Fixed-rate long-term financial instruments:
 Long-term borrowings
3.64
61,676
3.74
53,219
Floating-rate long-term financial instruments:
 Long-term borrowings
3.69
230,013
3.86
129,964
Total
291,688
183,183
2. Sensitivity analysis
Assuming that the interest rate increased by 50 basis points on December 31, 2023 and other variables remained 
unchanged, the company's net profit and equity would decrease by CNY956 million (in 2022, the amount decreased 
by CNY533 million).
Credit Risk
The company has established and implemented globally consistent credit management policies, processes, IT 
systems, and quantitative credit risk assessment tools. It has established dedicated credit management teams across 
all regions and business units, and set up centers of expertise specializing in credit management in Europe and 
Asia Pacific. The company uses quantitative risk assessment models to determine customer credit ratings and credit 
limits and quantify transaction risks. It has also set risk control points for key activities across the end-to-end sales 
process to manage credit risks in a closed loop. Huawei's Credit Management Department regularly assesses global 
credit risk exposures and develops IT tools to help field offices monitor risk status, estimate potential losses, and 
determine bad debt provisions as appropriate. To minimize risk, a special process is followed if a customer defaults 
on a payment or poses an unacceptably high credit risk.
Sales Financing
With its global coverage, Huawei's sales financing team maintains close contact with customers to understand 
their financing needs and taps into a wide range of financing resources around the world. As a bridge for 
communication and cooperation between financial institutions and customers, the sales financing team provides 
customers with specialized financing solutions that contribute to ongoing customer success. Huawei remains 
committed to working with our financing partners to build a mutually beneficial financing ecosystem. Therefore, 
we engage our partner financial institutions to provide sales financing facilities in export credit, leasing, factoring 
and other products with financial institutions undertaking risks and realizing the returns. Huawei has established 
systematic financing policies and project approval processes to strictly control financing risk exposures. Huawei 
only shares risks with financial institutions on certain projects, and measures and recognizes the risk exposures to 
ensure that business risks are under control.


2023 Annual Report
        91
Management's responsibilities 
for the consolidated financial 
statements summary
Management is responsible for the preparation of the 
consolidated financial statements summary on the 
basis described in note 2 to the consolidated financial 
statements summary.
Auditors' responsibilities
Our responsibility is to express an opinion on whether 
the consolidated financial statements summary is 
consistent, in all material respects, with the audited 
consolidated financial statements based on our 
procedures, which were conducted in accordance with 
International Standard on Auditing 810 (Revised), 
Engagements to Report on Summary Financial 
Statements.
KPMG Huazhen LLP
Certified Public Accountants
15th Floor, China Resources Tower
2666 Keyuan South Road
Shenzhen 518052, China
March 27, 2024
Independent auditors' report on the consolidated financial statements 
summary to the Board of Directors of 
Huawei Investment & Holding Co., Ltd.
Opinion
The consolidated financial statements summary 
of Huawei Investment & Holding Co., Ltd. and its 
subsidiaries (the Group) set out on pages 92 to 134, 
which comprises the summary consolidated statement 
of financial position as at December 31, 2023, the 
summary consolidated statement of profit or loss 
and other comprehensive income and the summary 
consolidated statement of cash flows for the year 
then ended, and related notes, is derived from the 
audited consolidated financial statements of the 
Group for the year ended December 31, 2023.
In our opinion, the accompanying consolidated 
financial statements summary is consistent, in all 
material respects, with the audited consolidated 
financial statements, on the basis described in note 2 
to the consolidated financial statements summary.
Consolidated financial statements 
summary
The consolidated financial statements summary 
does not contain all the disclosures required by IFRS 
Accounting Standards.  Reading the consolidated 
financial statements summary and our report thereon, 
therefore, is not a substitute for reading the audited 
consolidated financial statements of the Group and 
our report thereon.
The audited consolidated financial 
statements and our report thereon
We expressed an unmodified audit opinion on the 
audited consolidated financial statements for the year 
ended December 31, 2023 in our report dated 
March 27, 2024.
Independent Auditors' Report


92       Huawei Investment & Holding Co., Ltd.
Summary Consolidated Statement of Profit or Loss and Other Comprehensive Income
93
Summary Consolidated Statement of Financial Position
94
Summary Consolidated Statement of Cash Flows
95
Notes to the Consolidated Financial Statements Summary
1
Reporting entity
96
2
Preparation basis of the consolidated financial statements summary
96
3
Material accounting policies
96
4
Accounting judgments and estimates
109
5
Changes in accounting policies
111
6
New standards and amendments issued but not yet effective for the year ended 
December 31, 2023
112
7
Segment information
112
8
Revenue
113
9
Other income, net
114
10
Personnel expenses
114
11
Finance income and expenses
115
12
Income tax in the summary consolidated statement of profit or loss and other 
comprehensive income
115
13
Other comprehensive income
116
14
Property, plant and equipment
117
15
Goodwill and intangible assets
118
16
Interests in associates and joint ventures
119
17
Other investments and derivatives
120
18
Deferred tax assets/(liabilities)
121
19
Inventories and other contract costs
121
20
Contract assets
122
21
Trade and bills receivable
122
22
Other assets
123
23
Cash and cash equivalents
124
24
Loans and borrowings
124
25
Trade and bills payable
128
26
Contract liabilities
129
27
Other liabilities
129
28
Provisions
129
29
Leases
130
30
Capital commitments
132
31
Related parties
132
32
Group enterprises
133
33
Contingent liabilities
134
34
Subsequent events
134
35
Comparative figures
134
Consolidated Financial Statements Summary


2023 Annual Report
        93
Summary Consolidated Statement of Profit or Loss and Other 
Comprehensive Income
(CNY million)
Note
2023
2022
Revenue
8
704,174
642,338
Cost of sales
 
(378,810)
(360,413)
Gross profit
 
325,364
281,925
Research and development expenses
 
(164,721)
(161,494)
Selling and administrative expenses
 
(118,923)
(109,785)
Other income, net
9
62,681
31,570
Operating profit
 
104,401
42,216
Finance income and expenses
11
(6,659)
1,018
Share of associates' and joint ventures' results (post tax)
 
(146)
712
Profit before tax
 
97,596
43,946
Income tax
12
(10,646)
(8,384)
Profit for the year
 
86,950
35,562
 
Other comprehensive income (after tax and 
reclassification adjustments)
13
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit obligations
 
133
65
Equity investments at fair value through other 
comprehensive income (FVOCI) - net change in fair 
value
 
1,350
(1,169)
1,483
(1,104)
Items that may be reclassified 
subsequently to profit or loss:
Non-equity financial assets at FVOCI - net change in fair 
value and impairment loss
 
172
(250)
Translation differences on foreign operations
 
1,225
3,514
Share of other comprehensive income of associates and 
joint ventures
 
1
(1)
1,398
3,263
Other comprehensive income
 
2,881
2,159
 
Total comprehensive income
 
89,831
37,721
 
Profit for the year attributable to:
Equity holders of the Company
 
86,893
35,534
Non-controlling interests
 
57
28
86,950
35,562
Total comprehensive income attributable to:
Equity holders of the Company
 
89,773
37,694
Non-controlling interests
 
58
27
89,831
37,721
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


94       Huawei Investment & Holding Co., Ltd.
Summary Consolidated Statement of Financial Position
(CNY million)
Note
December 31,
2023
December 31, 
2022 
Assets
Property, plant and equipment
14
156,495
137,024
Goodwill and intangible assets
15
8,537
8,048
Right-of-use assets
29
25,402
23,286
Interests in associates and joint ventures
16
7,336
7,109
Other investments and derivatives
17
154,510
83,055
Deferred tax assets
18
12,456
11,760
Contract assets
20
1,340
1,025
Trade and bills receivable
21
7,014
3,073
Other assets
22
17,413
14,628
Non-current assets
 
390,503
289,008
Inventories and other contract costs
19
154,558
163,282
Contract assets
20
52,546
51,502
Trade and bills receivable
21
102,050
87,804
Other assets
22
88,141
98,451
Other investments and derivatives
17
282,896
226,488
Cash and cash equivalents
23
192,903
147,269
Current assets
 
873,094
774,796
 
Total assets
 
1,263,597
1,063,804
 
Equity
Equity attributable to equity holders of the Company
 
507,428
436,975
Non-controlling interests
 
140
101
Total equity
 
507,568
437,076
 
Liabilities
Loans and borrowings
24
291,688
183,183
Deferred tax liabilities
18
3,433
3,804
Lease liabilities
 
7,460
7,275
Other liabilities
27
2,016
2,608
Non-current liabilities
 
304,597
196,870
Loans and borrowings
24
16,726
13,961
Employee benefits
 
98,861
97,697
Income tax payable
 
6,687
4,217
Trade and bills payable
25
90,845
92,104
Contract liabilities
26
95,101
87,575
Lease liabilities
 
3,375
3,296
Other liabilities
27
119,668
114,426
Provisions
28
20,169
16,582
Current liabilities
 
451,432
429,858
 
Total liabilities
 
756,029
626,728
 
Total equity and liabilities
 
1,263,597
1,063,804
 
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


2023 Annual Report
        95
Summary Consolidated Statement of Cash Flows
(CNY million)
Note
2023
2022
Cash receipts from goods and services
 
770,927
711,048
Cash paid to suppliers and employees
 
(757,254)
(746,228)
Other operating cash flows
 
56,134
52,977
Net cash generated from operating activities
 
69,807
17,797
Net cash (used in)/generated from investing activities
 
(98,759)
6,270
Net cash generated from/(used in) financing activities
 
73,193
(8,622)
 
Cash and cash equivalents
Net increase
 
44,241
15,445
At January 1
 
147,269
128,395
Effect of foreign exchange rate changes
 
1,393
3,429
At December 31
23
192,903
147,269
 
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


96       Huawei Investment & Holding Co., Ltd.
Notes to the Consolidated Financial Statements Summary
1	 Reporting entity
Huawei Investment & Holding Co., Ltd. (the Company) 
is a limited liability company established in Shenzhen 
in the People's Republic of China (PRC).  The 
Company's registered office is at Building 1, Zone B, 
Huawei Base, Bantian, Longgang District, Shenzhen 
City, PRC. The Company's ultimate controlling party is 
the Union.
The Company and its subsidiaries (the Group) 
principally provide information and communications 
technology (ICT) infrastructure and smart 
devices.  This includes providing products, services 
and solutions to customers in the fields of 
communications networks, IT, smart devices, cloud 
services, digital power and intelligent automotive 
solutions.  The principal activities and other 
particulars of the Company's major subsidiaries are 
set out in note 32(b) to the consolidated financial 
statements summary.
2	 
Preparation basis of the 
consolidated financial statements 
summary
The Group has prepared a full set of consolidated 
financial statements (consolidated financial 
statements) for the year ended December 31, 2023 in 
accordance with IFRS Accounting Standards.
The consolidated financial statements summary has 
been prepared and presented based on the audited 
consolidated financial statements for the year ended 
December 31, 2023 in order to disclose material 
financial information relating to the Group's business 
operation.
3	 Material accounting policies
(a)	
Basis of preparation of the consolidated 
financial statements
The consolidated financial statements have been 
prepared under the historical cost basis modified 
for the fair valuation of some financial instrument 
classifications (see note 3(e)).
The preparation of the consolidated financial 
statements requires management to make 
judgments, estimates and assumptions that affect 
the application of policies and reported amounts 
of assets, liabilities, income and expenses. 
Estimates and associated assumptions are based 
on historical experience and various other factors 
that are believed to be reasonable under the 
circumstances.  Actual results may differ from 
these estimates.
Estimates and underlying assumptions are 
reviewed regularly and revised when required.  
Revisions to accounting estimates are recognized 
in the period in which the estimate is revised if the 
revision affects only that period, or in the period 
of the revision and future periods if the revision 
affects both current and future periods.
Judgments made by management in the 
application of IFRS Accounting Standards that have 
significant effect on the consolidated financial 
statements and major sources of estimation 
uncertainty are discussed in note 4.
(b)	
Functional and presentation currency
All financial information in the consolidated 
financial statements summary is presented in 
millions of Chinese Yuan (CNY), which is the 
Company's functional currency.
(c)	
Consolidation
(i)	Business combinations
The Group accounts for business combinations 
using the acquisition method when the acquired 
set of activities and assets meets the definition of 
a business and control is transferred to the Group. 
 
To be considered a business, an acquiree must 
comprise inputs and a substantive process that 
together significantly contribute to the ability to 
create outputs.  
The Group may determine that an acquired 
set of activities and assets is not a business if 
substantially all of the fair value of the gross 
assets acquired is concentrated in a single 
identifiable asset or group of similar identifiable 
assets.
The consideration transferred in the acquisition 
is generally measured at fair value, as are the 
identifiable assets and liabilities.  Any goodwill 
that arises is tested annually for impairment (see 
note 3(k)(ii)).  Any gain on a bargain purchase 
is recognized in profit or loss immediately.  
Transaction costs are expensed as incurred.


2023 Annual Report
        97
(ii)	
Subsidiaries
The financial statements consolidate the results, 
assets, liabilities and cash flows of all subsidiaries 
which the Group controls.
Subsidiaries are consolidated from the date that 
control commences until the date that control 
ceases.  Intra-group balances, transactions, cash 
flows and any unrealized gains arising from 
intra-group transactions are eliminated in 
preparing the consolidated financial statements.  
Unrealized losses resulting from intra-group 
transactions are eliminated in the same way as 
unrealized gains but only to the extent that there 
is no evidence of impairment.
The Group controls an entity when it is exposed, 
or has rights, to variable returns from its 
involvement with the entity and has the ability to 
affect those returns through its power over the 
entity.  When assessing whether the Group has 
power, only substantive rights are considered.
(iii)	Non-controlling interests
Non-controlling interests represent the carrying 
value of the net assets of subsidiaries attributable 
to non-controlling equity holders.  The Group 
measures non-controlling interests at the 
non-controlling interests' proportionate share of 
the subsidiary's net identifiable assets.  Changes 
in the Group's interests in a subsidiary that do 
not result in a loss of control are accounted for 
as equity transactions, whereby adjustments are 
made to the amounts of controlling and 
non-controlling interests within consolidated 
equity to reflect the change in relative interests, 
but no adjustments are made to goodwill and no 
gain or loss is recognized. 
(iv)	
Loss of control
When the Group loses control of a subsidiary, it is 
accounted for as a disposal of the entire interest 
in that subsidiary, with a resulting gain or loss 
being recognized in profit or loss.  Any interest 
retained in that former subsidiary at the date 
when control is lost is recognized at fair value or, 
when appropriate, the cost on initial recognition 
of an investment in an associate or a joint venture 
(see note 3(d)).
(d)	
Associates and joint ventures
An associate is an entity in which the Group 
has significant influence, but not control or 
joint control, over its management, including 
participation in the financial and operating policy 
decisions.
A joint venture is an arrangement whereby the 
Group and other parties contractually agree to 
share control of the arrangement, and have rights 
to the net assets of the arrangement.
An investment in an associate or a joint venture 
is accounted for in the consolidated financial 
statements using the equity method until the 
date on which significant influence or joint control 
ceases.  It is initially recognized at cost and 
subsequently adjusted to include the Group's share 
of the profit or loss and other comprehensive 
income (OCI) of the associate or the joint venture.
Unrealized profits and losses resulting from 
transactions between the Group and its associates 
and joint ventures are eliminated to the extent 
of the Group's interest in the investee, except 
where unrealized losses provide evidence of an 
impairment of the asset transferred, in which case 
they are recognized immediately in profit or loss.
(e)	
Financial instruments 
(i)	Recognition and derecognition 
Financial instruments, comprising financial assets 
and financial liabilities, are recognized in the 
consolidated statement of financial position when 
the Group becomes a party to the contractual 
provisions of the instrument.
The Group derecognizes a financial asset when 
the contractual rights to the cash flows from the 
asset expire, or it transfers the rights to receive 
the contractual cash flows in a transaction in 
which substantially all of the risks and rewards of 
ownership of the financial asset are transferred or 
where it neither transfers nor retains substantially 
all of the risks and rewards of ownership and 
loses control.  When control is retained, the Group 
continues to recognize the financial asset to the 
extent of its continuing involvement.  Financial 
assets are also derecognized when they are 
written off.  Financial assets are written off when 
there is no reasonable expectation of further 
recoveries even though there may be enforcement 
actions ongoing.


98       Huawei Investment & Holding Co., Ltd.
The Group derecognizes a financial liability 
when its contractual obligations are discharged, 
canceled, or expire.
Financial assets and financial liabilities are 
offset and the net amount presented in the 
consolidated statement of financial position 
when, and only when, the Group currently has a 
legally enforceable right to set off the recognized 
amounts and intends either to settle them on a 
net basis or to realize the asset and settle the 
liability simultaneously.
(ii)	
Classification and measurement
All financial assets and liabilities are initially 
recognized at fair value, with the exception of 
trade receivables without a significant financing 
component, which are measured at their 
transaction price, determined in accordance with 
the Group's accounting policies for revenue.  
Subsequently, measurement depends on the 
financial assets/liabilities classification as follows:
■	 Financial assets measured at fair value through 
profit or loss (FVPL)
Non-equity financial assets are classified as 
FVPL if they arise from contracts which do 
not give rise to cash flows which are solely 
principal and interest, or otherwise where they 
are held in a business model which mainly 
realizes them through sale.  Such assets are 
re-measured to fair value at the end of each 
reporting period.  Gains and losses arising 
from re-measurement are taken to profit or 
loss, as are transaction costs.
Equity investments are classified as FVPL 
unless they are designated as at FVOCI on 
initial recognition (see below).  Dividends from 
equity investments, irrespective of whether 
classified as FVPL or FVOCI, are recognized in 
profit or loss as finance income.
■	 Financial assets measured at FVOCI
Non-equity financial assets are classified as 
FVOCI where they arise from contracts that 
give rise to contractual cash flows which 
are solely principal and interest and that are 
held in a business model which realizes some 
through sale and some by holding them to 
settlement.  They are recognized initially at fair 
value plus any directly attributable transaction 
costs, or in the case of trade receivables, at the 
transaction price.  
At the end of each reporting period they are 
re-measured to fair value, with the cumulative 
gain or loss compared to their amortized cost 
(AC) being recognized as fair value reserve 
through other comprehensive income, except 
for the recognition in profit or loss of expected 
credit losses, interest income (calculated using 
the effective interest method) and foreign 
exchange gains and losses.
When these assets are derecognized, the 
cumulative gain or loss is reclassified from 
equity to profit or loss.
Equity investments are designated as at 
FVOCI where they are considered strategic to 
the Group.  Such designation is made on an 
instrument-by-instrument basis, but may only 
be made if the investment meets the definition 
of equity from the issuer's perspective.  
Amounts accumulated in the fair value reserve 
in respect of these investments are transferred 
directly to retained earnings on the disposal 
of the investment.  These investments are not 
subject to impairment.
■	 Financial assets measured at amortized cost
Financial assets are held at amortized cost 
when they arise from contracts that give rise 
to contractual cash flows which are solely 
principal and interest and are held in a 
business model that mainly holds the assets to 
collect contractual cash flows.  
Financial assets measured at amortized cost 
when they are not purchased or originated 
credit-impaired are measured at amortized 
cost using the effective interest method.  For 
those purchased or originated credit-impaired, 
the Group applies the credit-adjusted effective 
interest rate since initial recognition.  These 
assets are also subject to impairment losses 
(see note 3(k)).  Interest income is calculated 
based on the gross carrying amount of the 
financial asset unless the financial asset is 
credit impaired, in which case interest income 
is calculated on the amortized cost (i.e. gross 
carrying amount less loss allowance). Interest 
income is included in finance income.
■	 Financial liabilities
Financial liabilities are classified as measured 
at amortized cost or FVPL. A financial liability 
is classified as FVPL if it is a derivative, 
contingent consideration or it is designated 


2023 Annual Report
        99
as such on initial recognition.  Other financial 
liabilities are stated at amortized cost using 
the effective interest method.  Interest is 
included in finance expenses unless capitalized 
into an asset (see note 3(t)).
■	 Derivative financial instruments
Derivative financial instruments are recognized 
at fair value. At the end of each reporting 
period the fair value is re-measured. 
Derivatives are classified as assets when their 
fair value is positive or as liabilities when their 
fair value is negative. The gain or loss on 
re-measurement to fair value is recognized 
immediately in profit or loss, except where the 
derivatives are accounted for as hedges of a 
net investment in a foreign operation (see note 
3(f)).
(f)	
Hedge accounting
The Group holds certain derivatives to hedge 
the foreign exchange risk on net investments in 
foreign operations. 
At the inception of the hedging relationship, the 
Group documents the risk management objective, 
the strategy for undertaking the hedge, and the 
economic relationship between the hedged item 
and the hedging instrument, including whether 
the value changes of the hedged item and the 
hedging instrument are expected to offset each 
other. 
Hedge effectiveness is assessed on an ongoing 
basis at the hedging commencement date and 
each subsequent reporting date. A hedge is 
considered effective when:
(i)	 there is an economic relationship between the 
hedged item and the hedging instrument;
(ii)	the effect of credit risk does not dominate the 
value changes that result from that economic 
relationship; and
(iii)	
the hedge ratio of the hedging relationship is 
the same as that resulting from the quantity 
of the hedged item that the Group actually 
hedges and the quantity of the hedging 
instrument that the Group actually uses to 
hedge that quantity of hedged item.
When a hedging relationship is no longer effective 
because of changes in the hedge ratio, but the risk 
management objective for the designated hedging 
relationship remains the same, the Group adjusts 
the hedge ratio so that it meets the qualifying 
criteria again.
To the extent that the hedge is effective, changes 
in the fair value of the derivative are recognized 
in other comprehensive income and presented 
within equity.  Gains and losses representing 
hedge ineffectiveness are recognized in profit or 
loss.  The balances from any hedging relationships 
for which hedge accounting is no longer applied 
remain in the translation reserve.  The cumulative 
amount recognized in other comprehensive income 
is reclassified to profit or loss as a whole or in 
part on disposal or partial disposal of the foreign 
operation. 
(g)	
Investment property
Investment properties are land and buildings 
which are owned or held under a leasehold 
interest (see note 3(j)) to earn rental income 
and/or for capital appreciation.
Investment properties are stated at cost less 
accumulated depreciation (see note 3(h)(ii)) and 
impairment losses (see note 3(k)). Rental income 
from investment properties is accounted for as 
described in note 3(q)(ii).
(h)	
Other property, plant and equipment
(i)	Cost
Items of property, plant and equipment are stated at 
cost less accumulated depreciation and impairment 
losses (see note 3(k)). Cost includes expenditure 
that is directly attributable to the acquisition of 
the assets including for self-constructed assets, the 
cost of materials, direct labor, the initial estimate, 
where appropriate, of the costs of dismantling and 
removing the items and restoring the site on which 
they are located, and an appropriate proportion of 
production overheads and borrowing costs.
Construction in progress is transferred to other 
property, plant and equipment when it is ready for 
its intended use.
Gains or losses arising from the retirement 
or disposal of an item of property, plant and 
equipment are determined as the difference 
between the net disposal proceeds and the 
carrying amount of the item and are recognized in 
profit or loss on the date of retirement or disposal.


100       Huawei Investment & Holding Co., Ltd.
(ii)	Depreciation
Depreciation is calculated to write off the cost of 
items of investment property and other property, 
plant and equipment, less their estimated residual 
value, if any, using the straight-line method over 
their estimated useful lives as follows:
■	 Buildings	
30 years
■	 Machinery	
2 to 10 years
■	 Motor vehicles	
5 years
■	 
Electronic and other equipment	
2 to 5 years
■	 
Decoration and leasehold 
improvements	
2 to 15 years
Where components of an item of investment 
property and other property, plant and equipment 
have different useful lives, the cost of the item is 
allocated on a reasonable basis between the parts 
and each part is depreciated separately.  Both 
the useful life of an item of investment property 
and other property, plant and equipment and its 
residual value, if any, are reviewed annually.
Freehold land and construction in progress are not 
depreciated.
(i)	Goodwill and intangible assets 
(i)	Goodwill
Goodwill represents the excess of the fair value 
of consideration paid to acquire a subsidiary over 
the acquisition date fair value of the acquiree's 
identifiable assets acquired less liabilities, including 
contingent liabilities, assumed as at the acquisition 
date, less impairment losses (see note 3(k)(ii)).
(ii)	Other intangible assets
Other intangible assets are stated at cost less 
accumulated amortization and impairment losses 
(see note 3(k)).
(iii)	
Amortization
Goodwill is not amortized but subject to 
impairment testing (see note 3(k)(ii)) annually.
The cost of other intangible assets with finite 
useful lives is amortized to profit or loss on a 
straight-line basis over the assets' estimated useful 
lives from the date they are available for use.  
Their estimated useful lives are as follows:
■	 Software	
2 to 10 years
■	 Patents and royalties	
2 to 10 years
■	 Trademark and others	
2 to 20 years
Both the useful lives and method of amortization 
are reviewed annually and revised when necessary.
(iv)	
Research and development
Research and development costs are all 
costs directly attributable to research and 
development activities together with costs which 
can be allocated on a reasonable basis to such 
activities.  The nature of the Group's research and 
development activities is such that the criteria 
for the recognition of such costs as assets are 
generally not met until late in the development 
stage of the project when the remaining 
development costs are immaterial.  Therefore, 
expenditure on research and development 
activities is generally recognized as an expense in 
the period in which it is incurred.
(j)	
Leases
A contract is, or contains, a lease if on inception 
the contract conveys the right to control the use 
of an identified asset for a period of time, the 
lease term, in exchange for consideration.
The lease term is the non-cancelable period of 
the lease, together with any additional periods, 
when there is an enforceable option to extend the 
lease and it is reasonably certain that the Group 
will extend the term, or when there is an option 
to terminate the lease and it is reasonably certain 
that the Group will not exercise the right to 
terminate.  The lease term is reassessed if there is 
a significant change in circumstances.
(i)	As a lessee
At commencement, or on the modification, of a 
contract that contains a lease component, the 
Group allocates the consideration in the contract 
to each lease component on the basis of its 
relative stand-alone price. 
The Group recognizes a right-of-use asset and a 
lease liability at the lease commencement date.  
The right-of-use asset is initially measured at cost, 
which comprises the initial amount of the lease 
liability adjusted for any lease payments made at 
or before the commencement date, plus any initial 
direct costs incurred and an estimate of costs to 


2023 Annual Report
        101
dismantle and remove the underlying asset or to 
restore the underlying asset or the site on which it 
is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated 
using the straight-line method from the 
commencement date to the end of the lease term.  
If the lease transfers ownership of the underlying 
asset to the Group by the end of the lease term 
or if the Group expects to exercise a purchase 
option, the right-of-use asset will be depreciated 
over the useful life of the underlying asset, which 
is determined on the same basis as those of the 
Group's other property, plant and equipment.
Right-of-use assets are further reduced by 
impairment losses, if any, and adjusted for certain 
re-measurements of the lease liability.
The lease liability is initially measured at the 
present value of the total lease payments that are 
not paid on the commencement date, discounted 
using either the interest rate implicit in the 
lease, if readily determinable, or more usually, an 
estimate of the Group's incremental borrowing 
rate on the inception date for a loan with similar 
terms to the lease.
The incremental borrowing rate is estimated by 
obtaining interest rates from various external 
financing sources and making certain adjustments 
to reflect the terms of the lease and type of the 
asset leased. 
Lease payments included in the measurement of 
the lease liability comprise the following:
■	 fixed payments, including payments which are 
substantively fixed;
■	 variable lease payments that depend on an 
index or a rate, initially measured using the 
index or rate as at the commencement date;
■	 amounts expected to be payable under a 
residual value guarantee; and 
■	 the exercise price under a purchase option that 
the Group is reasonably certain to exercise, 
lease payments in an optional renewal period 
if the Group is reasonably certain to exercise 
an extension option, and penalties for early 
termination of a lease unless the Group is 
reasonably certain not to terminate early.
The lease liability is measured at amortized cost 
using the effective interest method. It is 
re-measured when there is a change in future 
lease payments arising from a change in an 
index or rate, if there is a change in the Group's 
estimate of the amount expected to be payable 
under a residual value guarantee, if the Group 
changes its assessment of whether it will exercise 
a purchase, extension or termination option 
or if there is a revised in-substance fixed lease 
payment.
When the lease liability is re-measured in this 
way, a corresponding adjustment is made to the 
carrying amount of the right-of-use asset, or is 
recorded in profit or loss if the carrying amount of 
the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
As permitted by IFRS 16 Leases, the Group does 
not recognize right-of-use assets and lease 
liabilities for leases of low-value assets and 
short-term leases.  Payments associated with these 
leases are recognized as an expense on a 
straight-line basis over the lease term.
(ii)	As a lessor
When the Group acts as a lessor, it determines at 
lease inception whether each lease is a finance 
lease or an operating lease.
To classify each lease, the Group makes an 
overall assessment of whether the lease transfers 
substantially all of the risks and rewards incidental 
to ownership of the underlying asset. If this is the 
case, then the lease is a finance lease; if not, then 
it is an operating lease.  
When the Group is an intermediate lessor, it 
accounts for its interest in the head lease and 
the sub-lease separately. It assesses the lease 
classification of a sub-lease with reference to the 
right-of-use asset arising from the head lease, not 
with reference to the underlying asset. If a head 
lease is a short-term lease to which the Group 
applies the exemption described above, then it 
classifies the sub-lease as an operating lease.
The Group recognizes lease payments received 
under operating leases as income on a 
straight-line basis over the lease term as part of 
revenue (see note 3(q)(ii)).


102       Huawei Investment & Holding Co., Ltd.
(k)	Impairment of assets
(i)	Impairment of financial assets, contract 
assets and lease receivables
The Group recognizes an allowance for 
impairment on non-equity financial assets held 
at FVOCI and AC, and also on contract assets 
and lease receivables on an expected credit loss 
basis.  Increases and decreases in the impairment 
allowance are recognized in profit or loss.  The 
expected credit losses are the difference (on a 
present value basis) between the contractual cash 
flows (or transaction price) and the present value 
of cash flows expected to be received based on 
the Group's past loss experience and reasonable 
and supportable expectations, at the end of the 
reporting period, about future credit conditions.
For trade receivables, contract assets and lease 
receivables, the Group recognizes impairment both 
individually and using provision matrices based 
on the probability that the customer will default 
during the lifetime of the asset, and the loss that 
will be incurred given the default (the lifetime 
expected loss).  The Group defines default as the 
customer being more than 90 days past due. 
For all other financial assets that are not 
purchased or originated credit-impaired, the Group 
recognizes impairment initially based on the 
probability that the customer or counterparty will 
default in the next 12 months unless there has 
been a significant deterioration in credit quality, 
or the financial asset becomes credit impaired in 
which case the impairment allowance is increased 
to the lifetime expected loss.  
An asset is credit-impaired when it has one or 
more of the loss events described below:
■	 significant financial difficulty of the borrower 
or issuer;
■	 a breach of contract, such as a default or past 
due event;
■	 the restructuring of a loan or advance by the 
Group on terms that the Group would not 
consider otherwise; 
■	 it is probable that the borrower will enter 
bankruptcy or other financial reorganization; or 
■	 the disappearance of an active market for a 
security because of financial difficulties of the 
issuer. 
In the case of purchased or originated 
credit-impaired financial assets, the Group only 
recognizes the cumulative changes in lifetime 
expected credit losses since initial recognition as a 
loss allowance.
(ii)	Impairment of other non-financial assets
Internal and external sources of information are 
reviewed at the end of each reporting period 
to identify indications that non-financial assets, 
including property, plant and equipment, 
right-of-use assets, intangible assets and other 
long-term assets may be impaired.
Goodwill is tested for impairment at least annually. 
For the purposes of impairment testing, goodwill 
is allocated to each cash generating unit, or a 
group of cash generating units, that is expected 
to benefit from the synergies of the acquisition.  
Where impairment testing is of a cash generating 
unit (or group of units), an impairment loss is 
recognized in profit or loss where the recoverable 
amount is less than the carrying amount of the 
unit (or group of units) and the impairment loss 
recognized is allocated first to reduce the carrying 
amount of any goodwill allocated to the unit (or 
group of units).
Other assets are impaired and an impairment 
loss is recognized in profit or loss where the 
recoverable amount of the asset is less than 
its carrying amount, and reversed where there 
has been a favorable change in the recoverable 
amount.  Impairment of goodwill is not reversed.
The recoverable amount of an asset or group of 
assets is the greater of its fair value less costs 
of disposal and value in use.  Value in use is the 
total estimated future cash flows from the asset 
or, where the asset does not generate cash flows 
independent of other assets, a group of assets, 
discounted to their present value using a 
pre-tax discount rate that reflects current market 
assessments of the time value of money and the 
risks specific to the asset, or group of assets.
(l)	Inventories
Inventories are assets which are held for sale in 
the ordinary course of business, in the process 
of production for such sales or in the form of 
material or supplies to be consumed in the 
production process or in the rendering of services.


2023 Annual Report
        103
Inventories are carried at the lower of cost and net 
realizable value.
Cost is calculated based on the standard cost 
method with periodic adjustments of cost variance 
to arrive at the actual cost, which approximates to 
weighted average cost.  Cost includes expenditures 
incurred in acquiring the inventories and bringing 
them to their present location and condition.  
The cost of manufactured inventories and work 
in progress includes an appropriate share of 
overheads based on normal operating capacity.
Net realizable value is the estimated selling 
price in the ordinary course of business, less the 
estimated costs of completion and the estimated 
costs necessary to make the sale.
When inventories are sold, the carrying amount 
of those inventories is recognized as an expense 
in the period in which the related revenue is 
recognized.  Any write-down of inventories to net 
realizable value and all losses of inventories are 
recognized as an expense in the period the 
write-down or loss occurs. 
(m)	
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank 
and on hand, demand deposits with banks and 
other financial institutions, demand deposits with 
third party merchants, and short-term, highly 
liquid investments that are readily convertible 
into known amounts of cash and which are 
subject to an insignificant risk of changes in value, 
having been within three months of maturity at 
acquisition.  Bank overdrafts that are repayable 
on demand and form an integral part of the 
Group's cash management are also included as a 
component of cash and cash equivalents for the 
purpose of the consolidated statement of cash 
flows.
(n)	Employee benefits
(i)	Short-term employee benefits, contributions 
to defined contribution retirement plans 
and other long-term employee benefits
Salaries, profit-sharing and bonus payments, 
paid annual leave and contributions to defined 
contribution retirement plans and non-monetary 
benefits are recognized as liabilities and in 
profit or loss or in the cost of related assets in 
the period in which the associated services are 
rendered by employees.  Where payment or 
settlement is expected to be made 12 months 
after the end of the reporting period, these 
amounts are discounted and stated at their 
present values.
(ii)	Defined benefit obligations
The Group's obligation in respect of defined 
benefit plans is calculated separately for each plan 
by estimating the total amount of future benefit 
that employees have earned in return for their 
service in the current and prior periods which is 
then discounted to present value.  The calculation 
is performed by management using the projected 
unit credit method.
Service cost and interest cost on the defined 
benefit obligations and any curtailment gains 
and losses are recognized in profit or loss. 
Re-measurements arising from changes in 
actuarial assumptions regarding the amounts 
of future benefits are recognized immediately 
in other comprehensive income and shall not 
be reclassified to profit or loss in a subsequent 
period.  However, the Group may transfer those 
amounts recognized in other comprehensive 
income within equity.
(o)	Income tax
Income tax expense comprises current and 
deferred tax.  It is recognized in profit or loss 
except to the extent that it relates to a business 
combination, or items recognized in other 
comprehensive income or directly in equity. 
Current tax comprises the expected tax payable 
or receivable on the taxable income or loss for 
the year and any adjustment to the tax payable or 
receivable in respect of prior years. The amount 
of current tax payable or receivable is the best 
estimate of the tax amount expected to be paid 
or received that reflects uncertainty, if any.  It is 
measured using tax rates enacted or substantively 
enacted at the reporting date.  Current tax also 
includes any tax arising from dividends.
Deferred tax is recognized in respect of temporary 
differences between the carrying amounts of 
assets and liabilities for financial reporting 
purposes and their tax bases.  Deferred tax assets 
also arise from unused tax losses and unused tax 
credits.  Deferred tax is not recognized for:


104       Huawei Investment & Holding Co., Ltd.
■	 temporary differences on the initial recognition 
of assets or liabilities in a transaction that is 
not a business combination and that affects 
neither accounting nor taxable profit or loss 
and does not give rise to equal taxable and 
deductible temporary differences;
■	 temporary differences related to investments in 
subsidiaries, associates and joint arrangements 
to the extent that the Group is able to control 
the timing of the reversal of the temporary 
differences and it is probable that they will not 
reverse in the foreseeable future; 
■	 taxable temporary differences arising on the 
initial recognition of goodwill; and
■	 those related to the income taxes arising from 
tax laws enacted or substantively enacted 
to implement the Pillar Two model rules 
published by the Organization for Economic 
Co-operation and Development.
Deferred tax assets are recognized to the 
extent that it is probable that future taxable 
profits will be available against which the asset 
can be utilized.  Future taxable profits are 
determined based on the reversal of relevant 
taxable temporary differences.  If the amount of 
taxable temporary differences is insufficient to 
recognize a deferred tax asset in full, then future 
taxable profits, adjusted for reversals of existing 
temporary differences, are considered, based on 
the business plans for individual subsidiaries in 
the Group.  Deferred tax assets are reviewed at 
each reporting date and are reduced to the extent 
that it is no longer probable that the related 
tax benefit will be realized; such reductions are 
reversed when the probability of future taxable 
profits improves.
The amount of deferred tax recognized is 
measured based on the expected manner of 
realization or settlement of the carrying amount 
of the assets and liabilities, using tax rates 
enacted or substantively enacted at the reporting 
date.  Deferred tax assets and liabilities are not 
discounted.
A provision is recognized for those matters for 
which the tax determination is uncertain but 
it is considered probable that there will be a 
future outflow of funds to a tax authority.  The 
provisions are measured at the best estimate of 
the amount expected to become payable.
Current tax balances and deferred tax balances, 
and movements therein, are presented separately 
from each other and are not offset.  Current tax 
assets are offset against current tax liabilities, and 
deferred tax assets against deferred tax liabilities, 
if the Group has legally enforceable rights to set 
off current tax assets against current tax liabilities 
and the following additional conditions are met:
■	 in the case of current tax assets and liabilities, 
the Group intends either to settle on a net 
basis, or to realize the asset and settle the 
liability simultaneously; or
■	 in the case of deferred tax assets and 
liabilities, if they relate to income taxes levied 
by the same taxation authority on either:
–	 the same taxable entity; or
–	 different taxable entities, which, in each 
future period in which significant amounts 
of deferred tax liabilities or assets are 
expected to be settled or recovered, intend 
to realize the current tax assets and settle 
the current tax liabilities on a net basis or 
realize and settle simultaneously.
(p)	Provisions and contingent liabilities
Provisions are recognized for liabilities of uncertain 
timing or amount when the Group has a legal or 
constructive obligation arising as a result of a past 
event, it is probable that an outflow of economic 
benefits will be required to settle the obligation 
and a reliable estimate can be made.  Where the 
time value of money is material, provisions are 
stated at the present value of the expenditure 
expected to settle the obligation.
Where it is not probable that an outflow of 
economic benefits will be required, or the amount 
cannot be reliably estimated, disclosure is made 
of the contingent liability, unless the probability 
of outflow of economic benefits is remote.  
Possible obligations, whose existence will only be 
confirmed by the occurrence or non-occurrence 
of one or more future events are also disclosed 
as contingent liabilities unless the probability of 
outflow of economic benefits is remote.
The main types of provisions are as follows:
(i)	Provision for warranties
The Group provides assurance warranties for its 
standard products.  The Group estimates the costs 


2023 Annual Report
        105
that may be incurred under its assurance warranty 
obligations and records a liability in the amount of 
such costs when revenue is recognized.  Warranty 
costs generally include spare parts, labor costs 
and service center support.  Factors that affect 
the Group's warranty liability include the amount 
of products sold, and historical and anticipated 
rates of warranty claims.  The Group periodically 
reassesses its warranty liabilities and adjusts the 
amounts as necessary.
(ii)	Provision for onerous contracts
A provision for onerous contracts is recognized 
when the expected benefits to be derived by 
the Group from a contract are lower than the 
estimated cost of meeting its obligations under 
the contract.  The provision is measured at the 
present value of the lower of the expected cost 
of terminating the contract and the expected 
net cost of continuing with the contract, which 
is determined based on the incremental costs 
of fulfilling the obligation under the contract 
and an allocation of other costs directly related 
to fulfilling the contract.  Before a provision is 
established, the Group recognizes any impairment 
loss on the assets associated with that contract.
(q)	Revenue
Revenue is income arising from sales of products, 
provision of services or use by others of the 
Group's properties under leases in the ordinary 
course of the Group's business.
(i)	Revenue from customer contracts
Revenue is measured based on the consideration 
the Group expects to be entitled to, from the 
contract with the customer and excludes those 
amounts collected on behalf of third parties.  The 
Group recognizes revenue when it transfers control 
over a good or service (or a bundle of goods or 
services) to a customer. 
i.	
Contract combinations and modifications
The Group combines separate customer contracts 
with the same customer or related parties of the 
same customers entered into at or near the same 
time when those contracts are negotiated as a 
package to form a single commercial objective, 
contain significant pricing dependencies or the 
goods or services promised in the contracts are a 
single performance obligation. 
Contract modifications are generally treated either 
as a new separate contract, or as a prospective 
change to an existing contract.  In cases when the 
additional or the remaining goods and services are 
not distinct from those transferred before the date 
of modification, modifications are accounted for 
through a cumulative catch-up adjustment.
ii.	 Warranties
If a warranty attached to a product sold by 
the Group is a distinct service in addition to 
standard assurance, the Group recognizes the 
warranty service as a separate performance 
obligation (POB) for which revenue is allocated 
and recognized on a straight-line basis over 
the warranty period.  Otherwise, warranties 
provided by the Group are standard assurance and 
accounted for as a warranty provision at the time 
of the sale (see note 3(p)).
iii.	 Timing of revenue recognition
The Group determines at contract inception 
whether it transfers the control of a good 
or service (or a bundle of goods or services) 
underlying a POB to the customer over time or 
at a point in time.  A POB is satisfied and related 
revenue is recognized over time by measuring the 
progress towards complete satisfaction of that 
POB, if one of the following criteria is met:
■	 the customer simultaneously receives and 
consumes the benefits provided by the Group's 
performance as the Group performs;
■	 the Group's performance creates or enhances 
an asset that the customer controls as the 
asset is created or enhanced; or
■	 the Group's performance does not create an 
asset with an alternative use to the Group and 
the Group has an enforceable right to payment 
for performance completed to date.
If a POB is not satisfied over time and the control 
over the related good or service is not transferred 
over time in accordance with the above criteria, 
it is recognized at a point in time when control is 
transferred.
iv.	 Variable consideration
Revenue is measured at the fair value of the 
consideration received or receivable, adjusted at 
contract inception for penalties, price concessions, 


106       Huawei Investment & Holding Co., Ltd.
returns, trade discounts, volume rebates and 
other sales incentives, such as coupons, provided 
that the level of expected return of goods, 
volume rebates and other incentives given 
can be estimated reliably and that revenue is 
only recognized to the extent that it is highly 
probable that a significant reversal in the amount 
of cumulative revenue recognized will not 
occur.  When making an estimate for variable 
consideration, the Group considers several 
factors, including but not limited to, contract 
commitments, business practices, historical 
experience, customer take-up rates, and expected 
purchase volumes. 
v.	 Significant financing component
The amount of consideration in a sales contract is 
adjusted for the existence of significant financing 
component in determining the transaction price 
only when the payment term exceeds one year in 
duration between performance and the expected 
payment date. 
The Group recognizes interest income where 
payment is received more than one year in arrears 
of satisfaction of a performance obligation, 
reflecting a deemed lending of cash to a customer. 
 
Such interest income is presented in finance 
income.  
The Group adopts the practical expedient under 
IFRS 15 Revenue from Contracts with Customers 
(IFRS 15) and does not account for the significant 
financing components where the Group anticipates 
at contract inception that the timing difference 
between transfer of control of a good or service to 
a customer, and the expected customer payment 
for that good or service will be one year or less.
vi.	 Stand-alone selling prices (SSP)
The transaction price of a contract with a 
customer is allocated to each POB in proportion to 
its SSP.  
The Group uses directly observable SSP or 
estimated SSP in allocating transaction price to 
products. In establishing the estimated SSP, the 
Group mainly uses an average price approach by 
product category. Average price of a product is 
calculated with reference to the historical 
stand-alone product sale transactions for the 
product and the product category is determined 
with reference to the product family and 
geographical region. 
For services that are regularly sold on a 
stand-alone basis, most of such services are 
customized and priced on a project basis, 
therefore the transaction prices generally reflect 
the SSP. For the services where an observable 
transaction price is unavailable such as the 
services sold in a bundle with products, the Group 
determines the SSP using a cost-plus approach, 
taking into account several factors, including 
but not limited to labor cost, competition and 
company business strategy.
When a significant discount is granted and is 
specifically attributable to one or more POB, 
that discount is allocated to the identified POB(s) 
if the allocation reflects the Group's regular 
sales pattern.  In all other cases the discount is 
allocated to the contract as a whole.  
vii.	Contract assets and liabilities  
A contract asset arises when revenue is recognized 
under a contract with a customer before the 
Group becomes unconditionally entitled to 
consideration.  Contract assets are reclassified to 
trade receivables when the right to consideration 
becomes unconditional.
When consideration is received (or the right to 
consideration is unconditional) before the related 
revenue is recognized, a contract liability is 
recognized. 
For a single contract with the customer, either 
a net contract asset or a net contract liability is 
presented.  For multiple contracts, contract assets 
and contract liabilities of unrelated contracts are 
not presented on a net basis.
Trade receivables are recognized when the right to 
consideration under a revenue contract becomes 
unconditional, regardless of the billing date.
viii.	
Refund liabilities
A refund liability, such as for rebates to customers, 
other sales-based incentives granted, and expected 
product returns, is recognized when the Group 
expects to refund some or all of the customer 
contract consideration.  Refund liabilities are 
presented in other liabilities in the consolidated 
statement of financial position. 
ix.	 Contract costs
Certain incremental acquisition costs (those paid 
to acquire a contract such as commission) and 


2023 Annual Report
        107
fulfilment costs (those incurred to deliver services 
to customers) are initially capitalized to the extent 
that the costs are recoverable, and subsequently 
recognized as expense over the period of expected 
benefit, which is generally the associated contract 
duration. 
Incremental acquisition costs are expensed as 
incurred where the amortization period of the 
asset that would have been recognized is one year 
or less.
The Group recognizes a contract cost impairment 
when the carrying amount of unamortized 
contract costs exceeds the difference between 
the remaining consideration expected and the 
associated contract costs relating to providing 
those goods and services under the contract.
The Group divides its business into five operating 
segments: ICT Infrastructure Business, Consumer 
Business, Cloud Computing Business, Digital Power 
Business and Intelligent Automotive Solution Business. 
The principal business activities of each segment are 
described in note 7. The specific revenue accounting 
policies applied by the Group in relation to the main 
activities, based on the characteristics of contracts 
and the business practices of the segments, are 
described below:
ICT Infrastructure Business
In the ICT infrastructure business, whose customers 
include telecom carriers and governments and 
enterprises, contracts typically involve multiple 
promises, including sales of equipment, software and 
a wide range of services, which are usually separate 
POBs.  When the Group provides bespoke end-to-end 
solutions, such as data center projects and turnkey 
projects, if the goods and services in the contract are 
not distinct, the solution contract contains one single 
POB.  Except for those related to certain standard 
products for government and enterprise customers, 
warranties provided for ICT infrastructure business 
products are generally recognized as a distinct 
service.
There are two sales patterns within the ICT 
infrastructure business. One is direct sales to end 
customers and the other is distribution through 
channel partners.  Generally, the Group directly sells 
to carrier customers, and payments are received 
according to the payment milestones set out in 
the contracts before or after the obligations are 
fulfilled, usually including advance, delivery, and 
completion payment milestones. The control of goods 
is transferred to the customer when the goods are 
delivered to the customer's designated location or 
installed.  The Group usually sells to government and 
enterprise customers through distribution channels. 
If a distribution channel is the principal, the control 
of goods is generally transferred when the goods are 
delivered to the location designated by the channel. 
If the channel is an agent, the control of goods is 
transferred when the goods are delivered to the 
location designated by the second-tier channels or 
end-users that meet the criteria for a principal.
In most cases, solutions recognized as a single POB 
and services meet the criteria for the transfer of 
control over time.  The Group primarily uses the 
output method to measure progress.  For services 
such as hardware installation, network integration, 
network optimization, and network planning, the 
Group divides the whole service into several delivery 
milestones according to the deliveries specified in the 
contract to measure the performance progress.  For 
services such as customer support, managed services 
and training, the Group generally recognizes revenue 
using the straight-line method.
Consumer Business
The consumer business mainly provides terminal devices 
and services that can be sold on a stand-alone basis, 
such as mobile phones and tablets. The consumer 
business generally sells its products through distribution 
channels. Additionally, the Group sells products to 
consumers directly through self-operated online 
platforms and retail stores. Full payment is commonly 
received in advance.  In most cases, control of the 
goods is transferred when the goods are delivered 
to distribution channels or consumers. The nature 
of warranties for terminal devices and accessories is 
generally standard assurance.
For third-party applications, goods and services sold 
through the Group's online platforms and distribution 
channels, the Group is a principal if it controls a 
promised good or service before it is transferred to a 
customer, otherwise the Group is an agent.
Cloud Computing Business
The cloud computing business mainly provides 
customers with cloud services, such as elastic 
computing, storage, networks, security, and 
databases.  Cloud services are mainly classified into 
contracts with periodic service access or contracts 
with usage services, where the former is charged on 
a subscription basis and the latter is charged based 
on actual utilization. In both contract types, POBs are 


108       Huawei Investment & Holding Co., Ltd.
satisfied over time and the Group recognizes revenue 
over the related contract period using a straight-line 
method or actual consumption volume multiplied by 
agreed charge rates.
Digital Power Business
The digital power business mainly sells products 
and solutions such as smart photovoltaics (PV), data 
center facilities, and DriveONE (including e-mobility 
products for new energy vehicles), and generally 
includes POBs of sales of equipment, installation 
services and operation and maintenance services.  
Except for DriveONE products that are directly 
sold to automobile manufacturers, the Group sells 
other digital power products primarily through 
distribution channels. In most cases, control of the 
goods is transferred when the goods are delivered 
to distribution channels. The nature of warranties 
for digital power products is generally standard 
assurance.
Intelligent Automotive Solution Business
The intelligent automotive solution business 
mainly provides automobile manufacturers with 
intelligent automotive components and accessories, 
automated driving systems and related services, 
primarily through a direct sales model. The control 
of goods is transferred to the customer when the 
goods are delivered to the customer's designated 
location.  Revenue related to software and services 
is recognized when the control of software and 
services is transferred to the customer.  The nature 
of warranties for intelligent automotive products is 
generally standard assurance.
(ii)	Rental income from operating leases
Rental income receivable under operating leases is 
recognized in profit or loss in equal installments 
over the periods covered by the lease term, except 
where an alternative basis is more representative 
of the pattern of benefits to be derived from the 
use of the leased asset.  Lease incentives granted 
are recognized in profit or loss as an integral part 
of the aggregate net lease payments receivable.  
Variable lease payments that do not depend on 
an index or a rate are recognized as income in the 
accounting period in which they are earned.
(r)	
Government grants 
Government grants are recognized at fair value 
when there is reasonable assurance that they will 
be received and that the Group will comply with 
the conditions attached to them. 
Grants that compensate the Group for the cost 
of an asset are initially recognized as deferred 
income and then recognized in profit or loss on a 
systematic and rational basis over the useful life of 
the related asset. 
Grants that compensate the Group for expenses to 
be incurred in the future are initially recognized as 
deferred income and then recognized in profit or 
loss in the same periods in which the expenses are 
incurred. Otherwise, the grants are recognized in 
profit or loss directly.  
(s)	
Translation of foreign currencies
(i)	Foreign currency transactions
Foreign currency transactions during the year are 
translated into the respective functional currencies 
of group entities at the foreign exchange rates 
ruling at the transaction dates. 
Monetary assets and liabilities denominated 
in foreign currencies are translated into the 
functional currency at the foreign exchange 
rates ruling at the end of the reporting period.  
Exchange gains and losses are recognized in profit 
or loss, except those arising from derivatives used 
to hedge net investments in foreign operations 
(see note 3(f)).
Non-monetary assets and liabilities that are 
measured in terms of historical cost in a foreign 
currency are translated using the foreign exchange 
rates ruling at the transaction dates. Non-monetary 
assets and liabilities denominated in foreign 
currencies that are stated at fair value are translated 
using the foreign exchange rates ruling at the dates 
the fair value was measured.
(ii)	Foreign operations
The results of foreign operations, except for 
foreign operations in hyperinflationary economies, 
are translated into the presentation currency 
of the Group (CNY) at the exchange rates 
approximating the foreign exchange rates ruling 
at the dates of the transactions.  Statement of 
financial position items are translated into CNY 
at the closing foreign exchange rates at the end 
of the reporting period.  The resulting exchange 
differences are recognized in other comprehensive 
income and accumulated separately in equity 
in the translation reserve.  If the operation is a 
non-wholly-owned subsidiary, then the relevant 
proportionate share of the translation difference is 
allocated to the non-controlling interests.


2023 Annual Report
        109
The results and financial position of foreign 
operations in hyperinflationary economies are 
translated to CNY at the exchange rates ruling 
at the end of the reporting period.  Prior to 
translating the financial statements of foreign 
operations in hyperinflationary economies, their 
financial statements for the current year are 
restated to account for changes in the general 
purchasing power of the local currencies.  The 
restatement is based on relevant price indices at 
the end of the reporting period.
When a foreign operation is disposed of in its 
entirety or partially such that control, significant 
influence or joint control is lost, the cumulative 
amount in the translation reserve related to that 
foreign operation is reclassified to profit or loss as 
part of the gain or loss on disposal.
(t)	
Borrowing costs
Borrowing costs that are directly attributable to 
the acquisition, construction or production of an 
asset which necessarily takes a substantial period 
of time to get ready for its intended use or sale 
are capitalized as part of the cost of that asset.  
Other borrowing costs are expensed in the period 
in which they are incurred.
4	 Accounting judgments and 
estimates
Significant judgments and key sources of estimation 
uncertainty are as follows: 
(a)	Revenue recognition
Revenue is recognized when control of a good 
or service is transferred to a customer.  Where 
revenue is recognized over time, the Group 
primarily uses the output method to measure 
progress.  Judgments applied when using the 
output method include assessing progress and 
milestones achieved and determining if that 
represents the value of goods and/or services 
delivered to the customer to date.  Where revenue 
is recognized at a point in time, the Group 
assesses the transfer of control by reference to 
the contractual terms and the circumstance of 
the arrangements including a consideration of 
past business practice, such as whether the Group 
has a legal right to payment, title has passed, the 
customer has the risks and rewards of ownership, 
or the customer is using the asset to generate 
value for themselves.  
In determining the transaction price and the 
amounts allocated to performance obligations, 
variable consideration is estimated using the 
most likely amount or expected value based on 
the nature of the specific consideration and the 
analysis of relevant contract terms, considering 
historical, current and expected information. 
The collectability of a consideration is estimated 
at contract inception, based on the Group's 
assessment of the customer's ability and intention 
to pay when due, and is reassessed if there are 
significant changes in the facts and circumstances.
For sales to distribution channels, judgments 
and estimates are also applied in determining 
when the control of the goods is transferred to 
channels and at what amount revenue should be 
recognized. The judgments include whether the 
channel is a principal or an agent in a transaction, 
and whether the channel's next sale is part of one 
arrangement. The Group monitors the channel 
inventory level with reference to the channel's 
normal turnover cycle and sales forecast, taking 
into consideration various factors including 
product characteristics, historical experience, 
market demand and external competition.  
Revenue is only recognized when the control of 
the goods is transferred and to the extent that it 
is highly probable that a significant reversal will 
not occur.
The Group judges a contract modification as a 
separate contract when the increase in contract 
scope is due to additional distinct promised goods 
or services and the price increases reflect the SSP 
of such goods or services plus any appropriate 
adjustments.  Otherwise, a contract modification 
is judged as a prospective change to an existing 
contract when the remaining goods or services are 
distinct from those transferred before the date of 
the modification, or accounted for as cumulative 
catch-up adjustment to the revenue when the new 
or remaining goods or services are not distinct 
from those transferred.
Estimation is inherent in revenue recognition and 
revenue may materially change if management's 
estimation were to change or be found inaccurate 
or with the occurrence of unexpected events.


110       Huawei Investment & Holding Co., Ltd.
(b)	Impairment of trade receivables and 
contract assets
The credit risk of customers is regularly assessed 
with a focus on the customer's ability and 
willingness to pay, reflected by the Group's 
estimation of the expected credit loss allowance 
on trade receivables and contract assets.  The 
Group estimates expected credit loss by assessing 
the loss that will be incurred given customer 
default based on past payment experience and 
adjusted by the cash flow expected from collateral 
or credit risk mitigation received where these are 
considered to be integral to the asset, and by 
assessing the probability of default considering 
information specific to the customer as well 
as pertaining to the country and economic 
environment in which the customer operates. The 
estimate also incorporates forward-looking data.
Impairment is assessed on an individual basis for 
trade receivables and contract assets meeting 
pre-determined criteria, including customers 
in financial difficulties, and contracts with risk 
mitigation arrangements or significant financing 
arrangements, amongst others.  Apart from 
receivables and contract assets that have been 
assessed and provided for individually, allowances 
are estimated using provision matrices by 
management with reference to the customers' 
credit risk ratings and aging analysis of the 
remaining trade receivable and contract asset 
balances.  Different provision matrices have 
been developed by the Group based on different 
customer groups which exhibit different risk 
characteristics. 
If the financial condition of customers were to 
deteriorate or improve, or actual future economic 
performance is different to the Group's estimates, 
additional allowances or reversals may be required 
in future periods.
(c)	
Net realizable value of inventories
The net realizable value of inventories is the 
estimated selling price in the ordinary course of 
business, less the estimated costs of completion 
and the estimated costs necessary to make the 
sale, adjusted by the losses for obsolescence 
and redundancy.  These estimates are based on 
the current market condition, economic lives of 
the Group's products, availability of components 
required to assemble the Group's products and 
the historical experience of inventory losses.  
They could change significantly as a result of 
industrial technology upgrades, competitor 
actions, development of the Events as described 
in note 4(j) or other changes in market condition.  
Management will reassess the estimations at the 
end of each reporting period.
(d)	
Impairment losses of other 
non-financial assets
The carrying amounts of other non-financial 
assets (including property, plant and equipment, 
right-of-use assets, goodwill and intangible 
assets and other long-term assets) are reviewed 
periodically in order to assess whether the 
recoverable amounts have declined below their 
carrying amounts. In order to determine the 
recoverable amount, the Group uses assumptions 
and develops expectations, which requires 
significant judgment. The Group uses all readily 
available information in determining an amount 
that is a reasonable approximation of recoverable 
amount, including estimates based on reasonable 
and supportable assumptions and projections 
of production volume, sales price, amount of 
operating costs, discount rate and growth rate.
(e)	
Income tax and deferred tax assets
The Group is subject to income taxes in 
numerous jurisdictions.  Significant judgment is 
required in determining the Group's provision 
for income taxes. There are certain transactions 
and computations for which the ultimate tax 
determination is uncertain during the ordinary 
course of business.  The Group recognizes 
liabilities in the relevant accounting period based 
on estimates of the probabilities of whether 
additional taxes will be due.  Where the final 
tax outcome of these matters is different from 
the amounts that were initially recorded, such 
differences will impact current and deferred tax 
liabilities and the taxation charge for the year.
Estimation uncertainty also arises from the 
recognition of deferred tax assets in respect of 
unused tax losses and credits and deductible 
temporary differences. Deferred tax assets are 
recognized to the extent that it is probable that 
future taxable profits will be available against 
which they can be utilized.  Recognition primarily 
involves judgment regarding the future financial 
performance of each group entity, considering the 
reversal of existing taxable temporary differences 
and the periods in which tax losses can be utilized. 
 
Adverse changes to the operating environment 
or changes in the Group's organization structure 


2023 Annual Report
        111
could result in a future write-down of the deferred 
tax assets recognized.
(f)	
Provision for warranties
As explained in note 28(b), the Group makes 
provision for assurance warranties, taking into 
account the Group's recent claim experience and 
anticipated claim rates for affected products.  As 
the Group is continually upgrading its product 
designs and launching new models, it is possible 
that the recent claim experience is not indicative 
of future claims that it may receive in respect of 
affected product sales.  
(g)	
Other provisions
The Group makes provisions for onerous contracts, 
outstanding litigations and claims based on 
project budgets, contract terms, available 
knowledge, legal advice and past experience.  The 
Group recognizes provisions to the extent that it 
has a present legal or constructive obligation as a 
result of a past event; that it is probable that an 
outflow of resources will be required to settle the 
obligation; and that the amount can be reliably 
estimated.  
The Group makes provisions for onerous contracts 
in respect of losses arising from non-cancelable 
procurement agreements when there is a change 
in the Group's procurement demands such that 
the Group may not proceed with committed 
purchase orders or use the goods concerned.  
Provisions are made considering the contract 
terms, the suppliers' losses resulting from the 
Group's termination of the agreements and the 
extent to which the goods under the committed 
purchase orders will no longer be used in the 
Group's production. In estimating the losses 
for redundancies, inventories held on hand and 
non-cancelable purchase orders are evaluated 
as a whole.  Judgment is required in making 
the estimates and the ultimate outcome may 
be different.  The Group regularly updates its 
production plan and procurement demands, 
estimates probable losses, and adjusts provisions 
accordingly.
(h)	
Depreciation and amortization
Property, plant and equipment and right-of-use 
assets are depreciated on a straight-line basis over 
the estimated useful lives, after considering the 
estimated residual value.  Intangible assets with 
finite useful life are amortized on a 
straight-line basis over the estimated useful lives.  
Both the period and method of depreciation 
and amortization are reviewed annually.  The 
depreciation and amortization expense for future 
periods is adjusted if there are significant changes, 
such as operational efficiency or changes in 
technologies, from previous estimates.
(i)	Fair value of financial instruments
Some of the Group's financial instruments 
are measured at fair value.  In estimating the 
fair value of a financial instrument, the Group 
uses market-observable data to the extent it 
is available.  Where directly market-observable 
data are not available, the Group uses valuation 
techniques that include unobservable inputs 
to estimate the fair value of certain financial 
instruments. The Group regularly reviews 
significant unobservable inputs and relevant 
valuation results.
(j)	
Financial impact of the Entity List event 
On May 16, 2019 and August 19, 2019 (dates in 
note 4(j) are in U.S. time), the U.S. Commerce 
Department's Bureau of Industry and Security (BIS) 
added Huawei Technologies Co., Ltd. and certain 
non-US affiliates to the Entity List. On August 17, 
2020, BIS amended the Foreign-Produced Direct 
Product Rule by expanding the scope of control 
over foreign-produced items, and further added 
certain Huawei non-US affiliates to the Entity List. 
Upon being added to the Entity List, export, 
re-export or in-country transfer of items subject 
to the U.S. Export Administration Regulations 
(including hardware, software, technology, etc.) to 
the listed entities shall be subject to a BIS license 
requirement (collectively referred to as the Events).
As a result, supplies of relevant items to the 
Group and sales of certain products of the Group 
are adversely affected.  The Group has been 
taking active measures to mitigate the impact of 
the Events. Management has applied significant 
judgments to estimate the impacts arising 
from the Events and relevant impairments and 
provisions have been recognized and adjusted 
continually based on the development of the 
Events.
5	 Changes in accounting policies
The International Accounting Standards Board (IASB) 
has issued several amendments to IFRS Accounting 


112       Huawei Investment & Holding Co., Ltd.
Standards that are effective from January 1, 2023, of 
which the following are relevant to the Group:
■	 Amendments to IAS 8, Accounting policies, 
changes in accounting estimates and errors: 
Definition of Accounting Estimates
■	 Amendments to IAS 12, Income tax: International 
Tax Reform – Pillar Two Model Rules
■	 Amendments to IAS 12, Income tax: Deferred Tax 
related to Assets and Liabilities arising from a 
Single Transaction
■	 Amendments to IAS 1, Presentation of financial 
statements, and IFRS Practice Statement 2, Making 
materiality judgements: Disclosure of Accounting 
Policies
The adoption of these amendments does not have a 
material effect on the Group's consolidated financial 
statements.
6	 New standards and amendments 
issued but not yet effective for 
the year ended December 31, 
2023
The IASB has issued a number of new standards 
and amendments which will affect the financial 
statements in subsequent accounting periods. They 
are not expected to have a significant impact on the 
Group's consolidated financial statements.
7	 Segment information
Operating segments are determined based on the 
types of customers, products and services provided, 
as well as the Group's organization structure, 
management requirement and reporting system.  
The financial information of the different segments 
is regularly reviewed by the Group's most senior 
executive management for the purpose of resource 
allocation and performance assessment.
The Group divides its business into the following five 
operating segments: 
■	 ICT Infrastructure Business
The ICT infrastructure business mainly works on 
information distribution, interaction, transmission, 
processing, and storage, with a focus on two 
industries: connectivity and computing.  The ICT 
infrastructure business provides global telecom 
carriers as well as government and enterprise 
customers with leading and innovative ICT 
products, solutions, and services. Our offerings 
include wireless networks, cloud core networks, 
data communication, optical, computing, data 
storage as well as services and software.
■	 Consumer Business
The consumer business pursues a "1 + 8 + 
N" Seamless AI Life strategy.  Driven by the 
HarmonyOS ecosystem, the consumer business 
focuses on five key scenarios: smart office, 
fitness & health, smart home, easy travel, and 
entertainment.  It provides smartphones, tablets, 
personal computers, wearable devices, converged 
home devices, Huawei Zhixuan cars, as well as the 
applications and services that run on these devices 
for consumers and businesses.
■	 Cloud Computing Business
The cloud computing business focuses on 
delivering Everything as a Service by making 
Huawei's ICT know-how, products, and solutions 
accessible in the form of cloud services.  It 
provides customers, partners, and developers in 
different industries with innovative technologies, 
including artificial intelligence, data governance, 
media services, and software and hardware 
development tools.
■	 Digital Power Business
The digital power business integrates digital and 
power electronics technologies, with a focus on 
clean power generation, mobility electrification, 
and green ICT power infrastructure.  It provides 
low-carbon products and solutions covering smart 
PV and energy storage systems, smart charging 
networks, DriveONE (including e-mobility products 
for new energy vehicles), data center facilities, 
and site power facilities, to help build a greener 
industry and to promote sustainable development.
■	 Intelligent Automotive Solution Business
The intelligent automotive solution business 
focuses on providing new components for 
intelligent connected electric vehicles, and aims 
to help the automotive industry go intelligent, 
connected, and electric.  It provides products and 
solutions including intelligent driving, intelligent 
cockpits, intelligent vehicle control, and intelligent 
vehicle cloud services.
Segment revenue includes both sales to external 
customers and inter-segment sales.


2023 Annual Report
        113
(a)	Revenue information in respect of 
business segments
(CNY million)
2023
2022
ICT Infrastructure
361,997
353,978
Consumer
251,496
214,463
Cloud Computing
55,287
45,342
Digital Power
52,607
50,806
Intelligent Automotive 
Solution
4,737
2,077
Other items
8,624
3,978
Elimination
(30,574)
(28,306)
Total
704,174
642,338
(b)	Geographical revenue information
(CNY million)
2023
2022
China
471,303
403,999
Europe, the Middle 
East and Africa 
(EMEA)
145,343
149,206
Asia Pacific
41,041
48,048
Americas
35,362
31,898
Others
11,125
9,187
Total
704,174
642,338
8	 Revenue
(CNY million)
2023
2022
Revenue from contracts 
with customers
703,246
641,420
Rental income
928
918
704,174
642,338
Revenue from contracts with customers is analyzed by 
timing of revenue recognition as follows:
(CNY million)
2023
2022
Recognized at a point 
in time
564,255
513,594
Recognized over time
138,991
127,826
703,246
641,420
Further disaggregation of revenue by business and 
geography is set out in note 7.
The amount of revenue recognized for the year ended 
December 31, 2023 from POBs satisfied (or partially 
satisfied) in previous years amounted to CNY1,789 
million (2022: CNY2,612 million).  The revenue was 
constrained in prior years as the relevant customers 
were high credit risk rated and the collectability 
of sales consideration was estimated to be low, or 
certain terms of relevant sale contracts were not 
agreed upon then. 
Transaction price allocated to remaining 
performance obligations
As at December 31, 2023, the aggregated amount 
of transaction price allocated to the remaining 
performance obligations under the Group's existing 
customer contracts was CNY91,439 million (2022: 
CNY83,535 million).  This amount mainly represents 
the remaining performance obligations under the 
Group's ICT infrastructure business contracts.  The 
Group will recognize the revenue in future when 
control of the corresponding service or product is 
transferred to the customer as stipulated in note 
3(q).  74% of the amount is expected to occur over 
the next year (2022: 76%), while the remaining 
portion is expected to occur in the years that follow.  
The amounts disclosed above do not include any 
estimated amounts of variable consideration that are 
constrained.
The Group does not disclose information about 
remaining performance obligations that have original 
expected durations of one year or less as permitted 
by IFRS 15.
Revenue is recognized when a performance obligation 
is satisfied in accordance with the accounting policies 
in note 3(q).  The timing of payment from customers 
relative to revenue recognition generates either 
contract assets or trade receivables for payments 
received in arrears or contract liabilities for payments 
received in advance.  
Contract assets and contract liabilities are presented 
in notes 20 and 26 respectively.


114       Huawei Investment & Holding Co., Ltd.
9	 Other income, net
(CNY million)
Note
2023
2022
Fair value changes in financial instruments arising from disposals of 
subsidiaries and businesses
(i)
55,853
24,524
Government grants
(ii)
7,327
6,552
Commissions on individual income tax payments withheld
 
614
640
Gain on disposal of subsidiaries
 
–
59
Factoring expenses
 
(1,308)
(1,147)
Impairment of property, plant and equipment, intangible assets, 
goodwill, right-of-use assets, joint ventures and associates
 
(62)
(229)
Donations
 
(275)
(187)
Net loss on disposal of property, plant and equipment, intangible 
assets and right-of-use assets
 
(226)
(80)
Others, net
 
758
1,438
62,681
31,570
(i)	 The Group disposed of Honor business and certain subsidiaries engaged in manufacturing and sales of server products in prior years. 
According to the contract terms, the Group would receive the consideration in installments and there exists uncertainty over the 
ultimate consideration the Group is entitled to. Therefore, the financial instruments arising from the disposals were both measured 
at fair value through profit or loss. Cash receipts on the financial instruments are presented within investing cash flows.
During the year ended December 31, 2023, the Group and the buyer of the Honor business entered into a supplementary agreement 
and the Group's contractual rights and obligations pertaining to the sale were completely executed and discharged.  The financial 
instrument arising from the disposal of server product manufacturing and sales subsidiaries is included in other liabilities as at 
December 31, 2023.
(ii)	 During the year ended December 31, 2023, government grants recognized as other income, net included unconditional grants of 
CNY744 million (2022: CNY976 million), and conditional grants of CNY6,583 million (2022: CNY5,576 million) which are generally 
related to research and development projects.
10 Personnel expenses
(CNY million)
2023
2022
Salaries, bonuses and allowances
156,446
153,022
Defined benefit plans
6,205
6,137
Defined contribution plans and others
19,194
17,772
181,845
176,931
Defined contribution plans
The Group contributes to defined contribution retirement plans for eligible employees.  The plans are managed 
either by the governments in the countries where the employees are employed, or by independent trustees.  
Contribution levels are determined by the relevant laws and regulations concerned.


2023 Annual Report
        115
11 Finance income and expenses
(CNY million)
Note
2023
2022
Interest income on financial assets at amortized cost
– deposits and wealth management products
 
6,490
3,085
– other financial assets
 
717
413
Interest income on financial assets at FVOCI
 
393
185
Interest income on lease receivables
 
14
21
Net gains on financial instruments mandatorily at FVPL
(i)
–
5,548
Dividend income and others
 
1,264
807
Finance income
 
8,878
10,059
Interest expense on loans and borrowings
 
(11,679)
(7,596)
Less: interest expense capitalized
(ii)
204
124
Interest cost on employee benefit obligations
 
(691)
(638)
Interest expense on lease liabilities
29(a)(ii)
(479)
(417)
Other interest expense
 
(321)
(202)
Net losses on financial instruments mandatorily at FVPL
(i)
(1,811)
–
Net losses on disposal of financial assets at FVOCI
13(b)
(261)
–
Net foreign exchange loss
(iii)
(474)
(277)
(Impairment loss)/reversal of impairment loss
 
(3)
4
Bank charges
 
(22)
(39)
Finance expenses
 
(15,537)
(9,041)
Net finance (expenses)/income
 
(6,659)
1,018
(i)	 The net gains or losses mainly include fair value changes in investment funds, equity securities and beneficiary rights as well as 
compound financial instruments mandatorily at FVPL as disclosed in note 17.
(ii)	 Interest expenses capitalized represent interest costs on specific loans for property construction purpose.
(iii)	For the year ended December 31, 2023, net foreign exchange loss included net fair value gain of CNY2,800 million on foreign 
exchange forward contracts that were not designated as hedging instruments (2022: net fair value loss of CNY557 million).
12 
Income tax in the summary consolidated statement of profit or loss and 
other comprehensive income
Charge for the year 
(CNY million)
2023
2022
Current tax 
Provision for the year
10,314
9,487
Under provision in respect of prior years
1,597
142
11,911
9,629
Deferred tax 
Origination and reversal of temporary differences
(1,163)
(1,285)
Effect of changes in tax rates on opening deferred tax balances
(102)
40
(1,265)
(1,245)
10,646
8,384


116       Huawei Investment & Holding Co., Ltd.
13 Other comprehensive income
(a)	Tax effects relating to each component of other comprehensive income
(CNY million)
2023
2022
Before-tax 
amount
Tax (expense)/
benefit
Net-of-tax 
amount
Before-tax 
amount
Tax (expense)/
benefit
Net-of-tax 
amount
Re-measurement of defined benefit 
obligations
– The Group
151
(18)
133
71
(6)
65
Net change in the fair value and 
impairment loss of financial assets 
measured at FVOCI
Net change in the fair value of equity 
investments
 
 
 
 
 
 
– The Group
1,644
(294)
1,350
(1,521)
352
(1,169)
Net change in the fair value and impairment 
loss of non-equity financial assets
 
 
 
 
 
 
– The Group
176
(4)
172
(266)
16
(250)
1,820
(298)
1,522
(1,787)
368
(1,419)
Translation differences on foreign 
operations
– The Group
1,202
23
1,225
3,500
14
3,514
– Share of associates and joint ventures
1
–
1
(1)
–
(1)
1,203
23
1,226
3,499
14
3,513
3,174
(293)
2,881
1,783
376
2,159
(b)	Components of other comprehensive income, including reclassification adjustments
(CNY million)
2023
2022
Net change in the fair value and impairment loss of financial assets 
measured at FVOCI
 
 
Changes in fair value recognized during the year
1,557
(1,791)
Reclassification adjustments for amounts transferred to profit or loss
 
 
– Loss on derecognition (note 11)
261
–
Loss allowances recognized
2
4
Net deferred tax (debited)/credited to other comprehensive income
(298)
368
Net movement in the fair value reserve during the year
1,522
(1,419)
Translation differences on foreign operations
Recognized during the year
 
 
– Translation differences
1,357
3,592
– Effective portion of changes in fair value of hedging instruments
(158)
(93)
Reclassification adjustments for amounts transferred to profit or loss
 
 
– Liquidation or disposal of subsidiaries
4
–
Net deferred tax credited to other comprehensive income
23
14
Net movement in the translation reserve during the year
1,226
3,513


2023 Annual Report
        117
14 Property, plant and equipment 
(CNY million)
Freehold 
land
Buildings
Machinery
Electronic
 and other 
equipment
Motor 
vehicles
Construction 
in progress
Investment 
property
Decoration 
and leasehold
 improvements
Total
Cost:
At January 1, 2022
415
37,306
48,821
91,856
589
18,998
429
31,447
229,861
Exchange adjustments
(10)
(8)
(6)
539
3
230
50
97
895
Additions
10
294
1,765
3,448
56
29,520
453
122
35,668
Transfer from construction 
in progress
–
4,374
6,971
11,411
1
(26,301)
–
3,544
–
Transfer to investment 
property
–
(340)
(77)
–
–
–
517
(31)
69
Disposals
–
–
(450)
(1,971)
(35)
(30)
(19)
(328)
(2,833)
Reclassified as assets held 
for sale
–
–
(9)
(1)
–
–
–
(8)
(18)
Hyperinflation adjustments
–
–
4
266
13
5
–
136
424
At December 31, 2022
415
41,626
57,019
105,548
627
22,422
1,430
34,979
264,066
At January 1, 2023
415
41,626
57,019
105,548
627
22,422
1,430
34,979
264,066
Exchange adjustments
(3)
(111)
(17)
(73)
(20)
54
(58)
(178)
(406)
Additions
25
55
2,590
3,627
68
40,560
26
55
47,006
Transfer from investment 
property
51
212
–
–
–
–
(263)
–
–
Transfer from construction 
in progress
–
2,790
7,608
8,274
2
(21,609)
–
2,935
–
Transfer to inventory
–
(658)
(201)
(1)
–
–
–
(454)
(1,314)
Disposals
–
–
(1,098)
(6,753)
(65)
(13)
(5)
(452)
(8,386)
Reclassified as assets held 
for sale
–
(4)
(70)
(15)
–
–
–
(6)
(95)
Hyperinflation adjustments
–
–
3
302
31
10
–
88
434
At December 31, 2023
488
43,910
65,834
110,909
643
41,424
1,130
36,967
301,305
Accumulated depreciation 
and impairment:
At January 1, 2022
–
6,353
19,983
61,045
417
6
114
17,809
105,727
Exchange adjustments
–
18
(1)
359
2
(1)
(2)
72
447
Depreciation charge for 
the year
–
1,244
5,472
12,104
53
–
93
3,686
22,652
Transfer to investment 
property
–
(6)
(1)
–
–
–
14
–
7
Impairment loss
–
–
33
129
–
75
–
4
241
Disposals
–
–
(410)
(1,631)
(32)
(1)
(10)
(320)
(2,404)
Reclassified as assets held 
for sale
–
–
(1)
(1)
–
–
–
(2)
(4)
Hyperinflation adjustments
–
–
3
232
8
–
–
133
376
At December 31, 2022
–
7,609
25,078
72,237
448
79
209
21,382
127,042
At January 1, 2023
–
7,609
25,078
72,237
448
79
209
21,382
127,042
Exchange adjustments
–
(10)
6
(21)
(10)
6
(3)
(119)
(151)
Depreciation charge for 
the year
–
1,388
6,351
13,284
54
–
53
3,642
24,772
Transfer from investment 
property
–
10
–
–
–
–
(10)
–
–
Transfer from construction 
in progress
–
–
–
2
–
(2)
–
–
–
Transfer to inventory
–
(102)
(94)
(1)
–
–
–
(387)
(584)
Impairment loss
–
–
35
6
–
2
–
–
43
Disposals
–
–
(493)
(5,628)
(62)
(1)
–
(439)
(6,623)
Reclassified as assets held 
for sale
–
–
(10)
(7)
–
–
–
(2)
(19)
Hyperinflation adjustments
–
–
2
250
23
–
–
55
330
At December 31, 2023
–
8,895
30,875
80,122
453
84
249
24,132
144,810
Carrying amount:
At December 31, 2023
488
35,015
34,959
30,787
190
41,340
881
12,835
156,495
At December 31, 2022
415
34,017
31,941
33,311
179
22,343
1,221
13,597
137,024


118       Huawei Investment & Holding Co., Ltd.
Based on the use of related assets, the depreciation charge for the year is allocated to cost of sales, research and 
development expenses, and selling and administrative expenses. Impairment losses are charged to cost of sales 
and other income, net in the summary consolidated statement of profit or loss and other comprehensive income.
As at December 31, 2023 and 2022, the Group did not hold any property, plant and equipment as collateral for 
liabilities or contingent liabilities.
15 Goodwill and intangible assets
(CNY million)
Goodwill
Software
Patents and
 royalties
(note(a))
Trademark 
and others
Total
Cost:
At January 1, 2022
4,114
2,496
13,526
3,231
23,367
Exchange adjustments
320
10
20
26
376
Additions
–
396
1,048
176
1,620
Disposals
(10)
(412)
(862)
(1,088)
(2,372)
At December 31, 2022
4,424
2,490
13,732
2,345
22,991
At January 1, 2023
4,424
2,490
13,732
2,345
22,991
Exchange adjustments
72
–
8
6
86
Additions
–
613
1,084
549
2,246
Disposals
–
(477)
(300)
(462)
(1,239)
At December 31, 2023
4,496
2,626
14,524
2,438
24,084
Amortization and impairment:
At January 1, 2022
3,784
2,048
7,926
1,505
15,263
Exchange adjustments
317
9
21
16
363
Amortization for the year
–
240
889
466
1,595
Impairment loss
16
–
–
4
20
Disposals
(11)
(362)
(839)
(1,086)
(2,298)
At December 31, 2022
4,106
1,935
7,997
905
14,943
At January 1, 2023
4,106
1,935
7,997
905
14,943
Exchange adjustments
70
(1)
6
5
80
Amortization for the year
–
387
862
419
1,668
Disposals
–
(477)
(207)
(460)
(1,144)
At December 31, 2023
4,176
1,844
8,658
869
15,547
Carrying amount:
At December 31, 2023
320
782
5,866
1,569
8,537
At December 31, 2022
318
555
5,735
1,440
8,048


2023 Annual Report
        119
(a)	 As at December 31, carrying amounts of patents and royalties are analyzed as follows:
(CNY million)
2023
2022
Patents
5,038
4,507
Royalties
828
1,228
5,866
5,735
(b)	 Based on the use of the related assets, the amortization charge for the year is allocated to cost of sales, 
research and development expenses, and selling and administrative expenses. Impairment losses are charged 
to cost of sales and other income, net in the summary consolidated statement of profit or loss and other 
comprehensive income.
(c)	 As at December 31, 2023 and 2022, all of the carrying amount of goodwill was allocated across multiple 
cash-generating units and the amount so allocated to each unit was not significant.
(d)	 As at December 31, 2023 and 2022, the Group did not hold any intangible assets whose title is restricted or 
pledged as security for liabilities.
16 Interests in associates and joint ventures
(CNY million)
2023
2022
Associates
6,615
6,414
Joint ventures
721
695
7,336
7,109
Associates and joint ventures are accounted for using the equity method.  None of the associates and joint 
ventures is individually significant.
Aggregate carrying amounts and summarized financial information of associates and joint ventures are as follows:
(CNY million)
Associates
Joint ventures
2023
2022
2023
2022
Aggregate carrying amount
6,615
6,414
721
695
Aggregate amount of the Group's share of 
associates' and joint ventures'
 
 
 
 
(Loss)/profit for the year
(106)
504
(40)
208
Other comprehensive income
–
(1)
–
–
Total comprehensive income
(106)
503
(40)
208


120       Huawei Investment & Holding Co., Ltd.
17 Other investments and derivatives
(CNY million)
Note
2023
2022
Financial assets at amortized cost
Fixed deposits
 
111,215
72,183
Debt securities
(i)
3,575
60
114,790
72,243
Loss allowances
(7)
(3)
114,783
72,240
Financial assets mandatorily at FVPL
Investment funds
(ii)
165,847
153,254
Equity securities and beneficiary rights
(iii)
136,552
62,495
Compound financial instruments
(iv)
3,746
3,946
Derivatives
(v)
482
305
306,627
220,000
Financial assets at FVOCI
Debt securities
(i)
5,950
9,077
Equity securities
(iii)
10,046
8,226
15,996
17,303
437,406
309,543
Non-current portion
 
154,510
83,055
Current portion
 
282,896
226,488
437,406
309,543
(i)	 Debt securities comprise investments in fixed rate bonds, floating rate notes, certificates of deposit, commercial paper, etc.  Debt 
securities are measured at amortized cost where the Group intends to hold them to collect contractual cash flows. Other debt 
securities are classified as FVOCI since they are held to collect and for sale, and also give rise to cash flows which are solely 
principal and interest.  The loss allowances on debt securities at FVOCI amounted to CNY2 million as at December 31, 2023 (2022: 
CNY3 million).
(ii)	 Investment funds comprise structured deposits, bond funds, money market funds and variable net asset value wealth management 
products.  Investment funds are measured at FVPL where the Group intends to sell them or where the investments do not give rise 
to cash flows which are solely principal and interest.
(iii)	Equity securities and beneficiary rights represent equity investments and interests in equity investment arrangements. These 
investments are designated at FVOCI where they are considered strategic to the Group and meet the definition of equity from the 
issuers' perspective, or measured at FVPL.  Dividend income received on equity investments at FVOCI amounted to CNY61 million 
(2022: CNY80 million) for the year ended December 31, 2023. 
Certain equity investments at FVOCI were disposed of during the year ended December 31, 2023, and the corresponding cumulative 
gain in fair value reserve of CNY3 million was transferred to retained earnings upon disposal of these investments (2022: CNY35 
million).
(iv)	Compound financial instruments comprise equity instruments with redemption options and convertible notes which are classified at 
FVPL.
(v)	 Derivatives mainly comprise foreign exchange forward contracts.
(vi)	As at December 31, 2023 and 2022, the Group did not hold any investments pledged as collateral for liabilities or contingent 
liabilities.


2023 Annual Report
        121
18 Deferred tax assets/(liabilities)
(a)	Components of recognized deferred tax 
assets/(liabilities) 
(CNY million)
2023
2022
Accruals, defined 
benefit obligations, 
refund liabilities 
and unperformed 
obligations
5,373
5,708
Fair value changes of 
financial instruments
(1,953)
(1,618)
Depreciation and 
impairment of 
property, plant and 
equipment
(3,856)
(4,301)
Unrealized profit
4,556
4,736
Tax losses
4,900
3,654
Undistributed profits 
of subsidiaries
(1,237)
(1,129)
Write-down of 
inventories
656
652
Provision for loss 
allowances
429
376
Others
155
(122)
Total
9,023
7,956
Reconciliation to the summary consolidated statement 
of financial position:
(CNY million)
2023
2022
Net deferred tax assets
12,456
11,760
Net deferred tax 
liabilities
(3,433)
(3,804)
9,023
7,956
(b)	Deferred tax assets not recognized
Deferred tax assets were not recognized on certain 
unused tax losses, deductible temporary differences 
and unused tax credits in accordance with the 
accounting policy set out in note 3(o).
As at December 31, 2023, deferred tax assets had 
not been recognized in respect of unused tax losses 
amounting to CNY313,696 million (2022: CNY207,383 
million) and deductible temporary differences 
amounting to CNY188,276 million (2022: CNY185,272 
million);  additionally, unused tax credits relating 
to overseas withholding income tax and corporate 
income tax incurred as well as certain research and 
development expenditure totaling CNY2,853 million 
(2022: CNY4,408 million) had not been recognized as 
deferred tax assets. 
19 
Inventories and other contract 
costs
(CNY million)
2023
2022
Inventories
Raw materials
73,422
87,650
Manufacturing work in 
progress
34,534
28,751
Finished goods and 
consumables
28,631
29,036
Dispatched goods and 
contract work in 
progress
12,660
14,106
Other inventories
5,042
3,374
154,289
162,917
Other contract costs
269
365
154,558
163,282
As at December 31, 2023 and 2022, the Group did 
not hold any inventories pledged as collateral for 
liabilities or contingent liabilities.
(a)	Amount of inventories recognized as an 
expense and included in profit or loss:
(CNY million)
2023
2022
Carrying amount of 
inventories sold
282,697
271,396
Write-down of 
inventories
583
6,196
283,280
277,592
The write-down is included in cost of sales.
(b)	Contract costs
The Group's contract costs represent contract 
fulfilment costs incurred to deliver services to 
customers, which will be charged to cost of sales 
when the corresponding performance obligations are 
satisfied.
No provision for impairment was required on contract 
costs as at December 31, 2023 or 2022.


122       Huawei Investment & Holding Co., Ltd.
20 Contract assets
(CNY million)
2023
2022
Gross carrying amount
54,189
52,821
Loss allowances (note 21(b))
(303)
(294)
53,886
52,527
Non-current portion
1,340
1,025
Current portion
52,546
51,502
53,886
52,527
Contract assets relate to the Group's rights to 
consideration for performance obligations that have 
been satisfied but not billed, primarily from ICT 
infrastructure business contracts.  Contract assets are 
transferred to receivables when the right to payment 
becomes unconditional, other than the passage of 
time.  This usually occurs when the Group issues an 
invoice to the customer in accordance with the billing 
milestones agreed in the contract, which are generally 
upon passing of the product acceptance tests.
Significant changes in the gross balances of contract 
assets during the year are as follows:
(CNY million)
2023
2022
At January 1
52,821
52,810
Addition during the year
50,267
47,836
Transfers to receivables or 
reversal during the year
(48,768)
(48,640)
Exchange adjustments
(131)
815
At December 31
54,189
52,821
21 Trade and bills receivable
(CNY million)
Note
2023
2022
Trade receivables
Trade receivables from 
third parties
(i)
97,152
87,143
Trade receivables from 
related parties
31
72
34
97,224
87,177
Bills receivable
Bank and finance 
company acceptance 
bills
 
5,207
809
Commercial acceptance 
bills
 
5,777
1,647
Letters of credit
 
856
1,244
(ii)
11,840
3,700
109,064
90,877
Non-current portion
 
7,014
3,073
Current portion
 
102,050
87,804
109,064
90,877
(i)	 As at December 31, 2023, the Group's trade receivables 
that may be sold through reverse factoring arrangements 
amounted to CNY6,885 million (2022: CNY7,112 million).  
These trade receivables are managed in a business model 
whose objective is achieved by both collection and sale, and 
are therefore measured at FVOCI.
(ii)	 The Group's bills receivable are due within twelve months 
from issuance date.
(a)	Aging analysis 
At the end of the reporting period, the aging analysis 
of trade receivables is as follows:
(CNY million)
2023
2022
Not past due
73,604
65,195
Less than 90 days past due
15,767
16,108
90 days to 1 year past due
8,101
6,876
1 year and above past due
3,402
2,170
100,874
90,349
Loss allowances
(3,650)
(3,172)
97,224
87,177
Trade receivables are generally due within 30 days 
from the date of billing.
(b)	Loss allowances of trade receivables 
and contract assets
Loss allowances in respect of trade receivables and 
contract assets are recorded using an allowance 
account unless the Group is satisfied that there is no 
reasonable expectation of further recoveries in which 
case the receivables are written off (see note 3(e)(i)).
The movement in loss allowances in respect of trade 
receivables and contract assets during the year is as follows: 
(CNY million)
Note
2023
2022
At January 1
 
3,497
3,148
Loss allowances 
recognized
 
774
297
Uncollectible amounts 
written-off
 
(92)
(472)
Collection of previously 
written-off debtors
 
39
154
Disposal of a subsidiary
 
–
(1)
Exchange adjustments
 
(231)
371
At December 31
 
3,987
3,497
Representing loss 
allowances
 
 
 
– on trade receivables
 
3,650
3,172
– on contract assets
20
303
294
– included in OCI on trade 
receivables at FVOCI
 
34
31
Total
 
3,987
3,497


2023 Annual Report
        123
Loss allowances recognized on trade receivables 
and contract assets are included in selling and 
administrative expenses.
During the year ended December 31, 2023, the 
loss allowances of trade receivables and contract 
assets increased mainly due to additional allowance 
recognized on the long-aged receivables due from 
certain customers in Asia Pacific. 
(c)	Transferred trade receivables not 
derecognized in their entirety
As at December 31, 2023, the Group's undue trade 
receivables with the face value of CNY8 million (2022: 
CNY9 million) have been transferred to banks and the 
Group received the corresponding remittance of CNY8 
million (2022: CNY9 million).  As these transactions 
are with recourse, the Group therefore has retained 
substantially all the risks and rewards and continues 
to recognize these trade receivables and the relevant 
financing as loans and borrowings (note 24).
As at December 31, 2023, the Group's trade 
receivables with the carrying amount of CNY2,760 
million (2022: CNY3,256 million) have been 
transferred to banks.  These trade receivables are 
covered by insurance policies issued by third party 
credit insurance agencies with the transferees as 
the loss payees.  In these transactions, the Group 
retains risk not covered by the insurance, therefore 
the Group has neither transferred nor retained 
substantially all the risks and rewards in relation to 
the trade receivables and the Group is considered to 
have retained control of these trade receivables as the 
transferees have no practical ability to sell these trade 
receivables without the Group's consent.  As such, 
the Group continues to recognize the transferred 
trade receivables of CNY527 million (2022: CNY567 
million) and associated liabilities of CNY564 million 
(2022: CNY610 million) to the extent of its continuing 
involvement.  The associated liabilities are included 
in other liabilities.  As at December 31, 2023, loss 
allowances of CNY409 million (2022: CNY405 million) 
were made on these transferred receivables.
(d)	Collateral
As at December 31, 2023 and 2022, except as 
disclosed in note 21(c), the Group did not hold any 
other trade and bills receivable pledged as collateral 
for liabilities or contingent liabilities.
22 Other assets
(CNY million)
Note
2023
2022
Advance payments to suppliers
 
51,985
47,386
Prepayment for acquisition of long-term assets
 
7,971
8,881
Tax receivables on unbilled deliveries
(i)
5,079
4,963
Income tax related assets
 
1,639
1,488
Other tax related assets
 
16,322
13,255
Pledged and restricted deposits with banks
 
1,961
1,608
Other third party receivables
 
17,190
33,968
Other long-term deferred assets
 
2,938
1,131
Related party receivables
31
278
386
Assets held for sale
 
191
13
105,554
113,079
Non-current portion
 
17,413
14,628
Current portion
 
88,141
98,451
105,554
113,079
(i)	 Under certain tax regulations, value added tax (VAT) and other surcharges are payable at the earlier of delivery of goods and 
services or issuance of VAT invoices.  These balances represent VAT and surcharge receivable from customers on unbilled deliveries 
and will be reclassified to trade receivables upon billing.


124       Huawei Investment & Holding Co., Ltd.
23 Cash and cash equivalents
(CNY million)
2023
2022
Cash on hand
5
7
Deposits with banks and other financial institutions
171,416
138,999
Highly liquid short-term investments
21,023
8,131
Deposits with third party merchants
459
132
192,903
147,269
Short-term investments included in cash and cash equivalents are highly liquid, readily convertible into known 
amounts of cash and subject to an insignificant risk of changes in value.  As at December 31, 2023, these 
short-term investments comprised reverse repurchase agreements with maturities of less than three months of 
CNY19,500 million (2022: CNY500 million), money market funds of CNY1,024 million (2022: CNY7,631 million), 
and fixed income structured notes of CNY500 million (2022: nil). Money market funds comprise investments in 
short-term debt securities which have constant or low volatility net asset values and are measured at FVPL. The 
fixed income structured notes are securities issued by Chinese security companies with guaranteed principal and 
fixed income.
As at December 31, 2023, cash and cash equivalents of CNY1,116 million (2022: CNY836 million) were held in 
countries where exchange controls or other legal restrictions were in force.
As at December 31, 2023, the Group held cash equivalents of CNY6,772 million (2022: CNY8,312 million) in 
multicurrency pooling arrangements to meet its day-to-day cash requirements.  The facilities allow participating 
subsidiaries to place deposits and borrow funds from the counterparty banks in any freely convertible currency 
subject to the overall balance on the pools being positive.
As at December 31, 2023 and 2022, the Group did not hold any cash and cash equivalents pledged as collateral 
for liabilities or contingent liabilities.
24 Loans and borrowings
Contractual terms of the Group's loans and borrowings are summarized below.
(CNY million)
2023
2022
Short-term loans and borrowings:
 
 
– Unsecured
432
228
Long-term loans and borrowings:
 
 
– Intra-group guaranteed
23
205
– Trade receivables financing (note 21(c))
8
9
– Unsecured
236,949
140,484
– Corporate bonds
71,002
56,218
307,982
196,916
308,414
197,144
Non-current portion
291,688
183,183
Current portion
16,726
13,961
308,414
197,144
Intra-group guaranteed loans are external borrowings which have been raised by one group entity but contractual 
payments of principal and interest are guaranteed by another group entity.


2023 Annual Report
        125
Terms and repayment schedule
A summary of the main terms and conditions of outstanding loans and borrowings are as follows:
At December 31, 2023
(CNY million)
Interest rate 
per annum
Total
1 year 
or less
1 to 5 
years
Over 5 
years
Intra-group guaranteed bank 
loans:
CNY
variable
3.96%
23
23
–
–
Trade receivables financing:
United States Dollar (USD)
variable
9.06%
8
2
6
–
Unsecured bank loans:
CNY
variable
2.80% ~ 3.96%
191,186
404
38,662
152,120
Euro (EUR)
variable
4.73% ~ 4.94%
8,051
20
4,693
3,338
EUR
fixed
5.07%
1
1
–
–
Hong Kong Dollar (HKD)
variable
6.00% ~ 6.94%
37,711
6,518
17,668
13,525
Saudi Arabian Riyal (SAR)
variable
2.89% ~ 8.35%
179
179
–
–
Bahrain Dinar (BHD)
variable
5.80%
12
12
–
–
Nigerian Naira (NGN)
fixed
19.00%
201
201
–
–
Pakistani Rupee
fixed
17.12%
37
37
–
–
USD
variable
6.16%
3
3
–
–
237,381
7,375
61,023
168,983
Corporate bonds:
CNY
fixed
2.87% ~ 3.65%
46,094
9,152
36,942
–
USD
fixed
4.00% ~ 4.13%
24,908
174
24,734
–
71,002
9,326
61,676
–
308,414
16,726
122,705
168,983


126       Huawei Investment & Holding Co., Ltd.
At December 31, 2022
(CNY million)
Interest rate 
per annum
Total
1 year 
or less
1 to 
5 years
Over 5 
years
Intra-group guaranteed 
bank loans:
CNY
variable
4.26%
205
182
23
–
Trade receivables financing:
USD
variable
4.92%
9
2
6
1
Unsecured bank loans:
CNY
variable
2.95% ~ 4.31%
102,764
135
21,388
81,241
EUR
variable
2.36% ~ 3.05%
5,266
–
4,291
975
HKD
variable
5.26% ~ 6.51%
22,039
–
17,663
4,376
SAR
variable
1.80% ~ 4.75%
43
43
–
–
BHD
variable
5.80%
104
104
–
–
NGN
fixed
19.00%
75
75
–
–
EUR
fixed
1.75%
6
6
–
–
USD
variable
5.62% ~ 5.68%
10,415
10,415
–
–
140,712
10,778
43,342
86,592
Corporate bonds:
CNY
fixed
2.87% ~ 3.65%
31,954
2,999
28,955
–
USD
fixed
4.00% ~ 4.13%
24,264
–
24,264
–
56,218
2,999
53,219
–
197,144
13,961
96,590
86,593
Certain of the Group's banking facilities are subject to compliance with covenants relating to financial ratios.  In 
the event of breach, the drawn down facilities would become payable on demand.  The Group regularly monitors 
its compliance with these covenants.  As at December 31, 2023 and 2022, no covenants had been breached.


2023 Annual Report
        127
Corporate bonds
The Group's CNY and USD corporate bonds were issued by the Company and its wholly-owned subsidiaries 
respectively.  Main terms of the outstanding corporate bonds are as follows: 
Corporate bond 
Issue date 
Principal amount
 million
Interest rate 
per annum 
Term 
USD bond
May 19, 2015
1,000
4.125%
10 years
USD bond
May 6, 2016
2,000
4.125%
10 years
USD bond
February 21, 2017
500
4.000%
10 years
CNY medium-term note
March 6, 2020
2,000
3.240%
5 years
CNY medium-term note
March 23, 2020
2,000
3.380%
5 years
CNY medium-term note
April 24, 2020
2,000
3.090%
5 years
CNY medium-term note
January 29, 2021
4,000
3.580%
3 years
CNY medium-term note
March 5, 2021
4,000
3.650%
3 years
CNY medium-term note
January 10, 2022
4,000
2.960%
3 years
CNY medium-term note
January 24, 2022
3,000
3.260%
5 years
CNY medium-term note
February 28, 2022
4,000
2.990%
3 years
CNY medium-term note
July 22, 2022
4,000
2.870%
3 years
CNY medium-term note
January 16, 2023
3,000
3.450%
5 years
CNY medium-term note
February 10, 2023
3,000
3.400%
5 years
CNY medium-term note
March 6, 2023
3,000
3.450%
5 years
CNY medium-term note
April 17, 2023
4,000
3.050%
3 years
CNY medium-term note
August 28, 2023
3,000
2.980%
5 years
USD bonds are fully guaranteed by the Company.


128       Huawei Investment & Holding Co., Ltd.
Reconciliation of movements of major liabilities to cash flows arising from financing activities
Year ended December 31, 2023
Related liabilities
(CNY million)
Other loans and 
borrowings
Corporate 
bonds
Long-term assets
 installments
Lease 
liabilities
Balance at January 1, 2023
140,926
56,218
1,647
10,571
Proceeds from borrowings
140,128
24,950
–
–
Repayment of borrowings
(44,911)
(12,000)
–
–
Long-term assets acquired
–
–
283
–
Installment payments
–
–
(722)
–
New leases
–
–
–
4,256
Payment of lease liabilities
–
–
–
(3,556)
Interest incurred during the year
8,378
2,491
–
479
Interest paid
(8,568)
(2,158)
–
(344)
Amortization of capitalized interests and 
transaction costs
120
62
29
–
Non-cash transactions (note)
(750)
–
–
–
Termination of leases
–
–
–
(5)
Exchange adjustments
2,089
1,439
67
(566)
Balance at December 31, 2023
237,412
71,002
1,304
10,835
Note:	 Under certain financing arrangements, the Group's entitlement to consideration from customer contracts is 
transferred for cash to financial institutions before the Group obtains unconditional rights, giving rise to financial 
liabilities included in loans and borrowings.  The Group derecognizes the relevant loans and borrowings under 
these arrangements upon becoming unconditionally entitled to the relevant contract consideration.
25 Trade and bills payable
(CNY million)
Note
2023
2022
Trade payables
Related party trade payables
31
875
1,054
Third party trade payables
 
85,487
84,218
86,362
85,272
Bills payable
Bank acceptance bills
 
1,390
1,745
Letters of credit payable
 
3,093
5,087
4,483
6,832
90,845
92,104


2023 Annual Report
        129
26 Contract liabilities
Significant changes in contract liabilities during the year are as follows:
(CNY million)
2023
2022
At January 1
87,575
78,149
Revenue recognized that was included in the contract liability balance at the 
beginning of the year
(57,716)
(62,204)
Increases due to cash received or billing for unperformed obligations
65,307
69,848
Exchange adjustments
(65)
1,782
At December 31
95,101
87,575
The balance of contract liabilities represents consideration received or billing in advance of performance, after 
offsetting the balance of contract assets under the same contract. Contract liabilities mainly include deferred 
warranty service income, vouchers, and advance receipts or billing related to sales of goods or services from ICT 
infrastructure business, consumer business and cloud computing business. 
27 Other liabilities
(CNY million)
Note
2023
2022
Accrued expenses
 
25,093
23,480
Refund liabilities
(i)
17,980
14,883
Other taxes payable
 
15,637
14,112
Due in relation to property, plant and equipment
 
15,545
11,430
Due in relation to intangible assets
 
1,845
2,051
Derivatives
(ii)/17(v)
304
173
Others
 
45,280
50,905
121,684
117,034
Non-current portion
 
2,016
2,608
Current portion
 
119,668
114,426
121,684
117,034
(i)	 Refund liabilities mainly comprise the rebates and other sales-based incentives to customers.
(ii)	 As at December 31, 2023, the carrying value of the foreign exchange derivatives held as hedging instruments amounted to CNY5 
million (2022: CNY30 million).
28 Provisions 
(CNY million)
Note
2023
2022
Warranties
(b)
6,975
4,793
Onerous contracts with customers
 
1,326
719
Onerous contracts with suppliers
(c)
6,635
8,309
Others
(d)
5,233
2,761
20,169
16,582


130       Huawei Investment & Holding Co., Ltd.
(a)	Movement in provisions during the year is shown as below:
(CNY million)
Warranties
Onerous
 contracts with 
customers
Onerous 
contracts with
 suppliers
Others
Total
At January 1, 2023
4,793
719
8,309
2,761
16,582
Provisions made/(reversals)
6,867
881
(431)
2,430
9,747
Provisions utilized
(4,770)
(277)
(1,243)
(214)
(6,504)
Exchange adjustments
85
3
–
256
344
At December 31, 2023
6,975
1,326
6,635
5,233
20,169
(b)	Warranties
The provision for warranties is determined based on estimates made from historical and forecast warranty data 
associated with similar products, the amounts of products under warranty at the end of the reporting period and 
their corresponding remaining warranty periods.  
(c)	Provision for onerous contracts with suppliers
The Group has entered into certain non-cancelable procurement agreements in its normal course of business.  
As a result of the Events disclosed in note 4(j) and changes in market demand for products, certain items under 
these procurement agreements may not be capable of being used in production and provision has been made for 
the estimated losses arising from fulfilling, amending or terminating relevant agreements in accordance with the 
accounting policy set out in note 3(p).  The provision is charged to cost of sales.
(d)	Others
Others are mainly provisions for outstanding claims, cases and disputes.
29 Leases
(a)	As a lessee
The Group leases office premises, staff apartments, warehouses, production equipment and motor vehicles in its 
normal course of business.  These leases typically run for an initial period of one to ten years.  Some property 
leases contain extension options after the contract period and only a limited number of leases comprise variable 
payments.  The Group also holds land use rights in the PRC, which are recognized as right-of-use assets at the 
date the Group became entitled to the rights.


2023 Annual Report
        131
Information about leases for which the Group is a lessee is presented below. 
(i)	Right-of-use assets
(CNY million)
Land use
 rights
Buildings
Motor 
vehicles and 
others
Total
Cost:
At January 1, 2022
14,677
13,513
1,607
29,797
Exchange adjustments
4
219
63
286
Additions
834
3,923
462
5,219
Transfer to investment property
(69)
–
–
(69)
Derecognition
–
(2,021)
(474)
(2,495)
Hyperinflation adjustments
–
47
4
51
At December 31, 2022
15,446
15,681
1,662
32,789
At January 1, 2023
15,446
15,681
1,662
32,789
Exchange adjustments
(9)
(61)
26
(44)
Additions
2,391
3,518
738
6,647
Transfer to inventory
(737)
–
–
(737)
Derecognition
(1)
(2,149)
(725)
(2,875)
Hyperinflation adjustments
–
74
–
74
At December 31, 2023
17,090
17,063
1,701
35,854
Accumulated depreciation and impairment:
At January 1, 2022
1,458
5,838
835
8,131
Exchange adjustments
1
106
24
131
Depreciation charge for the year
303
2,793
476
3,572
Impairment loss
–
48
–
48
Transfer to investment property
(7)
–
–
(7)
Derecognition
–
(1,937)
(474)
(2,411)
Hyperinflation adjustments
–
36
3
39
At December 31, 2022
1,755
6,884
864
9,503
At January 1, 2023
1,755
6,884
864
9,503
Exchange adjustments
(1)
(6)
13
6
Depreciation charge for the year
323
3,131
410
3,864
Impairment loss
–
9
–
9
Transfer to inventory
(56)
–
–
(56)
Derecognition
–
(2,144)
(724)
(2,868)
Hyperinflation adjustments
–
(5)
(1)
(6)
At December 31, 2023
2,021
7,869
562
10,452
Carrying amount:
At December 31, 2023
15,069
9,194
1,139
25,402
At December 31, 2022
13,691
8,797
798
23,286
During the years ended December 31, 2023 and 2022, certain right-of-use assets were derecognized as a result of 
lease cancellation or entering into finance sub-leases.


132       Huawei Investment & Holding Co., Ltd.
(ii)	Amounts recognized in profit or loss
(CNY million)
Note
2023
2022
Interest expenses on lease 
liabilities
11
479
417
Expenses relating to 
short-term leases
 
442
544
Expenses relating to leases 
of low-value assets, 
excluding short-term 
leases of low-value 
assets
 
35
31
Variable lease payments 
not included in the 
measurement of lease 
liabilities
 
54
39
Income from subleasing 
right-of-use assets
 
136
92
(iii)	
Amounts recognized in summary 
consolidated statement of cash flows
(CNY million)
2023
2022
Total cash outflow for leases
6,988
4,723
(b)	As a lessor
Most of the Group's leases are operating leases under 
which certain properties are leased out (see note 8).
As at December 31, a maturity analysis of 
undiscounted lease payments to be received after the 
reporting date is as follows:
(CNY million)
2023
2022
Within 1 year
128
115
After 1 year but within 2 years
68
104
After 2 years but within 3 years
57
78
After 3 years but within 4 years
54
76
After 4 years but within 5 years
50
73
After 5 years
176
324
533
770
30 Capital commitments
(CNY million)
2023
2022
Contracted for acquisition and 
construction of long-term 
assets
21,518
21,843
Investment commitment
2,385
1,096
Total
23,903
22,939
31 Related parties
A related party is a person or an entity that has 
control or joint control or significant influence over 
the Group, or is a member of its key management 
personnel, or is member of the Group, including joint 
ventures and associates.
Transactions between the Group and related parties 
are conducted on an arm's length basis. Outstanding 
receivables and payables with related parties are 
collected or paid in accordance with contracts, 
without additional interest or collateral.
Details of the Group's significant transactions with 
related parties are set out below.
Transactions with related parties
(CNY million)
Associates
2023
2022
Sales of goods and services
1,534
554
Purchase of goods and services
2,352
2,400
Balances with related parties
(CNY million)
Associates
December 
31, 2023
December 
31, 2022
Trade receivables
      72
            34
Contract assets
       9
            84
Other assets
     278
          386
Trade payables
     875
        1,054
Contract liabilities
     206
            18
Other liabilities
     211
            76


2023 Annual Report
        133
32 Group enterprises
(a)	Parent and ultimate controlling party 
The Group's ultimate controlling party is the Union of Huawei Investment & Holding Co., Ltd.
(b)	Major subsidiaries 
Name of subsidiary
Place of 
incorporation
Proportion of 
ownership interest
Principal activities
 
2023
2022
Huawei Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of 
telecommunication and related products and 
provision of support and maintenance services
Huawei Device Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of mobile 
communication products and ancillaries
Huawei Machine Co., Ltd.
Chinese 
mainland
100%
100%
Manufacture of telecommunication products
Shanghai Huawei Technologies 
Co., Ltd.
Chinese 
mainland
100%
100%
Development of telecommunication products
Beijing Huawei Digital 
Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development of telecommunication products
Huawei Tech. Investment 
Co., Limited
Hong Kong, 
China
100%
100%
Trading of materials
Huawei International Co. Limited Hong Kong, 
China
100%
100%
Distribution of telecommunication products
Huawei International Pte. Ltd.
Singapore
100%
100%
Distribution of telecommunication products
Huawei Technologies Japan K.K.
Japan
100%
100%
Development and sale of telecommunication 
products and ancillary services
Huawei Technologies 
Deutschland GmbH
Germany
100%
100%
Development and sale of telecommunication 
products and ancillary services
Huawei Device (Shenzhen) 
Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of mobile 
communication products and ancillaries
Huawei Device (Hong Kong) 
Co., Limited
Hong Kong, 
China
100%
100%
Sale and related services of mobile 
communication products and ancillaries
Huawei Cloud Computing 
Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development and sale of cloud products
Huawei Technical Service 
Co., Ltd
Chinese 
mainland
100%
100%
Installation and maintenance of 
telecommunication products and ancillaries, 
including consultancy
Huawei Software Technologies 
Co., Ltd.
Chinese 
mainland
100%
100%
Sale of cloud products and services
HiSilicon Technologies CO., 
LIMITED
Chinese 
mainland
100%
100%
Development and sale of semiconductors
HiSilicon (Shanghai) 
Technologies CO., LIMITED
Chinese 
mainland
100%
100%
Development and sale of semiconductors
Hisilicon Optoelectronics Co., 
Limited
Chinese 
mainland
100%
100%
Development, manufacture and sale of 
optoelectronic products related to information 
technology
Huawei Technologies 
Coöperatief U.A.
Netherlands
100%
100%
Intermediate parent company for certain 
overseas subsidiaries


134       Huawei Investment & Holding Co., Ltd.
33 Contingent liabilities
(a)	 On September 2, 2014 (dates in note 33 are in 
U.S. time), T-Mobile USA, Inc. ("T-Mobile") filed 
a civil action against the Group's subsidiary, 
Huawei Device USA Inc., in relation to the 
alleged misappropriation of trade secrets relating 
to certain of T-Mobile's mobile phone test 
equipment.  The two parties reached a settlement 
on November 8, 2017.
On January 16, 2019, the United States 
Department of Justice issued an indictment 
against Huawei Device USA Inc. and Huawei 
Device Co., Ltd., containing 10 charges in relation 
to the alleged theft of trade secrets relating to 
the above equipment and alleged wire fraud and 
obstruction of justice.  The charges relate to the 
years from 2012 to 2014.
(b)	 On January 24, 2019, the United States 
Department of Justice issued an indictment against 
Huawei Technologies Co., Ltd., Huawei Device USA 
Inc. and other parties.   The indictment contains 
13 charges in relation to alleged bank and wire 
fraud, violation of the International Emergency 
Economic Powers Act of the United States with 
respect to certain transactions involving Iran, and 
associated matters.
On February 13, 2020, the United States 
Department of Justice issued a superseding 
indictment which, on top of the charges filed on 
January 24, 2019, added Huawei Device Co., Ltd. 
and Futurewei Technologies, Inc. as defendants, 
and added 3 new charges of alleged racketeering 
conspiracy, alleged conspiracy to steal trade 
secrets and alleged conspiracy to commit wire 
fraud.  The superseding indictment also includes 
new allegations including the defendants' alleged 
involvement in transactions involving North Korea 
and Iran.
The Group has engaged external counsels to assist 
it in respect of the matters referred to in (a) and 
(b) above.  With regard to the matter referred to 
in (a) above, due to the complexity of the charges 
contained in this indictment, its overlapping with 
the superseding indictment issued on February 13, 
2020 referred to in (b) above and the difficulties 
for the parties to prepare for the trial as a result of 
the continuing outbreak of COVID-19 pandemic, the 
US Government and the defendants filed motions 
on September 5, 2019, March 17, 2020, February 
23, 2021, February 18, 2022, January 18, 2023 and 
January 9, 2024, respectively, requesting the trial to 
be postponed, and such motions were granted by 
the judge. Pursuant to the judge's latest decision on 
January 10, 2024, the trial will be continued until 
October 27, 2025.  With regard to the matter referred 
to in (b) above, it is currently in the process of 
pre-trial discovery and the trial date has not yet been 
scheduled.  
Given the relatively early stage of these proceedings, 
as at the date of approval of these financial 
statements, management considers that both 
the timing and the outcome of these matters are 
inherently uncertain, and that the amount of any 
possible obligation of the Group, if any, cannot be 
reliably estimated.  Accordingly, these indictments 
give rise to contingent liabilities for the Group and 
no provision has been made in this regard in these 
financial statements.  It is also not practicable at 
this stage for the Group to disclose an estimate of 
the possible future financial effect on the Group's 
financial statements of these matters.
34 Subsequent events
(a)	 Subsequent to December 31, 2023 and up to the 
date of approval of these financial statements, 
the Group has issued two super & short-term 
commercial papers, with an aggregate principal 
amount of CNY6,000 million;
(b)	 Subsequent to December 31, 2023 and up to the 
date of approval of these financial statements, 
the Group has drawn accumulatively CNY15,632 
million from two credit facilities entered into by 
Huawei Technologies Co., Ltd., a wholly-owned 
subsidiary of the Group.
35 Comparative figures
The presentation of certain prior year comparative 
figures has been adjusted to reflect current year 
presentation requirements. None of these changes 
were material.


2023 Annual Report
        135
Risk Factors
At Huawei, risk factors are defined as those that could cause uncertainty regarding the company's ultimate 
achievement of its business objectives. We identify such factors in our strategic plans, business operations, financial 
systems, or the external environment. In this section, we will detail the major risk factors that could significantly 
impact the company's survival, reputation, financial position, operating results, or long-term prospects.
■	 Business managers, as the primary risk owners 
in their respective business domains, proactively 
identify and manage risks to ensure they remain at 
an acceptable level.
At Huawei, risk management is incorporated into both 
strategic planning and business planning processes. During 
strategic planning, we systematically identify and manage 
strategic risks. During business planning, we balance 
risk and cost to formulate appropriate countermeasures, 
and monitor and report on risks as part of performance 
management during routine operations. Huawei ensures 
uninterrupted business operations by identifying major 
risk factors during strategic decision making and business 
planning, and taking necessary measures to control risks 
during operations and execution.
Strategic Risks
Digital technology is reshaping the world around 
us. The intelligent world is approaching faster than 
ever and we want to make sure that it is an inclusive 
world in which everyone can benefit from the 
positive changes brought about by digital technology. 
Mature commercial applications of new technologies 
– particularly 5.5G, AI, and cloud computing – are 
accelerating the digital and intelligent transformation 
of all industries, presenting enormous opportunities. 
That said, Huawei's external environment is more 
volatile and complex than ever. With the world facing 
the formidable challenge of deciding how globalization 
should proceed, global economic growth will likely 
slow over the next few years. This expected stagnation 
will only be compounded by the US government's 
sustained efforts to contain the development of 
leading technologies outside its borders. Despite these 
challenges, we will continue working hard to survive 
and thrive.
The digital economy has already become the world's 
main engine for economic growth, and green and 
low-carbon development is key to sustaining this 
growth. The three concurrent trends of digital, 
intelligent, and green industrial development will each 
present tremendous growth opportunities within the 
Huawei uses an Enterprise Risk Management (ERM) 
system that accounts for our unique organizational 
structure and operating model, in line with the 
Committee of Sponsoring Organizations of the 
Treadway Commission (COSO) framework and 
referencing the ISO 31000 risk management standard. 
Under this system, we have defined a robust set of 
ERM policies and processes, continuously refined our 
ERM organizations and operating mechanisms, and 
ramped up efforts to improve risk management and 
response. Huawei's ERM system ensures the following:
■	 The Board of Directors approves company plans 
for managing major risks and crises, and handles 
unexpected major incidents.
Huawei's Risk Management System


136       Huawei Investment & Holding Co., Ltd.
information processing and communications industries. 
In light of this, Huawei will continue focusing on 
leveraging its ICT strengths to enable the digital and 
intelligent transformation of all industries, and working 
with partners and developers to ultimately bring digital 
to every person, home and organization for a fully 
connected, intelligent world. Going forward, we will 
remain committed to embracing a globalized supply 
chain and working with partners worldwide to develop 
leading products and build diverse ecosystems.
External Risks
Macro environment: We expect growth to slow in 
many economies in 2024. Despite slight drops in 
inflation, many economies will still have higher interest 
rates than those commonly seen over the last decade. 
This will discourage investment and affect consumer 
spending. Furthermore, regional conflicts, geopolitical 
tensions, and protectionism will continue to undermine 
both business and consumer confidence. Given this 
uncertain business environment, Huawei will closely 
monitor risk and promptly adapt response strategies.
Compliance: Operational compliance provides a solid 
foundation on which Huawei can survive and continue 
serving and contributing to the world. Huawei has 
always been dedicated to compliance with applicable 
laws and regulations in the countries and regions in 
which it operates. Through sustained investment, we 
have established a compliance management system that 
applies to all our businesses and employees worldwide 
and covers all legal obligations, including but not 
limited to trade compliance, financial compliance, anti-
bribery compliance, intellectual property (IP) and trade 
secret protection, and cyber security and privacy. This 
enables the systematic management of compliance risks 
through established policies, organizations, regulations, 
processes, and so on.
Despite these efforts, we may still feel the impact 
of the complex legal environments of some of the 
countries and regions in which we operate. For 
example, there may be a lack of clarity or transparency 
in regards to local laws or ambiguity surrounding legal 
systems or law enforcement. Huawei will continue, 
as always, to learn from industry best practices and 
take preventive measures to address these risks. The 
certainty of legal compliance is our best bulwark 
against the uncertainty of the external environment.
Trade: In 2023, we continued to face pressure from 
the global economy and international trade. Emerging 
challenges such as increasing geopolitical tensions, 
rising inequality, and worsening climate change are 
concerning both countries and regions in terms of 
globalization. The probability of trade protectionism 
and freight route barriers is increasing. Against this 
complex backdrop, trade is being politicized and 
increasingly connected to security. Many have decided 
to cope with these challenges by reducing dependency 
and mitigating risk, which only further disrupts 
globalization efforts. In addition, tightening financial 
policies have increased risks to global trade and 
industrial production.
Despite the increasing policy uncertainty and tight 
monetary policies in most economies around the 
world, the global economy still demonstrated greater-
than-expected resilience in 2023. And so, a return 
to multilateral trade systems must be supported by 
both individual countries and regions to make the 
international trade environment more stable, open, 
and sustainable. This will catalyze economic recovery 
and create more opportunities for prosperity and 
development.
As always, Huawei supports open and healthy global 
markets and advocates for cooperation in both trade 
and the economy. We will continue to provide security 
assurance based on standards and verification and 
do our utmost to uphold international trade rules. 
We believe that our sustained, long-term efforts in 
digital innovation and application will fuel emerging 
businesses such as AI and green energy, support 
the digital, intelligent, and green transformation of 
economies worldwide, and create new engines of 
growth for both trade and the global economy.


2023 Annual Report
        137
Natural disasters: It is our mission and primary social 
responsibility to maintain stable network operations. 
In 2023, when a powerful earthquake struck Türkiye, 
disrupting communications for 13 million people, we 
immediately dispatched over 100 experts to work 
alongside our customers in the affected areas. This 
team worked day and night to recover communications 
and maintain stable network operations. In the last 
year, Huawei has similarly helped respond to typhoons 
in Japan and floods around the world, including in the 
Democratic Republic of Congo, Pakistan, and Nigeria.
Epidemics and natural disasters like earthquakes, 
typhoons, and floods can impact Huawei's business 
operations in many different ways and thus can impact 
the operations of the networks we have deployed. 
We have developed contingency plans to respond to 
different types of natural disasters and epidemics, and 
continue to improve our capabilities in this regard. 
This has helped us ensure our own business continuity, 
and more importantly, ensure network stability for our 
customers.
Country-specific risks: Huawei currently operates in 
more than 170 countries and regions worldwide. The 
complex international economic and political landscape 
we operate in exposes us to a variety of different risks 
in different countries and regions. These risks include 
economic and political instability, exchange rate 
fluctuations, capital controls, and sovereign defaults. 
Any one of these risks could hinder Huawei's local 
business operations and bring uncertainty to our local 
business development.
In 2024, the high interest rates of developed economies 
will deal a blow to emerging markets with heavier 
debt loads, exposing them to risks such as default, 
capital outflows, and currency depreciation. Considering 
this, we will closely monitor any changes in the 
environment, such as those related to post-pandemic 
economic recovery, regional conflicts, and commodity 
price fluctuations, and promptly employ effective 
countermeasures to help achieve business objectives.
Operational Risks
Information security: Although Huawei has a robust 
information security management system and takes 
stringent information security measures to protect its 
IP, it is impossible to completely prevent the improper 
use of our proprietary assets and information. Even 
when we are able to protect our IP through judicial 
means, it is still possible for us to suffer losses due to 
improper usage.
Intellectual property: Huawei has long been 
dedicated to independent innovation and will continue 
to be. We respect the IP of third parties while actively 
protecting our own. We also constantly work to 
improve our IP risk control system. Despite this, there 
still exists the possibility that rights holders may file 
IP claims against Huawei and third parties may still 
infringe upon our IP. Huawei will continue to build 
a high-value IP portfolio and IP capabilities globally. 
Furthermore, we will continue to follow international 
rules and industry conventions to address IP disputes 
and safeguard the operational security of our global 
businesses.


138       Huawei Investment & Holding Co., Ltd.
Corporate 
Governance 
Report
139 Shareholders and the Employee 
Shareholding Scheme
139 The Shareholders' Meeting and 
the Representatives' Commission
141 Board of Directors
147 Supervisory Board
151 Independent Auditor
152 Business Structure
153 
Improving the Internal Control 
System


2023 Annual Report
        139
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.
Shareholders and the Employee 
Shareholding Scheme
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", or 
the virtual restricted shares plan), which involved 
151,796 individuals, either current employees or 
retired beneficiaries, as of December 31, 2023. 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, 2023, Mr. Ren's investment accounted 
for nearly 0.73% of the Company's total share capital.
The Shareholders' Meeting and 
the Representatives' Commission
The Shareholders' Meeting, the company's 
authoritative body, comprises two shareholders: the 
Union and Mr. Ren Zhengfei.
The Representatives' Commission (the "Commission") 
is the organization through which the Union fulfills 
shareholder responsibilities and exercises shareholder 
rights. The Commission consists of no more than 
115 representatives of shareholding employees 
("Representatives") and exercises rights on behalf of 
all shareholding employees. In 2023, the Commission 
held one meeting. At the meeting, a new Board 
of Directors was elected, resulting in a new set of 
regular and alternate directors. The Commission also 
reviewed and approved the report from the Board of 
Directors on the company's financial and operating 
results, the work report from the Supervisory Board, 
and proposals for matters such as annual profit 
distribution and annual capital increases.
The Commission holding a meeting in March 2023


140       Huawei Investment & Holding Co., Ltd.
The Representatives and Alternate Representatives are elected by the shareholding employees with voting 
rights, and serve for a term of five years. In the event that there is a vacancy in the Commission, the Alternate 
Representatives shall take up the vacancy in a predetermined sequence.
The shareholding employees with voting rights elect the Commission on a one-vote-per-share basis, after which 
the Commission elects the company's Board of Directors and Supervisory Board on a one-vote-per-person basis. 
The Commission, along with the Board of Directors and Supervisory Board, decides on, manages, and monitors 
major company matters.
Members of the current Commission are:
Mr. Ren Zhengfei, Ms. Sun Yafang, Mr. Liang Hua, 
Mr. Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun, 
Ms. Meng Wanzhou, Mr. Yu Chengdong, Mr. Wang Tao,
Ms. Chen Lifang, Mr. Peng Zhongyang, Ms. He Tingbo,
Mr. Li Yingtao, Mr. Yao Fuhai, Mr. Tao Jingwen, 
Mr. Yan Lida, Mr. Li Jie, Mr. Ren Shulu, Mr. Li Dafeng,
Mr. Song Liuping, Mr. Tian Feng, Mr. Yi Xiang, 
Mr. Li Jianguo, Mr. Peng Bo, Ms. Zhao Minglu, 
Ms. Shi Yanli, Ms. Zhang Xiaoqing, Mr. Yang Shubin, 
Mr. Zou Zhilei, Mr. Lu Yong, Mr. Yang Yougui, 
Mr. Li Peng, Mr. Cao Jibin, Mr. Wu Weitao, 
Mr. Chen Hao, Mr. Wang Shengniu, Mr. Wang Jianfeng, 
Mr. Chen Lei, Mr. Wu Hui, Mr. Meng Ping, Mr. Lyu Ke, 
Mr. Jiang Xisheng, Mr. Pan Shaoqin, Mr. Jiang Yafei, 
Mr. Wang Weijian, Mr. Su Liqing, Mr. Luo Wencheng, 
Mr. Zhang Hongxi, Mr. Xiong Lening, Mr. Ying Weimin, 
Mr. Wu Kunhong, Mr. Wei Chengmin, Mr. Wu Qinming, 
Mr. Xie Guohui, Mr. Wang Kexiang, Mr. Tang Qibing, 
Mr. Sun Fuyou, Mr. Ma Yue, Mr. Zhou Jianjun, 
Mr. Xun Su, Mr. Lu Qi, Mr. Lin Baifeng, 
Mr. Shen Huifeng, Mr. Zheng Liangcai, 
Mr. Ma Qingqing, Mr. Wang Hua'nan, Mr. Bai Limin, 
Ms. Yang Li, Mr. Hou Jinlong, Mr. Hu Kewen, 
Mr. Zhang Shunmao, Mr. Zha Jun, Mr. Zhou Hong, 
Mr. Ma Haixu, Mr. Liu Shaowei, Mr. Tang Xinhong, 
Mr. Yang Chaobin, Mr. Gong Ti, Mr. Cai Changtian, 
Mr. Gao Ji, Mr. Xiong Yan, Mr. Wang Yixiang, 
Mr. Li Zhoujian, Mr. He Gang, Mr. Zhang Ping'an, 
Mr. Bian Honglin, Mr. Xu Qinsong, Mr. Li Xiaolong, 
Mr. Zhu Ping, Mr. Shao Yang, Mr. Zhu Yonggang, 
Mr. Chen Yue, Mr. Bai Yi, Mr. Wu Congcheng, 
Ms. Song Yanling, Mr. Zuo Defeng, Mr. Xia Jian, 
Mr. Wang Nanbin, Mr. Zheng Pingfang, Ms. Cao Yi, 
Mr. Ran Weidong, Mr. Du Yanxin, and Mr. Wang Yanmin.
Elect
One vote
per share
Elects
Elects
Elects
One vote
per person
Shareholding employees with voting rights
Representatives’ Commission
Supervisory Board
Board of Directors
Executive Committee
of the Board of Directors
Executive Committee
of the Supervisory Board


2023 Annual Report
        141
The main responsibilities of the BOD are to:
■	 Develop proposals for corporate governance.
■	 Review proposals to increase or decrease the 
company's registered capital, as well as proposals 
related to profit distribution and loss recovery.
■	 Review the company's stock options plan and 
other long-term incentive plans.
■	 Review or approve the company's plans for 
entering and exiting different industries, and 
approve the company's strategic plan.
■	 Approve major organizational restructuring, 
management system development, and business 
transformation.
■	 Approve major financial policies, financial plans, 
and business transactions.
■	 Approve the company's annual budget proposal, 
annual operations report, and annual audit report.
■	 Approve the appointment/removal, compensation, 
and long-term incentives of senior management.
■	 Approve major HR policies and plans at the 
corporate level.
■	 Approve proposals for managing major risks and 
crises, and manage major emergencies.
■	 Approve the development of internal controls and 
compliance systems.
In 2023, the BOD held 12 meetings. At the meetings, 
the BOD reviewed and approved matters such as the 
company's medium-to-long-term strategic plan, as 
well as the company's annual business plan, audit 
report, profit distribution, and capital increases.
The BOD has 17 members, who are elected by the 
Commission and then voted in by the Shareholders' 
Meeting. In March 2023, a new BOD was elected, 
resulting in a new set of regular and alternate 
directors. The BOD elected deputy chairs and 
executive directors, and determined the directors who 
will attend BOD Executive Committee meetings as 
non-voting attendees.
Board of Directors
The Board of Directors (BOD) is the highest body responsible for corporate strategy, operations management, 
and customer satisfaction. The BOD's mission is to lead the company forward. It exercises decision-making 
authority for corporate strategy and operations management, and ensures customer and shareholder interests are 
protected.


142       Huawei Investment & Holding Co., Ltd.
From the left in the first row: Mr. Li Jianguo, Mr. Zhang Ping'an, Mr. Hu Houkun, Mr. Xu Zhijun, Mr. Liang Hua, Ms. Meng Wanzhou, Mr. Wang Tao, and 
Mr. Yu Chengdong
From the left in the second row: Mr. Yang Chaobin, Mr. Zha Jun, Mr. Zheng Liangcai, Mr. Hou Jinlong, Ms. He Tingbo, Mr. Peng Bo, Mr. Ren Zhengfei, 
Mr. Tao Jingwen, and Mr. Ying Weimin
Members of the current BOD are as follows:
■	 Chairman: Mr. Liang Hua
■	 Deputy Chairs: Mr. Xu Zhijun, Mr. Hu Houkun, and 
Ms. Meng Wanzhou
■	 Executive directors: Mr. Wang Tao, Mr. Zhang 
Ping'an, Mr. Yu Chengdong, and Mr. Li Jianguo
■	 Directors who will attend BOD Executive 
Committee meetings as non-voting attendees: Ms. 
He Tingbo and Mr. Zheng Liangcai
■	 Directors: Mr. Ren Zhengfei, Mr. Tao Jingwen, Mr. 
Peng Bo, Mr. Zha Jun, Mr. Hou Jinlong, Mr. Yang 
Chaobin, and Mr. Ying Weimin
In the event that there is a vacancy in the BOD, alternate directors will take up the vacancy in a predetermined 
sequence. Alternate directors are Mr. He Gang, Mr. Bai Yi, Mr. Cao Jibin, Mr. Zhou Hong, Mr. Bian Honglin, Mr. Jin 
Yuzhi, Mr. Lu Yong, Mr. Zou Zhilei, Mr. Jiang Yafei, Mr. Hu Kewen, and Mr. Wang Huanan.


2023 Annual Report
        143
Mr. Liang Hua 
(Howard Liang)
Chairman
Born in 1964, Mr. Liang holds a doctorate degree 
from Wuhan University of Technology. Mr. Liang 
joined Huawei in 1995 and has served as President 
of Supply Chain, CFO of Huawei, President of the 
Business Process & IT Mgmt Dept, President of the 
Global Technical Service Dept, Chief Supply Chain 
Officer, Chairman of the Audit Committee, and 
Chairman of the Supervisory Board. Mr. Liang is now 
Chairman of Huawei's Board of Directors.
Mr. Xu Zhijun
(Eric Xu)
Deputy Chairman, 
Rotating Chairman
Mr. Xu holds a doctorate degree from Nanjing University 
of Science & Technology. He joined Huawei in 1993 and 
has served as President of the Wireless Network Product 
Line, Chief Strategy & Marketing Officer, Chief Products 
& Solutions Officer, Chairman of the Investment Review 
Board, Rotating CEO of Huawei, and Chairman of the 
Strategy & Development Committee (SDC). Currently, 
Mr. Xu serves as Deputy Chairman of the Board and 
Rotating Chairman of Huawei.
Mr. Hu Houkun
(Ken Hu)
Deputy Chairman, 
Rotating Chairman
Born in 1968, Mr. Hu holds a bachelor's degree from 
Huazhong University of Science and Technology. 
Mr. Hu joined Huawei in 1990 and has served as 
President of the Marketing & Sales Dept in China, 
President of the Latin America Region, President of 
the Global Sales Dept, Chief Sales & Service Officer, 
Chief Strategy & Marketing Officer, Chairman of the 
Global Cyber Security and User Privacy Protection 
Committee (GSPC), Chairman of the BOD of Huawei 
USA, Deputy Chairman of the Board, Rotating CEO, 
and Chairman of the HRC. Currently, Mr. Hu serves as 
Deputy Chairman of the Board and Rotating Chairman 
of Huawei.
Ms. Meng Wanzhou 
(Sabrina Meng)
Deputy Chairwoman, 
Rotating Chairwoman
Ms. Meng holds a master's degree from Huazhong 
University of Science and Technology. Ms. Meng 
joined Huawei in 1993 and has held positions 
including Director of the International Accounting 
Dept, CFO of Huawei Hong Kong, and President of 
the Accounting Mgmt Dept. Ms. Meng now serves 
as Deputy Chairwoman of the Board, and Rotating 
Chairwoman and CFO of Huawei.
Since 2003, Ms. Meng has led the establishment 
of Huawei's globally unified finance organizational 
structure, processes, regulations, and IT platforms. 
From 2007 to 2014, Ms. Meng implemented the 
Integrated Financial Services (IFS) Transformation 
Program across the company around the world, 
making fine-grained management part of Huawei's 
DNA for sustainable growth.
In 2014, Ms. Meng led the company's data 
transformation and established a comprehensive data 
management system, creating a single source for data 
and making data a strategic asset of the company. 
During the same period, Ms. Meng implemented 
transformation programs for Internal Controls over 
Financial Reporting (ICFR), Consistency of Inventory 
Accounts and Goods (CIAG), treasury management, 
and tax management. This has transformed the 
finance team into a business partner and value 
integrator, and supported the rapid and stable 
development of the company's business worldwide.
Since 2019, Ms. Meng has developed a blueprint 
for the digital transformation of finance based 
on the company's strategic vision and long-term 
development plan. She has led the development of 
key risk indicators and risk control models, making 
contactless risk controls a reality at Huawei. She 
has guided the establishment of an agile operations 
management system which has facilitated intelligent 
operations management and decision-making based 
on data and AI algorithms. She has also guided the 
establishment of an integrated management platform 
for key financial operations scenarios, to achieve 
collaborative operations and matrix management 
based on data sharing and real-time interactions.
Under Ms. Meng's leadership, Huawei has established 
a world-leading digital and intelligent finance 
organization, laying a solid foundation for the 
company's operations and supporting the company's 
efforts to realize its strategies in the new era.


144       Huawei Investment & Holding Co., Ltd.
Mr. Wang Tao
(David Wang)
Executive Director
Born in 1972, Mr. Wang holds a master's degree from 
Xi'an Jiaotong University. Mr. Wang joined Huawei in 
1997 and has served as R&D Manager in Wireless, Vice 
President of the UMTS Technical Sales Dept, President 
of Technical Sales of the European Area, Managing 
Director of Huawei Italy and Switzerland, President 
of the Wireless Network Product Line, President of 
the Network Product Line, President of ICT Strategy & 
Marketing, and President of ICT Products & Solutions. 
Currently, Mr. Wang serves as an Executive Director 
of the Board, Chairman of the ICT Infrastructure 
Managing Board, and Chairman of the Investment 
Review Board.
Ms. He Tingbo
Director
Born in 1969, Ms. He holds a bachelor's degree 
in semiconductor physics, a bachelor's degree 
in communications engineering, and a master's 
degree from Beijing University of Posts and 
Telecommunications. Ms. He joined Huawei in 
1996 and has held positions in the chip business 
(development, research, architecture, and supply 
chain). She has served as R&D Director, President 
of HiSilicon, and President of the 2012 Laboratories. 
Currently, Ms. He serves as Chair of Huawei Scientist 
Committee, ITMT Director, and President of HiSilicon.
Mr. Zhang Ping'an
Executive Director
Born in 1972, Mr. Zhang holds a master's degree 
from Zhejiang University. Mr. Zhang joined Huawei 
in 1996 and has served as Product Line President, 
Vice President of Strategy & Marketing, Regional 
Vice President, Vice President of the Global Technical 
Service Dept, CEO of Huawei Symantec, COO of the 
Enterprise BG, President of the Telecom Software 
Business Dept, and President of the Consumer Cloud 
Service Dept. Currently, Mr. Zhang serves as an 
Executive Director of the Board and CEO of Huawei 
Cloud Computing Technologies.
Mr. Yu Chengdong 
(Richard Yu)
Executive Director
Born in 1969, Mr. Yu holds a master's degree from 
Tsinghua University. He joined Huawei in 1993 and 
has served as 3G Product Director, Vice President 
of the Wireless Technical Sales Dept, President of 
the Wireless Network Product Line, President of the 
European Area, and Chief Strategy & Marketing 
Officer. Currently, Mr. Yu serves as CEO of the 
Consumer BG, Chairman of the Board of Directors of 
the Intelligent Automotive Solution BU, and Director 
of the Investment Review Board for Smart Devices and 
Intelligent Automotive Components.
Mr. Li Jianguo
Executive Director
Born in 1964, Mr. Li holds a master's degree in 
engineering from Huazhong University of Science and 
Technology. Mr. Li joined Huawei in 1993 and has 
served as a product R&D engineer, Deputy Manager 
of the Development and Pilot (D&P) Dept, Manager 
of the Manufacturing Dept, Executive Vice President of 
Huawei Electric, Director of the Electronics Assembly 
Business Dept, Deputy Director of the Supply Chain 
Mgmt Dept, Director of the Product Engineering & 
Process Development Dept under the Central Research 
& Development Unit (CRDU), Director of the PDT/
TDT Leaders Mgmt Dept under the CRDU, President 
of the Manufacturing SBG, an executive member of 
the Supervisory Board, and a member of the Board. 
Currently, Mr. Li serves as an Executive Director of the 
Board and President of the Manufacturing Dept.
Mr. Zheng Liangcai
Director
Born in 1975, Mr. Zheng holds a bachelor's degree 
from Tsinghua University. Mr. Zheng joined Huawei in 
1999 and has served as General Manager of the Rio 
de Janeiro Representative Office, General Manager 
of the Mexico Representative Office, President of 
the Northern Latin America Region, President of the 
Southern South America Region, President of the 
Latin America Area, and as a member of the ICT 
Infrastructure Managing Board, Investment Review 
Board (IRB), and Human Resources Committee 
(HRC). Currently, Mr. Zheng serves as a member of 
the Executive Steering Committee (ESC), Platform 
Coordination Committee, Disciplinary and Supervisory 
Committee, Global Cyber Security and User Privacy 
Protection Committee (GSPC), and President of the 
Human Resource Mgmt Dept. Mr. Zheng is also a 
member of the Board who will attend BOD Executive 
Committee meetings as a non-voting attendee.


2023 Annual Report
        145
Mr. Ren Zhengfei
Director
Born on October 25, 1944 into a rural family where 
both parents were school teachers, Mr. Ren Zhengfei 
spent his primary and middle school years in a remote 
mountainous town in Guizhou Province. In 1963, he 
studied at the Chongqing Institute of Civil Engineering 
and Architecture. After graduation, he was employed 
in the civil engineering industry until 1974 when he 
joined the military's Engineering Corps as a soldier 
tasked to establish the Liao Yang Chemical Fiber 
Factory. Subsequently, Mr. Ren had taken positions as 
a Technician, an Engineer, and was lastly promoted 
as a Deputy Director, which was a professional role 
equivalent to a Deputy Regimental Chief, but without 
military rank. Because of his outstanding performance, 
Mr. Ren was invited to attend the National Science 
Conference in 1978 and the 12th National Congress of 
the Communist Party of China in 1982. Mr. Ren retired 
from the army in 1983 when the Chinese government 
disbanded the entire Engineering Corps. He then 
worked in the logistics service base of the Shenzhen 
South Sea Oil Corporation. As he was dissatisfied with 
his job, he decided to establish Huawei with a capital 
of CNY21,000 in 1987. He became the CEO of Huawei 
in 1988 and has held the title ever since.
Mr. Tao Jingwen
Director
Born in 1971, Mr. Tao graduated from Beijing 
University of Posts and Telecommunications. Mr. Tao 
joined Huawei in 1996 and has served as a product 
development engineer, Deputy General Manager of 
the Market Technology Section, Executive Deputy 
Director of the International Technical Sales Dept, 
Executive Vice President and President of the Sub-
Sahara Region, President of the Global Technical 
Sales & Marketing Dept, President of Huawei Device, 
President of the West European Region, and President 
of the Quality, Business Process & IT Mgmt Dept.
Mr. Zha Jun
Director
Born in 1971, Mr. Zha holds a master's degree from 
Zhejiang University. Mr. Zha joined Huawei in 1997 
and has served as A8010 Development Manager, UMG 
SPDT Leader, Director of the IMS Product Family, 
President of the Router & Cyber Security Product Line, 
and President of the Fixed Network Product Line, and 
President of the Central Research Institute. Currently, 
Mr. Zha serves as Director of the 2012 Laboratories 
and Chairman of the Research and Innovation 
Management Committee.
Mr. Peng Bo 
(Vincent Peng)
Director
Born in 1976, Mr. Peng holds a bachelor's degree 
in engineering from Harbin Institute of Technology. 
Mr. Peng joined Huawei in 1999 and has served as 
Director of the Vodafone Account Dept, Vice President 
of the European Area, President of the Carrier BG 
Global Sales Dept, President of the Global Sales & 
Accounts Business Dept, and President of the West 
European Region, Vice President of the Public Affairs 
and Communications Dept, and President of the 
Corporate Communications Dept. Currently, Mr. Peng 
serves as a member of the Board and President of the 
Global Procurement Qualification Mgmt Dept.
Mr. Hou Jinlong
Director
Born in 1970, Mr. Hou holds a bachelor's degree from 
Shanghai Jiao Tong University. Mr. Hou joined Huawei 
in 1996 and has served as Wireless GSM R&D Product 
Director, Chief Engineer of the Wireless Account 
Dept, Wireless MSC 6.0 Pilot PDT Leader, Wireless 
Technical Sales Director, Director of the Wireless 
Network Marketing Dept, CEO of TD Tech, President 
of the Network Energy Product Line, President of the 
IT Product Line, President of Cloud & AI Products 
& Services, and President of the Cloud & AI BG. 
Currently, Mr. Hou serves as President of Huawei 
Digital Power Technologies.
Mr. Yang Chaobin
Director
Born in 1972, Mr. Yang holds a master's degree 
from University of Science and Technology of China. 
Mr. Yang joined Huawei in 1998 and has served as 
Director of the Wireless Network Research Dept, 
President of the LTE Product Line, Chief of the Sweden 
Research Center, Director of the Wireless Network 
Solutions Dept, Director of the Wireless Network 
Marketing Dept, President of the 5G Product Line, 
and President of the Wireless Network Product Line. 
Currently, Mr. Yang serves as a member of the Board 
and President of ICT Products & Solutions.


146       Huawei Investment & Holding Co., Ltd.
Executive Committee
The BOD has established the Executive Committee, 
which acts as the standing executive body of the 
BOD. Entrusted by the BOD, the Executive Committee 
examines and reflects on major issues within the 
company, decides on issues authorized by the BOD, 
and oversees their execution. In 2023, the BOD 
Executive Committee held 17 meetings.
Members of the current BOD Executive Committee 
are Mr. Xu Zhijun, Mr. Hu Houkun, Ms. Meng 
Wanzhou, Mr. Wang Tao, Mr. Zhang Ping'an, Mr. Yu 
Chengdong, and Mr. Li Jianguo.
Rotating chairs
The BOD and its Executive Committee are led by 
rotating chairs. During their term, each rotating chair 
serves as the foremost leader of the company. The 
term of each rotating chair lasts six months. The 
rotation sequence is as follows:
■	 Mr. Hu Houkun:
October 1, 2023 to March 31, 2024
■	 Mr. Xu Zhijun:
April 1, 2024 to September 30, 2024
■	 Ms. Meng Wanzhou:
October 1, 2024 to March 31, 2025
Mr. Ying Weimin
Director
Born in 1973, Mr. Ying holds a master's degree from 
Shanghai Institute of Technical Physics of the Chinese 
Academy of Sciences. Mr. Ying joined Huawei in 
1998 and has served as President of the LTE Product 
Line, President of the GSM & UMTS & LTE Product 
Line, Director of the Wireless R&D Mgmt Dept, and 
President of the Global Procurement Qualification 
Mgmt Dept. Currently, Mr. Ying serves as a member of 
the Board, Chief Supply Chain Officer, and Director of 
the Group Procurement Management Committee.
Audit Committee
The Audit Committee (AC) operates under the BOD 
to oversee internal controls, including the internal 
control system, internal and external audits, corporate 
processes, legal compliance, and adherence to the 
Business Conduct Guidelines (BCGs).
The main responsibilities of the AC are to:
■	 Approve the annual internal audit plan, and review 
its scope, required resources, and audit outputs.
■	 Approve corporate policies for internal controls; 
approve the corporate development plan for 
internal controls and the plan's key milestones; 
and regularly assess the company's internal 
control status.
■	 Evaluate the effectiveness of the ethics and 
compliance function, legal compliance, and 
adherence to corporate policies.
■	 Approve the selection of the external auditor, 
notify the BOD of any proposed change to the 
external auditor for approval, approve related 
budgets, and evaluate the work of the external 
auditor.
■	 Supervise the completeness, accuracy, and legal 
compliance of the company's financial statements; 
and review compliance with and application of 
accounting policies as well as financial disclosures.
■	 Approve internal control Key Performance 
Indicators (KPIs), and instruct Global Process 
Owners (GPOs) and business executives to report 
internal control results.
The AC generally holds monthly meetings and 
convenes special sessions as necessary. Business 
executives and various experts are invited to attend 
as non-voting participants.
In 2023, the committee held nine meetings, focusing 
on topics such as anti-corruption, internal controls, 
internal and external audits, and oversight of level-1 
organizations. At the meetings, the AC reviewed and 
approved the company's annual internal controls 
plans, internal and external audit plans, and the 
annual oversight plans of level-1 organizations like 
ICT Infrastructure Business, Consumer Business, 
Digital Power, and Huawei Cloud Computing. The AC 
also reviewed the progress and execution results of 
the above-mentioned plans, and instructed business 
executives of the organizations that failed to deliver 
the expected results regarding internal controls 
improvement to report on their internal controls.


2023 Annual Report
        147
Supervisory Board
As Huawei's highest oversight body, the Supervisory Board exercises the authority of oversight on behalf of the 
company's shareholders. The Supervisory Board is responsible for the company's survival, development, and 
long-term prospects. Its core authorities are reflected in leader management, business reviews, and strategic 
vision. Through the observation of managers and cultivation of managerial candidates, the Supervisory Board 
promotes the development of leadership pipelines, aiming to ensure that the company has qualified successors. 
By establishing a rule-based, systematic oversight framework, the Supervisory Board comprehensively oversees 
matters such as the responsibility fulfillment of BOD directors and other executives, the company's operating 
and financial status, and compliance and internal control systems, gradually guiding the company to change 
from experience-based management to rule-based management and enabling businesses to operate freely within 
preset boundaries.
In 2023, the Supervisory Board improved its basic institutions and organization, observed managers, managed 
the resource pool of managerial candidates, inspected and examined major areas with potential risks, oversaw 
the company's operations management, and guided and managed the development of subsidiary boards. In 2023, 
the Supervisory Board held 18 meetings, and its members attended all BOD meetings as non-voting participants, 
overseeing and reviewing BOD responsibility fulfillment, and overseeing and assessing the responsibility 
fulfillment of BOD directors and other executives.
The Supervisory Board has 15 members, who are elected by the Commission and then voted in by the 
Shareholders' Meeting. On March 29, 2022, a new Supervisory Board was elected, resulting in a new set of 
regular and alternate members.


148       Huawei Investment & Holding Co., Ltd.
Members of the Executive Committee of the Supervisory Board are Mr. Guo Ping, Mr. Li Jie, Ms. Chen Lifang, Mr. Yao 
Fuhai, Mr. Li Dafeng, Mr. Li Yingtao, and Mr. Ma Qingqing.
From the left in the first row: Mr. Ren Shulu, Mr. Yao Fuhai, Mr. Guo Ping, Mr. Li Jie, and Mr. Li Yingtao
From the left in the second row: Mr. Song Liuping, Mr. Lyu Ke, Ms. Chen Lifang, Mr. Tian Feng, Ms. Shi Yanli, Mr. Peng Zhongyang, Ms. Yang Li, 

Mr. Li Peng, Mr. Li Dafeng, and Mr. Ma Qingqing
Members of the new Supervisory Board are as follows:
■	 Chairman:	
Mr. Guo Ping
■	 Deputy Chairman:	
Mr. Li Jie
■	 Executive members:	 
Ms. Chen Lifang, Mr. Yao 
Fuhai, Mr. Li Dafeng, Mr. Li 
Yingtao, and Mr. Ma Qingqing
■	 Members:	

Mr. Song Liuping, Mr. Ren 
Shulu, Mr. Tian Feng, Mr. 
Peng Zhongyang, Ms. Shi 
Yanli, Ms. Yang Li, Mr. Lyu Ke, 
and Mr. Li Peng
In the event that there is a vacancy in the Supervisory 
Board, its alternate members will take up the 
vacancy in a predetermined sequence. Currently, the 
Supervisory Board has four alternate members: Mr. 
Wei Chengmin, Mr. Xu Qinsong, Mr. Wu Qinming, and 
Mr. Gao Ji.
The Supervisory Board has established the Executive 
Committee, which acts as the standing executive 
body of the Supervisory Board. Entrusted by the 
Supervisory Board, the Executive Committee examines 
and reflects on major issues within the company, 
decides on issues authorized by the Supervisory 
Board, and oversees their execution. In 2023, the 
Executive Committee of the Supervisory Board held 
20 meetings.


2023 Annual Report
        149
Born in 1966, Mr. Guo holds a master's degree from 
Huazhong University of Science and Technology. Mr. 
Guo joined Huawei in 1988 and has served as R&D 
Project Manager, General Manager of Supply Chain, 
Director of Huawei Executive Office, Chief Legal 
Officer, President of the Business Process & IT Mgmt 
Dept, President of the Corporate Development Dept, 
Chairman and President of Huawei Device, Rotating 
CEO of Huawei, Chairman of the Finance Committee, 
Deputy Chairman of the Board of Directors, and 
Rotating Chairman of Huawei. Currently, Mr. Guo 
serves as Chairman of the Supervisory Board.
Mr. Guo Ping
Chairman of the 
Supervisory Board
Born in 1967, Mr. Li holds a bachelor's degree in 
wireless communications and a master's degree 
in computer image processing from Xi'an Jiaotong 
University. Mr. Li joined Huawei in 1992 and has 
served as an R&D engineer, General Manager of 
a representative office in China, General Manager 
of the Moscow Representative Office, President of 
the Commonwealth of Independent States Region, 
President of the Global Technical Sales Dept, President 
of the Global Technical Service Dept, President of the 
Human Resource Mgmt Dept, President of the Joint 
Committee of Regions, President of Huawei University, 
and President of the Corporate Leadership Mgmt 
Dept. Currently, Mr. Li serves as Deputy Chairman of 
the Supervisory Board and Chief Compliance Officer.
Mr. Li Jie
Deputy Chairman of 
the Supervisory Board
Born in 1971, Ms. Catherine Chen graduated from 
Northwest University in China. She joined Huawei in 
1995 and has served as Chief Representative of the 
Beijing Representative Office, Vice President of the 
International Marketing Dept, Deputy Director of the 
Domestic Marketing Management Office, President 
of the Public Affairs and Communications Dept, and 
a member of the Board of Directors. Currently, Ms. 
Catherine Chen serves as an executive member of the 
Supervisory Board and Chairwoman of the Subsidiary 
Board Directors Resources Bureau.
Ms. Chen Lifang 
(Catherine Chen)
Executive Member of 
the Supervisory Board
Born in 1968, Mr. Yao holds a bachelor's degree from 
University of Electronic Science and Technology of 
China. Mr. Yao joined Huawei in 1997 and has served 
as Director of the Pricing Center, Vice President of 
the Business Process & IT Mgmt Dept, Vice President 
of the Strategy Cooperation Dept, Vice President 
of the Global Technical Sales Dept, President of 
the Global Technical Service Dept, President of 
the Global Procurement Qualification Mgmt Dept, 
Chief Supply Chain Officer, Director of the Group 
Procurement Management Committee, a member of 
the Supervisory Board, and a member of the Board 
of Directors. Currently, Mr. Yao serves as an executive 
member of the Supervisory Board and Chair of the 
Supervisory Board Lower House.
Mr. Yao Fuhai
Executive Member of 
the Supervisory Board
Born in 1966, Mr. Li holds a bachelor's degree from 
the Department of Radio Engineering, Changchun 
Institute of Posts and Telecommunications, and a 
master's degree in signal and information processing, 
Harbin Institute of Technology. Mr. Li joined Huawei 
in 1996 and has served as Deputy Sales Director of 
the Beijing Office, General Manager of the Tianjin 
Office, General Manager of the Shijiazhuang Office, 
Director of the China Telecom Account Dept, Vice 
President of the Eastern and Southern Africa Region, 
Director of the MTN Account Dept, President of the 
Eastern and Southern Africa Region, President of 
the Middle East and Africa Area, President of the 
Sales & Delivery Finance Mgmt Dept, and Director 
of the ICT Infrastructure Managing Board Office. 
Currently, Mr. Li serves as an executive member of the 
Supervisory Board.
Mr. Li Dafeng
Executive Member of 
the Supervisory Board


150       Huawei Investment & Holding Co., Ltd.
Born in 1969, Mr. Li holds a doctorate degree from 
Harbin Institute of Technology. Mr. Li joined Huawei 
in 1997 and has served as Chief of the Sweden 
Research Center, Director of the Product Mgmt Dept 
of Wireless Marketing, Director of the Research 
Dept of Products & Solutions, Director of the 
General Technology Office of Products & Solutions, 
President of the Central Research & Development 
Unit, President of the 2012 Laboratories, President of 
Products & Solutions, President of Network Products 
& Solutions, and President of Administration of the 
2012 Laboratories. Currently, Mr. Li serves as an 
executive member of the Supervisory Board.
Mr. Li Yingtao
Executive Member of 
the Supervisory Board
Born in 1973, Mr. Ma holds a master's degree in 
system engineering from Northwestern Polytechnical 
University. Mr. Ma joined Huawei in 1997 and has 
served as an R&D engineer, Senior Product Manager 
of the Marketing & Sales Dept, Overseas Marketing 
Director, Director of the Human Resource Dept of 
Strategy & Marketing, and Director of the Consumer 
BG Human Resource Dept. Currently, Mr. Ma serves 
as an executive member of the Supervisory Board, 
President of the Corporate Leadership Mgmt Dept, 
Vice President of the Consumer BG, and Vice 
President of the Intelligent Automotive Solution BU.
Mr. Ma Qingqing
Executive Member of 
the Supervisory Board
Born in 1966, Mr. Song completed his postdoctoral 
research at Beijing Institute of Technology in 1996. 
Mr. Song joined Huawei in 1996 and has served as 
Manager of the Product Strategy Planning Dept, 
Director of the IPR Dept, Director of the External 
Cooperation Dept, PSST member, President of the 
Legal Affairs Dept, President of the Patent Review 
Board, Director of the Trade and Customs Compliance 
Committee, a member of the Disciplinary and 
Supervisory Sub-committee of the Human Resources 
Committee, a member of the Platform Coordination 
Committee, and Chief Compliance Officer. Currently, 
Mr. Song serves as a member of the Supervisory 
Board and Chief Legal Officer.
Mr. Song Liuping
Member of the Supervisory Board
Mr. Ren holds a bachelor's degree from Yunnan 
University. Mr. Ren joined Huawei in 1992 and has 
served as General Manager at the Lanzhou Office, the 
Guangzhou Office, and the Fuzhou Office, Director 
of the Customer Relationship Mgmt Dept, Director 
of the Internal Service Mgmt Dept, and President of 
the Capital Construction Mgmt Dept. Currently, Mr. 
Ren serves as a member of the Supervisory Board, 
Chief Logistics Officer, and President of the Power 
Assurance Dept.
Mr. Ren Shulu 
(Steven Ren)
Member of the 
Supervisory Board
Born in 1969, Mr. Tian holds a bachelor's degree 
from Xidian University. Mr. Tian joined Huawei in 
1995 and has served as General Manager of the 
Shijiazhuang Office, HR Director of the Domestic 
Marketing Dept, Director of the Market Finance Dept, 
EVP of the Middle East and Northern Africa Area, 
President of the Middle East Region, President of the 
China Region, CEO of Huawei Agisson, Vice President 
(Acting) of the Human Resource Mgmt Dept, EVP 
of Huawei University, Director of the Institute of 
Education of Huawei University, Director of the 
Disciplinary and Supervisory Sub-committee of the 
Human Resources Committee, an executive member 
of the Management Team of the Joint Committee of 
Regions, Director of the Subsidiary Board Directors 
Resources Bureau, President of the Central Asia 
and Russia Area, a member of the Management 
Team of the Corporate Leadership Mgmt Dept, a 
member of the Audit Committee, a member of the 
ICT Infrastructure Managing Board, Director of the 
Disciplinary and Supervisory Committee, President 
of the Asia Pacific Area, President of the Internal 
Audit Dept, and a member of the Supervisory Board. 
Currently, Mr. Tian serves as a member of the 
Supervisory Board, Director of the Audit Committee, 
and Deputy Chairman of the Supervisory Board 
Lower House.
Mr. Tian Feng
Member of the Supervisory Board


2023 Annual Report
        151
Independent Auditor
An independent auditor is responsible for auditing a 
company's annual financial statements. In accordance 
with applicable accounting standards and audit 
procedures, the independent auditor expresses an 
opinion as to whether the financial statements are 
true and fair.
The scope of the financial audit and the annual audit 
results are subject to review by the Audit Committee. 
Any relationship or service that may potentially affect 
the objectivity and independence of the independent 
auditor must be discussed with the Audit Committee. 
The independent auditor may discuss any issues 
identified or any difficulties encountered during the 
course of the financial audits with the Audit Committee.
KPMG has been Huawei's independent auditor since 2000.
Born in 1968, Mr. Peng holds a bachelor's degree 
from Huazhong University of Science and Technology. 
Mr. Peng joined Huawei in 1997 and has served as 
Technical Service Engineer of the South China Area, 
Transmission Project Manager and Development 
Engineer of the Russia Representative Office, 
General Manager of the Yemen Representative 
Office, Assistant to President of the Middle East and 
Northern Africa Region, President of the Northern 
Africa Region, President of the China Region, 
President of the Corporate Leadership Mgmt Dept, 
and President of the Enterprise BG. Currently, Mr. 
Peng serves as a member of the Supervisory Board 
and the Lead of the Strategic Reserve.
Mr. Peng Zhongyang
Member of the 
Supervisory Board
Born in 1968, Mr. Lyu holds a master's degree 
in information and electronics engineering from 
Zhejiang University, and an EMBA from China Europe 
International Business School. Mr. Lyu joined Huawei 
in 1993 and has served as a software engineer, 
project manager, Director of the Corporate Technical 
Cooperation Dept, Chief Operating Officer of Huawei 
Technologies India Private Limited (HTIPL), HR 
Director of R&D, President of the Human Resource 
Mgmt Dept, President of Huawei University, Lead 
of the Strategic Reserve, President of the Corporate 
Leadership Mgmt Dept, and Chairman of the 
Corporate Advisory Committee. Currently, Mr. Lyu 
serves as a member of the Supervisory Board, a 
member of the Supervisory Board Upper House, and 
the Leader of the Supervisory Board Upper House 
Secretary Team.
Mr. Lyu Ke
(Jack Lyu)
Member of the 
Supervisory Board
Born in 1974, Ms. Shi holds a master's degree from 
Central University of Finance and Economics. Ms. Shi 
joined Huawei in 2000 and has served as Director of 
the China Accounting Shared Service Center, Director 
of the Argentina Accounting Shared Service Center, 
Director of the Revenue Business Center, Director 
of the Accounting Solution Business Center, CFO of 
the West European Region, Vice President of the 
Accounting Mgmt Dept, President of the Accounting 
Mgmt Dept, and President of the Subsidiary Mgmt 
Dept. Currently, Ms. Shi serves as a member of the 
Supervisory Board and Deputy CFO of the Group 
Finance Mgmt Dept.
Ms. Shi Yanli
Member of the 
Supervisory Board
Born in 1963, Ms. Yang holds a master's degree from 
Huazhong University of Science and Technology. Ms. 
Yang joined Huawei in 1998 and has served as Head 
of the HR Director Office, Assistant to HR Director 
of Sales & Services, Deputy HR Director of the 
Commonwealth of Independent States Area, Director 
of the Talent Mgmt Dept of the Human Resource 
Mgmt Dept, HR Director of the CEE & Nordic 
European Region, and Director of the HR Section 
of the Human Resources Committee. Currently, Ms. 
Yang serves as a member of the Supervisory Board, 
Chief Ethics & Compliance Officer, and Director of the 
Committee of Ethics and Compliance.
Ms. Yang Li
Member of the 
Supervisory Board
Born in 1977, Mr. Li holds a bachelor's degree from 
Tongji University. Mr. Li joined Huawei in 1999 
and has served as General Manager of the Xi'an 
Representative Office, Assistant to the President 
of the China Region, President of the Eastern and 
Southern Africa Region, President of the Southern 
Africa Region, President of the West European Region, 
and President of the Carrier BG. Currently, Mr. Li 
serves as a member of the Supervisory Board and 
President of ICT Sales & Service.
Mr. Li Peng
Member of the Supervisory Board


152       Huawei Investment & Holding Co., Ltd.
Business Structure
As one of Huawei's core businesses, the ICT 
Infrastructure Business comprises the Carrier Business, 
the Enterprise Business, and ICT Infrastructure. By 
working on information distribution, interaction, 
transmission, processing, and storage, Huawei helps 
customers build CT and IT infrastructure with its leading, 
innovative products, solutions, and services.
■	 In the carrier market, Huawei continuously 
innovates with leading carriers, to explore business 
scenarios and verify key technologies, thus helping 
carriers constantly enhance their core digital 
infrastructure capabilities, growing together with 
them in their new business domains, and serving 
as an enabler of carriers' digital and intelligent 
transformation.
■	 In the enterprise market, Huawei works to build 
a “partner + Huawei” open cooperation system 
for NAs and the commercial and distribution 
segments. With a focus on industries' valued 
scenarios, Huawei provides integrated solutions 
to accelerate the digital and intelligent 
transformation of industries, and creates new 
value together with them.
■	 ICT Infrastructure comprises Connectivity, 
Computing, Data Storage, and Carrier Software 
and Service. In Connectivity, Huawei proactively 
works with industry partners to define 5.5G and 
build leading, innovative network infrastructure 
based on wireless, optical, intelligent IP, and 
cloud core networks, as part of the effort to 
continuously drive the connectivity industry 
Group Functions
Corporate
Development
Strategy
Finance
Cyber Security &
Privacy Protection
2012 Laboratories
Supply Chain
Logistics Services
Quality, BP & IT
Human Resources
Leadership Management
PR & GR
Legal Afairs
Internal Audit
Ethics & Compliance
Regional Organizations
HiSilicon
Intelligent 
Automotive 
Solution 
Business
Digital
Power
Huawei
Cloud
Computing
Consumer 
Business
ICT Infrastructure Business
ICT 
Infrastructure 
Enterprise
Business
Carrier
Business
forward. In Computing, Huawei works alongside 
its partners around the world to develop digital 
infrastructure ecosystems based on Kunpeng, 
Ascend, and foundational software like Euler, 
CANN, and MindSpore, establishing the computing 
backbone for the digital world. In Data Storage, 
Huawei proactively embraces new media and new 
applications, and builds a secure, reliable, green, 
and efficient storage pedestal for a rich variety 
of application scenarios. In Carrier Software and 
Service, by focusing on the entire lifecycle of ICT 
infrastructure, including planning, construction, 
network O&M, optimization, and operations, 
Huawei works with its partners to deliver users 
better service experience and facilitate carrier and 
enterprise customers' business success.
The Consumer Business continues to put consumers 
at the center of everything it does. By focusing on 
quality products, the Consumer Business aims to 
create an inspired AI experience across all scenarios 
and build a brand that has a human touch and 
is liked and trusted by consumers. The Consumer 
Business also works to build a prosperous HarmonyOS 
ecosystem and achieve business success together with 
its partners.
Huawei Cloud Computing provides stable, reliable, 
secure, trustworthy, and innovative cloud services to 
customers. Huawei Cloud Computing aims to deliver 
Everything as a Service, accelerate intelligence, 
reshape industries, and build the cloud foundation 
for an intelligent world with ubiquitous cloud and 
pervasive intelligence.


2023 Annual Report
        153
Digital Power offers enterprise and industry customers 
products and solutions like smart PV, smart charging 
networks, data center facility, critical power supply, 
and DriveONE. Digital Power is committed to 
integrating digital and power electronics technologies 
to provide customers with high-quality, highly-
efficient, green, and low-carbon power electronics 
products, facilitating customers' business success.
The Intelligent Automotive Solution Business has 
brought Huawei's expertise in ICT to the intelligent 
automotive sector, providing new components for 
intelligent connected vehicles and helping car OEMs 
build better vehicles with ICT technologies.
HiSilicon provides board-level chipsets and module 
solutions to sectors like smart devices, home 
appliances, and automotive electronics. It offers 
end-to-end technological capabilities like sensing, 
connectivity, computing, and display to help devices 
go digital, connected, intelligent, and low-carbon. 
Based on chipsets and components, HiSilicon works to 
empower connected smart devices, enable innovations 
across different sectors, and help customers achieve 
business success.
To gradually build a shared service platform to 
support the development of our multiple businesses 
and create an anchor for corporate policy execution, 
the company operates a Platform Coordination 
Committee. This committee is designed to drive group 
functions to optimize their execution and operations, 
simplify cross-function operations, and strengthen 
collaboration, so that group functions will become the 
best service organizations available to support and 
promote business operations. Group functions provide 
business support, services, and oversight. They are 
positioned to offer accurate, timely, and effective 
services to field offices and strengthen oversight while 
delegating sufficient authority to them.
Improving the Internal Control 
System
Huawei continued to design and implement an 
internal control system based on its organizational 
structure and operating model. The internal control 
framework and its management system apply to all 
business and financial processes of the company and 
its subsidiaries and business units. The internal control 
system is based on the five components of the COSO 
framework: Control Environment, Risk Assessment, 
Control Activities, Information & Communication, and 
Monitoring. It also covers internal controls of financial 
statements to ensure their truthfulness, integrity, and 
accuracy.
Control Environment
A control environment is the foundation of an internal 
control system. Huawei is committed to a corporate 
culture of integrity, business ethics, and compliance 
with laws and regulations. Huawei has issued the 
BCGs to identify acceptable business conduct. The 
BCGs must be observed by all employees, including 
senior executives. Regular training programs are 
offered, and all employees are requested to sign 
the BCGs to ensure that the BCGs have been read, 
understood, and observed.
Huawei has implemented a mature governance 
structure, with clearly defined authorization 
and accountability mechanisms. The governance 
structure comprises the Board of Directors (BOD), 
its committees, group functions, and multi-level 
management teams. Huawei clearly defines the roles 
and responsibilities of its organizations to ensure the 
effective separation of authority and responsibilities 
as well as checks and balances through mutual 
oversight. The CFO of Huawei is in charge of 
internal controls. The internal control management 
department reports to the CFO for any possible 
defects and improvements already made in terms 
of internal controls, and assists the CFO in building 
the internal control environment. The internal audit 
department independently monitors and assesses the 
status of internal controls for all business operations.
Risk Assessment
Huawei has a department dedicated to internal 
controls and risk management to regularly assess 
risks to the company's global business processes. 
This department identifies, manages, and monitors 
significant risks, forecasts potential risks caused by 
changes to the internal and external environments, 
and submits risk management strategies along 
with risk mitigation measures for decision making. 
All process owners are responsible for identifying, 
assessing, and managing business risks and taking 
necessary internal control measures. Huawei has 
instituted a mechanism for improving internal controls 
and risk controls to efficiently manage critical risks.


154       Huawei Investment & Holding Co., Ltd.
Control Activities
Huawei has established the Global Process 
Management System and the Business Transformation 
Management System, released the global Business 
Process Architecture (BPA), and appointed Global 
Process Owners (GPOs) in line with the BPA.
Responsible for building processes and internal 
controls, GPOs:
■	 Identify key control points and the Separation of 
Duties Matrix for each process, and apply these to 
all regional offices, subsidiaries, and BUs.
■	 Conduct compliance tests on key control points 
and issue test reports to ensure the effectiveness 
of internal controls is continuously monitored.
■	 Optimize processes and internal controls based 
on business pain points and key requirements 
for financial statements. The aim is to improve 
operating efficiency and financial results, ensure 
compliance and the accuracy and reliability of 
financial statements, and help achieve business 
objectives.
■	 Perform annual assessments of internal controls, 
comprehensively assess overall process design 
and process execution within each business 
unit, and then report the results to the Audit 
Committee (AC).
Information & Communication
Huawei has developed multi-dimensional information 
and communication channels to ensure the timely 
acquisition of external information from customers, 
suppliers, and other parties. It has also created formal 
channels for transferring internal information, and 
offered an online space, the Xinsheng Community, 
for employees to freely communicate their thoughts 
and ideas. Corporate management holds regular 
meetings with departments at all levels to effectively 
communicate management orientation to employees 
and ensure effective implementation of management 
decisions. All business policies and processes are 
available on the company's Intranet.
Managers and process owners regularly organize 
training programs on business processes and internal 
controls to ensure that up-to-date information is 
made available to all employees. The company has 
established a mechanism for process owners at all 
levels to regularly communicate with each other, 
review the execution of internal controls, follow up 
on internal control issues, and implement 
improvement plans.
Monitoring
Huawei has established an internal complaint channel, 
an investigation mechanism, an anti-corruption 
mechanism, and an accountability system. The 
Agreement on Honesty and Integrity that Huawei 
has signed with its suppliers clearly stipulates that 
suppliers may report improper conduct by Huawei 
employees through the channels stipulated in the 
Agreement to assist the company in monitoring 
the integrity of its employees. The internal audit 
department independently assesses the overall status 
of the company's internal controls, investigates 
any suspected violations of the BCGs, and reports 
the audit and investigation results to the AC and 
senior management. Huawei has also implemented 
a mechanism for internal control appraisals of GPOs 
and regional managers, holding them accountable 
and pursuing impeachment when and where 
necessary. The AC and the CFO regularly review the 
company's internal control status, and listen to and 
review reports on action plans for improving internal 
controls and plan execution progress. Both have the 
authority to request the relevant GPOs or business 
executives to explain their internal control issues and 
take corrective actions.


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Sustainability
Harmony
All-inclusiveness
Reliability
Environment
156 Introduction
160 Digital Inclusion
166 Security and Trustworthiness
168 Environmental Protection
173 Healthy and Harmonious Ecosystem
187 Respecting Human Rights
Sustainable 
Development


156       Huawei Investment & Holding Co., Ltd.
Introduction
Sustainable development is a responsibility shared by the entire world. As a leading global provider of ICT 
infrastructure and smart devices, Huawei's vision is to bring digital to every person, home and organization for 
a fully connected, intelligent world. We believe that if we S.H.A.R.E. (work towards sustainability, harmony, all-
inclusiveness, reliability, and environmental friendliness), we can create a better, sustainable, and digital future. We 
want to maximize equality and inclusion by making technology accessible to all and strike a balance between social 
development and environmental protection through technological innovation. We also want to develop secure and 
reliable ICT infrastructure and services that safeguard the digital world and work with our industry partners to build a 
healthy and harmonious business ecosystem. 
Sustainability strategies and 2023 progress
TECH4ALL's education 
programs have benefited 
630 schools and more than 
400,000 people, including 
K–12
1 students and teachers, 
unemployed young people, 
and senior citizens. 
400,000
Huawei's ICT solutions 
have brought connectivity 
to 90 million people in 
rural and remote areas 
in nearly 80 countries 
around the world.
90 million
Huawei's digital 
technologies have helped 
preserve biodiversity and 
sustainably manage and 
use natural resources 
in 53 of the world's 
protected areas. 
53
Huawei has worked with 
seniors universities, local 
community organizations, 
and nursing homes to 
provide digital literacy 
training in 210 cities in 
China, benefiting more 
than 42,000 senior citizens. 
42,000
Digital Inclusion
TECH4ALL: Since the launch of Huawei's TECH4ALL digital inclusion initiative in 2019, we have implemented a number 
of projects that leverage digital technologies and multi-stakeholder partnerships to make the world more inclusive and 
sustainable.
Huawei was awarded 57 
cyber security certificates, 
giving our customers 
internationally-recognized 
security assurances.
57
Huawei supported stable 
communications during 
over 300 disasters and 
major events. 
300
We promptly and 
effectively handled over 
29,000 requests from 
personal data subjects to 
protect their rights. 
29,000
We carried out over 60 
inspections and audits 
against industry best 
practices, ensuring that our 
corporate privacy protection 
policies are well enforced. 
60
Security and Trustworthiness
Taking responsibility to build trust: Cyber security and privacy protection are a top priority at Huawei, and so 
we are continuing to invest and remain transparent in both areas. We have worked hard to improve our software 
engineering capabilities and practices, build resilient networks, develop trustworthy and high-quality products, and 
support stable network operations. 
Huawei's digital power 
solutions have helped 
customers generate 997.9 
billion kWh of green 
power and save 46.1 
billion kWh of electricity. 
997.9 billion
Only 0.5% of the e-waste 
from Huawei's ICT 
business, and zero e-waste 
from our smart device 
business, went to landfills. 
0.5%
The average energy 
efficiency of Huawei's 
main products has 
increased 2.6 times since 
2019 (base year).
2.6x
A total of 780,000 devices 
have extended their 
lifespan through our 
trade-in program. 
780,000
Environmental Protection
Contributing to a clean, efficient, low-carbon, and circular economy: Huawei aims to continuously explore an 
optimal way to build a low-carbon, circular economy and find innovative solutions that make our own value chain 
greener. As part of these efforts, we have integrated requirements including compliance with environmental laws 
and regulations, energy efficiency, and environmental benefits into our business activities, such as R&D, operation, 
procurement, manufacturing, and supply chain.
1	
K–12 refers to the educational journey from kindergarten to the 12th grade.


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        157
2023 sustainability honors and awards
Honor/Award
Issued By
Climate A List
CDP
2023 Sustainability Champion Award
AfricaCom
GSMA GLOMO's "Best Mobile Innovation for Emerging 
Markets" for Huawei's RuralLink solution
GSMA
Innovative Breakthrough in Mobile Technology Award 
and Outstanding Award for Huawei's Green Target 
Network program
Global TD-LTE Initiative (GTI)
Neurons Awards Special Jury Prize for a TECH4ALL 
project designed to protect endangered wild Atlantic 
salmon in Norway
Jury of World AI Cannes Festival (WAICF) 2023
First Prize in China Outstanding ICT Case Studies for a 
TECH4ALL project designed to monitor biodiversity in the 
Yellow River Delta National Nature Reserve
China Association of Communication Enterprises
Smartphone OS/UI Elderly-friendliness Assessment – Five 
Stars for HarmonyOS 3
China Telecom Research Institute
Top Employer in Europe
Top Employers Institute
Climate Performance Assessment Gold Rating
Climate Choice (commissioned by Telefonica 
and T-Systems) 
Customs Compliance Award
Jordan Customs
Best Contribution to Cyber Security
Vietnam Information Security Association 
(VNISA) 
Best Data Privacy Governance
Association of Big Data & AI (ABDI), Indonesia
Prime Minister Award: Best of Contributor in Human 
Capital Development Award
National Innovation Agency (NIA), Thailand
Hong Kong Authorized Economic Operator Partnership 
Scheme Gold Award
Hong Kong Customs
Huawei invested over 
CNY18.6 billion in 
employee benefits. 
CNY18.6 billion
Huawei operated over 
300 social contribution 
programs worldwide as 
part of its community 
responsibilities.
300
The Seeds for the Future 
2.0 program has been 
implemented in more 
than 150 countries and 
regions, benefiting over 
3.4 million people.
3.4 million
Huawei assessed the 
sustainability performance 
of over 1,600 major 
suppliers, representing 
over 90% of our 
procurement spending.
1,600
Healthy and Harmonious Ecosystem
Collaborating for the common good: Huawei is committed to operating with integrity and complying with 
applicable laws and regulations. We value employee development and help employees realize their full potential. 
We conduct due diligence on our global supply chain to ensure its sustainability and we actively contribute to 
the communities we operate in. Our goal is to work with all industry partners to build a healthy and harmonious 
business ecosystem.


158       Huawei Investment & Holding Co., Ltd.
2023 sustainability milestones 
Time
Milestone
February 2023
Huawei joined the UNESCO Global Alliance for Literacy (GAL) and agreed to work with the 
GAL's Secretariat, the Institute for Lifelong Learning (UIL), to promote ICT-powered literacy 
initiatives. As per the cooperation agreement, Huawei will fund an expansion of the UIL's 
current initiatives to increase educators' use of technology in developing countries. Huawei 
is the first private company to become an associate member of the GAL. 
June 2023
On the 50th anniversary of World Environment Day, Huawei and the International 
Union for Conservation of Nature (IUCN) held the 3rd Tech4Nature Summit, where 
global partners shared real-world examples of how technology has improved biodiversity 
conservation. Digital technologies, such as cloud computing, IoT, mobile Internet, big 
data, and AI, can enable smarter sensing, analysis, and management in protected areas 
and better support conservation efforts. At the summit, Huawei, IUCN, and the Chinese 
Academy of Forestry jointly launched the Smart Protected Areas White Paper which 
summarizes their own studies on how technology empowers conservation. 
July 2023
Huawei held the Eco-Connect Sub-Saharan Africa 2023 in Johannesburg, South Africa. 
Themed "Leading Digital for New Value Together", the conference attracted nearly 3,000 
partners and customers from more than 10 countries in the region. During the event, 
Huawei announced its plan to invest US$30 million in the region for partner capability 
enhancement, joint brand activities, joint solution innovation, and local talent cultivation.
August 2023
Huawei launched HarmonyOS 4, which comes with upgraded accessibility capabilities such 
as Smart Q&A, easy hearing aid connection, Senior mode, and Celia Call. These features 
help users with special needs and the elderly overcome accessibility challenges in their 
work and life, and give users more ways to communicate with the world.
September 2023
Huawei joined the 2nd Digital with Purpose Global Summit hosted by the Global Enabling 
Sustainability Initiative (GeSI), where more than 200 leaders from around the world 
gathered to provide insights on revolutionary digital enabling solutions that can help 
meet the Sustainable Development Goals (SDGs). Huawei's Autonomous Driving Storage 
Solution was shortlisted for the Digital with Purpose Award, which was designed to 
recognize digital solutions that drive sustainable development. 
November 2023
Huawei held its 2023 Sustainability Forum and five regional sessions in China, Italy, Ghana, 
Pakistan, and Brazil. Themed "Thriving Together with Tech: Realizing Sustainable Development", 
the event showcased the best sustainability practices of Huawei and its partners. Attendees 
from all over the world explored how digital infrastructure can better drive sustainable 
development and contribute to a greener and more inclusive intelligent world. 
December 2023
At the 28th Conference of the Parties to the UN Framework Convention on Climate 
Change (COP 28), Huawei released the Twin Skills for the Twin Transition: Defining Green 
Digital Skills and Jobs white paper. Developed in collaboration with the ATHENA Research 
Centre, the Sustainable Development Unit under AE4RIA, PwC, and EIT Digital, the white 
paper focuses on developing a new classification system for Green Digital Skills that can 
guide the reskilling and upskilling necessary to build and use the net-zero technologies 
required to meet the Paris Agreement objectives. 


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        159
Sustainability management
Huawei has established a systematic sustainability management system based on standards such as ISO 
26000 and the Responsible Business Alliance (RBA) Code of Conduct. We closely watch both our internal and 
external environments to identify sustainability risks and opportunities and drive continuous improvement in our 
management system. This will support the implementation of our sustainability strategies, ensure operational 
compliance, and continuously improve stakeholder satisfaction.
Huawei established its Corporate Sustainable Development (CSD) Committee over 10 years ago. This Committee 
meets each quarter and convenes special meetings as necessary to discuss and decide on sustainability issues. In 
2023, major topics discussed by the Committee included sustainability-related work priorities, the sustainability 
management system, energy conservation and emissions reduction, business- and function-specific strategic plans 
and work priorities related to sustainability, digital inclusion, employee care, and the circular economy. 
A dozen senior executives serve on the Committee, representing a wide variety of departments, including HR, 
manufacturing, logistics, procurement, and R&D. Four of the current committee members are also members of 
Huawei's Board of Directors. The CSD Committee is chaired by Tao Jingwen, a board member and the President of 
the Quality, Business Process & IT Department. 
For more details about Huawei's sustainability management, visit: 
https://www.huawei.com/en/sustainability/management
Framework of Huawei's sustainability management system
Business
environment
Stakeholders
Customers
Business
environment
Stakeholders
Customers
6.
Su
st
ai
na
bil
it
y
m
an
ag
e
me
nt
sy
ste
m
im
pr
ov
em
en
t
• Q
ua
lity
an
d o
per
ati
on
s o
rga
niz
ati
on
• C
ap
acit
y b
uild
ing
• In
fra
str
uct
ur
e
3.
Or
ga
niz
ati
on
an
d s
kil
ls
su
pp
or
t
2. Planning
• Countermeasures for
risks and opportunities
Sustainability solution
planning
Change planning
•
•
Huawei's
sustainability 
management 
system 
Requirements
• I
ssu
e c
lo
su
re
• C
aus
e a
nal
ysi
s
• C
on
tin
uo
us
im
pro
ve
me
nt
• K
no
wle
dge
ma
nag
em
ent
• D
ocu
me
nt
ma
na
ge
me
nt
Satisfaction
1. Leadership
• Sustainability strategies,
principles, and objectives
Sustainability policies, rules,
and standards
Tiered sustainability
management authorization
Sustainability culture,
incentives, and accountability
•
•
•
5. Performance   
appraisal
• Customer satisfaction
surveys
Maturity assessments
Measurements, analyses,
and evaluations
Sustainability reviews
Management reviews
•
•
•
•
4. Process operations
• Major business processes (IPD/LTC/ITR)
End-to-end sustainability management
(incorporating sustainability
requirements into processes)
Building sustainability into the entire
value chain (suppliers/partners)
•
•


160       Huawei Investment & Holding Co., Ltd.
Focusing on material topics
Sustainability organization memberships
Material topics represent the most significant impacts of an organization on the economy, environment, and 
people. In 2023, we reviewed our material topic matrix through stakeholder surveys and interviews, external 
consulting and insights, engagement with the media and the public, as well as internal risk assessment and 
strategic alignment. Following the review, we increased the priority of "sustainability management", "digital talent 
development", and "circular economy" in order to better respond to stakeholder requirements. 
High
Low
High
Importance to stakeholders
Importance to Huawei's business
Circular economy
Cyber security and 
privacy protection
Use of renewable energy
Combating climate 
change/Conserving energy 
and reducing emissions
Supply chain 
due diligence 
management
Supporting stable 
communications
Caring for employees 
(including occupational 
health and safety)
Sustainability 
management
Digital inclusion
Respecting human rights
Compliance with 
business ethics
Gender 
equality
Digital talent 
development
Biodiversity protection
Stakeholder 
engagement
Information 
accessibility
Community 
participation and 
contributions
Introduction and Addendum
Digital Inclusion
Security and Trustworthiness
Environmental Protection
Healthy and Harmonious Ecosystem
Digital Inclusion
In 2019, Huawei launched the TECH4ALL initiative to promote digital inclusion. Over the past five years, we have 
worked with more than 40 partners, including UNESCO and IUCN, and made substantial progress in TECH4ALL's 
four areas of focus: education, environment, health, and development. We have developed innovative applications 
and content using digital technologies, such as broadband connectivity and IoT, which have brought long-term 
positive changes to rural and remote areas, underserved communities, and environmental protection efforts.


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Driving equity and quality in education
At the Digital Learning Week in 2023, UNESCO acknowledged that innovative digital technologies had 
demonstrated their potential to enrich and transform education. They will transform how we learn, enhance the 
quality of learning, make education more inclusive, and improve education administration and governance. As part 
of our efforts to contribute to UN SDG 4 (Quality Education), Huawei is working with global partners, including 
education organizations, governments, universities, and carriers, and using digital technologies to make educational 
resources more accessible, including high-quality education for underserved communities and people in rural and 
remote areas. By the end of 2023, Huawei's TECH4ALL education programs had benefited 630 schools and more 
than 400,000 people, including K–12 teachers and students, unemployed young people, and senior citizens.
Technology-enabled Open School Systems for All
The Technology-enabled Open School Systems for 
All (TeOSS) project is led by UNESCO and jointly 
implemented by Huawei and the Egyptian, Ethiopian, 
and Ghanaian ministries of education. The project 
aims to implement and promote a new model of open 
learning by providing school terminal access, network 
connectivity, and education cloud platforms. As part 
of this project, we built a national training center 
and online platform in Egypt, allowing K–12 teachers 
to develop digital skills through offline training and 
access high-quality online teaching resources. The 
project has been piloted in 34 schools in Ethiopia and 
Ghana, benefiting 831 teachers.
In October 2023, UNESCO and Huawei jointly held 
the International Forum on Digital Platforms and 
Competencies for Teachers in Cairo, Egypt. More than 
330 government representatives, education experts, 
and scholars from over 50 countries attended the 
forum and shared the progress that the TeOSS project 
had made over the past three years.
The TeOSS project enables K–12 teachers, students, and other 
educators in Egypt to use digital technology and content for 
teaching and learning.
DigiSchool in China: Improving scientific and technological literacy in K–12 schools
In 2021, Huawei launched the DigiSchool project in 
Yudu county, Jiangxi province, China. Together with 
universities and other partners, we have developed a 
series of inquiry-based and multidisciplinary science 
and technology courses and STEAM
1 resources for 
teachers and students in remote and rural areas. These 
have been used to build engaging and interactive 
spaces where students can learn about cutting-edge 
technologies like 5G and AI. By the end of 2023, more 
than 4,800 teachers and students from 29 elementary 
and middle schools in rural areas of Ningxia, Jiangxi, 
and Hebei provinces had benefited from this project. 
Our efforts have helped the teachers improve their 
digital literacy and inspired the students' curiosity 
about science and technology.
Huawei's DigiSchool inspires rural children's curiosity about 
science and technology.
1	
STEAM education is a learning approach that integrates science, technology, engineering, arts, and mathematics, aiming to guide 
student inquiries, discussions, and problem solving in these fields.


162       Huawei Investment & Holding Co., Ltd.
Tech4Nature
In 2020, Huawei and IUCN launched the Tech4Nature 
program. In China, Mexico, Mauritius, Switzerland, 
and Spain, we implemented multiple Tech4Nature 
pilots that explored the use of digital technology to 
protect ecosystems and endangered species. We also 
supported nearly 300 protected areas in earning the 
IUCN Green List certification through digital platforms.
In Mexico's Dzilam State Reserve, we have collected and analyzed 
more than 80,000 images and videos and over 600,000 audio 
recordings. This data helped identify 146 species, including seven 
wild jaguars.
DigiTruck and SmartBus: Benefiting over 80,000 people from 16 countries
Since 2019, Huawei and its partners have run 
DigiTruck and SmartBus, two Skills on Wheels projects, 
to equip unemployed young people and senior citizens 
in remote areas with digital skills, and provide cyber 
security training for middle school students. By the 
end of 2023, over 80,000 people from 16 countries 
in Africa, the Middle East, and Europe had benefited 
from these projects.
DigiTruck and SmartBus have benefited over 80,000 people 
from 16 countries in Africa, the Middle East, and Europe.
Conserving nature with technology
Biological diversity resources are the pillars upon which we build civilizations. Conserving nature and biodiversity 
is key to slowing global warming and achieving sustainable development. Huawei believes that digital technology 
can help people protect nature and tackle climate crises, so we are working closely with global environmental 
protection organizations, carriers, and partners on projects that explore the use of ICT to protect forests and 
wetlands and increase the efficiency of biodiversity and natural resource conservation and management.
By the end of 2023, Huawei had harnessed the power of digital technology to implement conservation projects in 
53 of the world's protected areas. These projects have helped protect many endangered species, including Hainan 
gibbons, jaguars, Oriental storks, Bonelli's eagles, and Atlantic salmon. Our conservation efforts have also helped 
protect tropical rainforests, mangrove forests, coral reefs, estuaries, and other typical ecosystems.


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        163
In the Hainan Tropical Rainforest National Park, Huawei works with 
partners to monitor the calls of Hainan gibbons.  More than 100,000 
audio recordings have been collected and transmitted in real time 
and individual gibbons now can be automatically identified.
In Pointe aux Feuilles on the eastern coast of Mauritius, Huawei 
works with local NGOs to restore coral reefs using digital technology. 
Nearly 25,000 coral fragments have been planted underwater, which 
helps restore the biodiversity of these ecosystems.
Using digital technology to protect endangered birds in the Yellow River Delta Wetland
Capturing invasive salmon with intelligent automatic filtering systems
Since 2022, Huawei has partnered with the Yellow River Delta National Nature Reserve which oversees the world's 
youngest wetland ecosystem. This wetland is home to more than 90 endangered bird species, as well as China's 
largest population of Oriental storks. The use of technology has reduced the impact of human activities on the 
environment, and created more possibilities for biodiversity conservation. Now 47 species can be automatically 
identified, helping the nature reserve work more efficiently. In November 2023, the China Association of 
Communication Enterprises awarded this project the first prize in the China Outstanding ICT Case Studies awards.
The survival of Norway's native wild salmon (Atlantic salmon) is under threat from invasive species. Since 2021, 
Huawei has been working with Berlevåg Jeger-og Fiskerforening (BJFF), an NGO and association of hunters and 
anglers in Norway, to use innovative technologies against invasive species. We have deployed a system that 
automatically identifies and filters different types of salmon in the Storelva and Kongsfjord Rivers in northeastern 
Norway, with the one in the Kongsfjord River being solar-powered. The system has so far identified and captured 
Huawei helps the Yellow River Delta National Nature Reserve work more efficiently.


164       Huawei Investment & Holding Co., Ltd.
The automatic salmon identification and filtering system in the Kongsfjord River in Norway
more than 6,000 invasive salmon with an accuracy of over 99%. This helps Atlantic salmon and other local fish 
species swim upstream and complete their migratory spawning process without interference, and effectively 
conserves the local salmon ecosystem.
Enabling inclusive health and well-being
Huawei believes that everyone should have equal access to technology and the benefits it can bring. We are 
committed to bridging the digital divide and leaving no one behind in the digital world. Through our TECH4ALL 
initiative, we strive to help senior citizens better adapt to the digital world, facilitate smooth communication for 
people with disabilities, and address the digital inequalities faced by underserved communities.
Helping senior citizens navigate the digital world through digital literacy training
Huawei has leveraged its device products and expertise 
in Internet applications to develop a range of courses 
and teach senior citizens simple and useful digital skills, 
so that they can adapt to the digital world. By the end 
of December 2023, Huawei and its partners, such as the 
Seniors University of China, had provided training and 
coaching to more than 42,000 senior citizens in seniors 
universities, local community organizations, and nursing 
homes across 210 cities in China.
Huawei's training program for senior citizens helps them adapt 
to the digital world.


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        165
Information accessibility
In 2023, Huawei helped partners develop a sign 
language model that can better understand sign 
language and more accurately translate between 
sign language and Chinese, in order to help people 
with hearing impairments express and communicate 
information more conveniently and accurately.
The sign language model helps people with hearing 
impairments express and communicate information more 
conveniently and accurately.
Driving inclusive digital development
According to ITU, 2.6 billion people around the world were still not connected to the Internet in 2023. To achieve 
universal and meaningful connectivity by 2030, we need to invest more in the digital development of rural and 
remote areas in low- and middle-income countries, including building infrastructure, formulating policies and 
regulations, and developing localized digital skills training courses and content. This will give local residents access 
to affordable devices, data, and services. By the end of 2023, Huawei's ICT solutions had brought connectivity to 90 
million people in rural and remote areas in nearly 80 countries around the world.
Smart Villages project in Pakistan: Driving balanced rural development
In Pakistan, a large number of people live in rural and remote areas and lack digital infrastructure as well as 
the knowledge and basic digital skills needed to fully utilize the Internet. To help address the problem, Huawei, 
the ITU Telecommunication Development Sector (ITU-D), the Pakistani Ministry of Information Technology and 
Telecommunication's Universal Service Fund (USF), and the UN Development Programme (UNDP) jointly launched 
the Smart Villages project. In the village of Gokina where the project was piloted, Huawei deployed a 4G wireless 
network, providing broadband access to the village's 1,000 households. Now, villagers can more quickly and easily 
access quality healthcare resources through online consultation services. Thanks to the wider network coverage, 
more digital training projects are being rolled out. For example, teachers and students at the Islamabad Model 
School for Girls in Gokina can now access more online education resources.


166       Huawei Investment & Holding Co., Ltd.
Teachers and students at the Islamabad Model School for Girls in Gokina can now access more online education resources.
Security and Trustworthiness
Over the last year, we have come even closer to the digital world as emerging technologies like AI flourished 
and data volumes experienced explosive growth. An increasing number of industries are accelerating digital and 
intelligent transformation, driving new development within the real economy through deeper digital integration. 
The digital economy is growing rapidly thanks to digital and intelligent technologies.
However, the growing digital economy is also amplifying cyber security risks. The increasing popularity of open 
source has led to the outbreak of zero-day vulnerabilities, and there have been record numbers of data leaks and 
rampant ransomware attacks and telecom fraud. Mitigating security risks in cyberspace is increasingly difficult. 
Therefore, the question has now become: How can we build intrinsic security to support network operators and 
customers in responding to cyberattacks? How can we build data security and ransomware protection solutions to 
cope with the challenges standing in the way of digital transformation? How can we ensure stable information and 
communications services for people during natural disasters and emergencies?
Cyber security and privacy protection
Huawei has continued to make cyber security and privacy protection a top priority. We strive to tackle both the 
challenges and opportunities this new age presents through management transformation, technological innovation, 
and open collaboration. We are committed to fostering a better life for all in the future digital world by offering 
secure and trustworthy products, solutions, and services, and by taking concrete steps to manage related risks in 
our supply chain. We also share our experiences and capabilities with our suppliers and partners so that we can 
strengthen cyber security and privacy protection capabilities together.


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Openness and transparency
Cyber security and privacy protection are common challenges for all as we stride towards a digital and intelligent 
world. These are challenges that all stakeholders – including governments, industry and standards organizations, 
and enterprises – have a shared responsibility to tackle. Huawei's cyber security principles are built upon 
integrity, trustworthiness, capability, accountability, openness, and transparency. Therefore, we welcome closer 
communication and collaboration with all stakeholders to jointly confront emerging risks and challenges during this 
world-changing transformation.
(For further information, see the Cyber Security and Privacy Protection section on pages 77 to 82 of this report.)
Supporting stable communications
The information and communications products and services that run on ICT infrastructure do more than just enrich 
people's day-to-day lives. They are also crucial for disaster relief and major event support. As an ICT infrastructure 
provider, Huawei's primary responsibility is to support the stable operations and services of customer networks.
In 2023, more than 6,000 of our professional engineers worked side by side with customers and partners to 
safeguard global ICT networks 24/7 and provide timely support for over 300 major events and disasters.
Restoring critical communications after a major earthquake in Türkiye
On February 6, 2023, a 7.8-magnitude earthquake struck the province of Kahramanmaras in southeastern Türkiye. 
The earthquake was felt in 10 neighboring provinces and was followed by over 8,000 aftershocks, resulting in a 
large number of casualties. The earthquake also damaged more than 3,000 communications sites, and this caused 
widespread disruption to local networks and affected the communications of 13 million people. Communications 
networks are a lifeline for disaster relief. It is incredibly difficult to make progress in disaster relief without access 
to networks.
Right after the earthquake struck, the Huawei team rushed to the affected areas and worked with carriers to 
recover communications services. We restored more than 1,900 sites within 72 hours after the earthquake, and over 
2,500 within a week. Within a month, we restored more than 3,000 damaged sites and communications in 94% of 
the affected areas. We also deployed more than 100 shared sites for emergency use to support disaster relief.
Our team worked tirelessly to make the impossible possible. The Ministry of Communications and three major carriers 
in Türkiye praised Huawei for restoring communications and maintaining critical network access for disaster relief.
Huawei engineers work side by side with 
carriers to rapidly get networks back online in 
the affected areas in Türkiye.


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Restoring networks in southern and northern China after typhoon Doksuri
On July 27, 2023, super typhoon Doksuri landed in Jinjiang, Fujian province, China, causing serious damage to the city of 
Quanzhou and surrounding areas. The typhoon continued to travel north and brought heavy rainfall to 14 provinces in 
northern China. The worst-affected areas included Beijing, Hebei, Heilongjiang, and Jilin. The rains caused water levels in 
dams to rise. Floods swept through villages and damaged a large number of houses and base stations.
Huawei was prepared to weather this storm. We promptly initiated the emergency assurance plan for flood seasons 
and tracked the movement of the typhoon. Before the typhoon made landfall, the Fujian Representative Office had 
several network assurance teams at the ready, and Huawei engineers stayed at carriers' network management centers 
to provide onsite support. Once the typhoon made landfall, the representative offices in Fujian and northern China 
contacted the carriers' local assurance teams and worked with them to coordinate resources for emergency repairs. 
The onsite engineers quickly transported diesel generators to the affected areas, repaired optical cables, and deployed 
drone base stations to restore communications as fast as possible. They also opened a green channel to ensure quick 
delivery of disaster relief supplies.
Huawei deployed more than 600 people to support the disaster relief. Our teams worked hard for more than 20 days 
and successfully helped customers repair more than 10,000 damaged sites, which minimized the duration of network 
interruptions and supported the government's rescue and relief efforts.
Huawei engineers restore communications after typhoon Doksuri.
Environmental Protection
Green and low-carbon development is becoming a global priority, and many countries see green industry 
development as an important tool for economic restructuring. Huawei believes that digital technology will be a key 
enabler of nature conservation, green development, and response to environmental challenges. We have already 
seen how digitalization and decarbonization can build upon each other to promote green development. And so, 
as part of our long-standing pledge of "Tech for a Better Planet", Huawei uses innovative ICT solutions to address 
climate and environmental challenges, protecting our shared home. Our solutions focus on three areas: advancing 
energy conservation and emissions reduction, promoting renewable energy, and contributing to a circular economy. 


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Advancing energy 
conservation and 
emissions reduction
Contributing to a 
circular economy
We continue to take managerial 
and technical measures to drive 
green innovation and practices. We 
also engage with upstream and 
downstream partners to reduce 
environmental impacts and work 
together to build a greener supply 
chain. Our innovative ICT solutions 
can help other industries reduce 
their carbon emissions, and we take 
every responsible step that we can to 
minimize carbon emissions. 
We use ICT to improve the efficiency 
of generating and utilizing electricity 
from renewable energy, drive the 
transition to renewable energy, 
and provide green power for the 
intelligent world. 
We are moving to a less resource-
intensive and more sustainable mode 
of development. Our actions include 
selecting more eco-friendly materials, 
reducing the use of raw materials 
and single-use plastics, making 
products more durable and easier 
to disassemble, and improving our 
product recycling system. 
Promoting renewable energy
Huawei's non-stop efforts in environmental protection have won recognition from the environmental non-profit 
organization CDP, who once again placed Huawei on its 2023 "Climate A List" and awarded our company the title 
"Supplier Engagement Leader 2023".
Advancing energy conservation and emissions reduction
For years, Huawei has worked hard to incorporate green development into strategic plans, processes, and product 
and business designs of different departments. We continue to make the most of resources in our products and 
solutions in order to minimize carbon emissions from the very beginning. We also use a systematic supplier 
management mechanism that includes multiple types of incentives to encourage our top 100 suppliers to 
implement their own emissions reduction projects. This mechanism also helps the suppliers respond to Huawei's 
environmental requirements so that we can work together to build a greener supply chain.
■	 Digital technologies that enable industrial energy savings
We have been innovating non-stop to provide leading eco-friendly products and solutions to our customers, extract 
the maximum value from resources, and enable green development across industries.


170       Huawei Investment & Holding Co., Ltd.
"0 Bit 0 Watt" energy-saving solutions: Reducing mobile network energy consumption by 
28% while ensuring a better user experience
Huawei's High-Quality 10 Gbps CloudCampus Solution: Cutting campus Wi-Fi energy use 
by 20%
Huawei's FTTO solution: Cutting network energy consumption of commercial buildings by 30%
Huawei is helping customers build green, highly efficient 
networks by leveraging our technical expertise in wireless 
network construction, including our multi-antenna, ultra-
broadband, and energy-efficient equipment and our "0 
Bit 0 Watt" energy-saving solutions. In 2023, Huawei's 
wireless solutions helped a carrier reduce mobile 
network energy consumption by nearly 28%.
With Huawei's green Wi-Fi solution for smart campuses, 
users can check network energy consumption and energy 
efficiency ratios in real time. The solution intelligently 
recommends time windows during which energy saving 
is possible based on tidal network traffic patterns, and 
implements energy saving policies accordingly. The 
solution, once deployed, can cut the average annual 
power consumption of a campus Wi-Fi network by 20%. 
Huawei's FTTO solution replaces network cables with 
optical fiber, which reduces the need for facilities such 
as weak-current equipment rooms, air conditioners, 
and fire-fighting facilities. This solution can cut network 
energy consumption by 30%, and allows commercial 
buildings to deploy a single network for multiple services 
including office, merchant management, security, and 
broadcasting. 


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        171
■	 Shifting towards a greener supply chain
As a leading global provider of ICT infrastructure and smart devices, Huawei remains committed to reducing the 
environmental impact of our production and operating activities. As such, we have taken a series of measures and 
work with our partners to facilitate the shift towards a green and low-carbon supply chain. This includes initiatives 
in domains such as supplier energy saving management, production and manufacturing, and product logistics and 
transportation. 
Building a greener supply chain with suppliers
Green manufacturing that saves energy and cuts carbon emissions
Since 2011, Huawei has participated in the Green 
Choice initiative, which was launched by the Institute of 
Public and Environmental Affairs (IPE). We encourage 
suppliers to manage themselves better and require 
them to rectify all discovered problems within a 
designated timeframe, to ensure their compliance 
with environmental protection requirements. In June 
2023, Huawei held its third Supplier Carbon Emissions 
Reduction Conference, themed "Green and Low-carbon 
Development for Shared Success", where attendees 
discussed plans for achieving green and low-carbon 
development.
Huawei's manufacturing department prioritizes green 
development within its operations while maintaining 
high product quality. By taking measures such as green 
design, green packaging, and equipment and facility 
energy conservation, we are constantly making our 
production greener. 
One area of manufacturing that has historically consumed 
vast amounts of energy is the burn-in testing conducted 
to guarantee product performance and reliability before 
mass production and shipment. Traditionally, this testing 
is conducted in a high-temperature burn-in room that 
consumes enough electricity in a single day to power a 
three-member household for a month. Huawei, however, 
has used its self-heating technologies to replace the 
burn-in rooms, which has slashed the amount of energy 
used during testing. In 2023, we used these advanced 
technologies to multiple ICT and digital power products, 
reducing our own electricity consumption by more than 
300,000 kWh.
Promoting renewable energy
At Huawei, we increase the use of renewable energy in our own operations and help customers generate green 
power. By the end of 2023, our digital power solutions had helped customers generate 997.9 billion kWh of green 
power and save 46.1 billion kWh of electricity. 


172       Huawei Investment & Holding Co., Ltd.
From design to processes: Greater synergies mean greener packaging
Huawei adopts a green packaging strategy known as 
"6R1D": Right packaging, Reduce, Returnable, Reuse, 
Recovery, Recycle, and Degradable. We aim to design 
packaging that provides sufficient protection for our 
products and has a minimal impact on the environment. 
We use innovative designs to reduce our use of plastics, 
and are continuing to explore lightweight, recyclable, 
degradable, and reliable green packaging solutions.
In 2023, for example, Huawei continued to improve 
its packaging designs and processes. We now use 
packaging that protects hardware during transportation 
and can be reused in different factories. This packaging 
can save about 46,000 disposable cartons every year.
Yalong Hydro's 1-GW hydro-solar hybrid power plant
In the province of Sichuan in western China, Huawei 
helped Yalong Hydro build the first phase of the 
Kela PV Plant. This hydro-solar hybrid power plant 
has a total installed capacity of 1 GW. The plant was 
connected to the grid in June 2023 and has an annual 
energy yield of 2 billion kWh, enough to power one 
million households.
The plant fully considers the needs of the local animal 
husbandry industry. The PV module support pillars are 
raised high above the ground, leaving adequate space 
for vegetation and grazing. The PV modules also reduce 
ground water evaporation, making it easier for plants 
to grow. This shows that synergies can be built between 
the PV and animal husbandry industries.
The first phase of the Kela PV Plant supports the local animal 
husbandry while generating green power. 
Contributing to a circular economy
Huawei is pursuing more eco-friendly materials, more durable products, greener packaging, and less waste 
throughout our product lifecycles so that all resources can be efficiently used, reused, and recycled. For example, 
our trade-in program has helped extend the lifespans of 780,000 devices.


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        173
Healthy and Harmonious Ecosystem
Achieving the UN Sustainable Development Goals requires the joint efforts of stakeholders such as businesses, 
governments, NGOs, and individuals. Businesses can apply their creativity and innovation to solve sustainable 
development challenges. As a responsible technology company, Huawei brings in outstanding talent from around 
the world and provides employees with a comfortable and inclusive workplace and ample room for growth. We are 
also doing what we can to develop skilled ICT workforces for local communities to facilitate digital transformation. 
Huawei remains committed to openness and collaboration for shared success. As such, we are working with our 
partners along the value chain, both upstream and downstream, to build a healthy and harmonious business 
ecosystem. We are also applying ICT to more industries and driving sustainable social development with our digital, 
intelligent, and low-carbon solutions.
Caring for employees
Huawei takes a positive, open, and diverse approach to human resources and welcomes talent from across the 
globe. We provide excellent work environments and development opportunities, coupled with reasonable rewards, 
allowing employees to pursue meaningful and promising careers. We also publish world-class problems that 
help talented people unlock their potential and encourage them to explore new frontiers in a bid to drive global 
prosperity and social progress. In 2023, the Universum survey of the World's Most Attractive Employers ranked 
Huawei 22nd in the IT category, while 44 Huawei subsidiaries were recognized as a Top Employer by the Top 
Employers Institute. 
■	 Employee health and safety
At Huawei, it is a company policy to care for our employees and always put their safety first. We are fully committed 
to creating a safe, healthy workplace for all of our employees. We require all of our business domains to meet or 
exceed the requirements of local laws and regulations as well as those from stakeholders including governments, 
customers, and employees. This must be achieved in accordance with the ISO 45001 occupational health and safety 
management system while considering internal and external environments. We always adhere to our rules regarding 
occupational health and safety management, and have ensured the healthy and safe development of all business 
domains. We have also extended the social responsibilities associated with environment, occupational health and 
safety (EHS) to our supply chain. We encourage more suppliers to share the EHS responsibilities of the supply chain 
and drive the sustainable development of employees, the environment, and society at large.
In 2023, we continued to improve our EHS management system, which included redesigning the EHS business process 
architecture, making a structural update to the EHS management system manual, and driving the enforcement of 
EHS risk management within all business domains. In terms of safety, we provide training on the Process Safety 
Management (PSM) methodology to prevent risks during the design phase, which can help avoid accidents at 
the very source. In terms of environment, we are working to manage pollution by disposing of different types of 
waste in different ways and reusing waste as much as possible. For occupational health, Huawei has established a 
comprehensive employee health and benefits system that meets all occupational health monitoring requirements. 
In 2023, Huawei invested over CNY18.6 billion into employee benefits worldwide to provide employees with 
comprehensive social security and competitive commercial insurance.


174       Huawei Investment & Holding Co., Ltd.
Spending on employee benefits (2019–2023)
2019
2020
2021
2022
2023
13.98
11.89
15.04
17.14
18.63
Unit: CNY billion
Huawei keeps improving working and living environments in hardship regions, with more employees moving to safe, comfortable, and 
beautiful accommodation.
Huawei Shanghai Representative Office won the WELL Gold rating
Huawei always strives to create comfortable and healthy 
workplaces that help improve employee well-being.
Huawei Shanghai Representative Office has always 
placed employees at the center of everything, from 
site selection and building design to construction and 
daily operations. The office has made continuous 
improvements based on the WELL building standard, 
which serves as an effective reference for improvements 
to workplace construction and operation standards. 
After one year of testing and evaluation, the office was 
awarded the WELL Gold rating in July 2023.
The WELL certification system is the world's first 
building standard to focus on enhancing people's 
health and wellbeing through the built environment. 
The WELL building standard has been developed based 
on scientific research across a number of disciplines 
such as medicine and architecture, and it focuses on 
ten concepts: air, water, nourishment, light, movement, 
thermal comfort, sound, materials, mind, and 
community. It serves as a guide for design, construction, 
and property management, and aims to improve users' 
health, well-being, and productivity.


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        175
Huawei Shanghai Representative Office awarded the WELL Gold rating
EHS management: Safeguarding global service delivery
In October 2023, Huawei held the Global Service 
Delivery EHS Conference in Dongguan, China. Over 100 
EHS managers from more than 40 countries attended 
the conference, where they discussed EHS management 
and career development. During the event, recent 
achievements such as scenario-based EHS management 
methodologies and tools were released, and regional 
representatives shared their best practices in EHS 
management.
In 2023, Huawei organized more than 20 EHS training 
sessions for service delivery projects, including on-site 
training, golden seed training, lectures, and regional 
training, through which a total of 410 EHS professionals 
were certified. We have also developed and applied new 
tools such as a mobile applet built based on WeLink—
Huawei's internal office platform—that supports onsite 
delivery project management and a smart helmet for 
safety inspection. These tools can monitor issues online, 
Huawei has won the "Zero Accident" Award from the 
Indonesian Ministry of Labour for nine consecutive years.
automatically generate reports, and conduct inspections 
by scanning codes, boosting EHS management efficiency 
in service delivery projects.
■	 Employee training and development
Huawei offers two distinct career paths for employees: the manager path and the expert path. Employees can advance 
while switching between these two paths. All employees receive regular performance and career development reviews, 
and are given plenty of training and mobility opportunities during career development. We have implemented a 
mechanism for department-initiated talent transfers and an internal talent market for free mobility. Both are intended 
to drive employee mobility and help our employees become more versatile in multiple fields. Talented people are 
not confined to one domain and are instead given the opportunity to work in different professions and domains. This 
helps them reskill and upskill, giving them more room for growth. They also have the chance to work in different 
locations. At Huawei, we offer employees a global platform, exposing them to many new experiences and new 
insights that will help them grow quickly. 


176       Huawei Investment & Holding Co., Ltd.
■	 A diverse and inclusive workforce
Huawei values diversity and inclusion in its workforce and is committed to creating a workplace in which all 
employees enjoy equal opportunities. By the end of 2023, Huawei had about 207,000 employees from 162 different 
countries and regions. 
Huawei is committed to complying with applicable regulations such as the Universal Declaration of Human Rights, and 
our Caring for Employees Policy lays out the principles and requirements that we believe a good employer must meet to 
ensure employee care. These principles and requirements cover child labor, forced or involuntary labor, health and safety, 
diversity, non-discrimination, humane treatment, working hours, compensation and benefits, freedom of association, 
privacy protection, and learning and development. We have put in place processes, systems, and baselines to ensure 
that our employee care policy is effectively implemented. When it comes to hiring, remuneration, access to training, 
New employee development
Huawei's new employee development programs take various forms, such as training, self-study, exams, certifications, 
mentorship, and hands-on practices. The programs include new employee orientation (NEO), delivery practice camps, 
learning of position-specific essential knowledge and skills, position-specific hands-on practices and mentoring, as well as 
assessments and tests. 
To help new employees quickly settle into their positions, we have prepared a learning syllabus and established a 
mentorship program. The syllabus lists the learning objectives, courses, learning instructions, and completion criteria for 
each new employee and each position group. This ensures that each new employee's development plan is effectively 
implemented and that they receive proper guidance during self-study. After years of practice and improvement, we have 
basically hit all the targets we set for new employee development. 
To support these two career development paths, Huawei provides comprehensive, systematic training resources and 
platforms to empower our employees at different stages of their careers. Our digital learning platform, iLearning, 
now offers over 20,000 online courses, helping our employees pursue personalized learning anytime from anywhere 
and supporting their reskilling and upskilling. We also have over 20,000 online knowledge communities, through 
which peers and experts from different domains share their experience and insights. 
Our smart classroom solution supports hybrid teaching to boost efficiency. The solution offers a rich array of tools 
and migrates teaching resources to the cloud, aiming to bring digital to every classroom and deliver an immersive 
learning experience. At Huawei, we believe that the brightest minds should develop even brighter minds, so we 
constantly attract and cultivate excellent trainers from both inside and outside the company. In 2023, we offered 
employees a wide range of training activities, and employees spent an average of 63 hours in training.
Flexible career paths with no limits
Thought & Visionary Leader
Strategic Leader
Professional Chief
Business
Leader
Functional
Leader
Project
Leader
Expert
First-line 
Manager
Senior
Professional
Professional
Two career paths
Training & rotations
for all-around expertise
Cross-domain encounters
for rapid growth of
versatile talent
Opportunities to work
on a global platform
for a diverse team and a 
global vision


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        177
promotion, and termination or retirement, we never engage in or support any form of discrimination based on race, 
national or social origin, caste, birth, religion, disability, gender, sexual orientation, marital status, union membership, 
political opinions, age, or any other condition that could give rise to discrimination. We prohibit the use of child labor 
and forced labor, and have effective measures in place to prevent the recruitment and use of such labor. 
We have released the Employee Business Conduct Guidelines (BCGs), and require every employee to sign, study, and 
know every detail of the BCGs. These Guidelines describe the legal and ethical requirements that employees must 
comply with when engaging in business activities. This means that Huawei employees must have a strong sense of social 
responsibility while complying with all applicable laws and regulations. Anyone who is found to have violated the BCGs 
will be subject to disciplinary action (including termination of employment and legal action if necessary). 
We value diversity in our workforce and respect the lifestyles of all of our employees. We encourage our employees 
from different regions and departments to interact and communicate with each other in a way that suits their particular 
needs. We aim to create an environment that makes it easy for everyone to practice and follow their beliefs and 
customs, whatever they may be. For example, we have prayer rooms on our campuses, and halal food is available in our 
cafeterias. For nursing mothers, we provide lactation rooms. We also provide facilities like cafes, gyms, and libraries. All 
of these facilities help us provide quality services that meet the diverse needs of our employees. 
79.9%
79.8%
79.5%
79.0%
78.9%
20.1%
20.2%
20.5%
21.0%
21.1%
2019
2020
2021
2022
2023
Employee age (2023)
Male and female employees (2019–2023)
Level of education in 2023
Male
Female
30–50
68%
Below 30
30%
Over 50
2%
Bachelor's degree
39%
Other
7%
Master's degree
49%
PhD or higher
5%
Huawei selects its Top 10 Cafeterias and Best Offices every year and organizes a wide range of team activities to offer employees a 
comfortable, inclusive workplace.


178       Huawei Investment & Holding Co., Ltd.
Xinsheng Community – Huawei employees' Roman Forum 
Moving towards a diverse and inclusive world
The Xinsheng Community, launched on June 29, 2008, is one of our employees' favorite internal communication platforms. 
It consists of several sections, including corporate files, technical exchanges, management improvement, Huawei People, 
and Hall of Fame. 
In 2023, about 110,000 users visited the Xinsheng Community every day, including 90,000 Huawei employees and 20,000 
external visitors. Everyone is encouraged to speak their mind as long as they follow the Xinsheng Community Regulations. 
Users are free to share their experiences and thoughts, and we do everything we can to protect their privacy. This helps 
foster a climate in which all voices are encouraged and valued. 
Huawei has always valued diversity and inclusion. In 2023, we promoted the course Cognitive Diversity Theory: Why We 
Emphasize Diversity and Inclusion for HR professionals through an internal website, and pushed it to HR teams at all levels 
and related domains. 
With this course, we want more HR professionals and managers to realize how a diverse workforce can generate greater 
synergy and better benefit the organization as a whole. This can encourage them to work harder to develop a more 
diverse, inclusive team. 
We have also established employee communication mechanisms as part of our efforts to create an open, inclusive 
workplace that encourages mutual respect and diversity. For example, we gather our employees' opinions and 
suggestions through our organizational climate survey, Manager Feedback Program (MFP), the manager open day 
program, and more. Employees can also report violations, file complaints, and seek assistance through multiple 
channels such as the dedicated complaint mailbox of our Committee of Ethics and Compliance (CEC) and our HR 
service hotline. Huawei keeps all reporters' information strictly confidential and prohibits any attempts to threaten 
or retaliate against reporters. 
Business ethics 
Huawei works hard to conduct its business with integrity and conform to business ethics standards and all 
applicable laws and regulations. This key principle is upheld by our highest levels of management. We have worked 
for years to build a compliance management system that aligns with industry best practices and embed compliance 
management into every aspect of our business activities and processes, and these efforts continue to this day. 
Huawei emphasizes a culture of integrity and invests heavily to make it a reality. As such, every Huawei employee 
is required to strictly adhere to our Business Conduct Guidelines. 
(For further information, see the Regulatory Compliance section on pages 70 to 72 of this report.)
Supply chain responsibilities
Huawei endorses the UN Guiding Principles on Business and Human Rights and is serious about the societal 
and environmental impact of our global procurement and supply chain. We have teamed up with customers and 
suppliers to further the sustainable development of our global supply chain. We have incorporated corporate social 
responsibility (CSR) requirements into both our Quality First strategy and activities that take place across all of our 
value chain. We offer premium prices to suppliers that offer higher quality in a bid to encourage them to improve 
their CSR performance. We have also integrated CSR requirements into our global procurement processes, from 
material and supplier qualification, selection, and appraisal to performance management and procurement fulfillment.


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■	 Procurement CSR management system
New supplier
qualification
and selection
Cooperation
with customers,
industry peers,
and other
stakeholders
Risk
assessment
Supplier
learning and
enablement
Supervision
and auditing
Supplier
performance
management
Laws, 
regulations, and 
international 
standards
Huawei's CSR red lines in procurement 
Huawei has established its procurement CSR management 
system based on the OECD Due Diligence Guidance 
for Responsible Business Conduct and the IPC-1401 
Corporate Social Responsibility Management System 
Standard, and incorporated CSR requirements into our 
procurement strategy and business processes. We require 
all of our suppliers to comply with all applicable laws and 
regulations, and encourage them to promote diversity and 
improve their own CSR management by adopting globally 
recognized industry standards. The CSR agreements that 
we sign with suppliers are prepared according to the 
Responsible Business Alliance (RBA) Code of Conduct 
and the Joint Audit Cooperation (JAC) Supply Chain 
Sustainability Guidelines. These agreements cover labor 
standards, health and safety, environmental protection, 
business ethics, and management systems. Huawei 
requires that all suppliers abide by the CSR agreements 
and convey the same requirements to their own suppliers. 
To support the strategic goal of sustainable procurement, we regularly deliver CSR training to all members of the 
procurement team. This training covers CSR agreements, red lines, processes, and audit practices related to CSR in 
procurement. CSR requirements are incorporated into the performance indicators of all teams in our procurement 
department. 
■	 Supplier risk rating and auditing
Huawei conducts supply chain due diligence using a risk-based approach. We work with suppliers to identify CSR 
risks and opportunities, and take actions to prevent and mitigate CSR risks. Every year, we assess all major suppliers, 
which represent 90% or more of our procurement spending, and assign each supplier one of three risk ratings 
(high, medium, or low). We develop an annual sustainability audit plan to deal with suppliers that are assessed as 
posing medium or high risk. In addition, we perform onsite assessments on all potential suppliers to examine their 
sustainability systems. No company that fails the assessment is eligible for consideration to become a Huawei supplier. 
We consider the use of child labor or forced labor to be red-line issues, and we have zero tolerance for any behavior that 
crosses CSR red lines. In 2023, none of our suppliers were found to have crossed any CSR red lines. 
1.   Use of child labor
2.   Use of prison labor (including using prisons 
as suppliers or subcontractors) or forced labor 
(including restricting personal freedom or 
detaining personal identity documents)
3.   Violence, physical punishment, sexual harassment, 
illegal body searches, cross-gender body searches, 
and other similar behavior
4.   Salary payments below the local minimum wage
5.   Negligence that leads to major fires or explosions
6.   Working conditions that seriously endanger personal 
health and safety or lead to fatal field incidents
7.   Illegal emissions of any hazardous or toxic wastes, 
including waste water, gas, and residue.
8.   Negligence that leads to media crises or serious 
mass disturbances, such as collective labor 
disputes, mass brawls, mass poisoning, unnatural 
deaths, or other incidents causing casualties.
9.   Unsafe and unhealthy working environments 
that lack effective measures to prevent potential 
health and safety accidents, or diseases that may 
be caused due to exposure in workplaces (e.g., 
collective infections).
10.  Corruption or dishonest acts that violate the 
requirements of "no bribery, no gifts, no conflicts 
of interest, no falsification, no cutting corners, no 
fraud, and keeping promises".


180       Huawei Investment & Holding Co., Ltd.
In 2023, we assigned CSR risk ratings to over 1,600 major suppliers using the new methodology. We also conducted 
317 onsite CSR audits and more than 900 onsite EHS reviews on engineering subcontractors. 
If we find an issue during an onsite audit, we help the supplier resolve the issue using the CRCPE methodology 
(check, root cause analysis, correct, prevent, and evaluate). This methodology helps suppliers identify common 
problems and develop targeted solutions. 
In 2023, we further refined our supplier CSR risk 
rating methodology. We now evaluate each supplier's 
CSR performance and the effectiveness of their risk 
prevention and management system by focusing on 
five criteria: CSR performance rating, health and safety 
risk, environmental risk, labor risk, and audit results. 
We pay special attention to the improvements made 
by suppliers posing medium and high risks. 
To better meet customer requirements, we have 
prepared and continued to update our Supplier CSR 
Audit Checklist in accordance with industry best 
practices. We conduct supplier CSR audits using 
internationally recognized methods such as onsite 
inspections, employee interviews, management 
interviews, documentation reviews, and online 
searches. We also use the Blue Map database 
developed by the Institute of Public and Environmental 
Affairs (IPE) to assess supplier compliance with 
■	 Supplier performance management
Every year, Huawei appraises suppliers' sustainability performance as part of their overall performance appraisals. 
During this process, we also consider how they manage the sustainability of their own suppliers. Suppliers are 
classified into four grades (A, B, C, or D) based on their sustainability performance. In 2023, we improved our supplier 
sustainability performance appraisal methodology, which now looks at five criteria: environmental protection, carbon 
emissions reduction, labor management, EHS accidents, and management systems. In the past year, we appraised the 
sustainability performance of over 1,600 major suppliers. 
The amount of business we do with each supplier depends partly on their sustainability performance, which is also a 
factor considered in our tendering, supplier selection, portfolio management, and other processes. When suppliers are 
equally matched in other factors, those that perform better in sustainability are given priority in terms of the share 
of business or business opportunities. The reverse is true for low-performing suppliers. Depending on the situation, 
we may instruct suppliers with poor sustainability performance to resolve existing issues within a specified timeframe. 
Alternatively, we may reduce their share of business or offer them fewer business opportunities. We may even 
terminate our business relationships with those that display exceptionally poor sustainability performance. 
Audit 
results
Environmental 
risk
CSR 
performance 
rating
Health and 
safety risk
Labor risk
CSR risk 
rating
Criteria of supplier CSR risk assessment
environmental requirements. In 2023, seven suppliers 
resolved identified issues within a specified timeframe 
with the support of Huawei. 
280
319
318
305
317
2019
2020
2021
2022
2023
Number of suppliers on which Huawei conducted CSR
audits onsite (2019–2023)
Supplier CSR risks identified in 2023 audits
Health and safety
42%
Labor standards
26.8%
Environmental 
protection
9.9%
Business ethics
3.7%
Management 
systems
17.6%


2023 Annual Report
        181
■	 Supplier capability improvement
As part of our efforts to help suppliers perform more sustainably, we regularly provide them with sustainability 
training and coaching. We also encourage our suppliers to adopt industry best practices and embed sustainability 
requirements into their business strategies to reduce operating risks and boost efficiency. Furthermore, we invite 
leading suppliers from different industries to share their experience in dealing with risky items and scenarios such as 
printed circuit boards (PCBs), lithium batteries, and hazardous chemicals. 
In 2023, we invited 15 industry-leading suppliers to share their best practices in EHS, and more than 500 suppliers 
participated in these sessions. In addition, over 600 of our suppliers' safety managers passed Huawei's online exam on 
production safety and red lines. 
Huawei maintains close engagement and 
collaboration with industry stakeholders. Together 
with the upstream and downstream partners in our 
supply chain, we drive CSR standardization, perform 
CSR-related due diligence, and make continued efforts 
to improve CSR management and supply resilience. 
We work hand-in-hand with our partners to build a 
responsible supply chain. 
In 2023, Huawei shared information on supply chain 
due diligence with more than 50 customers, including 
that related to supply chain traceability, forced labor, 
and due diligence on conflict minerals. Huawei also 
recommended suppliers for joint audits organized by the 
telecom carrier association JAC. We actively participated 
in industry exchanges on sustainability organized by 
customers. Through these exchanges, we learned from 
■	 Stakeholder engagement and cooperation
Huawei shares supplier sustainability management practices at 
the 5th Telecom Industry Climate Change and Circular Economy 
Forum hosted by a customer.
the advanced management experience of customers 
and other vendors, and shared Huawei's best practices 
in supplier sustainability management. Together, we aim 
to develop a more sustainable value chain. 
Forum on Environmental Protection and Factory Safety for PCB Companies: Improving 
industry awareness of production safety and environmental protection
In December 2023, Huawei and several PCB industry associations held the Forum on Environmental Protection and Factory 
Safety for PCB Companies, providing a platform through which industry stakeholders could share their experience in 
sustainability. At the event, many companies, including Huawei, shared their best practices in relation to production safety 
and environmental protection. These included the use of innovative technologies to achieve safe and green manufacturing 
and help the industry achieve sustainable development. Additionally, eight upstream suppliers shared their experience at 
the forum upon Huawei's recommendation.
■	 Responsible management of minerals
Huawei is committed to and works to drive the responsible procurement of products containing raw materials, 
including tin, tantalum, tungsten, gold (3TG), cobalt, and mica. We have established a risk-based responsible mineral 
management system in accordance with the OECD Due Diligence Guidance for Responsible Business Conduct and the 
Chinese Due Diligence Guidelines for Mineral Supply Chain. The responsible management of minerals is an integral 
part of our procurement CSR management system, and has been embedded to supplier qualification, supervision, and 
auditing processes. As a downstream company in the mineral supply chain, Huawei does not directly purchase any 


182       Huawei Investment & Holding Co., Ltd.
minerals, and there are at least seven tiers between Huawei and mining companies. We require that our suppliers do 
not purchase conflict minerals, and ask them to cascade this requirement to their own suppliers, in order to prevent 
or reduce the risk that minerals contained in their products may directly or indirectly support human rights abuses, 
harm the environment or personal health and safety, or breed corruption. Huawei also actively works with global 
industry peers through industry initiatives like the Responsible Minerals Initiative (RMI) and the Responsible Critical 
Mineral Initiative (RCI). Together with partners up and down the supply chain, we conduct supply chain surveys, create 
a complete list of all related smelters, and push these smelters to apply for or maintain the Responsible Minerals 
Assurance Process (RMAP) certification.
In 2023, in response to the RMI's call, Huawei added mica to its list of due diligence on responsible mineral 
management. This means that we now identify suppliers of six minerals: tin, tantalum, tungsten, gold (3TG), cobalt, and 
mica. According to the Conflict Minerals Reporting Template (CMRT) and the Extended Mineral Report Template (EMRT), 
we urge suppliers to identify and investigate all smelters within their supply chains, and our suppliers must require that 
no identified smelters purchase minerals from conflict-affected and high-risk areas (CAHRAs), and urge smelters that 
have not obtained the RMAP certification to get the certification within a specified timeframe when necessary. 
For more details, visit: 
Huawei Responsible Management of Minerals: 
https://www.huawei.com/en/sustainability/the-latest/stories/responsible-management-of-minerals 
Huawei Statement on Responsible Mineral Supply Chain Due Diligence Management: 
https://www.huawei.com/en/declarations/huawei-statement-on-responsible-mineral-supply-chain 
Community responsibilities
Huawei actively fulfills its responsibilities to local communities. We are committed to helping local communities 
benefit from the digital world by providing basic connectivity and digital technologies such as cloud and AI. We 
work with governments, partners, and international organizations around the world to organize a variety of 
activities that contribute to sustainable development goals, such as innovation and infrastructure construction, ICT 
talent cultivation, gender equality, and environmental protection. These activities will inject vitality into local digital 
economies and help create fertile soil for the ICT industry in the countries and regions where Huawei operates. In 
2023, Huawei operated over 300 social contribution programs worldwide. 
■	 Seeds for the Future 2.0: Cultivating ICT talent to stimulate innovation
In the digital economy, ICT talent plays an instrumental role in driving digital transformation and unleashing 
productivity. In 2008, Huawei launched its flagship talent development program – Seeds for the Future. In July 2021, 
we integrated various talent development projects across the company and officially launched the Seeds for the 
Future 2.0 program, which is also known as SEEDS. The program includes a range of digital talent development 
projects related to basic digital skills training, talent leadership, intergovernmental talent cooperation, technology 
competitions, and vocational skills certifications that help increase employability. The program aims to develop ICT 
talent in the countries and regions in which we operate and improve their abilities to use new technologies and 
platforms to innovate and create. The ultimate goal is to advance science and technology and drive global digital 
inclusion. In 2023, we held more diverse activities through the Huawei Cloud Developer Institute and ICT Academy 
than the previous year, benefiting developers and industry professionals around the world. By the end of December 
2023, the Seeds for the Future 2.0 program had been implemented in more than 150 countries and regions, benefiting 
over 3.4 million people.


2023 Annual Report
        183
Seeds for the Future 2.0 (SEEDS)
In 2021, Huawei Chairman Liang Hua announced the Seeds for 
the Future 2.0 program, which plans to invest US$150 million 
in digital talent development over five years, and aims to 
benefit over 3 million additional people. 
SEEDS：
SURPASS (European Leadership Academy, ASEAN Academy, etc.)
EXPLORATION (Huawei ICT Academy, Seeds for the Future, etc.)
EMPLOYABILITY (Huawei Cloud Startup Program, Huawei Cloud 
Developer Institute, etc.)
DARING TO CHALLENGE (Tech Arena, ICPC, etc.)
SUSTAINABILITY (Women in Tech, talent programs in cooperation 
with NGOs, etc.)
In 2008, the Seeds for the Future program was launched in 
Thailand, including training programs, the Tech4Good 
Global Competition, and the Alumni Community.
Seeds for the Future 
partner 
universities
countries and 
regions
students
500+
140
17,000+
countries and regions
people
150+
3.4+ million
Tech4Good Global Competition
The Tech4Good Global Competition, which was 
launched in 2021 as part of the Seeds for the Future 
program, encourages participants to propose innovative 
digital solutions that address sustainability issues and 
create both business and social value. 
At the 2023 Tech4Good Startup Sprint in China, the 
previous year's winning teams from Algeria, Italy, and 
Ireland went on field trips to see some commercial 
applications of digital technologies, and received 
guidance on their projects from startup entrepreneurs 
and technical experts. Following a careful review by the 
Tech4Good startup investment committee, the Algerian 
team was awarded a US$100,000 startup fund for their 
farm hazard warning and monitoring system. This fund 
created more possibilities for the team to implement 
their ideas and achieve business success. 
At the 2023 competition, Team Namibia won the First 
Prize with their AI-powered teaching solution that 
caters to the needs of every student. The Second and 
The winning teams of the Tech4Good Global Competition on 
their tour in China in 2023
Third Prizes went to Team Uzbekistan's farm irrigation 
optimization solution and Team Germany's drinking 
water purification solution, respectively. Team Brazil and 
Team Uzbekistan won the People's Choice Award based 
on public voting. The winning teams will be invited to 
participate in a digital tour in China in 2024.


184       Huawei Investment & Holding Co., Ltd.
First Seeds for the Future Global Ambassador Election
In 2023, Huawei held the first Seeds for the Future 
Global Ambassador Election. Voting was done online 
and open to the public, and the 10 alumni with the 
most votes became ambassadors of the program. As 
representatives of global Seeds for the Future alumni, 
the ambassadors participated in a range of activities 
throughout the year, including online workshops and 
offline industry events, as well as Huawei's flagship 
events and international multilateral conferences. 
The ambassador from Ecuador attended MWC 
Barcelona to learn about the latest developments in the 
communications industry. The ambassador from Ireland 
chaired the Talent & Green Summit at COP 28 and 
highlighted the importance of green and sustainable 
development for the digital economy. The ambassador 
from the Philippines spoke at the Asia Pacific Digital 
Talent Summit, as part of Huawei's annual flagship 
event HUAWEI CONNECT, and discussed new ways 
to shape future leaders with the Executive Director 
of ASEAN Foundation. On behalf of global Seeds for 
the Future alumni, the ambassadors have promised to 
An online workshop with global Seeds for the Future 
ambassadors
In 2023, which marked the 10th anniversary 
of Seeds for the Future in Latin America and 
the Caribbean (LAC), outstanding Seeds for 
the Future alumni in the region attended the 
LAC ICT Talent Summit and the LAC Seeds for 
the Future Alumni Reunion in Colombia. They 
discussed the roles that youth and different 
organizations play in driving sustainable 
development and ways to fulfill their 
responsibilities with stakeholders from UNESCO, 
UN-Habitat, Huawei, and local tech firms, as 
well as government representatives.
In August 2023, 160-plus students from 15 
countries in the Middle East and Central Asia 
participated in a two-week Seeds for the Future 
project in Qatar and the UAE. The students 
experienced some of the high-tech applications 
first-hand at Qatar's World Cup stadiums and 
the UAE's Sharjah Research Technology and 
Innovation Park. They also had the opportunity 
to talk with local government officials, 
representatives of carriers and international 
organizations, and startup entrepreneurs during 
several workshops, which gave them a better 
understanding of the importance of science and 
technology for sustainable social development.
demonstrate their passion and skills during their year-
long term to make sure that the voices of young people 
are heard by more people. 


2023 Annual Report
        185
Helping young talent upskill through tech competitions to advance basic sciences and 
the ICT industry
Huawei continues to share resources and build 
platforms by participating in, supporting, and sponsoring 
top international technology competitions, such as the 
International Collegiate Programming Contest (ICPC). 
In addition to helping young people improve their skills, 
we team up with academia to work on problems in 
basic research and industry development. Together, we 
share knowledge, promote innovation, and advance 
science and technology.
In 2023, Huawei and its partners held various 
competitions and training activities, such as the ICPC 
Training Camps, the ICPC Challenge Championship, and 
bootcamps. More than 50 experts from Huawei and 
the industry gave lectures and guided participants to 
hone their skills and acquire new knowledge. Within 
just a year, Huawei published over 50 problems for 
participants to work on, shared its industry expertise 
in multiple fields, such as software algorithms, math, 
physics, and materials chemistry, and maintained 
engagement with academia. 
Students from around the world compete at the ICPC Challenge 
Championship powered by Huawei.
Huawei also collaborates with academia to build 
and improve research and experiment platforms and 
cultivate urgently-needed new talent to drive the 
development of new technologies in fields like devices, 
computing, and connectivity.
Making continued investment to build a thriving talent ecosystem
At Huawei, we believe that it is important to integrate industry transformation requirements into every part of talent 
cultivation. This includes training for teachers, students, industry professionals, and lifelong learners. We aim to 
cultivate high-caliber, inter-disciplinary talent with digital and intelligent skills who will promote enterprise innovation 
and push the industry forward. This will in turn drive greater efforts into talent cultivation, creating a positive circle. 
With this goal in mind, we have worked with 2,700 colleges and universities in over 100 countries and regions to train 
more than one million students through the Huawei ICT Academy. We also hold the annual Huawei ICT Competition 
that provides an international platform for university students to compete and share ideas. The seventh Huawei ICT 
Competition in 2023 attracted 120,000 university students from 74 countries and regions. The Huawei ICT Academy 
and Huawei ICT Competition have both been listed as key partner flagship programs by UNESCO's Global Skills 
Academy.
In addition, Huawei continues to optimize its certification system, which covers both career and specialist certifications. 
By the end of 2023, we had presented over 850,000 certifications worldwide, including more than 27,000 Huawei 
Certified ICT Expert (HCIE) certifications. Engineers who hold our certifications are valuable resources for the digital 
and intelligent transformation of industries worldwide.
Huawei ICT Competition 2022–2023 Global Final Closing & Awarding Ceremony


186       Huawei Investment & Holding Co., Ltd.
■	 Promoting gender equality and helping women improve digital skills
In the digital age, increasing women's visibility and engagement in tech opens up new possibilities for technological 
advancement and brings new value to the world. 
Since 2020, Huawei has been running its Women in Tech flagship initiative, which focuses on three themes: Tech for 
Her, Tech by Her, and Tech with Her. 
A range of Women in Tech programs have been rolled out around the world, and have already benefited many 
women. Through these programs, Huawei works with governments, partners, and third-party organizations to 
help more women improve their digital skills, provide platforms on which women can showcase their talents and 
capabilities, and drive a more equitable and inclusive digital world.
Huawei and the ITU Regional Office for Asia and the Pacific organized Girls in ICT activities, including 
tours, field trips, discussions with experts, and training sessions on cloud, AI, and other digital skills. These 
activities benefited more than 60 female students aged between 18 and 25, and aimed to encourage 
more women to join the ICT industry.
Huawei held the fourth session of the School for Female Leadership in the Digital Age in Spain. A total 
of 29 female trainees from 29 European countries participated in this training session. The program is 
designed to empower young female leaders and contribute to an inclusive and sustainable digital future 
in Europe.
April 2023
June 2023
Huawei, alongside the 
ITU and the National 
Innovation Agency of 
Thailand, launched a 
Digital Bus roadshow 
on International 
Women in Engineering 
Day, hoping to 
encourage more 
women to join the ICT 
industry.
Huawei, the Greek Public Employment Service (DYPA), and local partner INTERLEI jointly delivered 
online training on ICT knowledge and skills for unemployed women aged 25 to 49, in order to increase 
their employability. The first phase of the program benefited 500 female trainees.
Huawei, together with Peru's Ministry of Women, TV Peru, and a third-party non-profit organization, 
held the country's first awards ceremony celebrating outstanding women, where they presented 
awards to 21 outstanding local women working in seven different fields, and signed an MoU to 
continue supporting this program.
Female intern awards were presented for the first time at the Closing Ceremony of the Middle East & 
Central Asia Finals of the Huawei ICT Competition. A total of 31 female ICT students received certificates 
and earned internships at Huawei, and these internships often lead to an offer for employment.
Huawei signed an MoU with MaMa Doing Good, a local non-profit organization in Kenya, to provide 
digital skills training for more than 10,000 women. Huawei also donated electronic devices needed for 
training, such as computers, to the organization.
Huawei partnered with Egypt's National Council for Women (NCW) to launch a Women in Tech 
program. The program plans to provide online digital training to 2,000 women over the course of two 
years to help them improve digital skills and play bigger roles in the ICT industry.
September 2023
December 2023


2023 Annual Report
        187
Respecting Human Rights
Huawei believes that connectivity is a basic right for every human being. We want to build better network 
connectivity and provide convenient and affordable information and communications services to billions of people 
around the world using our innovative technologies. Ubiquitous broadband and connectivity will create jobs, 
promote development, decrease poverty, and improve quality of life. In addition, connectivity will help us respond 
to global challenges, reduce the human impact on the environment, and provide essential communications services 
to support rescue and relief efforts during natural disasters.
Huawei is committed to adhering to all applicable international conventions and national laws and policies, and 
respects all basic human rights as promoted by the Universal Declaration of Human Rights. We develop products 
and services in compliance with international standards and certifications. We strive to prevent our business 
activities from causing or contributing to any adverse impacts on human rights. Huawei has been a member of 
the United Nations Global Compact (UNGC) since 2004, and a member of the Responsible Business Alliance (RBA) 
since 2018. In addition, Huawei is committed to the UN Guiding Principles on Business and Human Rights (UNGPs) 
and standards released by the International Labour Organization.
Huawei's Corporate Sustainable Development Committee is responsible for overseeing any human rights risks that 
may exist within our business activities or supply chain, and strengthening our management of key areas that may 
impact human rights.
■	 Ensuring that technology is used to benefit humanity: Technology should be used to enhance human, social, and 
environmental well-being. Huawei firmly opposes any use of technology that has an adverse impact on human 
rights. We carefully evaluate the long-term and potential impact of our new technologies on society, based on widely 
recognized industry standards, throughout the design, development, and use of our products, and work hard to ensure 
that our products and services are used in accordance with their intended commercial purpose. To address the unknown 
risks that may arise from the widespread use of new technologies, Huawei has expanded its existing processes and 
governance programs, and we are committed to working with our suppliers, partners, and customers to manage any 
potential adverse impact of technology development.
■	 Protecting privacy: Huawei attaches great importance to privacy protection, and we take our responsibilities seriously. 
We are committed to complying with all applicable privacy laws worldwide, including China's Personal Information 
Protection Law and the EU's General Data Protection Regulation (GDPR). Huawei has embedded privacy protection 
requirements into our corporate governance and every phase of our personal data processing lifecycle. We follow the 
principles of privacy and security by design and by default and conduct privacy impact assessments before the release of 
any product or service, paying careful attention to sensitive personal data and sensitive usage. Huawei also requires its 
suppliers to comply with requirements for personal data protection. In addition, Huawei requires all of its employees to 
receive privacy training to enhance their understanding of the domain, and we encourage our employees to participate 
in professional privacy certification programs. More than 500 Huawei employees have been certified by the International 
Association of Privacy Professionals, placing Huawei among the top companies globally in this regard.
■	 Safeguarding labor rights: Huawei supports and protects the rights of its employees through detailed, equitable regulations 
that cover all stages of an employee's relationship with the company, including recruitment, employment, and exit. We are 
committed to providing equal opportunities to all employees. When it comes to employee recruitment, promotion, and 
compensation, we do not discriminate against anyone on the basis of race, religion, gender, sexual orientation, nationality, 
age, or disability. We prohibit all use of forced labor, whether overt or covert, and all use of child labor.
■	 Maintaining a responsible supply chain: Huawei has established a CSR management system for procurement in 
accordance with the UN's Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for 
Responsible Business Conduct. The CSR agreements that we sign with suppliers are prepared according to internationally 
recognized industry standards such as the Responsible Business Alliance Code of Conduct, the Joint Audit Cooperation 
Supply Chain Sustainability Guidelines, and the IPC-1401 Corporate Social Responsibility Management System Standard. 
During this process, Huawei also works closely with its supply chain partners, both upstream and downstream. In 
addition, we comply with our customers' sustainability requirements and conduct joint audits with them. We also 
require our direct suppliers to cascade our requirements to their sub-tier suppliers, asking them to respect the rights of 


188       Huawei Investment & Holding Co., Ltd.
their employees and comply with all legal requirements regarding environmental protection, health and safety, privacy, 
and anti-bribery compliance. Together, our goal is to create a responsible supply chain. Huawei has a comprehensive 
qualification process for all new suppliers, and carries out risk-informed annual audits on current suppliers. All suppliers 
are evaluated based on their sustainability performance, the results of audits, and the completion of any corrective 
actions. Huawei has a zero-tolerance policy towards the use of forced labor. If a supplier is found to have violated this 
policy, we will take disciplinary action against them, such as terminating our business relationship. To date, no use of 
forced labor has been discovered among our suppliers.
Respecting human rights has been a long-standing focus for Huawei. While remaining committed to observing 
applicable laws, regulations, and standards, we actively communicate with international organizations, governments, 
and industry institutions to develop human rights standards and guidelines for the use of new technologies. At 
the same time, we will continue to optimize management mechanisms and work with our suppliers, partners, and 
customers to promptly identify, manage, and mitigate any human rights risks or adverse impacts.
For more details about sustainability at Huawei, visit: https://www.huawei.com/en/sustainability/sustainability-report 


2023 Annual Report
        189
Abbreviation Full Name
3GPP
3rd Generation Partnership Project
AC
Audit Committee
ACM
Association for Computing Machinery
ADN
Autonomous Driving Network
AI
Artificial Intelligence
AII
Alliance of Industrial Internet
aPaaS
Application Platform as a Service
API
Application Programming Interface
AR
Augmented Reality
ARPU
Average Revenue Per User
BCGs
Business Conduct Guidelines
BG
Business Group
BOD
Board of Directors
CAGR
Compound Annual Growth Rate
CC
Common Criteria for Information 
Technology Security Evaluation
CCSA
China Communications Standards 
Association
CFO
Chief Financial Officer
CPU
Central Processing Unit
CSR
Corporate Social Responsibility
DC
Data Center
DOU
Dataflow of Usage
EAL
Evaluation Assurance Level
ECC
Electronic Communications Committee
EHS
Environment, Occupational Health and 
Safety
EMEA
Europe, the Middle East and Africa
ESS
Energy Storage System
ETSI
European Telecommunications 
Standards Institute
EV
Electric Vehicle
FBB
Fixed Broadband
FTTH
Fiber to the Home
FTTO
Fiber to the Office
FTTR
Fiber to the Room
FVOCI
Fair Value Through Other 
Comprehensive Income
FVPL
Fair Value Through Profit or Loss
Abbreviation Full Name
FWA
Fixed Wireless Access
GIO
Global Industry Organizations
GPO
Global Process Owner
GSMA
Global System for Mobile 
Communications Association
HD
High Definition
HDR
High Dynamic Range
HIMA
Harmony Intelligent Mobility Alliance
HMS
HUAWEI Mobile Services
IaaS
Infrastructure as a Service
ICPC
International Collegiate Programming 
Contest
ICT
Information and Communications 
Technology
IETF
Internet Engineering Task Force
IFRS
International Financial Reporting 
Standards
IoT
Internet of Things
IP
Internet Protocol
ISP
Internet Service Provider
IT
Information Technology
IUCN
International Union for Conservation of 
Nature
LAN
Local Area Network
MIMO
Multiple-Input Multiple-Output
MWC
Mobile World Congress
NAS
Network-Attached Storage
NGO
Non-Governmental Organization
O&M
Operations and Maintenance
OECD
Organisation for Economic 
Co-operation and Development
OPEX
Operating Expenditure
OS
Operating System
OXC
Optical Cross-Connect
PaaS
Platform as a Service
PC
Personal Computer
PCB
Printed Circuit Board
POB
Performance Obligation
PON
Passive Optical Network
Abbreviations, Financial Terminology, and Exchange Rates


190       Huawei Investment & Holding Co., Ltd.
Financial Terminology
Operating profit
Gross profit less research and development expenses, selling and administrative expenses, plus other (expenses)/
income, net
Cash and short-term investments
Cash and cash equivalents plus other current investments
Working capital
Current assets less current liabilities
Liability ratio
Total liabilities expressed as a percentage of total assets
Cash flow before change in operating assets and liabilities
Net profit plus depreciation, amortization, impairment, exchange loss, interest expense, loss on disposal of property, 
plant and equipment and intangible assets, and other non-operating expense, less exchange gain, investment 
income, gain on disposal of property, plant and equipment and intangible assets, and other non-operating income
Exchange Rates
CNY/USD
2023
2022
Average rate
7.0884
6.7643
Closing rate
7.0808
6.9533
Abbreviation Full Name
PUE
Power Usage Effectiveness
PV
Photovoltaics
R&D
Research and Development
SaaS
Software as a Service
SDG
Sustainable Development Goal
SME
Small- and Medium-sized Enterprise
SSP
Stand-alone Selling Price
SUV
Sport Utility Vehicle
Abbreviation Full Name
TCO
Total Cost of Ownership
TWS
True Wireless Stereo
UNESCO
United Nations Educational, Scientific 
and Cultural Organization
UNGP
UN Guiding Principles on Business and 
Human Rights
VR
Virtual Reality
WAN
Wide Area Network


HUAWEI INVESTMENT & HOLDING CO., LTD.
Huawei Industrial Base
Shenzhen, PRC
518129
Tel: +86-755-28780808
www.huawei.com
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THE INFORMATION IN THIS DOCUMENT MAY CONTAIN PREDICTIVE STATEMENTS, INCLUDING BUT NOT LIMITED TO, STATEMENTS REGARDING FUTURE FINANCIAL RESULTS, OPERATING 
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Huawei Investment & Holding Co., Ltd.
2023 ANNUAL REPORT


Who is Huawei?
Founded in 1987, Huawei is a leading 
global provider of information and 
communications technology (ICT) 
infrastructure and smart devices. We 
have approximately 207,000 employees 
and we operate in over 170 countries 
and regions, serving more than three 
billion people around the world. We are 
committed to bringing digital to every 
person, home and organization for a 
fully connected, intelligent world.
Walking the walk for steady, 
long-term growth
Laying the groundwork for an intelligent world
In 2023, we witnessed rapid advancement in emerging 
technologies like artificial intelligence (AI) and nonstop innovation 
in new applications for business. AI development has evolved 
from customization on a small scale to massive application at 
an industrial level, while digital technology has become more 
deeply integrated with every aspect of our lives. This digital and 
intelligent transformation is bringing new value to individuals and 
breathing new life into enterprises. We want to help all industries 
make the most of these new developments. So we are leveraging 
the collective strengths of our business portfolio, backed by a 
solid grasp on complex hardware and software platforms, to build 
a solid foundation for a digital and intelligent world.
Delving deep into basic research and driving technological 
innovation
Huawei values research and innovation, and we take an 
open approach to both. We continue to delve deep into basic 
scientific and theoretical research, and are working closely with 
academia and the industry to push innovation forward. Together 
with our customers and partners, we are pushing the limits of 
technology to address broader industry challenges. We also 
develop innovative products and solutions to address the unique 
problems our customers face. We want to create greater value 
for the world.
For the past three years, we have invested more than 20% of our 
annual sales revenue back into research and development. Our 
aim is to drive industry development to help pave the way for the 
imminent arrival of an intelligent world – one with 100 billion 
connections and a universal 10 gigabit experience.
Prioritizing security and trustworthiness, succeeding through 
quality
Cyber security and privacy protection are Huawei's top priorities. 
We continue to build up and improve on our end-to-end 
cyber security assurance system, embedding cyber security 
requirements into all aspects of our operations, including policy, 
management, and technology. Through industry exchange and 
international cooperation, we also share best practices and work 


with stakeholders to build a secure, trustworthy, and intelligent 
world. Our efforts have earned worldwide recognition, and we 
continue to maintain a solid track record in cyber security in over 
170 markets around the world. Customer trust is the most solid 
testament to the security of our products and services.
Quality is our path to success. Over more than three decades 
in the ICT domain, we have built up significant capabilities 
and experience in quality management and are adapting this 
experience to meet the needs of new business domains. We are 
also sharing these capabilities with our suppliers, channel partners, 
and other partners. Through end-to-end quality management 
systems, we provide our customers with more competitive 
products and solutions.
Building up thriving ecosystems for a more dynamic industry
Digital, intelligent, and low-carbon transformation will continue to 
be major development trends moving forward. We will continue to 
maintain strategic focus while supporting free trade, open markets, 
and fair competition. We are committed to driving healthy 
industry development and creating value for our customers, 
partners, and the world. To make this happen, we are working to 
promote a more open, diverse, and inclusive ecosystem.
We value openness and collaboration and work hard to help 
others succeed. In particular, we are actively developing platform 
capabilities for ecosystem-centric domains like HarmonyOS, 
Kunpeng, Ascend, and cloud computing, and we are combining 
strengths across the industry to promote the development 
of business ecosystems. By enabling ecosystem partners and 
enhancing experience for developers, we hope to stimulate 
innovation and drive shared success.
Powering sustainable development with technology
We use advanced ICT solutions to help industries reduce their 
carbon emissions and accelerate the construction of new energy 
infrastructure. This is part of our broader efforts to foster a more 
circular economy and maximize the value of digital technology in 
powering green development.
We do our best to give back, and hope to make the intelligent 
world a more inclusive, sustainable place. In particular, we are 
using technology like broadband, cloud, and AI to promote 
equitable and quality education, environmental protection, 
and balanced development. We have also expanded our talent 
development program – Seeds for the Future – to help foster the 
next generation of digital talent. Through this program, we are 
nurturing digital leadership, helping young people build digital 
skills, and upskilling ICT professionals. To date, this program has 
benefited more than 3.4 million people from around the world.
Contents
Message from the Rotating Chairman
Business Highlights in 2023
Five-Year Financial Highlights
Message from the Chairman
02
05
07
08
12
17
91
92
135
Industry Trends
Management Discussion and Analysis
Independent Auditors' Report

Consolidated Financial Statements 
Summary
Risk Factors
138
155
189
Corporate Governance Report
Sustainable Development

Abbreviations, Financial Terminology, 
and Exchange Rates


02       Huawei Investment & Holding Co., Ltd.
Message from the Rotating Chairman
We've been through a lot over the past few years. But 
through one challenge after another, we've managed 
to grow.
We rounded off 2023 with CNY704.2 billion in revenue. 
Our ICT infrastructure business remained solid, and our 
consumer business met expectations. Both our cloud 
computing and digital power businesses grew steadily, 
and our intelligent automotive solution business began 
large-scale delivery.
The trust and support of our customers, partners, 
and friends around the world is what helped us keep 
going, keep surviving, and keep growing. On behalf 
of Huawei, I'd like to extend our heartfelt gratitude to 
everyone for your ongoing support.
Throughout the past year, the entire team at Huawei 
has been forging ahead, working closely with partners 
to drive shared success and create value for our 
customers.
In the ICT infrastructure domain, we worked side-by-
side with our carrier customers to maximize returns on 
their 5G network investment and steadily advance the 
commercial deployment of 5.5G.
In the enterprise domain, we differentiated our 
products, portfolios, and industry solutions based on 
the unique needs of different types of customers, 
including named accounts, SMEs, and MSMEs.
In the consumer domain, the HUAWEI Mate 60 Series 
and the HarmonyOS ecosystem received wide acclaim.
In cloud computing, we moved ahead with our AI for 
Industries strategy. We launched innovative products 
like our Pangu Models 3.0 and Ascend AI cloud service, 
which are designed to provide all industries with a 
solid cloud foundation for going digital.
In the energy domain, Huawei Digital Power continues 
to use digital technology to help power the world's 
green and low-carbon development. In 2023, we made 
tremendous progress in areas like smart PVs and 
liquid-cooled ultra-fast charging.


2023 Annual Report
        03
And in the automotive domain, our solutions like 
intelligent driving and intelligent cockpits saw large-scale 
adoption in a growing number of automotive brands.
Open innovation for an intelligent 
world
In today's world, emerging technologies progress 
by leaps and bounds, with nonstop innovation in 
new business applications. AI models have moved 
beyond small-scale customization and are now seeing 
massive development on an industrial level. Looking 
ahead, it's clear that digitalization, intelligence, and 
decarbonation are the path forward. An intelligent 
world is coming fast, and it will bring countless new 
opportunities for the ICT industry.
Open innovation is critical for social development and 
technological progress, and it's built into Huawei's 
very DNA. We are actively working with other industry 
players and academia to advance technology and help 
different industries modernize.
Huawei has built up an extensive range of ICT 
technologies, and we will continue to invest heavily 
in R&D while strengthening strategic synergy across 
hardware, software, chips, devices, networks, and cloud.
Despite a number of immense challenges over the past 
three years, we continue to innovate based on two 
core drivers: science and technology, and customer 
needs. Throughout this time, we have invested over 
20% of our annual revenue back into R&D to ensure 
the competitiveness of our products and solutions.
To meet industry demand for green transition, for 
example, we recently launched a "0 Bit 0 Watt" 
wireless solution, which helps carriers strike the 
optimal balance between mobile network experience 
and energy consumption.
Huawei Cloud's Pangu-Weather model is another 
great example. Featured in Nature, Pangu-Weather is 
the world's first AI model that delivers more accurate 
weather forecasts than traditional numerical prediction 
methods.
Huawei's foundational software, including openEuler 
and GaussDB, has also seen broad application in 
multiple industries.
These are all the result of innovation between Huawei, 
different industries, and the academic community.
Platform capabilities for thriving 
ecosystems
Trees need deep roots to grow a dense canopy 
of leaves. Likewise, our industry needs the active 
participation of many partners and developers in order 
to thrive.
At Huawei, ecosystem development is a key long-
term strategy. We advocate for open collaboration 
and helping others succeed. With this approach, we 
focus on developing core ICT technologies, as well as 
building up platform capabilities for complex hardware 
and sophisticated software, which we then open up to 
our partners to promote shared success.
We have fostered a robust device ecosystem based on 
HarmonyOS and Kirin, a general computing ecosystem 
based on openEuler and Kunpeng, an AI computing 
ecosystem based on CANN and Ascend, and a 
multiplatform developer ecosystem with Huawei Cloud 
as a unified portal.
To date, HarmonyOS has been deployed on more than 
800 million devices, and more than 6,300 partners 
have joined our computing ecosystems. Among these, 
the Ascend-based AI computing ecosystem has grown 
particularly fast. We look forward to joining forces with 
other industry players to drive large-scale adoption 
of these technologies, optimize them, and move the 
industry forward.
As for the developer ecosystem, we have attracted more 
than 9.5 million developers to HarmonyOS, Kunpeng, 
Ascend, and Huawei Cloud. We provide a rich array 
of development tools on Huawei Cloud, making it 
easier for application, operating system, and database 
developers to do what they do best. The end goal is to 
stimulate innovation across the entire ecosystem.


04       Huawei Investment & Holding Co., Ltd.
Succeeding through quality and 
achieving quality growth
These days, digital technology is tightly integrated 
with every aspect of industry – and every aspect of our 
lives. In effect, ICT infrastructure has become the very 
backbone of an intelligent world, so ensuring quality is 
more important than ever. At Huawei, quality isn't just 
about meeting customer needs. It's our responsibility. 
We remain committed to succeeding through quality, 
and are working hard to make quality one of our core 
competitive strengths.
Building a robust quality management system requires 
concerted effort across the entire value chain. Huawei 
has built up decades of experience and capabilities 
managing quality in the ICT sector, and we are 
working to extend this experience to new domains 
like digital power and intelligent automotive solutions. 
We also hope to share these capabilities with our 
suppliers, channel partners, and ecosystem partners up 
and down the value chain. Together, we can promote 
quality growth across the industry.
Promoting digital inclusion and 
creating social value
Huawei's vision and mission is to bring digital to every 
person, home and organization for a fully connected, 
intelligent world. We want to help more people reap 
the benefits of digital technology.
Back in 2019, we launched our TECH4ALL digital 
inclusion program, which focuses on four domains: 
education, environment, health, and development.
In education, working together with a wide range of 
customers, partners, and NGOs, we use innovative 
digital technology to make quality education more 
accessible and equitable. To date, we have launched 
digital skills training programs in 630 schools around 
the world, providing learning opportunities for more 
than 400,000 people.
In addition, we continue to implement Huawei ICT 
Academy programs and hold Huawei ICT Competitions 
around the world to provide young people with digital 
training and the opportunity to connect. To date, 
these programs have benefited more than 1.1 million 
students from over 100 countries and regions.
When it comes to the environment, we're using digital 
technology to promote nature conservation efforts in 
53 of the world's protected areas, covering endangered 
species like Hainan gibbons and jaguars, as well as 
ecosystems like tropical rainforests and estuaries.
Through these programs and more, we're taking 
concrete action to make the world a better, more 
sustainable, and more inclusive place for all.
A new journey awaits us in 2024. We will create 
greater value for our customers and society by driving 
open innovation, building thriving ecosystems, and 
succeeding through quality. Here I'd like to thank 
those who have joined us – and will join us – along 
the way. Together, let's make something extraordinary. 
Let's build a fully connected, intelligent world.
Hu Houkun
Rotating Chairman


2023 Annual Report
        05
Business Highlights in 2023
 Driving Ubiquitous 
Connectivity
■	 We worked with carriers and partners around the 
world to continue securing 5G's business success. 
By the end of 2023, the number of 5G users 
across the globe had exceeded 1.5 billion, and 
5G networks built by Huawei had continued to 
deliver leading experiences. Innovative applications, 
such as naked-eye 3D, New Calling, and cloud 
phones, have comprehensively upgraded personal 
service experiences. And 5G has enabled the 
large-scale digitalization of industries, with more 
than 50,000 5G applications being put into use 
in many different industries. In addition, Huawei 
actively worked with other industry players to 
drive the development of 5.5G, and partnered 
with leading carriers around the world to promote 
the technological verification and commercial 
deployment of 5.5G and accelerate rollout.
■	 We helped our carrier, government, and enterprise 
customers build ubiquitous optical networks and 
intelligent IP networks as well as 10 gigabit smart 
homes, High-Quality 10 Gbps CloudCampus, Super-
Connectivity 400GE CloudFabric, and Converged IP 
Transport Network. This infrastructure will create a 
solid foundation for the digital transformation and 
intelligent upgrade of all industries.
■	 We deepened cooperation with international 
organizations to provide connectivity to remote 
areas and continuously increase the access of 
remote communities to digital technology.
 Enabling Pervasive 
Intelligence
■	 Digital, intelligent, and low-carbon transformations 
are continuing to gain traction. Therefore, Huawei 
unveiled its All Intelligence strategy this year in 
order to support a vast range of AI models and 
applications for all industries and accelerate their 
intelligent transformation. The Kunpeng and 
Ascend ecosystems continued to grow steadily, 
attracting more than 5.7 million developers and 
6,300 partners, and more than 17,400 solutions 
have been certified. Huawei also released a 
reference architecture that will drive industrial 
intelligent transformation, as well as a number 
of related solutions and a white paper titled 
Accelerating Intelligent Transformation, which offer 
practical advice and references that help industries 
make the most of intelligence.
■	 We released Pangu Models 3.0 to dive deep 
into industries and develop tailored models and 
capability sets for a wide range of industries, 
including finance, government services, 
manufacturing, mining, meteorology, railways, 
automobiles, and healthcare. These models 
combine industry know-how with foundation model 
capabilities, reshaping industries and boosting 
productivity and efficiency.
■	 In the intelligent automotive solution domain, we 
worked with more than 300 partners to build an 
intelligent industry ecosystem. Together, we have 
created experience benchmarks for intelligent 
driving, intelligent cockpits, and intelligent vehicle 
control and contributed to industry standards and 
key technologies, jointly expanding the market and 
accelerating the intelligent transformation of the 
automotive industry.
In 2023, our ICT infrastructure business remained solid, and our consumer business met expectations. Both our 
cloud computing and digital power businesses grew steadily, and our intelligent automotive solution business 
began large-scale delivery.


06       Huawei Investment & Holding Co., Ltd.
 Delivering a Personalized 
Experience
■	 In the consumer business, we have continued to 
innovate by focusing on consumers, creating an 
inspired AI experience across all scenarios and 
building a high-end brand that has a human 
touch and is liked and trusted by consumers. We 
have also worked with our partners to build a 
prosperous HarmonyOS ecosystem and achieve 
business success.
■	 We launched smartphones like the HUAWEI Mate 
60 Series and unveiled a new ultra-high-end 
brand ULTIMATE DESIGN, all winning high acclaim 
from consumers. By the end of 2023, Huawei had 
shipped a grand total of over 100 million tablets 
and over 150 million wearables around the world, 
and served more than 450 million users in the 
fitness and health domain. Under the Huawei 
Zhixuan model, we worked with partners around 
the Harmony Intelligent Mobility Alliance (HIMA) 
to launch products that deliver ever-improving 
experiences.
■	 We officially launched HarmonyOS 4 in 2023, 
and by the end of the year HarmonyOS had been 
deployed on more than 800 million devices.
 Building a Digital Platform
■	 As industries rush to embrace digital and intelligent 
transformation, Huawei Cloud continued to 
implement its Everything as a Service strategy, 
helping customers unleash the power of digital 
faster. By the end of 2023, Huawei Cloud 
was providing customers from more than 170 
countries and regions with stable, reliable, secure, 
trustworthy, and sustainable cloud services.
■	 Huawei Cloud also actively innovated and launched 
the Ascend AI cloud service as well as the GaussDB 
distributed database, more than 20 software 
development tools, and products like the CraftArts 
hardware development pipeline, to help industries 
go digital and intelligent faster.
■	 Huawei Cloud envisions an ecosystem that is Of 
All, By All, and For All. We aggregate applications 
for numerous industries and empower developers 
and partners around the world. By the end of 2023, 
over six million developers and 40,000 partners 
were working with Huawei Cloud to jointly build a 
thriving ecosystem for innovation on the cloud.


2023 Annual Report
       07
Five-Year Financial Highlights
2023
2022
2021
2020
2019
(USD Million)
(CNY Million)
(CNY Million)
Revenue
99,448
704,174
642,338
636,807
891,368
858,833
Operating profit
14,744
104,401
42,216
121,412
72,501
77,835
Operating margin
14.8%
14.8%
6.6%
19.1%
8.1%
9.1%
Net profit
12,280
86,950
35,562
113,718
64,649
62,656
Cash flow from operating 
activities
9,859
69,807
17,797
59,670
35,218
91,384
Cash and short-term 
investments
67,128
475,317
373,452
416,334
357,366
371,040
Working capital
59,550
421,662
344,938
376,923
299,062
257,638
Total assets
178,454
1,263,597
1,063,804
982,971
876,854
858,661
Total borrowings
43,556
308,414
197,144
175,100
141,811
112,162
Equity
71,682
507,568
437,076
414,652
330,408
295,537
Liability ratio
59.8%
59.8%
58.9%
57.8%
62.3%
65.6%
Note: The financial information is in accordance with IFRS Accounting Standards, and converted into United States dollars ("USD") using the 
closing rate at the end of 2023 of USD1.00 = CNY7.0808.
CNY Million
CNY Million
CNY Million
Revenue
Operating profit
Cash flow from 
operating activities
CAGR: (5)%
891,368
636,807
704,174
858,833
0
200,000
400,000
600,000
800,000
1,000,000
CAGR: 8%
77,835 72,501
121,412
104,401
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
CAGR: (7)%
91,384
35,218
59,670
69,807
0
20,000
40,000
60,000
80,000
100,000
120,000
19
20
21
22
23
19
20
21
22
23
19
20
21
22
23
642,338
42,216
17,797


08       Huawei Investment & Holding Co., Ltd.
Message from the Chairman
Pressing ahead to achieve our 
business development goals
In 2023, all hands were on deck to achieve our 
business development goals, and our performance was 
in line with forecast. I'd like to thank our customers, 
partners, and friends from all over the world for their 
ongoing trust and support.
Over the past year, we invested more in technological 
innovation and continued to deliver high-quality 
products and services. We also buckled down to 
enhance our overall competitiveness. Our ICT 
infrastructure business remained solid, and our 
consumer business met expectations. Both our cloud 
computing and digital power businesses grew steadily, 
and our intelligent automotive solution business began 
large-scale delivery. All the while, we have worked 
hard to drive digital inclusion and promote green and 
sustainable development.
In 2024, we will continue to forge ahead, united as 
one, investing strategically and strengthening the 
capabilities we need to ensure sustainable survival 
and hone our overall competitiveness. We will focus 
on creating greater value for our customers, partners, 
and society as we work to achieve steady, long-term 
growth.
Promoting sustainable development 
through digital inclusion
Everyone should have access to stable connectivity. 
We believe that connectivity is not just a basic right 
for every person, but also a cornerstone of the digital 
economy.
For decades, Huawei has been committed to pushing 
the boundaries of ICT and promoting its global 
adoption. We have actively promoted the deployment 
of digital infrastructure and interconnectivity to 


2023 Annual Report
        09
bring more people into the digital fold. And now, 
we are extending these efforts by innovating in both 
connectivity and computing to provide our global 
customers with leading ICT solutions.
Huawei is also an active member of the International 
Telecommunication Union's Partner2Connect Digital 
Coalition. After joining the coalition, as of 2023 our 
ICT solutions have brought connectivity to 90 million 
people in remote regions in nearly 80 countries around 
the world.
When Türkiye was struck by a catastrophic earthquake, 
we worked side-by-side with our carrier customers to 
rebuild over 1,900 sites within 72 hours. Together, we 
got the damaged networks back online so that people 
in affected areas could access critical network services.
In Pakistan, we worked together with international 
organizations and local governments to connect 
remote communities, giving residents access to 
telemedicine services through broadband networks and 
bringing online education to students through a smart 
classroom platform.
In China, when Jishishan County in Gansu Province 
was rocked by a massive earthquake, we immediately 
set out to affected areas in both Gansu and Qinghai. 
Alongside our carrier customers, we quickly restored 
communications at more than 100 key sites in Gansu, 
and recovered all disrupted services in Qinghai 
Province within 16 hours, helping people re-connect 
with their loved ones.
In addition to connectivity, we are working to drive 
broader digital inclusion through our TECH4ALL 
program. This program has brought about long-term 
positive change to remote areas and a wide range 
of environmental protection efforts. As of the end 
of 2023, our TECH4ALL education programs have 
benefited 630 schools and more than 400,000 people. 
In 53 of the world's protected areas, we are also using 
digital technology to increase biodiversity, enhance 
natural resource sustainability, and improve natural 
resource utilization.
Enabling digital industries for an 
intelligent world
Digital, intelligent, and low-carbon transformation is 
picking up speed around the world. Breakthroughs in 
AI technology and applications are enabling industries 
to go intelligent faster. Mobile networks are evolving 
towards 5G and 5.5G. Smart device ecosystems for 
all scenarios are converging faster than ever, the 
automotive industry is well on the way to going 
intelligent, and the transition to clean energy is 
gaining traction. As the intelligent world takes shape, 
ICT will be further integrated into all industries, and 
computing will become a fundamental driver of 
productivity, helping the digital economy take flight.
Huawei will delve deeper into industry digitalization, 
accelerate the construction of computing 
infrastructure, and promote digital and intelligent 
transformation in all industries. Together with our 
global customers and partners, we want to build 
a leading computing backbone that will power the 
intelligent world.
Powering green and low-carbon 
development with digital technology
Green and low-carbon development has become an 
important part of socioeconomic transformation on 
a global scale. At Huawei, we believe that digital 
technology is an effective tool to fight climate 
change, protect the environment, and enable green 
development. Digitalization and decarbonization can 
work hand-in-hand, propelling and reinforcing each 
other to help build a greener world.


10       Huawei Investment & Holding Co., Ltd.
In Saudi Arabia, for example, our latest energy-
saving technologies were used to build nearly 100 
wireless sites in the NEOM project. Furthermore, 
our cooperation with Zain KSA has helped cut their 
wireless network energy consumption by nearly 28%.
In China, we also launched our green Wi-Fi solution 
for smart campuses, which uses innovative algorithms 
to cut the average annual power consumption of 
campus Wi-Fi networks by about 20%.
Renewable energy will be crucial for green and 
sustainable development. At Huawei, we continue 
to increase the use of renewable energy in our own 
operations. Our digital power business is also working 
to drive the transition to renewable energy in all 
industries by focusing on areas like clean power 
generation, mobility electrification, and green ICT 
power infrastructure. By the end of 2023, our digital 
power solutions have helped customers generate 997.9 
billion kWh of green power and save 46.1 billion kWh 
of electricity. These efforts resulted in a reduction of 
495 million tons in CO2 emissions.
Green and low-carbon solutions are providing new 
momentum for sustainable development. Industries 
are also embarking on a new journey that combines 
digital, intelligent, and green transformation. This will 
stimulate innovation and encourage efforts to build 
next-generation digital and energy infrastructure that 
supports green and low-carbon development.
Growing together with partners 
through open innovation
Huawei delves deep into research and innovation, 
and we take an open approach to both as we work 
with our partners worldwide to probe the frontiers of 
science and technology. 
As part of our broader collaboration efforts, we closely 
engage with academic associations around the world 
to explore the challenges that industries face. We 
have also released more than 70 new research topics 
through academic platforms in an effort to drive 
advancements in computer science and AI.
In 2023, Huawei and its partners held multiple 
competitions and training activities, including ICPC 
Training Camps, the ICPC Challenge Championship, 
and various bootcamps. Through these programs, 
we shared our industry know-how with academia 
and learned from their expertise. Together, we are 
invigorating academic pursuits and encouraging 
students and researchers to unleash their full potential.
We are also working with global partners and 
developers to improve the device ecosystem based 
on HarmonyOS and Kirin, the general computing 
ecosystem based on openEuler and Kunpeng, as 
well as the AI computing ecosystem based on CANN 
and Ascend. Together, we are working to stimulate 
innovation across ecosystems and achieve shared 
success.
By the end of 2023, HarmonyOS was deployed on 
more than 800 million devices, and the HarmonyOS 
ecosystem attracted more than 2.2 million developers.
The Kunpeng ecosystem has also been developing 
steadily. To date, we have worked with more than 
4,700 partners to launch over 14,500 industry-specific 
solutions.
In computing, we have joined forces with industry 
partners to drive the development of the openEuler 
operating system, the openGauss database, and 
the MindSpore AI framework. We have also further 
enhanced all-scenario collaboration for openEuler, 
and by the end of 2023, over 50% of the industry's 


2023 Annual Report
        11
major foundation models were natively trained on 
MindSpore. The MindSpore open source community 
now serves more than 5,500 enterprises.
For Ascend, we continue to build leading AI training 
clusters and a complete series of inference products. 
We further opened up the heterogeneous compute 
architecture – CANN 7.0. And by the end of 2023, 
more than 1,600 independent software vendors (ISVs) 
have used Ascend to launch over 2,900 industry-
specific AI solutions.
On the operations side, Huawei is committed to 
globalized operations and diversifying our supply 
chains to ensure long-term, continuous, and stable 
supply, and to lay the foundations for more sustainable 
development. We have established long-term 
partnerships with over 10,000 suppliers and partners 
around the world. Through open collaboration, we 
strive to overcome all manner of difficulties and 
challenges over the course of development. We are 
confident that our work with partners will drive shared 
growth and benefits, and help forge a secure, reliable, 
competitive, and healthy value chain. Ultimately, this 
will allow us to provide higher-quality products and 
services for customers around the world.
Enhancing corporate governance and 
ensuring operational compliance to 
better serve our customers
A robust corporate governance system is the 
cornerstone of sustainable development. In 2023, we 
continued to build up and optimize our corporate 
governance system. Last year, our Representatives' 
Commission held one meeting where a new Board of 
Directors was elected, resulting in a new set of regular 
and alternate directors.
In 2023, our Board of Directors held 12 meetings 
where they reviewed and approved matters such as 
the company's medium-to-long-term strategic plan, 
as well as the company's annual business plan, audit 
report, profit distribution, and capital increases.
At Huawei, we believe that legal compliance is a 
bulwark against the uncertainties of international 
politics. We are committed to conducting business with 
integrity, adhering to business ethics, and observing 
all applicable laws and regulations in the countries 
and regions where we operate. This is a core guiding 
principle upheld by our management team. For 
years, we have worked hard to build a compliance 
management system that aligns with industry best 
practices and embeds compliance management into 
our business activities and processes. These efforts 
continue to this day. We work hard to create a culture 
of integrity, and require all employees to comply with 
our Business Conduct Guidelines (BCGs).
We continue to communicate openly and embrace 
transparency so that our customers, partners, and the 
rest of the world can see what we truly stand for. We 
welcome stakeholders – including governments, the 
media, researchers, and experts – to visit our company 
to strengthen mutual understanding and trust.
No matter what changes come our way, we will stay 
committed to openness, collaboration, and innovation. 
We will continue to press ahead against all manner of 
difficulties and stay true to our vision and mission – to 
bring digital to every person, home and organization 
for a fully connected, intelligent world.
Liang Hua
Chairman of the Board


12       Huawei Investment & Holding Co., Ltd.
Industry Trends
The Age of Intelligence Is Coming – and Fast
Digital Infrastructure and Smart Devices Will Evolve Rapidly
The world is full of uncertainty these days. Economic 
instability, geopolitical risks, climate change, and 
all manner of challenges have left us in a state of 
global flux. Against this backdrop, however, there is 
one thing we can be certain about: Major trends like 
digitalization, intelligence, and decarbonation are 
taking hold – and gaining momentum all around us.
This momentum was especially clear throughout 2023 
as the world made incredible progress towards a new 
age of intelligence. We now find ourselves in the midst 
of a new industrial revolution where AI is penetrating 
the fabric of all sectors at an incredible rate, taking 
productivity and creativity to new heights.
Renowned futurist Kevin Kelly has characterized AI as 
a type of artificial power, one that can eventually be 
tapped – as easily as electricity – to cognify everything 
around us. In the next 100 years, he said in a 2023 
interview, artificial intelligence will exceed anything 
that other artificial powers can accomplish.
AI will fuel the convergence of the digital and physical 
worlds, redefining everything and changing how we 
live and work, both as individuals and as industries. It 
will bring unprecedented challenges and opportunities.
The focus of network build-out has shifted from 
straightforward connectivity to center around 
experience itself. In the age of intelligence, 5.5G 
networks – the next evolution of 5G – will take it one 
step further: They will be productivity-centric, helping 
all industries vastly enhance their ability to create. 
5.5G will deliver universal 10 Gbit/s access for digital 
services, elastic ultra-broadband transport, and massive 
computing power from hyper-converged data centers. 
It will be the cornerstone of new digital infrastructure 
To bring the full value of intelligence to industries, we 
need to make all things connectable, all applications 
modellable, and all decisions computable.
■	 All things connectable: Not just physical objects, 
but also logical and virtual objects, including both 
digital equipment as well as traditional terminals 
and devices. With everything connected, data can 
be passed up and intent can be passed down.
■	 All applications modellable: Broad adoption of AI 
foundation models will bring the benefits of smart 
applications to people, homes, and organizations 
more rapidly than ever.
■	 All decisions computable: An accessible, ubiquitous 
supply of computing power will make intelligence 
more readily available wherever it's needed and 
help unleash the full potential of data.
AI is giving rise to a staggering array of innovative 
applications. It's also stimulating across-the-board 
changes to devices, networks, computing, and cloud, 
taking us one step closer to a truly momentous 
intelligent world.
and drive the digital economy forward. But evolving to 
these productivity-centric networks will require effort 
in several areas:
■	 Ubiquitous 10 Gbit/s ultrabroadband access: This 
upgrade will provide universal 10 Gbit/s broadband 
access to mobile users everywhere they go, and 
bring ultrafast connectivity to every nook and 
cranny of homes around the world. Enterprises will 
also benefit from an enhanced 10 Gbit/s experience 
Connectivity: Full speed ahead with 5.5G


2023 Annual Report
        13
on their campus networks, as well as 10 Gbit/s 
elastic private line services with higher throughput 
for growing computing needs. Universal high-speed 
connectivity will be vital to accelerate the adoption 
of digital services across all sectors of society.
■	 400G converged transport networks: Upgrading 
converged transport networks to 400G will increase 
transport power and, with end-to-end optical 
cross-connect (OXC), will guarantee experience for 
latency-sensitive services across different latency 
circles (e.g., 1 ms for access networks, 5 ms for city 
networks, and 20 ms for nationwide networks).
■	 Advanced hyper-converged architecture for data 
center networks: Based on this architecture, 800GE 
Breakthroughs in AI technology and applications are 
driving industrial transformation at a rate and scale 
never seen before. In particular, foundation models 
have brought artificial intelligence to an inflection 
point, where AI is going beyond perception and 
analysis to generate new content entirely; where 
multi-modal models are taking precedence over 
single-modal models; and where special-purpose AI 
is giving way to more general-purpose application. AI 
applications themselves have gone beyond consumer 
domains to support core industrial scenarios. Over the 
next two years, AI applications will create even greater 
value in more than 50% of core industrial scenarios. 
To help industries maximize the value of AI, we need 
to adapt computing infrastructure in two major ways:
■	 Adopting new computing architectures that 
cater to diverse computing needs: Demand for 
heterogenous computing capabilities is changing 
the way data centers are designed, and demand 
for AI computing is growing exponentially fast. 
We estimate that, between 2020 and 2030, global 
demand for general computing power will increase 
tenfold to reach 3.3 ZFLOPS, while demand for AI 
computing power will grow by a factor of 500 to 
hit 105 ZFLOPS. The world will generate roughly 1 
yottabyte of data annually, a 23-fold increase over 
Computing infrastructure: Making computing power and intelligence available wherever it's needed
interconnection will help fully unlock the potential 
of general computing, AI computing, high-
performance computing, and storage. Congestion 
notification algorithms will ensure zero packet loss, 
and network-scale load balancing algorithms will 
help increase the training efficiency of AI cluster 
networks by 20%.
■	 Telecom foundation models: AI models specifically 
designed for telecom networks will enable carriers 
to evolve towards L4 autonomous driving networks 
(ADNs) that are more autonomous, digitalized, 
and intelligent than ever, allowing network 
management engineers to double their efficiency.
2020. To address these diverse needs for massive 
computing power, we need to replace CPU-
centric computing architecture with peer-to-peer 
architecture – structures that help us overcome 
limitations in conventional architectures, boosting 
both computing bandwidth and performance while 
reducing latency.
■	 Breaking through bottlenecks in large-scale 
computing: Computing power is crucial for AI 
innovation. The amount of computing power 
available determines the speed of AI iteration 
and innovation, and massive amounts are needed 
to train foundation models. Through systematic 
design, we can evolve data centers into de facto AI 
supercomputers that tightly integrate computing, 
storage, networking, and power supply. Data 
centers like this can deliver incredible amounts of 
computing power with greater availability, better 
energy efficiency, and a more stable environment 
for long-term model training. This will lay the 
groundwork for developing a wide range of AI 
models and applications.


14       Huawei Investment & Holding Co., Ltd.
All industries are actively embracing AI, infusing their 
know-how and ingenuity into foundation models 
that help them tackle complex issues, including those 
in research, production, supply, sales, and service. 
New innovations in AI and foundation models are 
emerging every day, and as AI theory gains more 
practical application, developments in this sector will 
turbocharge the intelligent transformation of industries.
But to speed up the transformation process, there 
are a number of technical gaps that industries need 
to overcome. On the cloud front, AI is reshaping 
the technical stack, redefining the cloud's unique 
strengths, and transforming cloud infrastructure – as 
well as the applications running on it. To keep up with 
these trends, cloud service providers (CSPs) need to 
revamp their architecture, their computing and storage 
systems, the relationship between data and AI, app 
development, and their overall security posture.
■	 Architecture: CSPs will need to move from CPU-
centric client-server architecture towards peer-
to-peer architecture that can keep up with more 
diverse computing needs.
■	 Computing and storage systems: CSPs will need to 
shift from general computing to high-performance 
AI computing, and upgrade from data lake storage 
to AI-native intelligent storage.
As more and more consumer devices make use of 
AI, we will see greater convergence in multiple fields: 
chip architectures, operating systems, and device 
ecosystems across different scenarios. Formerly 
disparate ecosystems will begin to converge at a 
growing rate, such as mobile device ecosystems, office 
device ecosystems, and IoT device ecosystems. This 
trend promises huge benefits: Users will receive a 
smarter, more intuitive experience across all scenarios 
– one characterized by a larger variety of services, 
greater convenience, and better security. At the same 
time, developers will see a boost in their productivity 
and returns.
With AI, smartphones, personal computers, and tablets 
will provide a far superior experience, even for basic 
functions like taking photos, processing images, 
communications, entertainment, and productivity. On-
Smart devices: Providing an intelligent experience across all consumer scenarios
■	 Data and AI: CSPs will need to move towards "Data 
for AI" and "AI for Data" approaches, where data 
and AI work more seamlessly together to create 
greater value.
■	 App development: CSPs will need to transition from 
full-code development to low-code or zero-code 
development, and further towards AI-assisted or 
even autonomous development.
■	 Security posture: CSPs will need to go beyond 
traditional network and information security and 
focus on building zero-trust systems. Embracing 
zero-trust will help them better align with 
ever-growing customer requirements for cyber 
security and privacy protection, and contribute to 
trustworthy cloud services.
Accelerating intelligent transformation will also 
require an entirely new tech ecosystem. Innovating 
around industry needs raises the bar for the quality 
and efficiency of R&D tools. Developers will need 
cloud-native core software and development 
toolchains (e.g., software code repositories, hardware 
development pipelines, and software development 
pipelines). Building these tools will take more in-depth 
collaboration across the entire value chain, including 
industry, academia, researchers, and users alike. 
Collaboration is the driving force behind a truly robust 
tech ecosystem.
device AI assistants will be better able to understand 
user intent and provide people with exactly what they 
need. Users will be able to accomplish what they want 
faster and let their creativity run wild.
New ways of human-computer interaction (e.g., spatial 
computing, gesture tracking, and eye tracking) and 
new form factors (e.g., foldable phones, augmented 
reality and virtual reality devices, robots, and intelligent 
cockpits) will keep emerging in greater numbers.
And with greater convergence across different scenarios 
(like fitness, office, travel, and home), users will have 
access to an intuitive, consistent, and intelligent 
experience across devices that work seamlessly together 
with AI-native technology. Greater convergence will 
also allow for better personal data management and a 
smarter experience across the board.
Cloud: Providing Everything as a Service to accelerate industrial intelligence


2023 Annual Report
        15
Electrification, intelligence, and connectivity are 
megatrends in the automotive industry. In 2023, 
global production and sales of new-energy vehicles 
reached record highs, and China's automotive market 
in particular performed remarkably well. Now with 
electrification well underway, carmakers are shifting 
gears towards intelligence.
We will see a dramatic upgrade in mobility experience 
as vehicles integrate new ICT technologies. These 
include radar, new electrical/electronic architectures, 
autonomous driving platforms with massive computing 
power, intelligent cockpits for more intuitive 
interaction with on-board systems, and intelligent 
communications modules. Equipped with these 
technologies, intelligent electric vehicles will deliver 
safer and more comfortable mobility – and a more 
personalized experience along the way.
The UAE Consensus was signed in 2023, representing 
another significant global push for decarbonation. 
The transition to clean energy is picking up speed 
worldwide. For solar energy, advancements in 
photovoltaics and energy storage technology are 
driving down both the levelized cost of storage (LCOS) 
and the levelized cost of energy (LCOE). New energy 
sources, solar and wind power in particular, will take 
center stage – a trend that will bring huge changes 
to conventional electric power systems based on fossil 
fuels. As digital and AI technologies continue their rapid 
advance, digital will further weave its way into the 
energy domain, supporting three new types of energy 
infrastructure that will power the intelligent world.
■	 New energy infrastructure for power systems: 
Grid forming technology will play a central role in 
these systems, fueling the adoption of new energy 
and shifting their role from secondary sources to 
primary sources.
■	 New energy infrastructure for electric vehicles 
(EVs): Electric vehicles and charging piles are 
Intelligent vehicles: Bringing ICT technology on board to redefine the mobility experience
Intelligent driving will continue to gain traction. 
According to a recent report on consumer preference, 
intelligent vehicle controls, intelligent driving, and 
intelligent cockpits have become more important 
factors in purchase decisions. This is especially true of 
functionality like mapless navigation, which enables 
intelligent vehicles to effectively navigate in all types 
of unknown environments, whether it be highways, 
ring roads, or even urban streets. At the same time, 
the intelligent cockpit sector will continue to grow and 
expand to cover a wider range of mobility scenarios, 
including various types of vehicles, high-speed trains, 
and ships. Going intelligent is an unstoppable trend in 
the mobility industry.
Digital power: Building three new types of energy infrastructure to power the intelligent world
essential components of new power systems, so 
coordinated development of EVs, charging piles, 
and charging networks will be vital moving forward. 
Electricity will play a dominant role in the energy 
sector, with its share in final energy consumption 
rising sharply.
■	 New energy infrastructure for the digital industry: 
New power supply systems, especially those for 
large low-carbon data centers, will use green 
energy to provide more eco-friendly computing 
power for digital and intelligent transformation.
New power systems will increasingly depend on 
renewables, power electronics equipment, and high-
density energy storage systems with large capacity. 
This means the end-to-end quality and safety of these 
power systems will be more important than ever. The 
three new types of energy infrastructure outlined 
above will operate with enhanced quality, safety, and 
reliability to power the intelligent world.


16       Huawei Investment & Holding Co., Ltd.
Building an intelligent world will take concerted effort 
from a wide range of stellar players.
Over the past 30 years, from the information age to 
the digital age, Huawei has never stopped imagining 
what the future might hold. More importantly, we've 
never stopped working to make that future happen. 
Back in 2003, we introduced our All IP Strategy to 
boost connectivity. In 2013, we announced the All 
Cloud Strategy to expedite digitalization. In 2023, we 
took yet another huge step forward, unveiling our All 
Intelligence Strategy in a bid to accelerate intelligence. 
Exploring Nonstop for a Fully Connected, Intelligent World
Moving forward, we will support a vast range of AI 
models and applications across industries by driving AI 
innovation across all aspects of our organization, from 
theory, architecture, and engineering to our products, 
portfolios, and business models.
On a river with a hundred ships, those who paddle 
the hardest will take the lead. So let's take the same 
ship. Amidst the rising tides of intelligence, if we work 
together and keep exploring, we can chart a solid 
course towards a fully connected, intelligent world.


2023 Annual Report
        17
Management 
Discussion and 
Analysis
18
Our Vision, Mission, and Strategy
21
2023 Business Review
22
ICT Infrastructure Business
22  Carrier Market
30  Enterprise Market
37  Connectivity
40  Computing
41  ICT Services and Software
44
Cloud Computing Business
49
Digital Power Business
54
Consumer Business
62
Intelligent Automotive Solution 
Business
64
Research and Innovation
68
Improving the Management System
77
Cyber Security and Privacy 
Protection
82
Openness. Collaboration. Shared 
Success.
87
Results of Operations
89
Financial Risk Management


18       Huawei Investment & Holding Co., Ltd.
Our Vision, Mission, and Strategy
Huawei's mission is to bring digital to every person, home and organization for a fully connected, intelligent world. 
To this end, we will:
■ Drive ubiquitous connectivity and promote equal access to networks to lay the foundation for the intelligent 
world
■ Provide diversified computing power to deliver ubiquitous cloud and intelligence
■ Redefine user experience with AI, offering consumers a more personalized and intelligent experience across all 
scenarios, including home, travel, office, entertainment, and fitness & health
■ Build powerful digital platforms to help all industries and organizations become more agile, efficient, and 
dynamic
A new digital wave is sweeping the globe. Digital 
and AI technologies are helping all governments 
and enterprises become more agile, efficient, and 
dynamic. Open, secure, flexible, and easy-to-use 
digital platforms are facilitating innovation and 
transformation in all industries. They will be the 
bedrock and the fertile ground for our digital 
society to flourish.
Using AI, cloud, and big data technologies, 
enterprises can better understand their 
customers' needs and innovate with greater 
agility to craft a more personalized experience. 
Coordination and collaboration across 
industries will drive innovation at scale. With 
the continuous evolution of smart devices, a 
seamless experience across all scenarios will 
become the foundation of an intelligent life.
In the digital economy, computing power is a 
new driver of productivity. Data itself is a core 
asset, and cloud and AI are the new tools of 
productivity. Moving forward, AI computing will 
account for more than 80% of a computing 
center's capacity, providing the muscle for 
practical AI applications in all areas of life. To 
deliver ubiquitous cloud and intelligence, we will 
need to provide diversified computing power.
Every person has the right to be connected. 
Connectivity is the foundation for social 
progress and economic growth. Connections 
will soon become a natural and ubiquitous 
resource, provided by networks that proactively 
sense changes and user needs. These networks 
will offer intelligent, seamless, and secure 
connections to people and things whenever and 
wherever they want. With the advent of 5G, we 
begin a new chapter in this story.
Ubiquitous Connectivity
Pervasive Intelligence
Digital Platform
Personalized Experience
Building a Fully 
Connected, 
Intelligent 
World


2023 Annual Report
        19
Ubiquitous Connectivity
Connectivity has extended from people to things and 
from our homes to the factory floor. Now it's the 
foundation of everything in an increasingly intelligent 
world. Huawei is doing what it can to help our 
customers get ready for the future.
For mobile and home users, Huawei teams up with 
carriers to provide an ultra-broadband experience 
across all aspects of everyday life.
For governments and enterprises, Huawei works 
with our partners to enable digital and intelligent 
transformation in different industries. We provide 
intelligent connectivity solutions for different industrial 
scenarios, including ubiquitous ultra-broadband, 
deterministic experience, and hyper-automation, to 
support the diverse needs of all customers.
We are working to push connectivity to its limits with 
products and solutions like 5.5G, simplified green sites, 
fully-converged cloud-native core networks, best-in-
class Wi-Fi 7, Super-Connectivity 400GE CloudFabric, 
optical cross-connect (OXC), fiber to the room 
(FTTR), and green data centers. We are also actively 
collaborating with the industry to define its next steps 
and drive the advancement of connectivity. To better 
meet connectivity requirements in industrial scenarios, 
we are using AI to enable hyper-automation of 
network O&M and developing new algorithms to pave 
the way for truly deterministic IP networks.
As green development becomes the clear path 
forward for all industries, the compounding forces of 
digitalization and decarbonization will drive us ever 
closer to a sustainable future. Huawei works closely 
with customers and partners on nonstop innovation 
for new digital and energy infrastructure. We aim to 
provide green ICT that will enable green development 
and bring greener connections to all parts of the world.
Pervasive Intelligence
Data has become a valuable raw material, and 
computing power has become the new driver of 
productivity. The amount of data we produce will 
explode as more and more of the devices around us 
become smart, and more industries will need massive, 
intelligent storage capabilities to handle these new 
resources. Abundant and affordable computing power 
will determine the future of the digital economy.
Through nonstop innovation in data storage, 
diversified computing, and cloud services, Huawei is 
helping industries go digital and intelligent by making 
pervasive intelligence possible. Together we will build 
a fully intelligent world.
In data storage, Huawei provides customers with 
products and solutions that span all domains and 
scenarios, in a bid to satisfy requirements for sufficient 
storage, free mobility, and the full utilization of 
mass data. Our goal is to build a high-performance, 
reliable, green, and secure data storage foundation for 
customers.
In computing, Huawei sticks to our strategy of "open 
hardware, open source software, partner enablement, 
and talent cultivation". We are developing the 
Kunpeng, Ascend, and openEuler ecosystems as part of 
our efforts to bring more diversified computing power 
to the whole world.
In cloud computing, Huawei Cloud is focusing on AI 
for Industries and AI for Science. We are diving deep 
into industrial scenarios and harnessing AI to help 
enterprises tackle their biggest challenges, thereby 
reshaping industries with AI.
Personalized Experience
The physical and digital worlds are converging, and 
the process is speeding up. Mass production is giving 
way to mass customization, leading to greater business 
innovation, closer collaboration across ecosystems, and 
a richer user experience.
Using new technologies like AI and cloud, 
enterprises can better understand their customers' 
needs and innovate with greater agility to craft a 
more personalized experience. Coordination and 
collaboration across industries will drive innovation at 
scale.
In our user-centric intelligent world, usage scenarios 
and experiences are evolving. The boundaries between 
products and services continue to break down, 
with many converging scenarios, including home, 
travel, office, and fitness & health. Soon all content 
and services will travel with users for a completely 
seamless, holistic experience. Smart collaboration 
between software and devices will give users an 
intelligent experience across all scenarios.


20       Huawei Investment & Holding Co., Ltd.
We will continue working closely with partners across 
our software, service, and hardware ecosystems to both 
integrate existing technology and drive innovation to 
better serve consumers. Our "1 + 8 + N" Seamless AI 
Life strategy is centered on smartphones and touches 
on five major scenarios: Smart Office, Fitness & Health, 
Smart Home, Easy Travel, and Entertainment. Through 
HarmonyOS, we empower our ecosystem partners 
to provide consumers with a superior, intelligent 
experience across all scenarios.
Digital Platform
Data volumes are growing exponentially as more and 
more industries embrace intelligence. Enterprises are 
applying digital and intelligence to a growing array 
of scenarios as cutting-edge technologies, innovative 
models, and intelligent algorithms continue to 
emerge. All of this is creating a multiplying effect of 
accelerated innovation.
From video data and industrial data to personal data 
and consumption data, all data is coming from more 
sources and in more forms and is becoming more 
fragmented. Powerful digital platforms are needed to 
integrate this data.
New technologies in connectivity, cloud, AI, computing, 
and industry applications are converging to support 
comprehensive intelligent connections between 
people, things, and information at multiple levels. 
These technologies will help industries expand their 
traditional boundaries, and enable enterprises to 
expedite intelligent upgrade. Enterprises will have 
to adapt their strategies, organization, processes, 
marketing, services, manufacturing, and R&D to 
cope with changes. To do so, enterprises need to 
synergize the cloud, networks, edge, and devices 
to build an open, powerful digital platform with 
multidimensional perception, all-domain collaboration, 
accurate judgment, and continuous evolution. With 
cloud as the foundation and AI at its core, this digital 
platform helps users accumulate industry know-how, 
rapidly innovate their core business processes, and 
quickly iterate to respond to changes in their business 
environments.
A digital platform is one of the core engines that 
drives success in digital and intelligent transformation. 
New information technologies can make organizations 
more efficient through intelligent management of their 
physical assets like buildings, factories, production 
lines, and utilities. At the same time, advanced digital 
technologies in connectivity, cloud, AI, and computing 
can change the way organizations operate and create 
new business models. This is the process of digital and 
intelligent transformation. An organization's IT systems 
and the corresponding operational methods combine 
to form a digital platform.
Together with its ecosystem partners, Huawei provides 
innovative technologies, products, and solutions that 
help its customers build open, secure, flexible, and 
easy-to-use digital platforms. With its digital platform, 
Huawei assists customers in crafting their own 
intelligent solutions, and enables industries to navigate 
digital transformation and intelligent upgrade. 
Huawei's digital platform is injecting new momentum 
into the digital economy.


2023 Annual Report
        21
67% China
21% EMEA
6%
Asia Pacific
5% Americas
2023 Business Review
In 2023, Huawei maintained strategic focus and fully leveraged the collective strengths of our business portfolio, 
our ability to innovate, and our grasp on complex software and hardware platforms. This allowed us to keep 
providing our customers with high-quality products and services alongside our ecosystem partners. In 2023, 
Huawei's annual revenue was CNY704,174 million, an increase of 9.6% year-over-year. Our overall performance 
was in line with forecast.
■ In the Chinese market, industries were going 
digital, intelligent, and low-carbon at a faster 
rate. To adapt to this market trend, we improved 
our ability to integrate software, hardware, chips, 
edge, devices, and cloud, and fully leveraged 
our collective strengths in computing, storage, 
networks, digital power, devices, and intelligent 
automotive solutions. As a result, Huawei saw 
growth in all of its business domains in China. Our 
revenue from the Chinese market was CNY471,303 
million in 2023.
■ In Europe, the Middle East, and Africa (EMEA), ICT 
infrastructure such as 5G and optical networks was 
being constructed rapidly and industries sped up 
digital, intelligent, and low-carbon transformation. 
As a result, our cloud computing business grew 
rapidly, our ICT infrastructure business remained 
steady, and the performance of our digital power 
business was in line with forecast. In addition, our 
consumer business remained focused on building 
out the HMS ecosystem and developing converged 
products. Huawei's revenue from this region was 
CNY145,343 million in 2023.
■ In the Asia-Pacific Region, industries stepped up 
their efforts in digital, intelligent, and low-carbon 
transformation. As a result, our digital power and 
cloud computing businesses continued to grow, our 
consumer business ramped up innovation and saw 
a rapidly growing ecosystem, and the performance 
of our ICT infrastructure business was in line with 
forecast. Huawei's revenue from this region was 
CNY41,041 million in 2023. 
■ In the Americas, customers increased investment 
and industries accelerated digital, intelligent, and 
low-carbon transformation. Our ICT infrastructure 
business grew steadily, our digital power and cloud 
computing businesses continued to grow, and our 
consumer business remained focused on developing 
converged products. In 2023, our revenue from this 
region was CNY35,362 million.
By business segment
(CNY Million)
2023
2022
YoY
ICT Infrastructure
361,997
353,978
2.3%
Consumer
251,496
214,463
17.3%
Cloud Computing
55,287
45,342
21.9%
Digital Power
52,607
50,806
3.5%
Intelligent 
Automotive 
Solutions
4,737
2,077
128.1%
Other
8,624
3,978
116.8%
Elimination
(30,574)
(28,306)
8.0%
Total
704,174
642,338
9.6%
 
 
 
 
By region
(CNY Million)
2023
2022
YoY
China
471,303
403,999
16.7%
EMEA
145,343
149,206
(2.6)%
Asia Pacific
41,041
48,048
(14.6)%
Americas
35,362
31,898
10.9%
Other
11,125
9,187
21.1%
Total
704,174
642,338
9.6%
 
 
 
 


22       Huawei Investment & Holding Co., Ltd.
ICT Infrastructure Business
ICT is the core engine that drives the development of the digital and intelligent economy. It is a key technology 
that drives industry upgrade and high-quality development for enterprises. As digital, intelligent, and low-carbon 
transformations continue to gain traction, Huawei has focused its efforts in the ICT infrastructure business on 
information distribution, interaction, transmission, processing, and storage. This allows us to provide leading 
products and solutions for telecom carrier, government, and enterprise customers around the world and support 
the digital and intelligent transformation of numerous industries.
We provide high-quality services to the carrier, 
government, and enterprise markets and create 
new value for customers:
■ Carrier market: We work to build ubiquitous 
connectivity and enable pervasive intelligence, 
in order to help our carrier customers achieve 
business success. Together, we are accelerating the 
commercial deployment of 5.5G, taking digital and 
intelligent transformation to the next level, and 
leading humanity to an intelligent world faster.
■ Government and enterprise market: To facilitate 
digital and intelligent transformation, we have 
launched a collaborative, open, agile, and 
trustworthy reference architecture for intelligent 
transformation. We have become a reliable partner 
for intelligent transformation across industries 
by providing digital and intelligent products and 
solutions that enable industries to go intelligent 
faster.
We are continuing to invest in the ICT industry 
to lead industry development and technological 
innovation. In 2023, we worked with other industry 
players to drive connectivity to new heights. As part 
of this, we also explored the evolution to 5.5G and 
helped establish 10 gigabit showcase cities around 
the world. In addition, we have worked to nurture the 
Kunpeng and Ascend ecosystems in order to support a 
vast range of AI models and applications that will help 
all industries thrive.
We also provide ICT services and software to 
support the digital and intelligent transformation 
of our carrier, government, and enterprise 
customers in operations and maintenance (O&M). 
In the ICT services and software domain, we have 
called upon our more than 30 years of experience 
in ICT services to provide a broad portfolio of digital 
and intelligent ICT service and software solutions by 
focusing on the entire business process that covers 
everything from network planning and construction to 
O&M, optimization, operations, and training. We aim 
to facilitate the digital and intelligent transformation 
of carrier, government, and enterprise customers 
by building green, efficient, secure, and robust ICT 
infrastructure that provides the ultimate experience.
Carrier Market
In 2023, Huawei remained customer-centric and continued to innovate. We enabled carriers to maximize the value 
of networks and explore potential monetization channels. We worked alongside carriers to expand the boundaries 
of their business and achieve sustainable business growth, and helped carriers achieve a positive business loop with 
5G and explore the opportunities of 5.5G.
Since 5G networks were put into commercial use five 
years ago, they have been deployed by more than 300 
carriers in more than 100 countries. There are now 
more than 1.5 billion 5G users. It took nine years – 
almost twice as long – for 4G to get to that level.
In the tests conducted by global authoritative 
institutions in 2023, Huawei helped multiple carriers 
around the world rank first in mobile network 
experience. We helped carriers start 5.5G commercial 
verification and testing in multiple cities around the 
world, and worked with them to fully explore five 
connectivity businesses to connect people, homes, 
things, vehicles, and industries. In 10 gigabit smart 
home scenarios, we helped carriers accelerate the 
upgrade to the 10 gigabit experience and explore new 
business opportunities.
Huawei helps carriers upgrade and build their network 
infrastructure and software systems into intelligent 
ones that have the capacity to evolve and support 
robust networks, converged cloud, and intelligence. 
Huawei Cloud works with carriers on cloud 
transformation and helps carriers seize new business 
opportunities that arise from intelligent upgrade 
through a variety of industry APIs and B2B practices.


2023 Annual Report
        23
2024 will mark the first year of 5.5G commercial use. 
Huawei will work with carriers to actively explore 
the evolution to 5.5G, build efficient, coordinated, 
green, stable, and intelligent networks which feature 
ubiquitous 10 gigabit access and offer a premium 
experience. This type of collaboration will take digital 
and intelligent transformation to a new level and 
propel us towards an intelligent world.
Driving Ubiquitous Connectivity to Help 
Customers Achieve Business Success
Huawei continues to innovate our products and 
solutions. We have worked with carriers and industry 
partners to explore service applications and verify 
key technologies, help carriers achieve business 
success with 5G, and unlock new applications and 
opportunities in 5.5G. 
Jointly Creating New Value with 5G and Fueling 
New Business Growth
In 2023, Huawei actively helped carriers accelerate 5G 
monetization, including traditional traffic monetization 
and monetization through differentiated experiences 
and converged new services, and this helped to 
further unleash 5G potential and facilitate ongoing 5G 
business success.
■ In terms of traffic monetization, by the end 
of 2023, many global carriers served by Huawei 
had invested in 5G construction and user base 
expansion. In China, the proportion of 5G package 
subscribers exceeded 70%, and this fueled the 
development of the digital economy. In markets 
outside China, Huawei helped carriers deploy 5G 
fixed wireless access (FWA) services that provided 
100 Mbit/s wireless home broadband access to 
millions of households. These 5G FWA services 
significantly increased carriers' overall revenue 
growth.
■ In terms of experience monetization, Huawei 
worked with carriers to shift towards 5G experience 
operations based on network capabilities such 
as rates, uplink, and latency. 5G experience 
operations have become a key driver of new 
growth. Deterministic rates have become a new 
paradigm for rate monetization. In markets outside 
China, FWA offerings have shifted from rate-based 
packages to experience-guaranteed packages, and 
this has increased the average revenue per user 
(ARPU) by about 25%. In China, carriers were some 
of the first to launch 5G livestreaming packages, 
which provided ultra-high uplink rates and VVIP 
services and increased the ARPU by more than 
70%. Carriers also launched 5G packages with 
faster network access for gamers and financial 
investors to deliver a differentiated user experience 
and further increase ARPU. In markets outside 
China, carriers released 5G hotspot acceleration 
packages which supported on-demand and time-
based subscriptions and these packages increased 
the ARPU by about 23%.
■ In terms of monetization through new services, 
Huawei recognizes the fact that the applications 
of new technologies such as 5G, cloud, and AI 
are converging quickly, and that this is leading to 
a wide variety of new services and bringing new 
value to the industry in the following two domains:
– In individual-facing domains, Huawei has 
actively supported carriers in developing 
converged applications such as cloud phones, 
New Calling, and naked-eye 3D. Chinese carriers 
have attracted a large number of new subscribers 
to the cloud phone service. Through cloud 
phones, individual users can access computing 
power. Cloud phones have become the portal 
to hallmark 5G applications. The first carrier to 
launch New Calling with visualized voice calling 
services has attracted many new customers. The 
average minutes of use (MOU) per customer 
increased by about 21% and the video call 
penetration rate increased by about 24%.
– In industry-facing domains, Huawei has 
worked alongside carriers to facilitate large-
scale industry digitalization through 5G. 5G 
has been applied at scale in industries such 
as oil and gas, mining, ports, manufacturing, 
and healthcare. In China, more than 1,000 
fully connected 5G factories have been built. 
In markets outside China, 5G has enabled 
remote assistance through augmented reality 
(AR) for offshore oil and gas platforms, and 
this has significantly improved these platforms' 
operating efficiency.
Building 5G Networks to Deliver Exceptional 
Experience and Facilitate Ongoing Business 
Success
Huawei continues to innovate to help carriers build 5G 
networks that are highly coordinated, green, stable, 
intelligent, and capable of delivering exceptional 
user experiences. We also facilitate evolution to 5.5G 
by helping carriers build networks that deliver a 10 
gigabit experience. These networks offer ten times 


24       Huawei Investment & Holding Co., Ltd.
stronger capabilities and create a new space with 
hundreds of billions of connections.
■ Huawei helped carriers provide exceptional 
user experiences and meet differentiated 
service requirements. In markets outside China, 
the rapid increase of 5G users has brought higher 
requirements on consistent indoor and outdoor 
experiences. Huawei deployed large-capacity, wide-
coverage MetaAAUs on a large scale to deliver 
an exceptional and ubiquitous experience. In 
China, Huawei provided a 5.5G solution to deliver 
new capabilities such as ultra-high-speed uplink 
and downlink, deterministic experiences, and all-
scenario Internet of Things (IoT). These have 
opened up a new market where all things are 
connected and intelligent.
■ Huawei helped carriers greatly improve 
operational and energy efficiency and 
maximize spectrum utilization. In markets 
outside China, Huawei helped carriers deploy 
the ultra-broadband, energy-efficient GigaGreen 
solution to deliver consistent, high-quality 5G 
experiences across urban and suburban areas. 
This solution increased the camping ratio of 5G 
users to 98% and drastically improved the uplink 
experience. Huawei's energy-efficient Eco antennas 
reduce the power consumption of each site, which 
leads to a lower operating expenditure (OPEX) for 
carriers. As traditional frequency band resources 
become increasingly insufficient, it becomes more 
difficult to meet ultra-high-bandwidth backhaul 
requirements in the 5G era. Huawei's innovative 
microwave solution helped carriers implement 
long-distance, large-capacity backhaul, which 
greatly improved spectrum utilization and reduces 
energy consumption.
■ Huawei helped carriers relieve network 
congestion to accelerate growth in dataflow 
of usage (DOU) and ARPU. In markets outside 
China, the number of users and the network traffic 
demand increased sharply, and most networks in 
urban areas became congested. Huawei's Massive 
multiple-input multiple-output (MIMO) solution 
with large capacity and multi-band integration 
increased the network capacity several-fold and 
shortened the return on investment (ROI) cycle 
for carriers. In densely populated areas, networks 
generally carry heavy loads and traffic demand is 
increasing rapidly. Huawei's innovative intermediate 
frequency (IF) solution helped carriers quickly 
upgrade their networks to almost double the 
capacity and reduce energy consumption by 27%. 
The solution also primed the carrier networks for 
5G evolution.
■ Huawei helped carriers deploy 5G core 
networks with carrier-class stability and 
reliability. In markets outside China, Huawei 
launched a six-dimensional high-stability core 
network model to solve the problem of frequent 
signaling storms on carriers' 5G networks. By 
detecting and eliminating potential risks in 
advance, this network model helped carriers build 
an AI-native, stable 5G core network. 
Huawei also worked with customers to innovate 
and leverage the intelligent network functions 
of 5G core networks. Together, we implemented 
differentiated experience assurance that can be 
evaluated in real time, optimized dynamically, and 
monetized to achieve business profitability, thereby 
enabling monetization across multiple dimensions 
such as network traffic, rates, and latency.
Leading the Way to Intelligent Connectivity with 
5.5G and Jointly Exploring New Businesses
In 2023, Huawei worked with leading carriers around 
the world and industry partners to innovate and meet 
the requirements arising from new 5.5G applications 
and scenarios. Together, we promoted 5.5G technology 
verification and network deployment, and explored 
new business opportunities for 5.5G.
■ Individual- and home-facing applications: 
Huawei has helped multiple carriers around the 
world verify 10 Gbit/s downlink and 1 Gbit/s uplink 
rates of 5.5G, to deliver exceptional experiences 
with FWA services. In October 2023, Huawei helped 
a carrier outside China launch the world's first 5.5G 
smart home service, featuring brand-new services 
such as naked-eye 3D, home care, and whole-
house intelligence, which further unleashed the 
business potential of smart homes.
■ Industry-facing applications: Huawei used 
5.5G network technologies to support carriers 
in exploring and verifying digital and intelligent 
transformation in multiple sectors, such as 
manufacturing, mining, and transportation. In 2023, 
in the field of automobile manufacturing, Huawei 
worked with Chinese carriers to build flexible 
production lines based on 5.5G technologies, which 
reduced downtime in high-end core manufacturing 
processes and improved manufacturers' delivery 
capabilities. In the field of mining, Huawei helped 
a carrier build the world's first 5.5G smart mining 


2023 Annual Report
        25
pilot network with an uplink rate of 1 Gbit/s. This 
network implemented panoramic visualization and 
remote control of fully mechanized underground 
core mining operations, thereby improving the 
safety of mining. In the field of transportation, 
Huawei worked with carriers to complete the 
verification of the low-latency 5.5G IoV solution 
on the wide area network (WAN). The solution is 
expected to be put into commercial use in 2024, 
and estimates suggest that it will reduce urban 
traffic congestion by about 20%.
Enabling 10 Gigabit Smart Homes to Help 
Carriers Achieve FBB Business Success
According to third-party statistics, by the end of 2023, 
there were more than 200 million gigabit broadband 
users, and more than 50 carriers had released 
5-Gbit/s-or-higher packages. This was the perfect 
time to release 10 gigabit offerings. Drawing on 
our innovation capabilities in the optical broadband 
domain, Huawei helped carriers achieve fast coverage 
of 100 Mbit/s fiber to the home (FTTH), smooth 
upgrade to gigabit FTTH, and large-scale deployment 
of 10 gigabit smart homes, which led to business 
success in fixed broadband (FBB).
■ For 100 Mbit/s coverage, Huawei used the central 
office (CO) + AirPON all-scenario solution to 
effectively reuse existing resources, implement fast 
network construction at low costs, reduce carbon 
emissions, and provide users with a high-quality 
network access experience. Currently, this solution 
has been deployed at scale in multiple countries 
and regions around the world.
■ For upgrades to gigabit, Huawei provided the 
gigabit access solution to facilitate a smooth 
evolution to gigabit services. This solution has been 
used by many carriers around the world to improve 
user experiences and achieve stable ARPU growth.
■ For 10 gigabit smart homes, Huawei leveraged 
the FTTR F30 solution's new capabilities such as 
whole-house coverage and beyond-gigabit to solve 
problems in indoor Wi-Fi coverage. In markets 
outside China, Huawei helped carriers explore 
opportunities to monetize new services, such as 
ultra-fast cloud-based network-attached storage 
(NAS) and gaming, as well as smart care. As a 
result, carriers were able to attract new users and 
increase the ARPU of home broadband services.
Building Converged Bearer Networks with the 
Best Experience to Facilitate 5G Business Success
New scenarios, such as 10 Gbit/s access and 
enterprises' digital and intelligent transformation, 
require bearer networks with higher bandwidth, lower 
latency, and higher reliability. Huawei helped carriers 
build congestion-free, low-latency, scalable, and highly 
reliable bearer networks. These networks facilitate the 
development of emerging services and help carriers 
achieve business success with 5G.
■ In the all-optical domain, Huawei helped carriers 
build ubiquitous all-optical foundations with 
solutions such as optical cross-connect (OXC) and 
Alps-WDM. Globally, Huawei's Alps-WDM solution 
helped carriers increase deployment efficiency, 
lower overall costs, and streamline the O&M of 
Huawei and a Chinese carrier were 
among the first to deploy a 5.5G 10 
gigabit network and quickly incubate 
new businesses and ecosystems.


26       Huawei Investment & Holding Co., Ltd.
optical cables. In China, we have helped carriers 
build more than 60 all-optical cities, and these 
have consolidated the network foundation for 
developing the digital and intelligent economy.
■ In the data communication domain, Huawei's 
NetEngine series routers, which feature large 
capacity, tight integration, ultra-high stability, 
and high energy efficiency, have been deployed 
by many carriers around the world to help them 
build converged bearer networks oriented to all 
services. In addition, carriers used the routers' 
new capabilities such as network slicing to ensure 
user experiences and improve user satisfaction. 
In addition, Huawei's Network Digital Map 
Solution enables multi-dimensional visualization, 
management, and optimization of networks, 
and this improves network O&M efficiency and 
accelerates network resource monetization.
■ In the IP+optical converged bearer domain, to 
help carriers resolve cross-domain O&M difficulties, 
Huawei used the iMaster NCE-Super solution to 
implement end-to-end IP+optical orchestration 
and unified cross-domain management. This 
solution covers network planning, construction, 
maintenance, and optimization, and offers benefits 
such as visualized O&M, improved network 
orchestration efficiency, and significantly lower 
OPEX.
Inspiring New Growth with XtoB
In 2023, Huawei helped carriers around the world 
focus on sectors such as government services, 
education, healthcare, industrial, finance, and 
small- and medium-sized enterprises (SMEs). By 
taking differentiated measures such as enhancing 
connectivity, diving deep into campus scenarios, 
and developing cloud services, Huawei has helped 
address the challenges faced by numerous industries, 
including diverse scenarios, complex requirements, 
difficult maintenance, and multiple risks. Together, we 
helped enterprises make progress on their digital and 
intelligent transformation and achieve new business 
growth.
■ Enhancing connectivity – Maximizing network 
monetization through differentiated private 
line solutions: Different enterprises have different 
requirements on private line services, such as 
reliability, latency, and service provisioning speed. 
In markets outside China, Huawei helped carriers 
deploy premium international private lines to 
connect multiple adjacent countries in the region, 
build international latency circles of 3, 6, and 9 ms, 
provision services about 50% faster, and enable 
the digital and intelligent transformation of large 
enterprises in the region. Huawei's innovative 
secure software-defined wide area network (SD-
WAN) solution helped configure networks in 
minutes, made them capable of self-healing in 
seconds, and made them over 30% more secure.
■ Diving deep into campus scenarios – Opening 
up new campus spaces with scenario-based 
services: Enterprises in the production and 
manufacturing sector have requirements for co-
existing services such as keeping their core data 
within their campuses while using cloud-based 
office services. In China, Huawei helped carriers 
provide one-stop services including campus 
networking and edge IT, so that manufacturing 
enterprises could store their core design data 
assets securely on campus while enjoying remote 
offices on the cloud. The one-stop services 
improved productivity by more than 20% and 
reduced the TCO by about 50%. Campus scenarios 
such as education, healthcare, culture and tourism, 
and sports usually face challenges such as the 
coexistence of multiple networks and complex 
delivery. In markets outside China, Huawei worked 
with a carrier to provide a campus network 
solution that integrates 5G, Wi-Fi, optical fibers, 
and IoT technologies for stadiums. This solution 
improved the campus network delivery efficiency by 
more than 30% and more than tripled the carrier's 
revenue.
■ Developing cloud services – Providing one-stop 
value-added cloud services to improve service 
stickiness: Based on the extensive enterprise 
broadband networks, carriers leveraged the strong 
capabilities of Huawei's localized service teams 
to provide scenario-based and standardized one-
stop cloud network services for SMEs and the 
commercial market to solve problems such as 
numerous scenarios and difficult maintenance. 
In China, Huawei helped carriers release value-
added cloud services for the commercial market 
such as small office and home office (SOHO), and 
these services doubled the ARPU and increased 
the proportion of first-time users to 60% of all 
new package users in one year. For chain retail 
enterprises in markets outside China, Huawei 
provided carriers with the Easy Branch solution. 
This integrated solution is designed for the multi-


2023 Annual Report
        27
branch scenario. It integrates a smart retail 
solution from Huawei Cloud and an electronic price 
tag solution from a third-party partner, and helps 
carriers increase their cloud service revenue.
Enabling Pervasive Intelligence to Lead 
the Way to an Intelligent World
Intelligence will greatly improve user experiences and 
energy efficiency for the telecom industry. In 2023, 
through non-stop innovation, Huawei provided carriers 
around the world with intelligent, efficient, and secure 
data storage products and solutions; helped carriers 
build DC-centric, agile, lossless, and elastic networks; 
and offered carriers one-stop, cloud-based application 
delivery solutions and Autonomous Driving Network 
(ADN) solutions, in order to continue to facilitate 
carriers' digital and intelligent transformation and 
accelerate our journey towards an intelligent world.
Enabling Carriers to Unleash Data Potential with 
Intelligent Data Infrastructure
Huawei provides the OneStorage 2.0 storage data 
lake solution. The solution realizes the transformation 
from device management to data management. It uses 
an innovative global file system (GFS) to implement 
visible, manageable, and flexibly flowing data, and 
helps carriers manage data elements as assets to 
unleash the value of data. By the end of 2023, Huawei 
had provided intelligent, efficient, and secure data 
storage products and solutions for many carriers.
■ In China, carriers' intelligent computing centers 
have hybrid load requirements for data training 
in AI scenarios. Huawei provided an innovative 
storage solution to upload massive amounts of 
training data much more efficiently.
■ In markets outside China, Huawei provided a 
state-of-the-art active-active storage solution 
featuring reliable network-attached storage (NAS). 
The solution ensures that enterprise resource 
planning (ERP) analysis reports run smoothly and 
improves system speeds by about 50%, to meet 
carriers' requirements for accelerated and stable 
core systems on the IT cloud. To meet carriers' 
requirements for developing 4K HD video services, 
Huawei provided a distributed storage solution for 
videos. This solution takes up 66% less equipment 
room space and reduces the energy consumption 
of data storage infrastructure by 12%. To meet 
carriers' constantly increasing requirements for 
backing up live-network core service data, such 
as billing data, Huawei provided a backup storage 
solution which builds a unified backup pool to 
make backup 50% faster.
Enabling Intelligent Networks with ADN
Building intelligent networks is an important strategy 
for carriers. 91% of carriers worldwide have 
incorporated automation into their corporate strategies 
and are aiming to reach Level 3 Autonomous 
Networks or above by 2025. By the end of 2023, 47 
leading enterprises around the world had signed the 
Autonomous Networks Manifesto. Huawei uses its 
own ADN technology to help carriers improve network 
intelligence and accelerate the evolution toward highly 
autonomous networks.
■ In China, Huawei worked with carriers to focus 
on increasing quality, revenue, efficiency, 
environmental sustainability, stability, and 
simplicity. Huawei has actively explored 
foundational technologies such as telecom 
foundation models and native intelligence for 
network elements (NEs), and implemented more 
than 10 technological innovations to evolve toward 
Level 4 Autonomous Networks.
■ In markets outside China, Huawei has helped 
carriers deploy over 70 ADN applications, such 
as network energy saving, user experience 
assurance, intelligent troubleshooting, high-
value customer exploration, and agile service 
provisioning. The iPowerStar solution has reduced 
power consumption for wireless networks. The 
intelligent Fault Management (iFM) solution has 
helped multiple carriers improve troubleshooting 
efficiency by 80%. The cell outage detection and 
compensation (CODC) solution has enabled base 
stations to automatically compensate for signals 
in poor weather conditions, ensuring uninterrupted 
network connectivity and improving customer 
satisfaction.
Enabling Carriers' Digital and Intelligent 
Transformation with Huawei Cloud Stack
In 2023, Huawei Cloud provided a distributed cloud 
foundation for global carrier customers on Huawei 
Cloud Stack. With its flexible deployment modes and 
business models, Huawei Cloud Stack helped carriers 
accelerate innovation in key internal IT applications, 
consumer-/home-/business-facing services, and 
intelligent services and increase revenue.


28       Huawei Investment & Holding Co., Ltd.
■ Accelerating carriers' migration of key internal 
IT applications to the cloud: In markets outside 
China, carriers have used Huawei's full-stack, one-
stop delivery services to smoothly migrate their 
core business systems, such as the billing system, 
to Huawei Cloud. Since then, they have been able 
to add advanced capabilities such as cloud-native 
services and big data to their systems, and realize 
their strategy of 100% internal applications on 
the cloud. By doing this, they greatly improved 
operational efficiency, and were able to roll out 
new services more than 30% faster.
■ Helping carriers increase the revenue from 
consumer-/home-/business-facing services: 
Carriers in markets outside China used the 
ecosystem capabilities of Huawei Cloud's 
KooGallery to quickly replicate more than 120 
services through software as a service (SaaS) 
applications, including digital government, smart 
education, and smart agriculture. In this way, 
carriers have helped accelerate the digital and 
intelligent transformation of numerous industries 
and have increased the revenue from consumer-/
home-/business-facing services.
■ Facilitating carriers' innovation: In China, 
Huawei has helped carriers innovate in fields such 
as operation, customer service, and R&D to improve 
user experiences. These innovations include smart 
assistants for cloud drives and gesture-based 
interactions on cloud phones. As a result, carriers 
were able to attract more than 10 million new 
users each year and increase the dataflow of usage 
(DOU) by more than 30%.
Enabling New Momentum in the AI Era with DC-
centric Efficient Networks
Huawei helped carriers build DC-centric, agile, lossless, 
and elastic networks to meet industries' requirements 
for large computing power and large transport power 
and to help them stay competitive in the intelligent era.
■ Within data centers, Huawei used its brand-
new CloudEngine series switches and autonomous 
driving capabilities to provide customers with a 
hyper-converged data center network solution that 
helped carriers seize new opportunities presented 
by enterprise cloudification and computing power 
rental. The innovative network-scale load balancing 
(NSLB) algorithm nearly doubled network 
throughput and improved training efficiency by 
about 20% with the same number of servers.
■ Between data centers, Huawei's elastic DCI 
solution provides customers with agile transport 
power services based on the all-optical foundation, 
intelligent elephant flow identification, and precise 
scheduling of tens of millions of flows, thereby 
improving network resource utilization from 40% 
to about 60%. One carrier has used this solution 
to transmit 500 TB of media materials to the 
data center for a film and television production 
company. Compared with the traditional solution, 
Huawei's solution shortened the transmission time 
from two weeks to just one day, and as such was 
able to meet user requirements for differentiated 
timeliness services of TB-level data.
Facilitating Digital and Intelligent 
Transformation to Enable New Growth
In 2023, Huawei set carrier transformation benchmarks 
for revenue increase from digital and intelligent 
transformation services, upgrades to O&M models 
for digital and intelligent transformation, and green 
and simplified infrastructure deployment. In addition, 
Huawei worked with carriers to unveil seven showcases 
in digital and intelligent transformation in O&M. These 
initiatives helped carriers accelerate their digital and 
intelligent transformation and create greater business 
value.
Tapping into the Potential of Innovative Digital 
Services to Increase Revenue
In 2023, Huawei launched the Mobile Money solution 
to help carriers improve the conversion rate of high-
value users and accelerate the development of 
Micro Finance services. Huawei also launched the 
intelligent cloud customer service center based on 
converged data, and this has effectively improved 
user experiences in customer services and driven new 
revenue growth in carriers' business-facing services. 
In addition, Huawei launched the convergent billing 
solution, which uses intelligent technologies to help 
carriers monetize digital services more efficiently.
■ In markets outside China, an auxiliary operation 
solution enabled by converged data rapidly 
converted about 57% telecom users into Mobile 
Money users and helped carriers develop more 
than 3 million Micro Finance users in two years. 
The convergent billing solution enabled a carrier to 
integrate multiple billing systems into one, which 
facilitated the launch of new converged marketing 
products within days. The number of new users 
increased six-fold in the first month after the 
product's launch.


2023 Annual Report
        29
■ In China, Huawei helped carriers expand the 
business-facing service market using the intelligent 
cloud customer service center solution. This 
solution provided omni-channel, intelligent 
professional services for multiple industries such as 
government services, finance, retail, transportation, 
manufacturing, and energy, and helped carriers 
substantially increase their revenue.
Upgrading O&M Models to Enable Service 
Development and Experience Improvement
Carriers are leveraging converged data and foundation 
models to transform their O&M models from being 
network-centric to being service-centric. In 2023, 
Huawei built an intelligent operation engine based on 
SmartCare. By converging the data from the operations 
support system (OSS), business support system (BSS), 
and third-party public sources, the engine helped 
carriers optimize end user experiences and their 
network net promoter scores (NPS) and enabled service 
development. By the end of 2023, Huawei's digital and 
intelligent transformation solution for O&M had been 
applied in more than 200 projects around the world, 
continuously helping carriers achieve business growth.
■ In markets outside China, Huawei's comprehensive 
digital and intelligent transformation solution 
for O&M, which features the collaboration 
of SmartCare, intelligent O&M, and network 
optimization, increased network traffic by about 
8%, improved customer-experienced rates by 
about 40%, and shortened the mean time to repair 
(MTTR) by about 40%. In addition, the SmartCare-
based intelligent operation engine helped carriers 
develop Mobile Money users, increasing the 
conversion rate of high-value users more than 
tenfold.
■ In China, our customers used Huawei's network 
satisfaction modeling for end-to-end mobile 
network problem demarcation, location, 
rectification, and result evaluation to proactively 
manage network satisfaction problems and improve 
satisfaction rates.
Injecting Momentum into Infrastructure with 
Green Development
In 2023, Huawei provided a three-layer solution 
encompassing green sites, green networks, and green 
operations to systematically improve network energy 
efficiency and help carriers achieve More Bits, Less 
Watts. We helped carriers build simplified, efficient, 
intelligent, and low-carbon target networks. We 
worked together to apply this solution first to sites and 
then to networks, and we optimized target networks 
first in individual domains and then on a systematic 
basis. Huawei helped customers build new green data 
centers that anticipate the exponential growth of 
computing power in the future. 
■ In markets outside China, Huawei worked with 
carriers to digitally reconstruct the power systems 
of base stations using an intelligent optimization 
solution that coordinates the main equipment and 
auxiliary equipment. This greatly improved the 
stability and efficiency of the power supply for base 
stations. The power availability (PAV) increased to 
99%, and the network traffic increased by more 
than 50%, which helped carriers increase revenue. 
Huawei also worked with carriers to successfully 
deploy 5G zero-carbon sites. Powered by solar 
power systems and lithium batteries, the sites are 
managed in real time by an intelligent network 
management system (NMS) which visualizes site 
energy efficiency (SEE) and helps significantly 
reduce annual carbon emissions.
■ In 2023, Huawei released a full series of green data 
center solutions, including the hybrid architecture 
for air and liquid cooling and the converged 
power supply system. These solutions helped 
carriers deploy green data centers featuring high 
power density, the lowest possible power usage 
effectiveness (PUE), high reliability, and the ability 
to provide general and intelligent computing 
power. In China, carriers used our solutions to build 
efficient and reliable cloud data centers with high 
power density and diversified computing power. Our 
cabinets provide about 30% more capacity, which 
means there is more space for IT and this maximizes 
business value. Our efficient, energy-saving cooling 
systems help to reduce the annual PUE.
Staying Customer-centric and Providing 
Carriers with Services That Have a Positive 
Impact
In 2023, Huawei stayed customer-centric and provided 
our carrier customers with services that have a 
positive impact on the environment, society, and 
business. Huawei is proud to be the most trusted 
partner of carriers worldwide, and has continued 
to build a comprehensive service system of experts, 
talent, partners, platforms, and processes, while also 
continuing to create value for customers. Together, we 
are working tirelessly towards the goal of building a 
fully connected, intelligent world.


30       Huawei Investment & Holding Co., Ltd.
■ Huawei continued to explore delivery modes 
that leverage digital and intelligent technologies, 
and built delivery capabilities suited to diverse 
scenarios. Our exploration and practices helped 
carriers efficiently build high-quality, green, 
simplified, resilient, and reliable ICT infrastructure 
to facilitate digital and intelligent transformation.
■ Huawei worked with carriers to ensure the stable 
running of more than 1,500 networks around the 
world. Our stable and reliable communication 
assurance services have enabled users to enjoy 
high-quality networks at over 200 sports events 
and major activities. We worked side by side with 
our customers to overcome challenges during 
disaster relief efforts. Our agile and professional 
services helped to quickly recover network 
communication and reduce losses.
■ Huawei helped carriers provide network services 
of high quality and exceptional experience. 
According to tests run by third-party authoritative 
institutions, carriers who used the products and 
network optimization services provided by Huawei 
ranked top in terms of network quality and user 
experience.
Enterprise Market
A new chapter in intelligent transformation is unfolding. And so, Huawei is working with customers and partners 
around the world to deeply integrate ICT with industry scenarios and spearhead the kind of innovation in ICT 
infrastructure that will drive digital and intelligent transformation and support a vast range of AI models and 
applications for all industries. Together, we are helping all industries go intelligent, and helping them do it faster.
Driven by customer scenarios and technological 
innovation, and always starting from top-level 
design, we focus on creating value for customers and 
guiding them throughout their digital and intelligent 
transformation journey. These efforts cover numerous 
sectors such as smart cities, finance, transportation, 
energy, manufacturing, education, healthcare, and 
Internet services. Based on our extensive experience 
in industrial intelligence, we have released a reference 
architecture that will drive industrial intelligent 
transformation, as well as a number of related 
solutions and a white paper titled Accelerating 
Intelligent Transformation, which offer practical advice 
and references that help industries make the most of 
intelligence.
We are committed to strengthening the breadth and 
depth of our strategy and have increased investment 
in the small- and medium-sized enterprise (SME) 
market. We have continued to optimize our "partner 
+ Huawei" sales and service system and develop 
marketable products and solutions. In addition, we 
have launched HUAWEI eKit, a sub-brand dedicated 
to SMEs and micro enterprises, to better meet their 
requirements for digital and intelligent transformation.
A thriving and sustainable ecosystem is crucial for 
digital and intelligent transformation across industries. 
As such, we team up with partners to build a healthy 
ecosystem that advocates open collaboration for 
shared success, and grow with partners with shared 
benefits as the bridge, integrity as the foundation, and 
rules as the guarantee. We have developed more than 
40,000 partners worldwide to help customers achieve 
business success.
A Wealth of Experience in Helping 
Governments and Enterprises Go Digital 
and Intelligent
Smart Cities
Huawei released the Architecture for Intelligent 
Transformation of Public Services in order to 
accelerate the intelligent transformation of public 
services to drive a cognitive society. We support the 
digital and intelligent transformation of government 
services, more efficient public services, and innovation 
in scientific research and help governments and public 
service customers around the world go intelligent, 
making public services fairer and more inclusive. We 
currently serve over 700 cities across more than 100 
countries and regions.
We use "City Intelligent Twins" and a universal 
reference architecture and integrate multiple 
technologies to build new infrastructure that can 
act as the digital foundation for cities. We enable 
service innovation and work alongside partners to 
develop tailored solutions that significantly expand 


2023 Annual Report
        31
the adoption of digital and intelligent technologies 
in public services. Focusing on the goals of ensuring 
high-quality and intelligent government services 
and improving service handling efficiency, we 
released foundation models for government services, 
government office applications, and city governance. 
We also continued to optimize our One-Stop Public 
Services Solution and Intelligent City Governance 
Solution. These models and solutions have significantly 
enhanced government service efficiency.
We have worked with customers and partners to build 
"City Intelligent Twins" and accelerate the intelligent 
transformation of cities. By the end of 2023, our "City 
Intelligent Twins" solutions had been implemented in 
more than 220 urban districts and cities across China 
as well as a number of cities outside China, creating 
people-friendly cities that can sense, think, and evolve.
Finance
Huawei jointly innovates and openly collaborates with 
financial institutions and partners, serving over 3,300 
financial customers from more than 60 countries and 
regions.
■ In the infrastructure domain, we help financial 
institutions build digital infrastructure that is 
highly stable, resilient, elastic, and agile by 
integrating multiple innovative technologies, thus 
comprehensively improving user experience, system 
resilience, and service security.
■ We have delved deep into architecture 
transformation by releasing our Financial PaaS 
and fully upgrading the Digital CORE Solution 3.0, 
supporting the application modernization of more 
than 150 financial customers around the world.
■ We released the Finance Foundation Model 
Solution and launched an upgraded version of 
the Financial Data Intelligence Solution 3.0. With 
these solutions, we have built enterprise-level data 
intelligence platforms for more than 200 financial 
institutions, making their decision-making and 
operations systems more intelligent.
■ Our financial warehouse solution for inventory 
financing enables industrial finance innovation and 
drives growth of the real economy.
■ We have stayed focused on the securities and 
insurance domains. Our next-generation core 
transaction solution for securities helps modernize 
core transaction systems, serving more than 10 
stock exchanges and 100 securities traders around 
the world. We are also working with insurance 
customers to build their digital foundations.
Transportation
Huawei has continued to build its in-depth 
understanding of the transportation industry. We 
currently adopt an innovation-driven approach based 
on customer needs that focuses on transportation hubs 
and networks, as well as movement of passengers and 
goods to build a digital and intelligent foundation for 
comprehensive transportation and logistics systems. 
These are intended to support secure and efficient 
operations of both supply chains and value chains.
We work with partners to develop scenario-based 
solutions that create value for customers, facilitate 
smooth mobility and logistics, and help customers 
succeed through digital and intelligent transformation. 
We currently serve over 210 airports, airlines, and 
air traffic management authorities, more than 300 
urban rail lines across over 70 cities, over 150,000 
km of railways, a road network covering more 
than 200,000 km, and over 100 waterway and port 
customers. We help these customers continuously 
improve their transportation capabilities, supporting 
the transportation economy and ensuring digital 
transportation solutions remain secure.
Urban transportation and roads:
■ We worked with customers to build an Intelligent 
Transportation System (ITS) that has continuously 
improved the management of urban traffic, 
improving overall traffic efficiency by 15%.
■ We built a comprehensive transportation big data 
system along with a new management, control, 
and service model for integrated transportation.
■ We expanded the adoption of intelligent 
technology in emergency response services related 
to in-service roads, reconstruction and expansion of 
roads, and toll systems to improve the safety and 
efficiency of the road network.
■ We also built digital and intelligent platforms and 
conducted converged data governance to maximize 
data value and boost the transportation economy.
Urban rails and railways:
In 2023, we worked with customers and partners to 
expand the adoption of ICT in rail transportation, 


32       Huawei Investment & Holding Co., Ltd.
aiming to build a secure and reliable digital and 
intelligent foundation which would further improve 
O&M efficiency.
■ We launched the Urban Rail Cloud 3.0 solution 
which can help build fully connected urban rail 
networks that are secure, reliable, and simplified.
■ We launched the Future Railway Mobile 
Communication System (FRMCS) solution that 
helps railway customers build high-reliability, high-
bandwidth, and future-oriented train-to-ground 
wireless broadband networks.
■ Our Smart Railway Trouble of moving Freight 
car Detection System (TFDS) Solution triples the 
operational efficiency of manual operations and 
has a comprehensive fault identification rate 
exceeding 99.3%.
■ We also launched the Smart Railway – Perimeter 
Detection Solution to improve the security of 
railway assets and operations.
Aviation:
■ We developed an Airport Cloud Solution that offers 
high-performance computing power and an open 
intelligent platform to support the secure migration 
of core airport services to the cloud.
■ We also developed the Perimeter Security with 
Fiber Sensing Solution for smart airports. This 
solution guarantees full coverage over long 
distances, increases the optical fiber signal 
collection rate to 99.9%, and reduces false alarms 
by approximately 90%, ensuring 24/7 operational 
safety for airports.
Waterways and ports:
■ We worked with customers to build multi-level 
port operations management platforms that enable 
digital, centralized, and cloud-based management 
of ports.
■ Our Smart Gate Solution for smart customs 
leverages Huawei's products and services that 
offer powerful computing and low latency and 
support unified O&M. The solution slashes the 
average vehicle processing time at gates from 15 
minutes to 10 seconds, significantly reducing port 
congestion during peak seasons.
■ Our logistics cloud solution works together with 
customers' campus management solutions to 
improve logistics service experiences.
Energy
Electric power: 
Huawei combines ICT with industry best practices and 
digital platforms for electric power scenarios. We have 
worked with partners to provide digital and intelligent 
solutions and services to nearly 200 power companies 
based on our Spark architecture, helping them move 
towards secure, efficient, green, and sustainable 
development.
Our foundation model for electric power has been 
successfully adopted in multiple scenarios, and our 
intelligent substation inspection solution has been 
put into use, successfully eliminating data silos and 
supporting real-time intelligent O&M.
■ Our electric power communication network solution 
integrates the main communication network and 
power distribution communication network to build 
a scenario-based target communication network 
for customers, which delivers 99.9999% reliability 
and supports 1 ms latency in urban areas.
■ We helped customers deploy more than 1,000 
substations in China with our solutions like secure 
Grid Wireless LAN, field operations management, 
and edge intelligence, enabling a 60% jump in 
O&M efficiency.
■ Our Intelligent Distribution Solution (IDS) helps 
customers enhance transparent sensing in 
distribution transformer districts and reduce the 
average outage duration by 42% and line loss 
by 1.4%, enabling a transition from single-point 
digitalization to architecture-based digital and 
intelligent transformation that is open, evolvable, 
and systematic.
■ We worked with power companies to explore 
a new model of one fiber for multiple services, 
helping one customer expand its home broadband 
user base by 150%.
■ An industrial park project that adopted Huawei's 
intelligent net-zero carbon campus solution won 
the 2023 Energy Globe World Award.


2023 Annual Report
        33
Mining:
Huawei has worked with customers and partners 
in the mining, smelting, and chemical industries 
to accelerate the realization of secure, green, and 
efficient operations.
■ Our Pangu Mine Model now supports more than 
40 application scenarios across nine specialized 
domains.
■ We helped a steel company implement the world's 
first AI foundation model in the steel industry, 
which will soon support the implementation of 42 
models targeting 21 scenarios.
■ We worked with customers and partners to develop 
innovative applications for MineHarmony to rapidly 
drive the large-scale adoption of MineHarmony-
powered equipment.
■ Our remote control and autonomous driving 
solutions for open-pit mines have reduced the 
number of on-site workers by 80%.
■ Our low-frequency 5.5G solution customized for 
mining was commercially deployed for the first 
time in 2023, supporting intelligent applications in 
five mining scenarios (i.e., transportation, mining, 
excavation, auxiliary transport, and power supply & 
drainage).
■ We developed the Edge Intelligence Cloud (EIC) 
and Huawei Metaworks Digital Twin Platform 
in order to build next-generation integrated 
management and control platforms for mining.
Oil & gas:
Huawei launched an intelligent architecture for oil and 
gas, providing a new methodology for the industry's 
intelligent transformation.
■ Exploration and development: We helped customers 
develop well logging foundation models to boost 
assessment efficiency and accuracy.
■ Production: We launched the Intelligent Oil and 
Gas Fields Solution that covers wellsites and 
facilities to drive the optimization of oil and gas 
production and management.
■ Storage and transportation: Our pipeline 
monitoring and warning solution provides warnings 
and prevents oil theft through the drilling of holes. 
This solution identifies different types of intrusions 
with an accuracy of over 95%, providing enhanced 
protection for oil and gas pipelines.
■ Refinery: Our smart refining solution has helped 
customers build fully-connected 5G factories, 
improving product shipping and transportation 
efficiency by 30%, increasing the effectiveness of 
security risk management by 18%, and reducing 
carbon emissions and energy consumption by 15%.
Manufacturing, Retail, Real Estate, and Other 
Related Domains
Huawei leverages its own experience in digital and 
intelligent transformation and works with partners to 
support customers in manufacturing, retail, real estate, 
and other sectors as they continue their transformation 
journeys. Our solutions have been implemented by 
over 8,000 manufacturers and in numerous other 
domains like retail and real estate.
■ Manufacturing R&D design: Huawei's R&D digital 
platform solution supports the end-to-end R&D 
process from defining product requirements to 
releasing products, helping carmakers, electronics 
companies, and many other companies boost 
product development efficiency.
■ Manufacturing production: Our Intelligent Factory 
Solution architecture streamlines engineering 
data flows, business information flows, and 
production process flows. We also work with 
partners to implement intelligent applications such 
as advanced production scheduling, quality issue 
tracing, and digital twins, which support production 
model transformation, productivity improvement, 
and green and sustainable development.
■ Retail: We have worked with our partners to 
develop a digital platform solution for sales. 
Based on the cloud-edge synergy model between 
Huawei's retail cloud and smart retail stores, the 
solution helps companies reduce construction costs, 
improve the operating efficiency and service quality 
at stores, and increase consumer satisfaction.
■ Construction and real estate: We have worked 
with customers and partners to develop solutions 
for multiple scenarios like intelligent construction 
and intelligent buildings, in order to drive the 
intelligent, efficient, green, and low-carbon 
development of the construction industry.


34       Huawei Investment & Holding Co., Ltd.
Education
Huawei applies ICT to education to bridge the digital 
divide, drive equity in education, cultivate high-
quality talent for universities and vocational schools, 
and accelerate innovation in teaching and scientific 
research. To date, we have served more than 5,000 
education ministries, administrative organizations at all 
levels, colleges and universities, and research institutes 
in over 120 countries and regions.
■ In higher education, we help universities build 
smart campuses and cultivate ICT talent for 
the future intelligent world. We are also driving 
industry-academia collaboration to bring research 
and application closer together. By the end of 
2023, more than 40 of the QS World University 
Rankings' top 100 universities had chosen Huawei 
as their partner for intelligent transformation.
■ In primary and secondary education, our solutions 
for high-speed inter-school network, education 
cloud platform, and smart classroom are helping 
drive equity and accessibility in education.
Healthcare
Huawei's intelligent healthcare solutions have served 
more than 5,000 medical institutions in over 110 
countries and regions.
■ In China, Huawei is contributing to digital and 
intelligent healthcare by participating in the 
construction of national health information 
platforms. Our solutions have been used in 
more than 600 telemedicine platforms as well as 
healthcare security information platforms at the 
national, provincial, and city levels and served more 
than 1,800 tertiary hospitals. Huawei has served 
97 of the top 100 hospitals on the 2022 China 
Hospital Rankings list released by the Hospital 
Management Institute of Fudan University.
■ In regions outside China, Huawei is helping 
healthcare customers consolidate the foundation 
of digital transformation and drive universal 
healthcare access. We also support efficient and 
stable 24/7 operations for hospital core service 
systems and protect medical data throughout its 
lifecycle.
Internet Services
Huawei is committed to creating innovative technical 
solutions that make the most of our vast portfolio to 
provide Internet service providers (ISPs) and Internet 
companies with leading products, solutions, and 
services. To date, we have served more than 5,900 ISPs 
and Internet companies from more than 100 countries 
and regions, helping them build 10 gigabit, service-
oriented, and intelligent ICT infrastructure.
■ Home broadband: We have a full portfolio of 
home broadband products and solutions that 
help ISPs build elastic ultra-broadband networks 
capable of delivering superior service experiences 
and supporting intelligent operations. These 
offerings include solutions for gigabit fiber to the 
room, intelligent and simplified metropolitan area 
networks (MANs), and ultra-broadband backbone 
networks.
■ Hosting services: Our network hosting and data 
center infrastructure hosting solutions help 
managed service providers (MSPs) build efficient, 
intelligent, and secure hosting service platforms for 
business success.
■ Internet content services: Our solutions, like 
data center multi-architecture computing and 
ultra-broadband network, support collaborative 
innovation with Internet public clouds to help 
e-commerce, video, and other customers achieve 
service agility and rapidly expand their business.
Intelligent Campus
Huawei's portfolio solutions for intelligent campuses 
pre-integrate ICT technologies for campus scenarios 
to support industry digitalization. Together with our 
partners, we have used these solutions to serve more 
than 1,000 customers across various sectors, including 
government, education, healthcare, manufacturing, 
and stadiums, helping them build efficient, green, and 
convenient digital campuses.
In 2023, Huawei was named a leader in China's 
intelligent campus solution market by IDC 
MarketScape, thanks to its leading technology and 
architecture, full-lifecycle services, comprehensive 
ecosystem, large-scale commercial practices, and 
overwhelming influence on the industry. Other 
standout projects in 2023 included:
■ In China, we worked with partners to help one 
large stadium go intelligent. We interconnected 
more than 40 of the stadium's subsystems and 
18,000 of its device locations to provide first-
class communications and security assurance, 
service and spectating experiences, and operations 
management for the stadium.


2023 Annual Report
        35
■ In regions outside China, we worked with partners 
to build intelligent campuses for manufacturing 
companies by providing end-to-end campus 
portfolio solutions. For example, we helped 
customers build ICT infrastructure for campus 
management systems, access management systems, 
and campus networks that could be used to 
effectively manage the security of key assets, such 
as substations and pumping stations, and meet 
future business development needs.
Data Centers
Huawei has launched a series of portfolio solutions 
for scenarios like Centralized Cloud-DC, MultiDC, and 
LightDC to serve more than 300 customers in finance, 
government, and other sectors. These solutions will 
help build new green data centers that are more 
intelligent, more efficient, and more reliable.
We released the industry's first multilayer ransomware 
protection (MRP) solution based on network-storage 
collaboration to make data centers more secure and 
reliable.
The High Performance Database Solution (HDBS) 
provides another database option for customers' 
critical systems to support their business innovation. 
This year, we also worked with industry partners and 
customers to release the White Paper on Database 
Transformation of Open Financial Platforms which 
details the future trends we expect to see in the 
financial database sector.
We also released the Data Center 2030 report, which 
proposes a reference architecture for new data centers 
that will drive the innovation and development of data 
centers worldwide.
Digital Sites
Huawei has developed a series of portfolio solutions 
for digital sites such as Digital Pole Site and Digital 
Pipeline to address customer needs like long-
distance accurate sensing, intensive deployment of IoT 
networks, and edge intelligence. These solutions are 
leading the digital and intelligent transformation of 
outfield infrastructure.
■ In intelligent highway and urban transportation 
scenarios, our Radar- and Video-based 
Management Pole Site Portfolio Solution supports 
travel safety by enabling long-distance sensing that 
is up to 95% accurate at 1,000 meters.
■ In airport perimeter, railway protection, and oil and 
gas pipeline inspection scenarios, our Perimeter 
Protection Site Portfolio Solution improves security 
by supporting multi-dimensional sensing and 
accurate protection and has proven to reduce 
safety incident response times by 30%.
WANs
Huawei has developed WAN solutions for customers 
in multiple sectors including government, finance, 
manufacturing, energy, transportation, and ISPs. These 
solutions help customers build high-quality and easy-
to-use networks.
We help government customers design the top-
level blueprint and target architecture of "One City, 
One Network" to unify top-level plans and evolution 
paths regarding city networks and support the 
collaborative development of digital government, 
digital economy, and digital society. We have also 
released a "One Enterprise, One Network" target 
architecture and solution for large enterprises to 
support the intensive construction and service-oriented 
operations of networks, accelerating enterprises' digital 
transformation.
Helping SMEs Go Digital and Intelligent
In 2023, we continued to increase our investment 
in the SME market. We adopted a partner-centric 
approach where we worked closely with partners 
to help SMEs accelerate their digital and intelligent 
transformation.
Commercial Market
In the commercial market, our partner-centric strategy 
focuses on continuously optimizing our partner 
sales and service systems so that we can provide 
comprehensive sales and delivery support to our 
partners. This makes it easier for them to use Huawei 
products and solutions to independently serve their 
customers. In addition, we have created IT platforms 
for these partners, such as the eFly app and the 
official website for partners, based on their business 
journeys, making it easier for partners to attract new 
customers and provide quality services to customers.
We have focused on building an effective partner-
led business model and helping SMEs rapidly go 
digital and intelligent by simplifying the integration, 
delivery, and O&M of our products and improving their 
cost effectiveness. In 2023, we customized a series 
of products and solutions for SMEs to better meet 
specific industry scenarios.


36       Huawei Investment & Holding Co., Ltd.
Distribution Business
In 2023, Huawei unveiled HUAWEI eKit, a sub-brand 
dedicated to SMEs and micro enterprises. This brand 
offers products designed for scenarios such as SME 
offices, budget hotels, and primary and secondary 
schools. Our HUAWEI eKit official website and 
HUAWEI eKit app provide a one-stop digital platform 
that supports the efficient operations of distribution 
partners.
Following the "distribution partner-led and 
subcontractor-centric" model, HUAWEI eKit has 
established a comprehensive distribution partner 
system and a healthy market and offers marketable 
products and portfolio solutions that are easy to 
buy, sell, install, maintain, learn, and use, as well as 
digital platforms and services. Through these actions, 
we aim to help our distribution partners tap into the 
unlimited business opportunities created by SMEs and 
micro enterprises going digital. Currently, Huawei's 
distribution business spans more than 70 countries and 
regions.
A Thriving, Symbiotic Partner Ecosystem 
and Global Service Capabilities
As always, Huawei works with our partners to 
consistently provide high-quality services to customers.
Partner Strategy
In the enterprise market, Huawei is committed to our 
long-term "Being Integrated" strategy, and adopts fair, 
just, transparent, and simple partner policies. We team 
up with partners to build a healthy ecosystem that 
advocates open collaboration for shared success, and 
grow with partners with shared benefits as the bridge, 
integrity as the foundation, and rules as the guarantee.
We have over 40,000 partners in the enterprise market, 
including more than 33,000 Acceleration Partners (i.e., 
Distributors, Resellers, Registered Sales Partners, and 
Distribution Partners) and more than 7,000 Association 
Partners (i.e., Consulting and Planning Partners, 
Solution Development Partners, Service Partners, and 
Business Operation Partners). Huawei and partners 
stay customer-centric and strive to co-build 
a customer-centric culture and mechanism. We aim 
to create a healthy business environment to grow 
together with partners and help customers succeed.
Huawei is committed to working with partners 
to develop leading industry solutions, integrating 
resources and complementing capabilities in the areas 
of market expansion, consulting and planning, solution 
development and integration, and delivery verification. 
As part of these efforts, we have opened 14 OpenLabs 
where we have collaborated to develop more than 200 
scenario-based solutions.
Enterprise Services
Huawei's customer-centric core value inspires us to 
constantly improve the customer experience. Currently 
we collaborate with over 6,600 service and operation 
partners to provide a global service system for our key 
accounts, the commercial market, and the distribution 
business. Together, we consistently provide high-
quality services to more than 56,000 customers 
worldwide, and support the secure and stable 
operation of over 120,000 customer networks. In 2023, 
we launched the online O3 Community through which 
we share our wealth of knowledge and experience with 
customers around the world. We have built a one-stop 
management platform for partners, to assist them with 
network operations and help them deliver world-class 
services to customers.
We will continue to increase our investment into 
services that drive digital and intelligent transformation 
across industries, improve our service capabilities, and 
develop ever more competitive service solutions, tools, 
and platforms. We aim to provide customers with 
a complete range of services for the entire solution 
lifecycle, from consulting, planning, design, and 
implementation to O&M support and optimization. In 
addition, we will continue to develop more training 
and certification services to cultivate more skilled 
professionals for industry digitalization and help 
accelerate industrial intelligent transformation.


2023 Annual Report
        37
Connectivity
As we stride towards an intelligent world, individuals, homes, and industries will raise unprecedented new 
requirements for connectivity. Individuals will need ubiquitous 10 Gbit/s connections for extended reality (XR), New 
Calling, and other emerging services. Homes will need 10 Gbit/s all-optical networks to support a growing range 
of smart services. As industries embrace digital and intelligent transformation, they will need a growing number 
of higher-quality connections, as well as differentiated experiences. At the same time, industries will raise new 
requirements for intelligent scheduling of computing power.
Wireless Network
■ Continuing to lead value creation in the 
wireless industry
– 5G is developing rapidly. By the end of 2023, 
more than 260 carriers were offering 5G 
services to more than 1.5 billon users in over 
90 countries and regions. It took nine years for 
4G to reach this number of users, but just five 
years for 5G to do the same.
– 5G continues to drive digital transformation 
in a variety of industries. By the end of 2023, 
more than 65,000 5G private network projects 
and over 50,000 5G industry applications had 
been deployed around the world.
– 5.5G is the next step of 5G evolution, and the 
industry has hailed the dawn of the 5.5G age. 
Evolving to 5.5G will benefit carriers because it 
will protect their existing investments in 5G and 
improve their network performance tenfold. 
New technologies, particularly passive IoT, will 
open up a new market of over 100 billion IoT 
connections, putting the industry on a path to 
realize a new development vision.
■ Full-series 5.5G products and solutions: 
Improving network capabilities tenfold, 
delivering optimal network efficiency, and 
enabling carriers' efficient and smooth 
evolution to 5.5G
– Huawei advocates "Native 10 Gbps", "Native 
Green", and "Native Intelligence". These are 
the key capabilities that carriers will need for 
multipath evolution to 5.5G across all available 
bands. Huawei's 5.5G GigaGreen full-series 
products and solutions can boost network 
performance tenfold through the use of state-
of-the-art integrated software and hardware 
technologies, particularly the "Native 10 Gbps" 
ultra-wideband and multi-antenna technologies.
– Huawei is committed to making 5.5G accessible 
in all scenarios. Our LampSite series solutions 
bring incredible 5.5G capabilities to indoor 
scenarios, addressing the needs of both 
consumer applications and a diverse range of 
industrial scenarios. In rural areas, our RuralLink 
solution eliminates the need for fiber cables 
and equipment rooms, providing ubiquitous 
coverage at an ultra-low cost and with minimal 
power consumption.
– Huawei has translated its systematic innovations 
into the "Native Green" capabilities to realize 
"0 Bit 0 Watt", where wireless networks can 
work around the clock with minimal power 
consumption.
– Huawei's IntelligentRAN enables carriers to 
upgrade to L4 autonomous networks that 
offer gains in cost reduction and efficiency 
improvement.
■ The world is ready for 5.5G: Global 
commercialization of 5.5G commences in 2024
– The characteristics of 5.5G have been defined: 
10 Gbit/s downlink, 1 Gbit/s uplink, 100 billion 
connections, and native intelligence. 5.5G is ten 
times more capable than 5G in multiple areas 
while also offering various new capabilities. 
As a result, 5.5G is ideal for better connecting 
people, homes, things, industries, and vehicles.
– The first commercial uses of 5.5G have already 
occurred outside China, and Huawei has been 
working with carriers to verify 5.5G's 10 Gbit/s 
capabilities and other key technologies (e.g., 
passive IoT) in commercial scenarios, in 
preparation for 5.5G commercialization in 2024.
Cloud Core Network
The large-scale commercial application of 5G gives 
rise to new services and scenarios, which in turn raise 
new requirements for networks. After more than 
two years of technological exploration, ecosystem 


38       Huawei Investment & Holding Co., Ltd.
building, and standardization, breakthroughs have 
been made in 5.5G intelligent core networks, including 
in key technologies for 10 Gbit/s experiences and 
native intelligence. 5.5G intelligent core networks can 
provide service intelligence, network intelligence, and 
O&M intelligence to create new business value for 
customers. Extensive verification is underway around 
the world.
■	 Service intelligence: New Calling is an innovation 
born from service intelligence and has been 
commercialized in China. An open network 
architecture can transform conventional audio 
and video communications, making ultra-HD, 
interactive, and intelligent calling a reality.
■ Network intelligence: An intelligent personalized 
experience solution can enable carriers to eliminate 
barriers to their experience-based operations, and 
better monetize services for which people expect 
differentiated experiences. Carriers can also provide 
ubiquitous 10 Gbit/s experiences by using high-
throughput user plane functions (UPFs).
■ O&M intelligence: Technologies like digital twin 
and foundation models are transforming O&M 
from a reactive approach, where engineers have 
to rely on disparate tools, to a more proactive 
approach, where engineers work more efficiently 
with intelligence. This transition makes delivery 
more agile and networks more resilient. Foundation 
models create multiple benefits for customers: 
They accelerate service rollout and guarantee 
operational security during network changes. 
They support digital employees that improve 
the efficiency and quality of O&M. In addition, 
foundation models can facilitate simulations to 
help customers identify network bottlenecks in 
advance and defend against signaling storms.
Optical
Huawei continues to innovate in optical transmission, 
optical access, enterprise optical networks, and many 
other areas. By cooperating with our customers, 
partners, and industry organizations, we are supporting 
the sustainable development of a green all-optical 
industry and turbocharging digital and intelligent 
transformation.
In November 2023, the European Telecommunications 
Standards Institute (ETSI) released F5G Advanced 
(F5G-A) standards. To address the needs of smart 
home and enterprise applications, Huawei has 
proposed a F5.5G all-optical target network 
architecture to provide 10 Gbit/s ultra-broadband. 
Huawei has also launched a range of technologies and 
products to bring F5.5G to life.
■ Optical transmission
In the age of intelligence, networks will need larger 
bandwidth, lower latency, and higher reliability 
than ever before. Huawei addresses these needs 
with Kepler, a DC-oriented OTN product. With the 
support of Kepler, a single subrack can deliver 
the required capacity to handle traffic surges. The 
product's innovative technology greatly increases 
network availability, reduces power consumption, 
and boosts network capacity and efficiency for 
better computing.
Huawei has partnered with multiple carriers 
to commercialize 400G for ultra-long-haul 
transmission and 800G for medium-to-long-haul 
transmission.
For the third consecutive year, GlobalData has 
ranked our OptiX OSN 9800 as the leader in 
its Core Packet-Optical Platform: Competitive 
Landscape Assessment and Metro Packet-Optical 
Transport: Competitive Landscape Assessment 
reports, and our OptiX OSN 1800 as the leader in 
its Packet-Optical Access: Competitive Landscape 
Assessment report.
■ Optical access
In response to new requirements for smart home 
connectivity, Huawei has upgraded its lineup of 
FTTR OptiXstar F30 products with enhancements in 
aesthetics, data rates, coverage, roaming, support 
for concurrent access requests, and service quality. 
Together with carriers, Huawei has delivered one-
stop, premium services to bring more convenient 
digital lifestyles to end users. We have also 
unveiled the FTTR-B OptiXstar B30 series products, 
which make superior Wi-Fi connectivity available to 
micro and small businesses.
We have also launched the industry's first 
commercial 50G PON solution, which supports 
GPON, 10G PON, and 50G PON on one port to 
enable smooth evolution towards 10 Gbit/s all-
optical access networks.


2023 Annual Report
        39
At Network X 2023 (formerly Broadband World 
Forum), Huawei was honored with the Outstanding 
FTTH Service Award in recognition of its sustained 
leadership in the optical access industry.
■ Enterprise optical networks
Huawei has released the FTTO 2.0 solution for 
campus scenarios to create green, 10 Gbit/s all-
optical campus networks. We have also unveiled 
an end-to-end optical service unit (OSU) solution 
to drive the evolution of production networks in 
various industries. To support industrial networking, 
we have launched the Lossless Industrial Optical 
Network solution to increase production quality 
and efficiency in industrial settings.
Huawei's FTTO solution received the Outstanding 
POL Use Case Award at Network X 2023.
Data Communication
As digital and intelligent transformation continues 
across sectors, the data communication industry is 
reshaping network connectivity, experience, security, 
and O&M. Huawei is committed to making IP on 
Everything a reality. To this end, we provide customers 
with products and solutions – including High-Quality 
10 Gbps CloudCampus, Super-Connectivity 400GE 
CloudFabric, Converged IP Transport Network, and 
Integrated Network Security – as well as Real-Time 
Network Digital Maps, which are instrumental to 
intelligent ultra-broadband network infrastructure. 
We have continued to work with customers, partners, 
and industry organizations to promote an industry 
consensus on Net5.5G and accelerate innovation in 
related business scenarios.
■ High-Quality 10 Gbps CloudCampus
The focus of campus network build-out has 
shifted to experience as enterprises continue to 
adopt digital and intelligent technologies, and 
new services and applications keep emerging. 
Huawei's High-Quality 10 Gbps CloudCampus 
solution stands out by offering three types of 
experience upgrade, namely wireless experience 
upgrade, application experience upgrade, and 
O&M experience upgrade. This solution is built on 
new technologies and capabilities like Wi-Fi 7 (for 
ultra-broadband access), audio & video experience 
assurance, and network digital map functionality. 
In 2023, Huawei's Wi-Fi 7 served customers in 
multiple industries, including education, healthcare, 
and public services. We received the Best Enterprise 
Wi-Fi Network Award from the Wireless Broadband 
Alliance (WBA).
■ Super-Connectivity 400GE CloudFabric
As foundation models gain traction and cloud-
based data center architecture becomes a 
new norm, customers are looking to build and 
maintain data center networks that support 
both AI computing and general computing 
infrastructure. Huawei addresses this need with 
the CloudFabric 3.0 solution, which delivers ultra-
powerful performance, ultra-fast deployment, 
ultra-high reliability, and ultra-intelligent O&M. 
CloudFabric 3.0 offers network-scale load balancing 
(NSLB), device-network collaboration, digital map 
functionality, and other advanced technologies that 
customers will need to build data center networks 
with high bandwidth, throughput, and reliability.
■ Converged IP Transport Network
Mobile broadband, home broadband, enterprise 
private lines, and enterprise campus services 
will gradually upgrade to 10 Gbit/s connections. 
Consequently, conventional IP transport networks 
need to evolve towards 400GE converged transport 
networks. This is where Huawei can help. Our 
full-service routers provide 400GE, SRv6, slicing, 
Network Digital Map, and other cutting-edge 
technologies that help carriers build networks 
with minimal TCO and achieve new growth in all 
of their service areas. In the enterprise market, 
Huawei's CloudWAN 3.0 – featuring a converged 
architecture – helps customers create agile, reliable, 
and intelligent WANs.
■ Integrated Network Security
Huawei HiSec 3.0 solution provides integrated 
security protection for clouds, networks, edges, and 
endpoints. This solution is a great fit for enterprise 
customers seeking to build resilient and secure 
networks.


40       Huawei Investment & Holding Co., Ltd.
Building the Foundation of the Computing 
Industry for a Digital and Intelligent 
Future Together
Over the past year, Huawei has continued to ramp up 
investment in the computing industry. Our strategy 
remained focused on "open hardware, open source 
software, partner enablement, and talent cultivation". 
With a focus on innovation in foundational software 
and hardware, we have worked with partners and 
developers to build a solid computing backbone that 
supports a vast range of models and applications and 
enables industries.
By the end of 2023, more than 6,300 partners and 
5.7 million developers had joined the Kunpeng and 
Ascend ecosystems, and over 17,400 solutions had 
been certified. In addition, over 6,000 instructors 
and 700,000 students had been trained under the 
Intelligent Base industry-academia collaboration 
program.
In Kunpeng, we continued to dive deep into industry 
digitalization by pursuing full-stack optimization, 
enabling partners, and serving users. We have worked 
with our more than 4,700 partners to launch over 
14,500 solutions that have been used extensively 
in core services across different sectors such as 
government, finance, and telecommunications. In 
2023, the Kunpeng DevKit and the Kunpeng BoostKit 
were upgraded to boost performance for eight 
major scenarios. This improvement makes native 
development more efficient and service launch faster.
In Ascend, we continued to build leading training 
clusters and a complete series of inference products. 
We further opened up the heterogeneous compute 
architecture CANN 7.0 to unlock computing power and 
enable developers to develop their own 
high-performance operators. The past year has 
also seen a new development in the programming 
language that has reduced the average development 
time for a complex operator from two person-months 
to two person-weeks. By the end of 2023, more than 
1,600 independent software vendors (ISVs) had used 
Ascend to launch over 2,900 industry solutions.
Huawei also continued to invest in open source 
communities, by working with industry partners to 
drive the development of the openEuler operating 
system, the openGauss database, and the MindSpore 
AI framework. By the end of 2023, the MindSpore 
open source community had served more than 5,500 
enterprises, supporting the native training of over 50% 
of the industry's major foundation models.
Continuously Innovating to Build a 
High-performance, Reliable, Green, and 
Secure Data Storage Foundation
Digitalization has resulted in massive amounts of 
unstructured data entering production systems and 
turning into hot data. Foundation models and new 
applications are driving a data awakening, where data 
is quickly turned into assets. As a result, much more 
warm and cold data is being stored. The need to 
protect data has made data storage more important 
than ever across all industries.
■ For critical enterprise applications, Huawei offers 
storage solutions that cover the entire data lifecycle, 

from data production to data backup and archiving. 
Our latest OceanStor Dorado All-Flash Storage 
powers the Geo-Redundant 4-Data-Center Disaster 
Recovery Solution that supports failover in seconds. 
In 2023, Huawei also made its CANTIAN storage 
engine open source in order to work alongside 
partners to build a new ecosystem around 
scale-out database storage that features 
storage-compute decoupling. To address the 
growing data security threats, Huawei's 
OceanProtect all-flash data backup appliance helps 
boost the security of data.
■ For mass unstructured data, Huawei OceanStor 
Pacific Scale-Out Storage reduces the five-year 
total cost of ownership (TCO) by 20% compared 
with storage using hard disk drives (HDDs). In 
2023, Huawei's OceanStor Pacific lineup topped the 
IO500 rankings.
Computing
An intelligent world is fast approaching, and we are seeing explosive growth in data and tremendous advancements 
in intelligent technologies. This has turned computing power into the new primary source of productivity. At 
Huawei, we are committed to open collaboration for shared success. Together with our partners around the world, 
we strive to build a solid computing backbone and a vibrant computing ecosystem.


2023 Annual Report
        41
For cloud and Internet data centers, Huawei 
launched OceanDisk Smart Disk Enclosure, a new 
type of disk enclosure that supports 
high-performance, energy-efficient, intensive, and 
robust storage and enables disks as storage media.
■ To address the explosive growth of foundation 
models, Huawei launched high-performance 
storage that makes foundation model training 
data globally visible, manageable, and available 
and doubles the efficiency of data aggregation, 
preprocessing, and training. In addition, Huawei 
launched the FusionCube training/inference hyper-
converged infrastructure (HCI) appliance to work 
with partners to develop solutions tailored for 
different industry scenarios. The appliance has 
lowered the threshold for the deployment and use 
of foundation models, which, in turn, accelerates 
their application in industries.
■ Huawei also launched a Datacenter Virtualization 
Solution (DCS) and hyper-converged products that 
have been built on virtualization and containers 
to support virtualization and full-stack data center 
scenarios. These comprehensive infrastructure 
as a service (IaaS) and platform as a service 
(PaaS) products support data collection, storage, 
computing, management, and usage.
In 2023, Huawei was recognized for the third year 
in a row as a Leader in the IDC PRC Software-
Defined Compute Market Overview and Analysis.
■ Our Data Management Engine (DME) helps 
customers more efficiently manage and optimize 
massive data assets by moving from equipment 
O&M to data management. DME delivers 
five-times higher O&M efficiency than traditional 
O&M methods.
Bringing Digital and Smart Office to Every 
Workspace and Every Person
In 2023, Huawei continued to explore smart office 
and smart education applications and launched its 
next-generation flagship IdeaHub ES2 Plus which is 
powered by an intelligent triple-lens camera and a 
high-precision PTZ. In addition, Huawei launched the 
dual-mode engine Multipoint Control Unit (MCU), 
adding to its diverse lineup of telepresence products. 
This engine supports collaborative office experiences 
for massive access with guaranteed security and 
reliability. It is already being used by customers across 
the globe.
In intelligent collaboration, Huawei is a forerunner 
in smart office and has been a leader in professional 
audiovisual conferencing systems in the Chinese 
market for 11 years in a row.
ICT Services and Software
Huawei ICT Services and Software strives to keep leading, be the most reliable service partner, and build an 
intelligent world with the ultimate experience. Focusing on the entire business process from ICT infrastructure 
planning and construction to O&M, optimization, operations, and training, Huawei ICT Services and Software 
innovates continuously to provide a series of digital and intelligent service and software solutions. It aims to 
facilitate digital and intelligent transformation across industries by building green, efficient, secure, and robust ICT 
infrastructure that provides the ultimate experience.
the energy efficiency of green networks. As part of this 
effort, we released the Green Management White Paper 
and the Resilient Network White Paper to help build 
green target networks capable of smooth evolution. In 
2023, our work helped reduce electricity consumption by 
around 640 million kWh.
Intelligent Connectivity Integration: 
Building Green, Simplified, and Resilient 
Networks
Energy efficiency and the ultimate experience are equally 
important for networks. Huawei has worked alongside 
industry partners to develop a standard for measuring 


42       Huawei Investment & Holding Co., Ltd.
By building simplified sites and introducing green 
power, we have reduced per-site energy consumption 
by over 35%. Through measures like modernization 
and smooth service migration in legacy networks and 
equipment rooms, we have helped customers reduce 
energy consumption by more than 30%, increase 
network traffic by over 15%, and explore ToH and 
ToB services. In addition, we have improved network 
architecture to enhance network resilience, further 
reducing the fault rate during network changes.
Intelligent IT Integration: Building 
Diversified Computing Centers in the 
Intelligent Era
Over the past year, Huawei has continued to innovate 
in terms of data center integration to meet the 
requirements for diversified computing power in the 
intelligent era, provide fast computing services for 
more than 1,000 enterprises, and help accelerate 
industry innovation. We have also continued to use 
innovative technologies such as prefabricated and 
assembled modules, full-stack liquid cooling, and 
multi-domain collaborative planning and integration 
to quickly build greener data centers that offer higher 
computing power. In 2023, Huawei was honored with 
the China Green Demonstration Project Award for its 
efforts in building data centers that provide optimal 
power usage effectiveness (PUE).
Customer Support: Underpinning 
Intelligent Connectivity
Relying on our global technical service centers and 
over 6,000 maintenance experts, Huawei provides 
24/7 support services for customer networks in nine 
different languages. We have worked with partners 
around the world to support the robust operations 
of thousands of networks for carrier and industry 
customers. We always go wherever our customers 
need us, offering warm and professional services that 
support robust network operations, even in the face 
of natural disasters such as earthquakes, typhoons, 
and floods, or during major sporting events. We have 
introduced new technologies such as AI and Digital 
Twin into our solutions to provide risk prediction and 
prevention capabilities. These efforts, alongside regular 
contingency plans and drills, have helped ensure 
network resilience.
Intelligent Operations: Advancing the 
Transformation from Network-Centric to 
Service-Centric O&M
In 2023, Huawei AUTIN™, along with TM Forum and 
leading carriers, released New-Generation Intelligent 
Operations: The Service-Centric Transformation 
Path. This white paper explores ways in which 
communications service providers (CSPs) can increase 
A green data center that uses new 
technologies, such as full-stack liquid 
cooling, to realize efficient integration 
and optimal PUE.


2023 Annual Report
        43
network benefits by transforming from network-centric 
to service-centric O&M. In 2023, Huawei continued 
working with carriers on projects to drive digital 
O&M. We received TM Forum's Excellence Award 
in the Market Innovation Category and the Driving 
Digital Transformation Award at the Global Telecoms 
(GLOTEL) Awards.
SmartCare: Delivering Leading Network 
Performance and the Ultimate Experience 
to Unleash the Value of Data
Huawei continued to innovate in terms of network 
performance and service experience to help carriers 
provide leading network performance and a superior 
user experience and protect brand value. Huawei 
and TM Forum jointly released the Digital Twin for 
Decision Intelligence (DT4DI) white paper which 
provides a reference architecture for the new phase 
of digital and intelligent transformation. In 2023, we 
worked to improve the user experience of typical 
over-the-top (OTT) applications, helping carriers 
monetize user experience. We also worked on 
converged data analysis and modeling to support 
marketing efforts and help quickly develop new users 
and services. In addition, we applied core technologies 
to a number of industry scenarios, such as smart 
mining and smart city, to enable digital and intelligent 
transformation and improve both efficiency and 
benefits. In 2023, Huawei was among the winners of 
the Future Enterprise Awards presented by IDC China 
for an intelligent management platform jointly built 
with a mining customer.
Intelligent Digital Service: Enabling New 
Growth
Huawei continued to innovate digital platforms and 
services to support new growth:
■ Huawei's new cloud-native convergent billing 
solution (CBS) comes equipped with intelligent 
offering design capabilities that significantly 
shorten the time to market (TTM) for new 
offerings. CBS was placed in the Leaders quadrant 
for competitiveness according to GlobalData's 
Revenue Management: Competitive Landscape 
Assessment.
■ By introducing new technologies like large 
language models, Huawei's AI contact center 
(AICC) solution helps customers from a range 
of sectors like communications, finance, and 
government redefine call center service experiences 
through upgrades to interactive user experiences.
■ Huawei Mobile Money provides innovative services 
such as mobile wallet and micro finance for 
emerging markets, enabling more users to enjoy 
inclusive financial services. In 2023, Huawei was 
the Gold Award Winner in the Best Mobile Money 
Offering Category presented by Juniper Research.
Huawei Learning: Cultivating New Talent 
with Digital Skills
In 2023, Huawei built systematic talent development 
services covering talent planning, cultivation, 
assessment, and operation, aiming to cultivate new 
talent needed for the intelligent era.
■ Talent cultivation for carriers: We worked 
with global carriers to provide workshops and 
enablement sessions on topics such as strategy 
and leadership. Through scenario-based hands-on 
practices and certification, Huawei cultivated over 
32,000 ToB professionals for carriers in 2023.
■ Talent cultivation for industries: Huawei provided 
training for various industries such as mining, 
finance, transportation, electric power, and 
manufacturing. In 2023, we cultivated over 
23,000 technical professionals for more than 100 
enterprises.
■ Talent cultivation for the public domain: Huawei 
developed a leading ICT talent cultivation system 
and related standards to help ICT professionals 
advance their careers. In 2023, more than 100,000 
participants of our training programs received 
Huawei's ICT certifications.
By the end of 2023, Huawei had cultivated more than 
3.3 million ICT professionals worldwide, with more 
than 850,000 participants receiving Huawei's ICT 
certifications.


44       Huawei Investment & Holding Co., Ltd.
Cloud Computing Business
We are fast approaching the intelligent world. Innovative ecosystems underpinned by cloud and technologies 
represented by foundation models are reshaping industries at an unprecedented speed and generating new 
momentum for building an inclusive, accessible, and resilient digital world.
Huawei Cloud is continuing to implement the Everything as a Service strategy and provide customers, partners, 
and developers with stable, reliable, secure, trustworthy, and sustainable cloud services. We strive to serve as the 
cloud foundation and enabler of industry digitalization, as well as to accelerate the intelligent transformation of 
industries and provide the fertile soil for a flourishing ecosystem.
Cementing Our Roles as the Cloud Foundation and Enabler of Industry 
Digitalization and Achieving Rapid Growth in the Global Market
Huawei Cloud's continuous investment in innovation has led to our rapid business growth in 2023. By the end of 
2023, Huawei Cloud had covered 30 geographical Regions and 84 availability zones (AZs), and provided services 
for customers in more than 170 countries and regions. 
In Latin America, Huawei Cloud is the cloud service 
provider with the most nodes in the region. Huawei 
Cloud promotes the digital transformation of 
thousands of local customers in industries such as 
finance, media, retail, logistics, and Internet. Chile's 
SMU Group, for example, has fully migrated their core 
systems to Huawei Cloud. They are now embracing a 
cloud-native upgrade and are able to carry out omni-
channel business innovation faster.
In the Middle East, 2023 marked Huawei Cloud's 
first year of local cloud services in Saudi Arabia. Our 
products offer exceptional reliability and network 
latency. Huawei Cloud has successfully delivered an 
Arabic natural language processing (NLP) model with 
100 billion parameters for one of our Saudi Arabian 
customers, and this has helped the customer build a 
green, intelligent, and efficient foundation that powers 
various applications. Huawei Cloud also helped the Al 
Jasser Group migrate its enterprise resource planning 
(ERP) system to the cloud, which increased the 
monthly transaction processing capacity by about 30% 
and enabled the rapid launch of new service outlets.
In Southern Africa, Huawei Cloud has become the 
first cloud service provider to operate local data 
centers. We provide cloud services for 14 countries in 
Southern Africa, in sectors such as government services, 
telecommunications, finance, manufacturing, mining, 
education, Internet, retail, and logistics. The University 
of Zululand (Unizulu) in South Africa, for example, 
migrated its service system to Huawei Cloud, and has 
since been able to significantly improve its teaching 
management, academic evaluation, exam management, 
anti-cheating management, and security management.
Within China, Huawei Cloud has been focusing on 
industry digitalization scenarios. We have already 
supported more than 800 e-Government cloud 
projects, and have helped more than 160 cities 
implement the One City, One Cloud initiative. We 
have served China's six major banks, 12 joint-stock 
commercial banks, and the top 5 insurance institutions. 
90% of the top 50 e-commerce companies, 90% of 
the top 50 gaming companies, and 90% of the top 30 
automakers in China have also chosen Huawei Cloud.
In markets outside China, Huawei Cloud continues to 
accelerate the construction of KooVerse, our global 
cloud infrastructure, in order to deliver quality cloud 
services and consistent experience globally. Huawei 
Cloud has taken a By Local, For Local approach and 
provided customers with cutting-edge technologies 
and localized services, to empower them on their own 
digital transformation journeys. In 2023, Huawei Cloud 
maintained rapid growth in regions outside China 
and has become a trusted cloud brand for customers 
in markets including Asia Pacific, Latin America, the 
Middle East, Africa, and Europe.
In Asia Pacific, Huawei Cloud has become one of the 
best partners for enterprise digital transformation. We 
have local service teams in more than 10 Asia-Pacific 
countries and regions. Thailand's Government Data 
Centre and Cloud Service (GDCC) project used Huawei 
Cloud Stack to build a National Telecom Cloud. This 
e-Government cloud has made it more convenient 
for Thai government departments to develop digital 
services and provide better public services.


2023 Annual Report
        45
In Northern Africa, Huawei Cloud launched innovative 
AI and big data services locally, including the Arabic 
automatic speech recognition (ASR) service that 
supports the Egyptian dialect, to help customers 
accelerate innovation and upgrades. In addition, 
Huawei Cloud worked with partners to build solutions 
for local enterprises. Huawei Cloud worked with 
Intella to build an Arabic model covering all 25 Arabic 
dialects, with a speech recognition accuracy of up to 
96% and a word error rate as low as 10%.
In Europe, Huawei Cloud started to provide local 
cloud services in Türkiye in 2023. So far, Huawei 
Cloud has worked with our partners to serve more 
than 3,000 enterprises in Europe. We have developed 
1,000 local partnerships, and these partners worked 
with us to provide stable, reliable, secure, compliant, 
and innovative cloud services for various industries in 
Europe, and to help European enterprises accelerate 
their digital and intelligent transformation.
Pressing Ahead with Tech Innovation to Give the World a Better Alternative
Huawei Cloud continues to invest heavily in R&D, and leverages Huawei's more than 30 years of ICT expertise 
and product solutions to build the best cloud foundation in the intelligent era through systematic innovation. 
We have built five pipelines for data governance, AI development, digital content production, software 
development, and hardware development, to make innovation easier and to accelerate industries' digital and 
intelligent transformation.
Systematic innovation: Building a solid 
cloud foundation for computing
In 2023, Huawei Cloud released the distributed 
QingTian architecture. QingTian goes beyond the 
boundaries of computing, storage, and networking, 
and implements a new-generation fully interconnected, 
peer-to-peer architecture for diversified computing 
power that will future-proof infrastructure for the all-
cloud era.
Huawei Cloud is also continuing to upgrade our basic 
cloud services. Our newest generation of computing 
instances deliver over 50% higher computing power, 
which translates into more cost-effective diversified 
computing services for customers. The AI cloud storage 
solution uses a three-layer cache architecture for 
associated acceleration, which enables 90% faster data 
preparation for AI training. This storage solution is a 
key component for the construction of the best data 
foundation for the AI era.
To provide a more secure and stable cloud experience, 
Huawei Cloud has built a security system with one 
center and seven lines of defense. The SecMaster 
security operations platform has a built-in AI security 
model which can handle 99% of alarms within 5 
minutes in a closed-loop manner. Our deterministic 
O&M system ensures over 99.99% service availability 
on live networks and safeguards networks and services 
around the clock.
The DataArts data governance pipeline: 
Data and AI convergence is helping 
enterprises to unlock data value faster
Huawei Cloud DataArts is a one-stop development 
and governance platform featuring data and AI 
convergence on the cloud. It provides enterprises 
with cloud-native, integrated lake-warehouse, and 
decoupled storage-compute cloud service portfolios. 
DataArts includes the GaussDB distributed database, 
the MapReduce Service (MRS) cloud-native data lake, 
the Data Lake Insight (DLI) fully managed serverless 
service, the GaussDB(DWS) all-scenario one-stop 
data warehouse, and the DataArts Studio, which is 
a service for data governance centers that we have 
designed based on Huawei's own experience in 
digital transformation. Huawei Cloud DataArts has 
helped to accelerate digital transformation in multiple 
industries including government services, finance, 
telecommunications, and the Internet industry.
In 2023, Huawei Cloud officially released GaussDB, 
the next-generation distributed database. GaussDB 
builds its core technical competitiveness around 
high availability, intelligence, elasticity, security, 
performance, ease of deployment, and ease of 
migration. It has passed the Common Criteria (CC) 
Evaluation Assurance Level 4+ (EAL4+) certification, 
which is the highest level available for database 
security, and has been widely used in many fields such 
as banking, insurance, and energy. MV, a Brazilian 
medical information company, migrated its database 
to GaussDB, and this improved its medical record 
query speed from 3 seconds to 0.5 seconds.


46       Huawei Investment & Holding Co., Ltd.
The ModelArts AI development pipeline: 
Lowering barriers to industry-specific 
application and accelerating innovation in 
foundation models
ModelArts is a one-stop AI development platform on 
Huawei Cloud. It provides enterprises with technical 
capabilities throughout the AI application development 
pipeline. These capabilities include data processing, 
algorithm development, model training, model 
management, and model deployment. Together, they 
have made AI application development faster and 
implementation easier.
In 2023, Huawei Cloud stayed true to our AI for 
Industries strategy, and released the Pangu Models 
3.0 and the Ascend AI cloud service. Pangu models 
focus on solving the complex, enterprise-level R&D, 
production, supply, sales, and service problems. 
Pangu has been implemented in multiple domains 
such as finance, government services, manufacturing, 
mining, automobiles, medicine, meteorology, and 
railway industries. It combines industry know-how 
with foundation model capabilities and is already 
dramatically reshaping entire industries.
In coal mining, the Pangu mining model has already been 
extensively used in eight mines. One model covers more than 
1,000 sub-scenarios in business processes such as mechanized 
mining, excavation, electromechanics, transportation, ventilation, 
and coal washing. It not only offers a more comfortable 
working environment for coal workers, but also greatly reduces 
the number of accidents, and also improves production quality 
and efficiency. 
Based on Huawei Cloud Stack, our hybrid cloud, Shandong 
Energy Group has successfully built the coal industry's first 
mining model – the Pangu mining model. It has been used to 
develop and implement AI applications in 26 of Shandong Energy 
Group's subsidiaries, and now covers more than 40 application 
scenarios in 9 business processes. This brings us one step closer 
to scenario-specific large-scale AI applications in the mining 
industry. For example, monitoring hole depth in anti-impact and 
pressure relief construction is a typical application in the coal 
mining industry. The Pangu model has been used to monitor 
hole drilling in real time, and it has reduced manual inspection 
workloads by 80%.
In meteorology, Huawei Cloud's Pangu weather model was the 
first AI model to be more accurate than traditional numerical 
forecasting methods. The Pangu weather model can provide 
global weather forecasts in just seconds. In July 2023, the 
esteemed science journal Nature published a paper about the 
research results derived using Huawei Cloud's Pangu weather 
model. The Pangu weather model is highly recognized as the 
research results clearly demonstrate how the Pangu weather 
model will revolutionize weather forecasting in the future, and 
that opening the model will drive the development of this field. 
On September 18, 2023, Huawei Cloud announced that it would 
work with the Meteorological Bureau of Shenzhen Municipality 
on regional weather forecast models. Global and regional 
analyses are used as real-time inputs into global and regional 
forecast models. These models can quickly generate local weather 
forecasts such as the next five-day temperature and rainfall 
forecasts for Shenzhen and surrounding areas, with a spatial 
resolution of 3 km. In the future, these models will provide finer-
grained weather services for industries such as transportation, 
water services, and tourism.
Based on our three AI cloud computing centers in 
China's Gui'an, Ulanqab, and Wuhu, the Huawei Cloud 
Ascend AI cloud service provides massive, stable, 
reliable, and on-demand AI computing power for 
industries. The Ascend AI cloud service consistently 
offers a stability rate of up to 90% over 30 days for 
training foundation models, and recovery within 10 
minutes of an interruption, and as such it effectively 
supports the innovation of a wide range of models 
and applications in the AI era.
The MetaStudio digital content 
production pipeline: Building cloud-native 
media infrastructure to unleash digital 
content productivity
Huawei Cloud provides a full range of media service 
capabilities, including the MetaStudio digital content 
production pipeline, media engines, and media 
networks. Huawei Cloud also works with ecosystem 
partners to build scenario-specific solutions and foster 
a prosperous digital content ecosystem on the cloud.


2023 Annual Report
        47
Based on MetaStudio and the Pangu virtual human 
model, which has been trained using petabytes 
of audio and video data, Huawei Cloud provides 
services such as virtual human video production, 
video livestreaming, and intelligent interactions. 
These services have been widely used in industry 
scenarios to make marketing campaigns, support 
e-commerce livestreaming, and facilitate intelligent 
customer services. With the help of Huawei Cloud's 
virtual human services, many enterprises, such as 
Hsu Fu Chi and Wondershare, have used interactive 
24/7 livestreaming in multiple languages to 
create new growth in their retail and cross-border 
e-commerce businesses.
For media networks, Huawei Cloud has 2,800 content 
delivery network (CDN) edge nodes worldwide 
and a reserve of more than 180 Tbit/s bandwidth 
across all networks, which it uses to build a highly 
reliable, global, low-latency, real-time interactive 
media network. This network offers an end-to-end 
livestreaming latency of less than 500 ms. Huawei 
Cloud has provided scenario-based solutions such as 
edge security, efficient transcoding, and application 
acceleration for customers including China's Huya, 
Thailand's BBTV, and Türkiye's BluTV.
The CodeArts software development 
pipeline: Reshaping software development 
with full-stack intelligent toolchains
Huawei Cloud CodeArts is a one-stop software 
development platform. It integrates Huawei's more 
than 30 years of R&D best practices with the cloud 
to provide enterprises and developers with secure, 
trustworthy software development services throughout 
the entire development process. 
Based on the Pangu virtual 
human model, Huawei Cloud 
MetaStudio helped villagers 
in Danzhai, China's Guizhou 
province, to quickly build digital 
avatars. It only takes a five-
minute video of a person and 
one day to generate an avatar 
of that person for livestreaming. 
The avatar can accurately and 
fluently introduce the products 
and interact with audiences in 
real time.
In 2023, Huawei Cloud added more than 20 
innovative proprietary software tool services to 
CodeArts, including CodeArts Req (for requirement 
management), Check (for code check), and TestPlan 
(for test management). These tool services cover 
the entire software development lifecycle, from 
requirements, design, and development, to testing, 
deployment, and O&M, thereby building a fully cloud-
based software development process.
Huawei Cloud also released the CodeArts Snap 
intelligent development tool. CodeArts Snap is based 
on the Pangu R&D model and can generate code with 
just one instruction, comment out code and generate 
test cases after just one click, and intelligently deploy 
code upon just one command. It empowers each 
software developer by serving as their personal 
programming assistant.
The CraftArts hardware development 
pipeline: Building a new-generation 
industrial software system to improve 
hardware development efficiency and 
experience
In 2023, Huawei Cloud worked with industry partners 
to release the CraftArts hardware development 
pipeline to accelerate the building of a new-generation 
industrial software system. Based on a unified data 
foundation driven by data models, CraftArts provides 
enterprises with one-stop IT toolchain services for 
hardware design, development, simulation, and 
trial production. CraftArts includes the board-
level electronic design automation (EDA) toolchain, 
structure design toolchain, industrial simulation 
toolchain, and the design and manufacturing 


48       Huawei Investment & Holding Co., Ltd.
convergence platform. Through innovations in 
collaboration modes and by upgrading algorithm 
engines, CraftArts improves the efficiency of industrial 
software processing and enables efficient innovation 
Working with Partners and Developers to Build a Thriving Innovation 
Ecosystem on the Cloud
Huawei Cloud envisions an ecosystem that is Of All, By All, and For All. Huawei Cloud is accelerating the 
development of an ecosystem that aggregates industry applications and supports global developers and partners. 
Together, we are building a thriving ecosystem to facilitate innovation on the cloud. By the end of 2023, Huawei 
Cloud had developed more than six million developers around the world, attracted more than 40,000 partners to 
our ecosystem, and launched more than 10,000 applications in the KooGallery cloud marketplace.
Huawei Cloud has also been working with global customers and partners to provide eight industry aPaaS services 
for industries covering manufacturing, finance, government services, transportation, electric power, and mining. We 
also provide core aPaaS services including KooMap (for digital twins), KooPhone (for cloud phones), KooDrive (for 
cloud storage), KooMessage (for digital marketing), and KooVehicle (for commercial/dedicated-purpose vehicles). 
Together, we have released more than 150,000 APIs to help accelerate application innovation across industries.
in enterprise hardware R&D. Currently, about 
200,000 hardware developers are using the CraftArts 
development tools on Huawei Cloud every month.
Building a developer-centric, open ecosystem
In September 2023, Huawei Cloud announced the plan 
to build an open, dynamic, and innovative ecosystem 
for foundation models, and officially launched a 
dedicated zone for foundation models on the Ascend AI 
cloud service, as well as setting up a model community 
for developers. These initiatives support the Pangu 
foundation models, the industry's mainstream open-
source foundation models, and third-party commercial 
models. Enterprises and developers can quickly create 
their own model applications and as such can remain 
competitive in the foundation model era.
Using the cloud as a foundation, Huawei Cloud has 
continued to collaborate with the Kunpeng, Ascend, 
openEuler, HUAWEI Mobile Services (HMS), and 
HarmonyOS ecosystems to build a diversified developer 
ecosystem on the cloud. Through more than 160 
innovation centers around the world and the Huawei 
Cloud Developer Program, Huawei Cloud provides 
services such as Developer Technical Support Engineer 
(DTSE) and technical certification. In addition, through 
the Huawei Cloud Academy, Huawei Cloud cultivates 
developers and encourages them to join the Huawei 
Cloud ecosystem.
Building an ecosystem partner system for 
shared success
In 2023, Huawei Cloud established a Huawei Cloud 
partner system focused on customer scenarios and 
supported by ecosystem solutions. Partners have 
already built 324 joint solutions with Huawei Cloud. 
Huawei Cloud launched the Service Partner Program 
to recruit and cultivate more service partners with core 
cloud capabilities. We released the System Integrator 
(SI) Path to help partners quickly build end-to-end 
capabilities for industry digital transformation using 
Huawei Cloud. We also launched the Partner Customer 
Engagement (PCE) program to align our business 
goals with those of our partners and share market 
opportunities. In addition, Huawei Cloud released the 
Go Cloud, Go Global ecosystem plan in regions such 
as the Middle East, Latin America, and Europe to share 
our localization experiences and global ecosystem 
capabilities with our partners.
For startups, Huawei Cloud has invested more than 
CNY100 million in building a global startup ecosystem 
that has helped more than 3,000 startups around 
the world innovate using Huawei Cloud. More than 
100 Chinese startups have also expanded to markets 
outside China with the help of this ecosystem.
The KooGallery marketplace: Building the 
best application distribution platform on 
the cloud
Huawei Cloud is determined to develop KooGallery 
into the best platform for application distribution and 
one-stop B2B application purchases. By the end of 
2023, more than 7,000 stellar partners had launched 
applications in Huawei Cloud's KooGallery. They had 
released more than 10,000 applications in more than 
60 categories, covering over 10 industries including 
manufacturing, education, government services, 
mining, and finance, and serving more than 500,000 
enterprises and developers worldwide.


2023 Annual Report
        49
Digital Power Business
Carbon neutrality will drive a profound transformation in both society and the economy. It will require a robust 
energy infrastructure that powers decarbonization, electrification, digitalization, and intelligence. We are entering a 
new world where digital energy will play a key role. Huawei Digital Power integrates bit, watt, heat, and battery (4T) 
technologies to develop new energy infrastructure for power systems, electric vehicles (EVs), and the digital industry. 
We focus on renewable energy, mobility electrification, and digital transformation to drive carbon neutrality.
By the end of 2023, Huawei Digital Power has helped customers generate 997.9 billion kWh of green power and 
save 46.1 billion kWh of electricity. These efforts have reduced CO2 emissions by 495 million tons, equivalent to 
planting 680 million trees.
New Energy Infrastructure for Power Systems
We have launched FusionSolar smart PV and energy storage system (ESS) solutions that address utility-scale plant, 
commercial & industrial (C&I), and residential scenarios. These solutions are helping to develop a new energy 
infrastructure for power systems.
■ Huawei's smart string & grid-forming ESS solution 
significantly improves a power grid's ability to 
integrate renewable energy by reshaping voltage, 
frequency, and power angles. This can help address 
challenges arising from having high shares of 
renewable energy integrated into the grid at 
utility-scale plants. We have also combined IoT, big 
data, AI, and other new ICT solutions to improve 
O&M by automating the fault diagnosis process for 
smart power plants.
■ For C&I scenarios, we have developed a one-stop 
C&I Smart PV & ESS Solution that delivers active 
safety, optimal electricity costs, long-term reliability, 
simplified O&M, and optimal revenue. This solution 
includes optimizers, smart PV controllers, ESSs, 
chargers, electrical loads, smart microgrids, and 
smart PV management systems. The solution is 
designed to support sustainable business operations, 
and help industries go green and low-carbon.
■ For residential scenarios, we have created a 
Residential One-fits-all Solution with a "1 + 4 + 
X" design that can help users increase their own 
utilization of PV power and transform households 
from energy consumers to energy prosumers. This 
solution includes an inverter ("1"), optimizers, 
ESSs, chargers, and management systems ("4" core 
products), and the ability to enable an unlimited 
number ("X") of home appliances. One villa in 
Spain, for example, has used Huawei's one-fits-
all solution to increase the share of green power 
in its total power mix and achieve a solar self-
consumption rate of nearly 100%. This solution 
includes a 6 kW PV system, optimizers configured 
for all PV modules, a 10 kWh ESS, chargers, and 
an energy management assistant (EMMA). The 
optimizers have helped increase the installed PV 
capacity by about 60% by fully utilizing all available 
roof area, which is shaded by the air conditioners 
and parapet walls. EMMA's intelligent energy 
scheduling function allows it to flexibly optimize 
the scheduling of generated PV power according 
to changes in local electricity prices and weather, 
and power consumption load, thus maximizing the 
value of the PV and ESS systems. Furthermore, 
the PV Power Preferred mode can be enabled for 
chargers, ensuring PV power is preferentially used 
for charging.
Safety is the cornerstone of high-quality development 
within the PV industry. Huawei has implemented a 
four-dimensional safety solution to ensure the long-
term safety and stability of power systems. We will 
continue to work with industry partners, customers, 
and ecosystem partners to build a new power system 
based on renewable energy, and help make PV a main 
energy source.


50       Huawei Investment & Holding Co., Ltd.
The Red Sea Project in Saudi Arabia is the world's first GW-level standalone microgrid project that is fully powered by renewable energy. 
The project uses Huawei's FusionSolar smart PV and ESS solution, including a 400 MW PV system and a 1.3 GWh microgrid ESS that were 
successfully connected to the grid in October 2023. To cope with the complex local power grid environment, the project has used Huawei's 
smart string & grid-forming ESS to build an independent and resilient power grid that can adapt to changing conditions. This project will 
supply power to over one million tourists every year.
In January 2023, Huawei, together with China Resources Power, China 
Electric Power Research Institute, and the Electric Power Research 
Institute of State Grid Qinghai Electric Power Company, piloted the 
world's first grid-forming battery energy storage system (BESS). 
They completed more than 180 grid connection tests, including for 
large frequency disturbances and large voltage disturbances, for 
strong grids. In October 2023, Huawei, China Energy Qinghai Electric 
Power Company, China Electric Power Research Institute, and the 
Electric Power Research Institute of State Grid Qinghai Electric Power 
Company jointly completed a series of tests on the grid-forming 
BESS for weak grids. This has set a global benchmark for large-scale 
integration of renewable energy into power grids.
Mahidol University in Thailand has built Asia-Pacific's largest single-
site C&I PV and ESS plant, which includes a 12 MW PV system, a 
600 kWh ESS, and optimizers configured for all PV modules from 
Huawei FusionSolar. The plant fully complies with Thailand's new 
national electrical safety code, setting a milestone for the large-
scale application of PV and ESS integration in Thailand.
New Energy Infrastructure for EVs
Huawei has positioned itself as a provider of e-Mobility and Smart Charging Network solutions in the mobility 
electrification industry. Our collaborative development approach focused on quality has allowed us to launch hyper-
converged e-Mobility solutions and fully liquid-cooled ultra-fast charging solutions. These solutions are accelerating 
mobility electrification by building a new energy infrastructure for EVs that makes charging as easy as refueling.
Smart Charging Network
Huawei is committed to building a high-quality smart charging network that delivers superior user experiences and 
excellent benefits. Together with our customers and partners, we want to make high-quality charging resources 
available everywhere. We have already worked with various industry associations to release industry white papers 
and standards, such as the White Paper on the Sustainable Development of High-Quality Charging Facilities and 
the Specifications for Grading and Evaluating Electric Vehicle Charging Station Facilities and Services. These are 
part of our broader efforts to promote the sustainable development of high-quality charging facilities.


2023 Annual Report
        51
In September 2023, Huawei and its partners deployed fully liquid-cooled ultra-fast charging stations in Tianquan, Litang, and Sangdui, 
creating a Super Charging Green Corridor along the high-altitude G318 Highway. Heat dissipation is often a bottleneck in environments 
with low air pressure. Huawei has developed an innovative liquid-cooled technology that ensures ultra-fast high-power charging in these 
types of places. This technology can also improve long-term equipment reliability.
November 2023 marked the one-year anniversary of Huawei's launch 
of the world's first fully liquid-cooled ultra-fast charging station 
at the Waxi (Eastward) Service Area of the Shantou-Zhanjiang 
Expressway. Since its launch, the station has experienced no service 
disruptions, and its O&M cost has dropped by about 90% year-on-
year. By the end of November 2023, this station had provided a total 
charging capacity of approximately 1.16 million kWh and served more 
than 40,000 cars. Its turnover rate had more than doubled, setting 
an industry benchmark for fully liquid-cooled ultra-fast charging 
demonstration sites.
DriveONE
Huawei DriveONE has created ePowertrain, on-board 
charging system, DriveONE-Cloud, and other solutions 
for Class-A and Class-B battery EVs and extended 
range EVs. This is intended to help carmakers build 
better vehicles and improve driving experiences.
■ Range: Equipped with silicon carbide (SiC), our 
ultra-high-efficiency, high-voltage ePowertrain 
platform enables ultra-long ranges, and supports 
dynamic voltage scaling between 750 V and 
about 900 V. This platform can minimize energy 
consumption and increase vehicle efficiency to 
92% according to the China light-duty vehicle test 
cycle (CLTC).
■ Power: Our high torque output motor and 
intelligent oil cooling system 2.0 can enable cars 
to accelerate from 0 to 100 km/h in about 3 
seconds. In this way, standard vehicles can achieve 
sports-car-like acceleration for inspired driving 
experiences.
■ Intelligence: Our iTRACK algorithm enables 
ePowertrain systems to deliver active intelligence 
through microsecond-level ultra-fine road 
perception and millisecond-level real-time torque 
adjustments.
■ Safety: We are actively promoting cloud-based 
AI, data collaboration, and device-cloud synergy 
in the e-Mobility domain. This can visualize the 
health status of e-Mobility systems, issue real-time 
warnings, and enable quick fault diagnoses.


52       Huawei Investment & Holding Co., Ltd.
New Energy Infrastructure for the Digital Industry
We have continued to build new energy infrastructure for the digital industry as part of our commitment to 
delivering more bits with less watts and fewer carbon emissions. This infrastructure includes data center facility and 
site power facility solutions. We want to reduce the energy consumption and carbon emissions of every bit of data 
generated, and bring the world more green computing power and connections.
(Left) The AITO M9 runs on a Huawei DriveONE high-efficiency ePowertrain, which can allow the car to accelerate from 0 to 100 km/h 
in 4.3 seconds. Our cloud-based battery management system (BMS) and AI analysis also support real-time vehicle safety warnings and 
comprehensive battery safety.
(Middle) The AVATR 12 comes equipped with Huawei's DriveONE intelligent software algorithm iTRACK that enables active intelligence 
through microsecond-level ultra-fine road perception and millisecond-level real-time torque adjustments.
(Right) The LUXEED S7 comes equipped with Huawei's DriveONE high-voltage SiC ePowertrain that offers robust power with its high-
efficiency SiC modules.
Data Center Facility and Critical Power
Huawei has developed reliable, green, and low-carbon 
solutions for large data centers, small- and medium-
sized data centers, and critical power. These are 
used to build data center facilities and critical power 
supplies that are reliable, green, simple, and smart. Our 
ultimate purpose is to power the digital era forward.
■ Large data centers:
– FusionPower6000 3.0 (for both indoor and 
outdoor scenarios) is a worry-free power supply 
and distribution solution that reduces footprints 
and saves power and time, setting the trend 
for integrated power supply and distribution 
systems for data centers.
– Huawei's indirect evaporative cooling solution 
(EHU) can be used to build ultra-reliable, 
high-efficiency, and energy-saving data center 
cooling systems.
– Huawei's prefabricated modular data center 
solutions support fast delivery of simplified, 
low-carbon, and energy-saving data centers.
■ Small- and medium-sized data centers: 
FusionModule2000 is a one-stop solution for small- 
and medium-sized data centers, helping industries 
go digital faster.
■ Critical power: Huawei's SmartLi UPS is an 
intelligent power supply and distribution solution 
that features high reliability and high efficiency, 
providing continuous power for critical equipment.
In 2023, Huawei worked with industry associations 
to publish several industry standards, such as the 
Specification for the Design of Indirect Evaporative 
Cooling System in Data Center and the Standard for 
Design of Lithium-ion Battery Rooms in Data Centers. 
These achievements are an important part of our 
larger efforts to promote quality development of the 
data center industry.


2023 Annual Report
        53
China Unicom Guangzhou's Internet Data Center (IDC) building, 
located in China-Singapore Guangzhou Knowledge City, uses 
Huawei's FusionCol8000-C fan wall air conditioners that support 
inlet water temperatures of up to 20°C and reduce the overall 
energy consumption by more than 20%. This project also uses 
Huawei's UPS5000-H, which features a unique S-ECO mode that 
can increase power supply efficiency up to 99.1%. In addition, 
Huawei's iCooling@AI energy efficiency optimization solution has 
helped reduce the project's power usage effectiveness (PUE) to 
less than 1.3, cutting electricity consumption by about 13.245 
million kWh and carbon emissions by about 7,695 tons each year.
The Felipe Ángeles International Airport (AIFA) in Mexico used 
Huawei's FusionModule2000 solution to build a smart modular 
data center that has highly integrated cooling, cabinet, and aisle 
systems. The project was delivered in only three months, about 
30% faster than conventional solutions could deliver, and slashed 
OPEX by about 30% and PUE by about 25%.
In partnership with the China Mobile Design Institute and 
China Mobile Zhoushan, Huawei has deployed a green site on 
Zhuzishan Island in Zhejiang province. The site has an installed 
PV capacity of 26.4 kWp, with over 90% of its energy used 
coming from green sources. All surplus power generated is stored 
in the ESS, which can be used to supply power to the green 
site. The site also uses a 36 kW high-density eMIMO intelligent 
power system that is only 5 U in height and supports intelligent 
scheduling and seamless switching between solar power, stored 
energy, and fuel. The system can keep the site running for up to 
20 days, even under continuous overcast and rainy conditions.
Site Power Facility
Huawei is also working to help carriers and tower 
companies transition from energy consumers to 
energy prosumers.
■ For energy consumers, we have developed 
green and low-carbon networks that minimize 
total cost of ownership (TCO): 
– Our trend-setting "one cabinet one site" and 
"one blade one site" solutions are redefining 
simplified sites and improving site energy 
efficiency to about 97%.
– Our simplified equipment room solution ensures 
smooth capacity expansion without adding new 
equipment rooms, increasing energy efficiency 
to about 75%.
– Our smart site solution supports intelligent site 
O&M and visualizes energy efficiency.
■ Energy producers can use Huawei solutions 
to benefit from energy production and power 
dispatching.
– Our iPV intelligent optimization technology can 
increase energy yields by about 20%.
– Our intelligent algorithm for PV and ESS 
synergy can increase green power utilization 
rates while reducing the levelized cost of 
electricity (LCOE) for green site power.
– Our CloudLi energy storage system supports 
precise backup power and engages sites in 
power services like intelligent peak staggering 
and virtual power plants.
Carbon neutrality is a journey that all industry players 
are on together. Huawei Digital Power will innovate 
nonstop in both technologies and products, and 
working with partners to create value for customers 
and the industry. Together with our partners, we will 
build a digital energy industry ecosystem and promote 
high-quality industry development.


54       Huawei Investment & Holding Co., Ltd.
Consumer Business
In 2023, Huawei's Consumer BG continued to deliver a Seamless AI Life experience to consumers around the world by 
focusing on consumers and constantly optimizing our hardware and software ecosystems across all scenarios. Specifically:
■ We launched a Pioneer Program for the Chinese market, which supported the launch of smartphones like the 
HUAWEI Mate 60 Series and HUAWEI Mate X5, reinforcing Huawei's status as a high-end phone brand and 
showcasing Huawei's technical strengths.
■ We hit multiple shipment milestones, with over 100 million Huawei tablets being shipped by the end of 2023, 
and over 2.5 million HUAWEI WATCH GT 4 units shipped within three months of its launch.
■ By the end of 2023, HarmonyOS had been deployed on more than 800 million devices.
■ We launched a new ultra-high-end brand ULTIMATE DESIGN, which pays tribute to the extraordinary – not 
those who are born, but those who dare to be.
■ The Harmony Intelligent Mobility Alliance (HIMA) was established to support vehicle upgrades under our 
Huawei Zhixuan model and empower carmakers to successfully launch multiple new models.
■ In the smart home domain, we continued leading efforts to develop smart spaces.
■ In markets outside China, Huawei's mindshare as a high-end brand continued to increase, and our business 
results improved significantly.
"1 + 8 + N" Seamless AI Life Strategy: Continuous Innovation in Five Scenarios
Huawei has now pursued a smartphone-centered "1 + 8 + N" Seamless AI Life strategy for several years. We have 
continued to enhance the presence of Huawei devices across all scenarios, aiming to deliver a seamless, intelligent 
experience for consumers across five major scenarios: Smart Office, Fitness & Health, Smart Home, Easy Travel, 
and Entertainment.
Huawei launched a Pioneer Program in the Chinese market in 2023. Smartphones like the HUAWEI Mate 60 Series have received accolades 
from numerous consumers.


2023 Annual Report
        55
Smartphones
Despite a tough external environment, we continued 
to lead the industry in technological innovation, with 
Huawei smartphones winning high acclaim from 
numerous consumers. Our work has drawn extensive 
attention to the development and innovation of 
Chinese smartphone manufacturers.
As part of our Pioneer Program, which targets the 
Chinese market, we launched the HUAWEI Mate 60 
Series, HUAWEI Mate X5, and HUAWEI nova 12 Series 
smartphones.
The HUAWEI Mate 60 Series is the most powerful 
Mate model ever, and has established itself as a 
paradigm-shifting product. Standout features of these 
phones include:
■ Concentric designs and the earth color palette that 
creates breathtaking visuals inspired by magnificent 
mountains and rivers
■ The ability to support satellite calling, making 
them the first consumer smartphones to make 
and receive calls even when no terrestrial network 
is available, thanks to Huawei's breakthroughs in 
satellite communications
■ The groundbreaking super-reliable Xuanwu 
architecture that offers multiple layers of 
safeguards for ultimate security and reliability
In the foldable phone market, Huawei's innovative 
solutions have set industry benchmarks through 
continuous breakthroughs in design, reliability, 
and performance. The flagship HUAWEI Mate X5, 
for example, leads the way in the foldable phone 
market thanks to its lightweight design and superior 
all-round experiences. Its exterior screen is made 
of super durable Kunlun Glass with crystal armor 
scratch-resistant technology1, and its interior screen 
is made of impact-resistant non-Newtonian fluid 
materials, providing solid and durable protection. It 
also combines AI algorithms and innovative antenna 
technology to give consumers more stable network 
connections even in weak-signal scenarios.
In 2023, HUAWEI XMAGE made great strides in 
technological innovation, user experience, and 
cultural development. Multiple flagship smartphones 
were launched this year with HUAWEI XMAGE 
onboard, such as the HUAWEI P60 Series which has 
been a balanced fusion of imaging intelligence and 
technological art. This series comes with an innovative 
Ultra Lighting Telephoto Camera with Multiple Lens 
Groups which produces vivid photos in low-light 
settings. The HUAWEI XMAGE Trend Report 2023 
was released during MWC Barcelona 2023. Winners 
of the XMAGE Awards 2023 contest were announced, 
and 10 standout submissions to the XMAGE Awards 
were showcased at exhibitions in multiple cities across 
China. Through these efforts, we aim to ignite a wave 
of enthusiasm for mobile imaging, inspiring people to 
express their emotions and build confidence through 
"the power of image".
To deliver the best possible experience to consumers, 
we have worked tirelessly to build a high-end brand. 
After years of hard work, in 2023 we launched 
our new ultra-high-end brand ULTIMATE DESIGN, 
which offers ultimate aesthetics, craftsmanship, and 
innovation. The HUAWEI Mate 60 RS | ULTIMATE 
DESIGN was the first product launched under this 
brand with innovative, cutting-edge technologies and 
superior services. This smartphone is designed to pay 
tribute to the extraordinary – those who boldly lead 
our world forward.
1	
Actual configurations may vary. For more details, please refer to the official website.
"Dragon Clouds" by Domcar Calinawan Lagto (Philippines), 
a winner at the XMAGE Awards 2023
"Diving" by Li Lu (China), a winner at the XMAGE Awards 2023


56       Huawei Investment & Holding Co., Ltd.
Smart Office
In the smart office domain, Huawei continues to lead 
innovation through multi-device collaboration and 
ecosystem integration, enabling more convenient 
connectivity, smoother flow of information, and more 
intuitive human-machine interactions. By fusing 
aesthetics and technology, Huawei Smart Office 
products adopt premium and stylish industrial designs 
and provide portable and versatile solutions that 
help users stay creative and be more productive in 
immersive, professional scenarios.
Our flagship laptop, the HUAWEI MateBook X Pro, 
comes with a skin-soothing metallic body and a Super 
Turbo intelligent acceleration engine that intelligently 
schedules the laptop's performance through hardware-
system-scenario convergence to help users stay one 
step ahead at work.
2023 also marked the 10th anniversary of Huawei's 
tablet line. By the end of 2023, Huawei had shipped a 
grand total of over 100 million tablets. The HUAWEI 
MatePad Pro 13.2", our newest flagship tablet, has 
a 13.2-inch flexible OLED display and is the thinnest 
tablet ever made with the narrowest bezels and 
highest screen-to-body ratio1. The PaperMatteTM 
Display used on Huawei tablets provides paper-like 
viewing, with minimal glare and eye strain. Both the 
HUAWEI M-Pencil (3rd generation) and HUAWEI Smart 
Magnetic Keyboard are now powered by NearLink 
technology, allowing for finer strokes, faster typing, 
and more stable pairing.
In addition, HarmonyOS 4 on Huawei's Smart Office 
products comes with upgraded SuperHub and Show 
Comments functions, which allow data to flow 
seamlessly between multiple devices, including PCs, 
tablets, and monitors. This makes the real-time sharing 
of comments in different meeting scenarios a reality, 
significantly boosting productivity.
In 2023, we launched the GoPaint Worldwide Creating 
Activity, a digital creation event themed "Creation 
of Beauty" where consumers around the world paint 
using Huawei products, sharing the joy of creation and 
inspiring creativity.
We also officially launched Qingyun on the Chinese 
mainland, a device brand designed to cover all 
scenarios in the business domain. With proprietary 
full-stack technologies powered by the HarmonyOS 
digital ecosystem, the Qingyun brand will work with 
customers to create a fully connected digital future.
Fitness & Health
Since our entry into the fitness and health domain 
in 2014, Huawei has launched a broad portfolio 
of consumer products that provide innovative 
technologies, architecture, materials, processes, and 
business models. These quality products are targeted 
for certain demographics, so that everyone gets the 
support they need, including children, adults, and 
people with unique health management requirements.
Over the last decade, we have made one breakthrough 
after another in fitness and health monitoring, disease 
risk screening, and proactive health management by 
constantly improving accuracy and user experience 
regarding vital sign monitoring. By the end of 2023, 
over 150 million Huawei wearables had been shipped 
around the world, and we had served more than 450 
million users in the fitness and health domain.
In 2023, Huawei unveiled our "Fashion Forward" 
proposition for our wearables, combining elevated 
design features with powerful health and fitness 
functionalities to usher in a new era of stylish 
wearables:
■ Design: The HUAWEI WATCH GT 4's new geometric 
aesthetics encompasses a striking octagonal 
design and stunning ring bezel. The HUAWEI 
WATCH ULTIMATE DESIGN became Huawei's first-
ever gold smart watch, featuring 18K gold and 
zirconium-based liquid metal. Our flagship smart 
watches, the HUAWEI WATCH 4 Series, sported 
brand-new futuristic aesthetics paying homage to 
celestial bodies.
■ Health: The HUAWEI WATCH 4 Series offers 
the Health Glance feature2, making health 
management more effortless and accessible. The 
HUAWEI WATCH GT 4 comes with the improved 
Activity Rings and the Stay Fit app to help users 
build healthier lifestyles.
■ Fitness: The HUAWEI WATCH Ultimate is the first 
consumer smart watch to support two-way BeiDou 
satellite messaging on the Chinese mainland. 
Combined with 100-meter dive-level water 
resistance capabilities and an all-new expedition 
mode, it is a must-have companion for intrepid 
explorers scaling new heights, plunging to new 
depths, and exploring the unknown.
1	
As of March 2024.
2	
This feature is not medical software, and should not be used to treat medical conditions. Results are for reference only, and should not 
be used for medical diagnosis or treatment.


2023 Annual Report
        57
We have also continued to increase investment into 
R&D, with over 800 patent applications filed in the 
fitness and health domain by the end of 2023. On 
October 26, 2023, Huawei opened its third Health Lab 
in Helsinki, Finland. Relying on Huawei's more than a 
dozen R&D centers around the world, we have built 
a world-class R&D system and innovation platform 
for the fitness and health domain. We will further 
research and develop cutting-edge fitness and health 
technologies and accelerate the global layout of 
professional research in the wearables domain to help 
consumers around the world personalize their lifestyles 
with better fitness and health products and services.
Smart Home
In the Chinese market, HUAWEI Smart Space 
solutions continue to lead the smart space industry. 
We launched the Central Control Panel S2, the 
industry's first "space traversing" control panel, as 
well as innovative products such as the Mondrian 
Smart Switch and Smart MINI Pro. Together with our 
constantly-expanding subsystems and ecosystems, we 
aim to make the homes of the future smarter and 
more beautiful.
In 2023, we had more than 300 authorized smart 
home retail stores located across 145 cities in China. 
We also continued to support the development 
of standards and policies related to digital homes 
and space, and actively participated in driving the 
interconnection of smart home products. Furthermore, 
we partnered with major home decoration companies 
to provide users with more comprehensive and 
intelligent decoration services that make people's 
accommodations remarkably better.
We also launched a number of new smart home 
products in an effort to delight our consumers, including:
■ The HUAWEI Vision V5 Series which comes with 
a unique air gesture control function. Powered 
by HarmonyOS, the device can be easily and 
conveniently operated like a smartphone, 
essentially making it a super large-screen 
smartphone for intelligent interaction experiences.
■ The HUAWEI Gigahome Router Q6 (base-satellite 
router), powered by Gigahome technology, which 
can be flexibly deployed in homes without the 
need for cabling while delivering strong signals to 
every room.
■ The HUAWEI BE3 Pro, Huawei's first Wi-Fi 7 
router, which provides consumers with a super-fast 
connection experience.
Huawei appointed two new Wearable Product Ambassadors this year, four-time Olympic gold medalist Sir Mo Farah and fitness & lifestyle 
influencer Pamela Reif, to inspire consumers worldwide to stay healthy (photo taken on Sheikh Zayed Road, Dubai, the UAE).


58       Huawei Investment & Holding Co., Ltd.
■ The HUAWEI MemoSpace home storage device 
which offers an ultra-large-capacity home album 
and local audio and video library. Users can 
simply tap their phone against the device to 
establish an instant connection and automatically 
sync designated photos and videos to this home 
storage device.
■ The HUAWEI Smart Door Lock that has an electronic 
peephole function. Powered by HarmonyOS's strong 
Distributed Software Bus capabilities, this function 
allows users to conveniently and securely check 
real-time images from their doorstep on certain 
HUAWEI Vision products.
Easy Travel
We established the Harmony Intelligent Mobility 
Alliance (HIMA) to support vehicle upgrades under 
our Huawei Zhixuan model. Under this model, the 
automakers we work with successfully launched 
premium tech-enabled car models by leveraging 
Huawei's deep expertise in ICT. Our intelligent cockpit 
and intelligent driving solutions, as well as the 
intelligent and secure experiences they deliver, have 
drawn wide acclaim, and their reputation among users 
has continued to improve. In 2023, more than 90,000 
Huawei Zhixuan vehicles were delivered, consisting of 
various models including:
■ The AITO M9, a panoramic smart flagship SUV, 
which comes equipped with Huawei's full-stack 
automotive technologies. This model has been 
selling extremely well, with more than 30,000 
units sold within just one week of its launch, 
representing a breakthrough in the high-end 
new energy vehicle domain and making it a new 
benchmark of high-end intelligent vehicles.
■ The revamped AITO M7 which features intelligent 
technologies, large interiors, and superior safety, 
making it the perfect choice for families who need 
midsize and large SUVs. More than 120,000 units 
were sold within 100 days of its launch.
■ The Luxeed S7, the first all-electric sedan featuring 
large interiors, which is redefining the form factor 
of intelligent sedans by combining intelligent 
technologies, driving experience, and style. This 
model has been well received by younger consumers.
With the HUAWEI HiCar solution, we launched a 
converged desktop, which provides consumers with 
a smooth experience that seamlessly integrates the 
smartphone ecosystem and vehicle cockpits. This 
solution has been used by more than 50 automobile 
brands in more than 400 vehicle models. In a report 
on assessing the interconnection experience between 
smartphones and vehicles released by the Intelligent 
Car Connectivity Industry Ecosystem Alliance (ICCE), 
the HUAWEI HiCar solution ranked top in five 
experience scenarios and 11 experience indicators. 
Huawei's digital car key service has been used by 
more than 20 automobile brands, allowing users to 
conveniently and securely lock and unlock their cars 
from their smartphones or smart watches.
HMS for Car provides carmakers with global intelligent 
in-vehicle solutions that help them tap into the global 
market. In 2023, HMS for Car was newly adopted 
by more than 10 automakers, and installed on more 
than 17 million vehicles. HMS for Car works with 
Huawei's star products, such as Petal Maps, Celia, and 
AppGallery, to support the global business expansion 
of carmakers and create value for the global 
automotive industry.
Entertainment
Huawei has leveraged its global R&D network to create 
innovative technologies that deliver premium audio 
experiences for all consumer scenarios, including in-
ear earbuds, open-fit earbuds, open-ear earbuds, and 
glasses. Some of the products we launched include:
■ The HUAWEI FreeBuds Pro 3 adopt innovative 
ultra-hearing dual drivers to redefine sound fidelity, 
pushing industry standards to new heights. The 
earbuds enhance the call experience with Pure 
Voice 2.0 and noise cancellation with Intelligent 
ANC 3.0, while also taking advantage of smart 
connectivity for seamless listening. The combination 
of these features delivers the ultimate all-rounding 
earbuds for any modern, connected consumer.
In December 2023, Huawei unveiled its first open-ear earbuds, 
the HUAWEI FreeClip, alongside many other new products at a 
launch event in Dubai.


2023 Annual Report
        59
Huawei has pursued a smartphone-centered "1 + 8 + N" Seamless AI Life strategy and continued to enhance the presence of Huawei 
devices across all scenarios, aiming to deliver a seamless, intelligent experience for consumers across five major scenarios: Smart Office, 
Fitness & Health, Smart Home, Easy Travel, and Entertainment.
■ The HUAWEI FreeBuds 5 feature futuristic 
aesthetics. They come with seamless curves for 
optimal fit, combining fashion with an ultimate 
level of comfort, all while delivering robust bass.
■ Huawei's first open-ear earbuds, the HUAWEI 
FreeClip, feature an innovative C-bridge Design and 
combine comfort and style to provide an Open-ear 
Listening experience.
Continuous Evolution of HarmonyOS and a Thriving HarmonyOS Ecosystem
HarmonyOS 4 was officially launched in 2023, bringing consumers exquisite, personalized, smart, and secure 
experiences on their devices. HarmonyOS 4 provides new personalized themes for phone screens, including emojis 
and fun themes. With the help of the HUAWEI Ark Engine, devices powered by HarmonyOS 4 deliver significant 
performance improvements in six areas: graphics, multimedia, memory, scheduling, storage, and power consumption.
■ HUAWEI Eyewear 2 brings consumers a 
personalized, convenient, smart, and considerate 
interactive experience across all scenarios.
Huawei has continued to delve deep into AI 
technology, and our smart voice assistant has been 
enhanced by foundation models to better serve 
user needs. Powered by Huawei's Pangu models, 
HarmonyOS features new AI-native designs, and its 
system-level AI capabilities make our voice assistant 
more intelligent, capable, and considerate.
HarmonyOS 4 is built on a mature foundation 
comprised of more than 100 million lines of code 
and 20,000 APIs, providing consumers with a fully 
connected experience across all scenarios. We are 
currently focusing on building a brand-new app 
ecosystem around HarmonyOS.
At the Huawei Developer Conference 2023 (HDC.
Together), Huawei announced the HarmonyOS NEXT 
Developer Preview, which brings together all of the 
latest development capabilities to app developers. On 
September 25, we announced the upcoming launch of 
the new HarmonyOS NEXT.
By the end of 2023, HarmonyOS had been 
deployed on more than 800 million devices, and the 
HarmonyOS ecosystem had welcomed more than 2.2 
million developers. In addition, HarmonyOS Connect, 
the technology brand that supports the HarmonyOS 
ecosystem, had attracted more than 2,500 partners 
who released more than 7,000 ecosystem products in 
the Chinese market. In 2023 alone, over 180 million 
new devices in the HarmonyOS Connect ecosystem 
were shipped, covering all aspects of the Seamless AI 
Life and providing consumers with more convenient 
access to the digital world.
Huawei has invested heavily in the cultivation of 
talent for the HarmonyOS ecosystem. In the Chinese 
market, students from 305 universities had attended 
HarmonyOS events, and classes on HarmonyOS 
were taught at 135 universities by the end of 2023. 
Furthermore, 286 companies had run HarmonyOS 
ecosystem workshops, more than 380,000 developers 


60       Huawei Investment & Holding Co., Ltd.
had obtained HarmonyOS certification, and the 
number of industry-university partnership programs on 
HarmonyOS exceeded 150. These many achievements 
provide a sufficient talent pool that will support a 
thriving HarmonyOS ecosystem.
After three years, the OpenHarmony project has 
become a success thanks to the outstanding support 
of the OpenAtom Foundation, the industry, and 
academia. OpenHarmony has become the fastest-
growing open source operating system in the smart 
device domain and a digital foundation that empowers 
the development of numerous industries. By the end 
of 2023, more than 70 organization contributors 
and 6,700 individual contributors had participated 
in this project, submitting more than 100 million 
lines of code. More than 460 hardware and software 
products have passed OpenHarmony compatibility 
tests, covering key sectors like finance, transportation, 
education, energy, industry, aerospace, and healthcare.
Huawei has also curated a rich pool of apps and 
services to deliver users worldwide an intelligent 
experience across all scenarios. By the end of 2023, 
the number of monthly active users of HUAWEI Mobile 
Services (HMS) exceeded 580 million, and the number 
of monthly active users of HUAWEI ID, AppGallery, 
and Quick App surpassed 436 million, 580 million, 
and 210 million, respectively. In addition, the number 
of monthly active users of HUAWEI Music, HUAWEI 
Browser, HUAWEI Wallet, HUAWEI Assistant•TODAY, 
HUAWEI Mobile Cloud, HUAWEI Video, HUAWEI 
Books, HUAWEI Themes, AI Search, and HUAWEI 
Weather all exceeded 100 million. Furthermore, Petal 
Maps is now available in more than 160 countries and 
regions outside China, and supports over 70 languages, 
bringing its monthly active users to over 40 million.
Huawei currently works with content creators to 
provide consumers with high-quality, immersive, and 
reliable digital content. For example:
■ The HUAWEI Newsfeed Connect works with more 
than 500 premium content providers around the 
world to help content creators improve productivity 
with content creation tools powered by AI 
foundation models, and provide consumers with a 
vast library of content.
■ In 2023, HUAWEI Video added 40 new audio and 
video partners. The AiMax Cinema Zone is now 
available on mobile devices, and the HUAWEI 
MatePad Air became the first mobile device to 
support HDR Vivid, allowing consumers to enjoy 
cinematic masterpieces anytime, anywhere.
■ HUAWEI Music offers more than 10 million 
copyrighted songs at lossless audio quality and 
more than one million Hi-Res songs, offering an 
end-to-end HD music experience. In 2023, HD 
spatial audio services were provided to all HIMA-
powered vehicles, and the number of songs 
available increased by 300% year-on-year.
■ HUAWEI Books established partnerships with 
more than 50 top content providers in 2023, 
and released more than 100,000 new e-Books, 
audiobooks, comics, and more through a high-
quality smart reading platform.
■ The HUAWEI Mobile Cloud offers 350 million 
users worldwide personal digital asset 
management services, allowing users to sync their 
data between multiple devices, back up data, and 
search their devices.
The 5th Huawei Developer Conference (HDC.Together) opened on August 4, 2023. At the event, Huawei released a collection of leading 
technologies, including HarmonyOS 4, an upgraded version of the HarmonyOS development suite, and the HarmonyOS Next Developer 
Preview, to help developers build innovative smart devices and apps more efficiently and further improve the Seamless AI Life experience 
for consumers.


2023 Annual Report
        61
Building a Brand with a Human Touch Through Retail and Service Stores
We have continued to explore and develop new premium retail and service models that give our brand a human 
touch and optimize consumers' experience at our retail and service stores. By the end of 2023, we had more than 
60,000 retail stores, display zones, and display counters around the world, including over 5,500 HUAWEI Experience 
Stores and 2,100 Huawei Authorized Service Centers. Our service centers cover 50 countries and regions. In 2023, 
we organized service-focused events such as Service Day, Service Giving Season, and Battery Replacement to 
improve consumer satisfaction. Throughout the year, our offline service stores conducted more than 350 million 
consumer interactions.
We continue to build large HUAWEI Flagship Stores 
and HUAWEI Smart Life Stores in major cities around 
the world. These stores provide enhanced immersive 
experiences to local consumers across all scenarios, 
especially interactive car and home scenarios. By the 
end of 2023, Huawei had 15 Flagship Stores and the 
number of Smart Life Stores with a total floor space of 
over 500 square meters exceeded 300.
HUAWEI Flagship Stores are committed to 
continuously enhancing Huawei's brand image in 
the device domain. They deliver a new intelligent 
experience to local residents by integrating local 
culture into stores and building "urban living rooms" 
that allow consumers to get hands-on experience 
with our latest products and technologies. In 2023, 
our flagship stores opened a fitness & health section 
and a section dedicated to children, and started 
serving coffee to consumers, adding a more human 
touch to our consumer interactions. Consumers can 
also experience the accessibility features of Huawei 
devices in every flagship store, meaning visually- or 
hearing-impaired users can easily learn about Huawei 
devices and digital life stories. Our flagship stores have 
also organized a variety of events for running and 
driving enthusiasts and community concerts to boost 
engagement with consumers. HUAWEI Flagship Stores 
were frequented by more than eight million consumers 
in 2023.
Moving forward, the Consumer BG will continue to 
focus everything it does on consumers and double 
down on its commitment to pursuing technological 
innovation and building a brand that is trusted and 
liked by consumers, all while maintaining a human 
touch. Working with our partners around the world, 
we will redouble our efforts to build a thriving 
HarmonyOS ecosystem and continue delivering a 
Seamless AI Life experience to our consumers.
In 2023, new HUAWEI Flagship Stores were opened on Binjiang Avenue in Tianjin and Taikoo Li Qiantan in Shanghai. In the future, 
HUAWEI Flagship Stores will open in more cities to provide more convenient retail and service experiences to more consumers.


62       Huawei Investment & Holding Co., Ltd.
Intelligent Automotive Solution Business
In 2023, intelligent electric vehicles (EVs) continued to gain traction in China, with penetration rate exceeding 35%. 
Intelligence and connectivity have gradually become differentiating factors for vehicle performance. Huawei is 
determined to become a provider of new components for vehicles. In line with this strategic position, our intelligent 
automotive solution (IAS) business unit (BU) will continue to focus on providing intelligent automotive components 
for customers, and leverage Huawei's ICT expertise to improve driving safety and experiences as we work to create 
both business and social value.
After years of heavy investment, we have developed industry-leading solutions for intelligent driving, intelligent 
cockpits, and intelligent vehicle control, all of which are ready for large-scale delivery. We will continue to 
pursue technological innovation and industry leadership and prioritize quality, safety, and security, while enabling 
customers and working with industry partners to promote intelligent development.
Business Development
Our significant investments in recent years have enabled us to establish unique competitive advantages in 
intelligent automotive solutions and we are now seeing rapid growth in both sales orders and revenue. We 
are working with our partners to bring consumers an intelligent mobility experience and drive the intelligent 
transformation of the automotive industry.
We are continuing to increase our investment into 
R&D. To date, we have invested more than CNY30 
billion into the R&D of our IAS BU, and this BU 
currently has 7,000 R&D employees.
We are working hard to provide customers and 
partners with high-quality products, and our IAS 
business is growing rapidly. By the end of 2023, we 
had shipped more than three million sets of intelligent 
automotive components, which included products and 
solutions like intelligent cockpits, intelligent driving, 
intelligent vehicle control, intelligent vehicle cloud 
services, LiDARs, mmWave radars, cameras, gateways, 
augmented reality head-up displays (AR-HUDs), 
intelligent headlights, and T-Boxes.
In 2023, Huawei launched and commercialized the 
HUAWEI Advanced Driving System 2.0 (ADS 2.0), which 
delivers consumers an intelligent driving experience 
without the need for high-definition maps. This 
technology is now available throughout China, and the 
more consumers use it, the easier driving becomes. 
ADS 2.0 also supports functions like mechanical car 
parking and auto valet parking, and allows cars to 
park in tight spaces with ease. It is the first system in 
the industry to provide these functions. ADS 2.0 also 
features the industry's first comprehensive collision 
avoidance system (CAS), which offers the quickest 
automatic emergency braking (AEB) on the market. 
These functions help make driving safer and easier.
Huawei's HarmonyOS Intelligent Cockpit is one of 
the best cockpits on the market. In 2023, Huawei's 
intelligent cockpit system was upgraded to HarmonyOS 
4, which supports smoother system operations, 
stronger voice capabilities, and extraordinary 
experiences with functions like OneHop file sharing, 
super desktop, and intelligent vehicle finding.
In 2023, seven car models built as part of strategic 
cooperation with our IAS BU were launched and highly 
recognized by consumers. Intelligent driving and 
intelligent cockpits have become important factors in 
purchase decisions and have a bright future.
Quality, Safety, and Security
Quality, safety, and security are the lifelines of automotive products. Huawei pursues a zero defect system that 
puts safety, security, and quality first, and integrates these requirements into all business processes, from R&D and 
testing, to manufacturing, supply, and procurement.
■ Our Quality and Safety Committee is the highest 
decision-making organization regarding the quality, 
safety, and security for our IAS business, and 
ensures the Safety First concept is implemented 
through leadership and organizational measures.
■ We didn't stop at automotive-grade functional 
safety and cyber security certifications. Instead, 
in 2023, we continued to enhance our safety 
and security system, and passed internationally 
recognized certifications on the safety of the 
intended functionality (SOTIF).


2023 Annual Report
        63
■ We also set up a safety and security evaluation 
center to independently evaluate product safety 
and security and ensure that products meet 
Huawei's safety and security standards.
■ We continued to increase R&D investment and 
developed advanced technologies such as data-
driven and model-driven technologies to improve 
product quality, safety, and security.
Ecosystem Development
As part of Huawei's broader "Platform + Ecosystem" strategy, we are creating a digital foundation and development 
tools that can be used to build intelligent vehicles. By the end of 2023, we had brought together more than 300 
partners from across the automotive industry through the following four ecosystem platforms:
■ The intelligent digital vehicle platform (iDVP) 
ecosystem has attracted more than 100 partners, 
and our iDVP is already pre-integrated with 40 
tested equipment models from 20 vendors. 
■ The intelligent driving computing platform 
ecosystem has more than 70 partners who are 
helping enable intelligent driving pilots and 
commercial applications for passenger cars, ports, 
mining trucks, and campuses, among others.
■ Through our HarmonyOS Intelligent Cockpit 
platform, we have collaborated with over 150 
hardware and software partners to provide 
consumers with intelligent, personalized, and 
diversified service experiences.
■ Through the Intelligent Automotive Optics platform, 
we have established cooperation with more than 
10 tier-1 vendors.
Together, these four platforms form a larger 
ecosystem, expand the total addressable market, 
and accelerate the intelligent transformation of the 
automotive industry.
Huawei also actively contributes to industry standards 
and key technologies that support the development of 
the automotive industry.
■ Huawei has been deeply involved in the SparkLink 
Alliance, which is committed to driving innovation 
in next-generation short-distance wireless 
communications technology. To date, the alliance 
has brought together more than 240 member 
organizations across the value chain.
■ As a founding member of the Software-Defined 
Vehicle (SDV) Standards Committee under the 
Software Subcommittee of the China Association 
of Automobile Manufacturers, Huawei actively 
pools wisdom from across the industry to drive 
consensus and contribute to industry standards. 
In 2023, the SDV Standards Committee and over 
100 member organizations jointly released the 
social organization standard – API Specifications 
for Intelligent Connected Vehicle Services, in order 
to promote industry collaboration and address 
common industry issues. By June 2023, the SDV 
Standards Committee had published more than 
500 atomic service APIs and over 400 device 
abstraction APIs.
Industry Recognition
In 2023, Huawei's intelligent driving and intelligent cockpit solutions won multiple industry awards, setting new 
industry benchmarks.
■ Our intelligent driving solutions won three awards at 
the iVISTA Intelligent Connected Vehicle Challenge: 
Best Perception Award, Best Safety Award, and 
Special Automatic Emergency Braking Award.
■ Our intelligent solutions received the highest rating 
from the iVISTA China Intelligent Vehicle Index while 
dominating with intelligent safety and navigation 
cruise assist.
■ Our intelligent driving and intelligent cockpit 
solutions won three awards from the AutoLab 
Golden Flame Award: Intelligent SUV of the Year, 
Best Interconnectivity Experience of the Year, and 
Best Commuting Experience of the Year.
■ Huawei's HarmonyOS Intelligent Cockpit won the 
Mobility Technology Award.


64       Huawei Investment & Holding Co., Ltd.
Research and Innovation
The intelligent world is approaching, faster than ever before. This is creating unprecedented opportunities 
and challenges in terms of innovation. Huawei continues to invest in basic research and open innovation, and 
accommodates and addresses customer needs with an open mind, while steering these needs with science and 
technology. We have also built flexible business models and encourage numerous industries to adopt a vast 
range of models and applications. Through such initiatives, we are bringing digital to every person, home and 
organization for a fully connected, intelligent world.
Basic Research
In 2023, we continued to focus on basic research and strengthened efforts to steer customer needs with cutting-
edge technologies. We also pursued breakthroughs in innovation that will drive the entire industry and all of 
society forward.
■ When exploring the infinite possibilities of science, 
we remain dedicated to combining mathematics 
with modern information and communications 
technologies. In 2023, we further developed our 
basic research capabilities and broke through 
numerous bottlenecks plaguing the industry:
– In information theory coding, we extended the 
classical fast Fourier transform (FFT) algorithm 
to algebraic geometry codes by Goppa, 
reducing their complexity from O(n^2) to 
O(nlog n).
– In machine learning, we developed a new 
federated conformal prediction method based 
on quantile regression. This method addresses 
the label shift between agents and provides 
theoretical guarantees for both valid coverage 
of the prediction sets and differential privacy.
– In large language model training, we developed 
CAME, a novel memory-efficient optimizer that 
supports adaptive confidence-based updating 
and consumes over 50% less memory than 
the Adam optimizer. The paper we published 
on this optimizer was named one of ACL's 
(Association for Computational Linguistics) 
2023 Outstanding Papers.
■ We also ramped up efforts to apply our latest 
basic research results to industry. At Huawei, we 
refer to this as "laying eggs along the way".
– In wireless communications, we developed 
an energy-efficient low-order digital 
predistortion architecture to manage nonlinear 
power amplifier distortion in wideband 
massive multiple-input multiple-output 
(MIMO) systems. This design is based on a 
decomposition theory and can realize a 3–5 dB 
improvement in correction performance.
– In optical communications:
• 
We designed a simplified nonlinear 
fiber compensation algorithm, using the 
perturbation theory to solve nonlinear 
Schrodinger equations. This algorithm has 
helped extend the long-haul transmission 
distance of 800 gigabit fiber by about 20%.
• 
We also designed a metasurface-enabled 
light modulation model based on the finite-
difference time-domain (FDTD) method to 
address polarization dependence of liquid 
crystal on silicon (LCoS) – the engine for 
optical cross-connect (OXC). This model has 
allowed us to simplify wavelength selective 
switch (WSS) by anywhere from 50% to 75%.
– In artificial intelligence, we introduced Integral 
Neural Networks, a new family of networks 
featuring continuous layer representation 
to address the intense computing resource 
demands of generative model training. These 
networks support multi-process inference on 
a single XPU, multiplying inference efficiency 
without losing accuracy.
– In information retrieval, we proposed a new 
method for approximating data distribution 
through function mapping to handle possible 
explosions in index space triggered by rapid 
increases in high-dimensional data. This method 
can boost retrieval speed by an order of 
magnitude.


2023 Annual Report
        65
Open Innovation
We have continued pursuing open innovation along multiple paths in multiple waves, targeting multiple scenarios. 
The company works tirelessly to unleash the full value of its complete portfolio, address real business challenges, 
and create value for the industry.
■ Wireless Communications
– We field tested prototypes in 11 scenarios and 
managed to:
• 
Become the first to verify zero-overhead 
integrated sensing and communication 
capabilities for 6G networks on the 
centimeter wave (cmWave).
• 
Realize centimeter-level precision of multi-
object detection and decimeter-level 
reconstruction of outdoor environments on 
cmWave band.
• 
Verify polarization multiplexing and beam 
spatial division multiplexing technologies 
under ultra-large bandwidth on the 
terahertz frequency band, reaching a peak 
speed of over 400 Gbit/s at an outdoor 
distance of 500 meters.
– We were also the first to achieve 0.5 gigabit 
satellite communications based on cellular 
mobile broadband protocols while moving 
at speeds of 130 km/h, demonstrating the 
potential of satellite-based cellular mobile 
network enhancement.
■ Optical Networks
We continued to increase single-wavelength rate 
and channel capacity, allowing us to:
– Make breakthroughs in 222 gigabaud ultra-
high-speed optoelectronic modulator 
technology and propose a new key subcarrier 
algorithm and architecture to address coding 
modulation and power consumption in large 
throughput scenarios.
– Break new ground in the design and production 
of a new type of high density multi-element 
doped optical fiber.
– Commercially use erbium-doped fiber amplifiers 
(EDFAs) on ultra-wide gain spectrum: C6T + 
L6T (12 THz).
– Test and verify the first ever 400 gigabit 
quadrature phase shift keying (QPSK) system, 
which was able to deliver a capacity of 32T at a 
distance of 7,000 kilometers.
■ Carrier and Enterprise Networks
Our innovation in this domain in 2023 centered on 
three areas:
– We created a layered heterogeneous 
topology network architecture and a full-
path routing technology system that shorten 
the interconnection distance between nodes 
and reduce the use of optical components. 
Therefore, network costs now account for less 
than 20% of total costs and network reliability 
has been improved by an order of magnitude.
– We invented a global routing planning 
algorithm to increase network throughput to 
over 90%.
– We created the world's first non-uniform Bruck 
collective communications algorithm, which 
delivers 50% better performance than other 
mainstream algorithms in the industry.
■ AI Algorithms
Foundation models are driving us ever closer to 
a truly intelligent world, but they also present a 
number of new challenges. Our innovations in AI 
algorithms focus on transforming these challenges 
into opportunities. 
– To date, Ascend clusters have been used to 
train trillions of high-quality parameters for 
Pangu foundation models. This has helped us:
• 
Realize near-linear scaling of training for 
4,000 XPUs and address the technological 
challenges impeding training and inference 
acceleration and long sequences;
• 
Boost the 7-day retention rate of Celia 
users on Mate 60 phones by more than 10 
percentage points; and
• 
Use AI in Huawei Cloud EI and business 
process & IT services for applications in a 
dozen industries.


66       Huawei Investment & Holding Co., Ltd.
– The company also released simplified network 
architectures that best support Ascend, such as 
GhostNet v2 and VanillaNet, boosting efficiency 
by at least 50% while performing the same task 
to the same level of precision.
■ Computing
The demand for extreme-scale computing has 
become a core engine of AI development, so we 
innovated to achieve a number of breakthroughs in 
this area in 2023:
– We implemented a novel supernode architecture 
to realize unified memory addressing and 
resource scheduling.
– Our new liquid-cooling architecture pushed 
engineering to new heights in order to reduce 
footprint while increasing computing power for 
higher-density computing systems.
– We provide an open and easy-to-use framework 
for computing ecosystems and have released 
CANN 7.0, which enables developers to 
customize high-performance operators and 
acceleration libraries that directly schedule and 
manage computing resources.
– We upgraded the Ascend C programming 
language to simplify operator implementation 
logic, reducing operator customization time 
from weeks to days and accelerating AI model 
and application development.
■ Consumer Business
Throughout 2023, Huawei remained focused on 
deepening our roots in core technologies to provide 
users with industry-leading experience.
– We pioneered advanced imaging technologies 
such as the adjustable aperture and Super 
TeleMacro Camera on our phones. We also made 
groundbreaking efforts in related areas such 
as an ultra-high dynamic range in scenes with 
higher light-to-dark ratios, delicate bokeh effects, 
and multi-modal deblurring. These incredible 
XMAGE technologies have brought ultra vision 
photography experiences to our users.
– We became one of the world's first companies 
to launch a cloud enhancement function backed 
by technologies like on-cloud algorithms for 
foundation models trained with hundreds 
of millions of parameters, a hybrid network 
supporting both photo preview and sensing, 
and high image compression. It helps phones 
capture and recover details within images and 
deliver portraits of unparalleled clarity and 
fineness, pushing photography to new levels of 
precision and beauty.
– Huawei phones now automatically connect 
to the most optimal network they can find, 
providing better communications quality and 
throughput in weak-signal scenarios and 
delivering more stable network connections.
– We unveiled our next-gen, double-rotating, and 
multi-dimensional hinge that is able to deliver 
a free range of motion thanks to its dual-track 
driver structure and ultra-strong aluminum. This 
makes HUAWEI Mate X5 phones both incredibly 
light and exceptionally durable.
– We continued to work on materials and 
production methods for our phones, developing 
a number of new technologies, such as Kunlun 
Glass, whose upgraded formula and atomic 
structure enhancement make it 100% more 
drop resistant and 300% more scratch resistant.
– Our HongMeng Kernel was awarded the 
industry's first Evaluation Assurance Level 6 
Augmented (EAL6+) certificate as part of the 
Common Criteria for Information Technology 
Security Evaluation (CC), making Huawei the 
world's first smart device manufacturer to 
receive the certification in the commercial OS 
kernel field.
– The number of devices running on HarmonyOS 
rose to 800 million in 2023 thanks to the 
system's adoption across numerous industries.
– Following the revamped AITO M7's launch, over 
120,000 vehicles were sold in just 100 days. 
This achievement can be attributed to Huawei's 
three major proprietary technologies – General 
Obstacle Detection (GOD), Road Cognition & 
Reasoning (RCR), and decision making under 
uncertainty.
■ Foundational Software
In 2023, we continued pursuing innovation in 
foundational technologies in order to create a more 
solid foundation for the industry and ecosystems, 
resulting in numerous breakthroughs, including:


2023 Annual Report
        67
– Our proprietary GaussDB is becoming China's 
first database to support full-stack hardware-
software collaboration to enable strong dual-
cluster consistency, high elasticity for thousands 
of nodes, and full encryption.
– openEuler now comes equipped with 
unique new strengths to better address 
industrial latency, security, and resource 
utilization requirements, thanks to advances 
in deterministic low latency, confidential 
computing, and hybrid deployment and 
scheduling.
■ Software Engineering
Vulnerabilities from open source software are a 
major source of security threats for the software 
supply chain. Considering this, Huawei has 
developed an open source vulnerability knowledge 
library, and made significant headway into 
technologies like characteristic abstraction, analysis, 
and comparison, as well as vulnerability research 
and judgment. This has helped us detect and 
identify vulnerabilities originating from open source 
C, C++, and Java projects in advance.
■ Systems Engineering
In L3 and higher-level complicated autonomous 
driving scenarios, ensuring safety of the intended 
functionality (SOTIF) is a great challenge. To 
surmount this challenge, we:
– Built a simulation testing capability that covers 
both hazardous scenarios and fault injection, 
boosting end-to-end testing efficiency by at least 
five times.
– Achieved leapfrog development in the out 
of operational design domain (out-of-ODD) 
detection technology, with the accuracy of safe 
lane planning at intersections hitting 92%.
In 2023, our total R&D spending reached CNY164.7 billion, representing 23.4% of our total revenue. Our total R&D 
investment over the last decade now exceeds CNY1.11 trillion.
On December 31, 2023, 114,000 employees (about 55% of our workforce) worked in R&D.
Huawei is an industry leader in patents in multiple mainstream 
standards fields, including cellular network communications, 
short-distance communications, and audio and video codecs.
By the end of 2023, Huawei had signed over 200 patent 
licensing and cross-license agreements with many of the 
industry's largest patent holders.
Every year, Huawei invests over 10% of its sales revenue into R&D
Huawei's patents are broadly 
recognized across the industry
By the end of 2023, Huawei held a 
total of 140,000+ active patents.
Huawei has one of 
the world's largest 
patent portfolios


68       Huawei Investment & Holding Co., Ltd.
■ Stay customer-centric, build an ecosystem for 
shared success, and continue creating greater value 
for customers by meeting their needs and pursuing 
technological innovation
■ Effectively manage risks, and ensure operational 
compliance and business continuity
■ Guarantee the trustworthiness of both processes 
and results, and provide trustworthy, quality 
products
■ Pursue corporate social responsibility (CSR) 
initiatives and promote sustainable development
Quality and Customer Satisfaction
Quality lowers cost. At Huawei, we remain true to our core strategy of succeeding through quality. We strive to 
make quality our core competitive edge. Over the past year, we have further improved our quality culture and 
leadership. We have also strengthened our ISO 9000-based total quality management system and extended our 
quality management mechanisms and requirements to every part of our value chain. Together, we are working to 
deliver higher quality to our customers. As always, we have continued to work hard to make Huawei synonymous 
with high quality in the ICT industry.
In 2023, we achieved many quality breakthroughs, 
including the following: 
■ We improved quality leadership of management 
at all levels, improved the quality awareness and 
capabilities of all employees, strengthened the 
management of our quality objectives, and increased 
our quality-related incentives:
– We organized quality workshops for top 
management, and quality conferences, audits, 
and training for employees, while also awarding 
those who can serve as quality role models, to 
encourage all employees to pursue quality.
– We systematically improved the application 
of quality engineering methods, such as the 
Huawei hardware innovation and optimization 
approach (HINA), theory of inventive problem 
solving (TRIZ), and failure mode and effects 
analysis (FMEA), to drive the continuous 
improvement of our products and services.
– We doubled down on efforts to improve 
knowledge management and project 
retrospection and cultivated quality digitalization 
capabilities within our quality team.
These efforts have been and will continue to help 
the company succeed through quality.
■ We continued to roll out the ISO 9000-based 
total quality management system:
– We have built up significant experience and 
capabilities in quality management over the 
past 30+ years, and we are adapting this 
experience to address the unique characteristics 
of different business domains.
Improving the Management System
Our global management system supports the company-wide promotion of our corporate culture and the effective 
management of our business. Ultimately, we aim to:
– We have embedded quality requirements 
into every process of our business domains, 
ensuring all aspects of our operations 
are covered, including R&D, supply chain, 
service delivery, sales, and marketing. We 
have specifically focused on putting in place 
quality requirements that ensure compliance; 
trustworthiness; internal controls; cyber security 
and privacy protection; information security; 
business continuity; Environment, Occupational 
Health and Safety (EHS); and Corporate 
Sustainable Development (CSD).
The quality products and services we offer 
following these processes will help us continue 
winning customer trust and maintain our place as 
their preferred choice.
■ We extended our quality management 
mechanisms and requirements to suppliers as 
well as channel and ecosystem partners:
– We invested more into both general and 
targeted programs that help our suppliers and 
partners across the entire value chain improve 
their own quality management capabilities. This 
close collaboration has helped us all improve 
both our technologies and quality management 
capabilities so that we can deliver better quality 
to our customers together.
– We worked hard to capture more feedback from 
customers and partners through diverse channels.
– 
The management determined key areas for 
improvement through deep discussions and analyses 
of key issues, to improve customer satisfaction and 
achieve shared success with partners.


2023 Annual Report
        69
■ All aspects of Huawei's management system have 
been certified by leading industry organizations, 
including our systems for financial robustness, 
quality management, risk management, human 
resource management, service delivery, supply 
chain management, knowledge management, 
project management, trustworthiness and software 
engineering, cyber security and privacy protection, 
information security, functional safety, EHS, CSR, 
CSD, and business continuity management (BCM). 
This has brought us extensive recognition from 
customers. The company has been evaluated and 
certified by numerous independent third parties, 
receiving a number of certifications including:
– ISO 9001
– TL 9000
– IATF 16949
– ISO 13485
– ISO 10012
– ISO 14001
– ISO 14064-1
– ISO 45001
– IECQ QC 080000
Huawei quality experts working with partners across the value chain to deliver better quality
– ISO 50001
– ISO 22301
– SA 8000
– ISO 30415
– ISO 28000
– ISO/IEC 20000-1
– ISO/IEC 27001
– ISO/IEC 27017
– ISO/IEC 27034
– ISO/IEC 27018
– ISO/IEC 27701
– ISO/IEC 29151
– CSA STAR
– PCI DSS
– PCI 3DS
– SOC 1/2/3
– ISO 27799
– ISO 26262
– ISO 21448
– ISO/SAE 21434
– ASPICE
– TISAX
– NIST CSF


70       Huawei Investment & Holding Co., Ltd.
Regulatory Compliance
Huawei works hard to conduct its business with integrity and conform to business ethics standards and all 
applicable laws and regulations. This key principle is upheld by our highest levels of management. We have worked 
for years to build a compliance management system that aligns with industry best practices and embed compliance 
management into every aspect of our business activities and processes. These efforts continue to this day. Huawei 
emphasizes a culture of integrity and invests heavily to make it a reality. As such, every Huawei employee is 
required to strictly adhere to its Business Conduct Guidelines (BCGs).
■ Our Chief Compliance Officer manages the 
company's operational compliance, and reports to 
the Board of Directors. Every one of our company's 
business departments and subsidiaries has also 
established its own compliance team, taking 
responsibility for the management of its own 
operational compliance.
■ We identify and assess risk according to applicable 
laws and regulations and business scenarios. In 
addition, we have formulated control measures that 
have been incorporated into our business activities 
and processes. We also continuously optimize our 
management system through root cause analysis 
and targeted corrective action.
■ We attach great importance to and continuously 
enhance the compliance awareness of our 
managers and employees. Through publicity, 
training, exams, disciplinary action, and other 
related actions, we push all our employees to fully 
understand their own obligations as well as those 
of the company.
■ With an open mind, we proactively engage and 
work with customers, partners, regulators, and 
other stakeholders on compliance, to constantly 
enhance mutual understanding and trust.
Compliance Management by Domain
As always, Huawei is dedicated to improving 
compliance across multiple domains, including but 
not limited to trade compliance, financial compliance, 
anti-bribery compliance, intellectual property (IP) 
and trade secret protection, and cyber security and 
privacy protection. These compliance requirements 
are embedded into our policies, systems, and business 
processes.
Trade Compliance
Huawei has always endeavored to comply with the 
applicable laws and regulations of the countries 
and regions in which it operates. These include the 
applicable export control and sanction laws and 
regulations of the UN, China, the US, and the EU. 
We are committed to fulfilling our responsibilities 
and obligations related to export controls. We have 
invested immense effort over the years to establish 
a mature and sustainable internal system for trade 
compliance that aligns with industry standard 
practices, and worked tirelessly to constantly improve 
this system.
We have also established an integrated trade 
compliance management organization within the 
company. This organization manages trade compliance 
across both group functions and field offices. In 
addition, we have established specialist teams in our 
global offices that monitor changes to local laws 
and regulations; formulate and refine our trade 
compliance policies, systems, and processes; drive the 
implementation of these requirements in applicable 
business domains and group functions; and manage 
and oversee trade compliance in each link of our 
business operations, ranging from procurement, R&D, 
and sales, to supply and services.
Huawei continuously pushes employees to further their 
own trade compliance awareness. Employees must sign 
Huawei's BCGs each year, which include commitments 
to observing applicable export control laws and 
regulations. Huawei provides training sessions on 
trade compliance to managers and employees across 
the company, with training taking various forms 
across different sessions. These efforts, combined with 
targeted training for specific business scenarios, ensure 
employees fully understand their own responsibilities 
and obligations, as well as those of the company, 
regarding export controls. The company also regularly 
conducts internal evaluation and audits of our own 
trade compliance system.
Financial Compliance
As always, Huawei is dedicated to complying with 
applicable financial laws and regulations, and 
earnestly fulfilling its statutory obligations and 
social responsibilities. We attach great importance 
to the management of financial compliance risks, 
and building on our long-term investment into 
financial compliance, we have established a financial 
compliance management and control system that 


2023 Annual Report
        71
closely aligns with industry standard practices, and 
have launched improvement initiatives to ensure this 
system continuously improves.
Specifically, we manage financial compliance from 
end to end by considering factors such as regions, 
transaction objects, fund routes, and the risk appetite 
of banks. Our management also covers our partners. 
We have set control points for our processes for 
procurement, R&D, sales, supply, service, investment, 
finance, human resources, and more. All of this is 
managed through IT control tools that are constantly 
being upgraded and refined.
Beyond systems and tools, we also constantly work 
to increase employee compliance awareness through 
internal communications on financial compliance, 
including publicity, training, exams, and disciplinary 
action. This ensures that employees not only recognize 
the company's and their own compliance obligations, 
but also act in accordance with compliance 
requirements.
Anti-Bribery Compliance
Huawei has a zero-tolerance policy towards corruption 
and bribery. We have continued to develop our 
compliance management system and capabilities at 
both the group and subsidiary levels. Through this 
system, we constantly monitor and identify risks, embed 
new compliance controls into our processes, and 
drive the optimization of relevant business rules and 
processes. We have also invested heavily in building an 
atmosphere and culture of compliance and increasing 
employee compliance awareness. Internally, we work 
hard to ensure all employee conduct is above board, 
while externally, we pay special attention to third-
party compliance management. We have established 
compliance monitoring procedures that review the 
effectiveness of our risk controls and drive improvement 
of the company's anti-bribery system and the closed-loop 
management of compliance issues. The combination of 
these efforts allows us to effectively control anti-bribery 
compliance risks across the company.
IP and Trade Secret Protection
Respecting and protecting IP: Huawei is dedicated to 
its long-term investments into R&D and continuously 
enriching its IP portfolio. Huawei is one of the world's 
largest patent holders, and the company believes 
that respecting and protecting IP is the bedrock of 
innovation. As a follower, practitioner, and contributor 
of IP rules, as well as an innovator, Huawei invests 
heavily into IP protection and respects the IP of others. 
Huawei has reached cross-license agreements with 
major ICT companies around the world, and works 
tirelessly to cultivate an industry environment that 
protects innovation and IP across countries and regions.
Respecting and protecting the trade secrets of 
others: Huawei is committed to protecting its own IP 
and trade secrets, while respecting those of others. 
We explicitly prohibit our employees from improperly 
acquiring, disclosing, using, or disposing of the trade 
secrets of others.
The key measures Huawei has taken to protect the 
trade secrets of others include:
■ Issuing our Regulations on Respecting and 
Protecting Third Party Trade Secrets, which set out 
clear rules that employees must follow to respect 
and protect the trade secrets of others during 
business activities and ensure that employees carry 
out business activities legally and in accordance 
with our contracts
■ Embedding trade secret protection requirements 
into business processes such as R&D, sales, 
procurement, and human resources, conducting 
regular reviews, and continuously improving 
management mechanisms by taking away lessons 
and case studies from day-to-day operations
■ Organizing publicity, training, and exams on trade 
secret protection for all employees, so that they are 
fully aware of their obligations and responsibilities 
regarding trade secret protection compliance
■ Conducting supervision, including checks and 
audits, to examine efforts aimed at protecting the 
trade secrets of others and thus ensure effective 
implementation of our policies, rules, and processes
■ Establishing an accountability system based on 
official corporate policies such as the Accountability 
Protocol for Infringements of Other Parties' Trade 
Secrets and the Accountability Rating Criteria for 
Information Security Violations to hold violators 
accountable for any trade secret violations
Regional Compliance Management
For every country and region outside China where 
Huawei operates, we have appointed a compliance 
officer and a country board director responsible for 
compliance (dual role). They manage and supervise 
the compliance of subsidiaries through the following 
key measures to guarantee the operational compliance 
of our businesses:


72       Huawei Investment & Holding Co., Ltd.
■ Formulating subsidiary compliance management 
policies in accordance with applicable local laws 
and regulations, guided by the tone at the top of 
our organization; helping organizations internalize 
external laws and regulations; and arranging for 
subsidiaries in more than 130 countries and regions 
to publish their own compliance white papers 
which serve as a guide for professional compliance 
management activities
■ Fully identifying compliance risks related to sales, 
service, supply, R&D, and other business activities 
that may be caused by the ongoing influence 
of uncertainties from geopolitics and economic 
prospects, technical sanctions, or trade barriers; 
assigning compliance management responsibilities 
to business departments; implementing related 
regulations and processes; and carrying out 
checks and assessments to ensure that key control 
measures are effectively implemented
■ Providing compliance training for employees 
across the company. In 2023, compliance training 
attendance reached 186,200 for employees outside 
of China, and 70,800 compliance-related exams 
were taken. The company also works hard to build a 
corporate culture that values honesty, integrity, and 
regulatory compliance. These efforts are aimed at 
helping employees fully understand the compliance-
related obligations and responsibilities they hold, as 
well as those of the company
Management Transformations
The overall goal of transformation at Huawei is to "grow the harvest and increase soil fertility". Our transformations 
concentrate on the company's strategic businesses and aim to help us maintain policy consistency. Our digital 
transformations support our businesses and increase business resilience, ensuring stable day-to-day operations.
■ Huawei aims to build strong rep offices, small 
regions, a small HQ, and a large platform. As 
such, we continued with our Contract Reviews 
and Conclusions at Rep Offices Transformation 
Program in 2023 which is injecting vitality 
into rep offices and improving their operating 
efficiency and capabilities. Key steps taken this 
year include:
– Further streamlining our processes and 
organizations to make them more responsive to 
customers
– Driving further optimizations of regional and 
HQ organizations from the bottom up, so that 
regions and HQ can focus on supporting what 
is required by rep offices and cutting down on 
what is not required
■ To help the company achieve high-
quality development in 2023, our digital 
transformations were aimed at three areas:
– Proactively following up on the irreversible 
trends of digital, intelligent, and low-carbon 
transformation, further refining our business 
management, identifying common data 
governance requirements shared by our partners 
in different industries, and exploring approaches 
to streamlining large-scale, multi-format data 
management in different ecosystems in a 
proprietary and controllable way
– Building up capabilities related to controllable 
data exchange and trustworthy, controllable, 
and verifiable data space services, which has 
helped ensure the controllable exchange of 
more than 20,000 types of data, satisfying the 
data sharing and governance needs of both our 
business units at different granularities (e.g., 
the group, businesses, and field offices) and our 
ecosystem partners
• 
The reliable, complete, and accurate data 
supported sustainable development of our 
global supply chain.
• 
We performed sustainable development 
audits on over 1,600 of our major suppliers 
who support more than 90% of our total 
procurement.
• 
We also worked to ensure that all of our top 
100 and energy-intensive suppliers completed 
their carbon emission statistics and implemented 
carbon emission reduction projects.
– Tackling the challenges arising from the 
application of AI foundation models in 
enterprises by establishing professional, 
scenario-based, and data-focused management 
approaches and systems that clearly define data 
boundaries, model boundaries, and model use 
boundaries. These approaches and systems have 
helped the company address conflicts between 
the application of AI foundation models and 
data protection, fully unlocking the value of 
data elements and supporting the company's 
high-quality development


2023 Annual Report
        73
■ In 2023, we continued to resort to 
digitalization to make our businesses more 
resilient, avoid business interruptions, and 
safeguard stable business operations.
– Digital transactions: As of the end of 2023, 
our transaction system had been connected to 
those of 274 account groups, 180,000 enterprise 
partners, and 46,000 suppliers. In addition, 
our cloud-based Mobile World Congress and 
customer summit initiatives improved transaction 
quality, making it easier for customers, suppliers, 
and partners (including ecosystem partners) to do 
business with Huawei.
– Digital internal operations: Digitalization of our 
internal operations has helped the company 
realize "elite team" operations with a large 
platform. Digital transformation of our major 
businesses has shortened order fulfillment 
times and further automated purchase order 
and acceptance management, increasing 
both the quality and efficiency of day-to-day 
operations. In addition, the company eliminated 
a number of business continuity risks by 
replacing restricted software packages. The use 
of proprietary technology has already helped us 
prevent supply interruptions and safeguarded 
fund and asset security.
■ We also further iterated our digital 
transformations to better serve our customers 
and partners.
– In 2023, Huawei completed the large-
scale rollout of MetaERP, an advanced 
digital platform for enterprise operations 
and management. With this platform, the 
company has improved its ability to manage 
human resources, finances, supply chain, 
procurement, and other aspects. This allows 
us to efficiently allocate key resource elements 
while maintaining steady growth. MetaERP 
now covers 100% of our business scenarios 
and 96% of our business by volume. This has 
substantiated the availability and advancement 
of our proprietary technologies, architectures, 
and engineering approaches, supporting 
both business continuity and sustainable 
development.
– In the device business, we continued improving 
our sales, marketing, and service platform 
to deliver better end-to-end smart home 
experiences for consumers on both B2C and B2B 
sides. This has shortened partner registration 
and incentive settlement times, improved the 
management efficiency of our retail stores, 
and systematically built up service capabilities 
surrounding our "1 + 8 + N" strategy.
– In our carrier business, we continued to expand 
and deepen IT system integration for customer 
transactions and delivery, making it easier 
for customers to trade with us. In 2023, we 
connected our end-to-end transaction and 
delivery system with 34 new accounts and 
increased the number of accounts capable of 
supporting collaborative online transactions and 
delivery by 129.
– Our enterprise business launched a dedicated 
partner site and an official site for the new 
HUAWEI eKit sub-brand as well as related 
mobile gadgets, such as the Huawei eKit app, 
to help our distribution partners go digital and 
improve customer and partner satisfaction.
– In Digital Power, we continued to put safety and 
reliability first. We kept building up and refining 
our end-to-end quality management system 
to advance digitalization and we enhanced the 
digitalization capabilities of our entire value 
chain by helping partners go digital faster.
– In Huawei Cloud, we focused on products, 
customers, ecosystems, and resources 
that provide leading, all-online, intelligent 
experiences for customers, partners, and 
developers across all business domains. 
Our goal for this business continues to be 
providing a solid, secure, and high-quality cloud 
foundation for the intelligent world.
■ In 2023, Huawei continued to roll out its 
Transformation Program for Software 
Engineering Capability Enhancement, 
aiming to improve company-wide software 
engineering capabilities, create trustworthy, 
high-quality products, build trustworthiness 
in our management system, and realize the 
replication of successful experience.
– Competitive and trustworthy products:
• 
Trustworthy results: In 2023, we fixed 
100% of widely exploited vulnerabilities 
and prevented 100% of high risks identified 
during product threat analysis. Products 
within the scope of this Transformation 
Program have been verified by Huawei's 
Independent Cyber Security Lab (ICSL). Over 


74       Huawei Investment & Holding Co., Ltd.
the past year, the ICT business has also 
obtained 174 new external certifications and 
avoided all major security incidents.
• 
Trustworthy process: We have realized full 
integrity protection (preventing tampering, 
implantation, spoofing, and malicious code) 
and traceability for our software sources, 
the development process, and the supply 
chain process. This includes:
> Integrity protection for 100% of sources;
> Integrity for 100% of internal R&D 
operations;
> Integrity for 100% of deliverables to 
outside parties;
> Scanning of 100% of potentially 
malicious open source and third-party 
software;
> 100% binary equivalence for applicable 
products;
> End-to-end tracing for all requirements; 
and
> Backtracking to problematic lines of 
code for any online issues, with all 
backtracking data being visible.
• 
Clean code: We have also constructed 
new architectures and platforms for over 
80 products, and refactored all historical 
Huawei-developed code.
– End-to-end transformation for live-network 
risk mitigation:
• 
We can now identify affected products and 
customers within minutes of a high-risk 
vulnerability being detected, and technical 
investigations into vulnerabilities at the 
product level can now be finished within 
hours and patches can be provided within 
30 days. In addition, we help customers 
promptly respond to such vulnerabilities 
on live networks, so that they can quickly 
mitigate any attendant risks on their live 
networks.
• 
We have also improved our product 
certificate O&M, helping customers change 
their live network certificates whenever 
needed and mitigating risks stemming 
from information leaks related to their 
live-network certificates and certificate 
expiration.
• 
We have established a security configuration 
baseline and embedded it into processes 
to improve product security configuration 
capabilities. The professional security 
configuration services we provide support 
live network configuration of customers 
and help them quickly mitigate live network 
configuration risks.
• 
We are continuing to align contract and 
product lifecycles, and ensure that both of 
these lifecycles meet industry requirements. 
By fulfilling contract-related responsibilities 
on time, we help customers mitigate risks 
created by legacy equipment on their live 
networks.
– Trustworthiness built into management 
systems for sustainable development:
• 
Through this program, we have 
developed 306 built-in capability items 
and restructured the business capability 
framework for our Integrated Product 
Development (IPD) business. To date, 
we have replicated previous successes 
in building trustworthiness in multiple 
processes, including IPD, Lead to Cash, 
Channel Sales, Manage Client Relationship, 
Market to Lead, Service Delivery, Issue To 
Resolution, Supply, and Procurement.
• 
Critical R&D operations now run on only 
68 target systems, improving both R&D 
operating efficiency and experience.
– A culture that values both trustworthiness 
and software:
• 
Every one of our software managers and 
employees must now be certified in software 
trustworthiness before being appointed to 
their positions.
• 
Every new project leader (PL) must have 
experience as a committer.
• 
All committers must obtain their respective 
professional certifications.


2023 Annual Report
        75
• 
We have rolled out a white-box 
performance appraisal system across the 
company, with 84.3% of software employees 
being satisfied that their work contributions 
have been fairly assessed.
Thanks to these concrete steps, we have built 
a culture that values both trustworthiness and 
software.
■ AI Business Intent and Governance Principles: 
AI is driving technological changes that greatly 
improve efficiency, productivity, quality of life, and 
societal well-being. At the same time, it presents 
a fair share of ethical and governance challenges. 
Our company has done a significant amount 
of engagement and research to understand 
these challenges. As for implementation, we 
have established a company-wide set of rules, 
which include our AI business intent and six AI 
governance principles, to instruct related business 
domains in their research, planning, deployment, 
and adoption of AI. We have a dedicated task force 
to ensure that AI technologies are being designed, 
developed, deployed, and used properly. Their goal 
is to drive responsible and sustainable innovation 
in our AI business.
Organizational Vitality
Despite changes to our internal and external environments, the company has stayed true to its corporate 
culture and core values. We have flexibly pooled resources by business and continued efforts to develop 
organizations for diverse businesses and field offices. In addition, we have rolled out transformations 
related to organizations and talent to enrich talent and improve organizational capabilities and 
efficiency. In the face of uncertainties and ongoing challenges, our employees have stayed confident and 
our organization has remained dynamic.
In 2023, our initiatives for boosting organizational vitality focused on the following key areas:
■ Adapting our organizational structure to better 
match our business, increasing organizational 
agility and efficiency, and steadily advancing 
transformation:
– The company has continued refining and 
strengthening its organizational structure to 
better support a multi-business landscape that 
integrates our ICT infrastructure, consumer, 
digital power, cloud computing, and intelligent 
automotive solution businesses.
– We continued to roll out the Representative 
Office Full Autonomy Program globally, 
as scheduled, and piloted integrated 
transformations at select representative offices. 
This program gives representative offices greater 
autonomy, allowing them to independently 
operate, make decisions, fulfill contracts, and 
take responsibilities. This strengthens our 
representative offices and simplifies our HQ 
teams, and will ultimately help transform our 
organization into one with multiple elite teams 
supported by a large platform.
– We continued to develop new operating 
models for our integrated teams. By shortening 
management chains and leveraging the 
company's strengths as a solution and 
technology platform, we are able to better 
serve customers by more quickly meeting their 
requirements.
– We systematically organized campaigns 
in strategic areas of focus. This operating 
approach has helped us break down 
organizational boundaries and encourage closer 
collaboration between different departments 
through a systems engineering approach. Our 
global leadership continues to grow thanks to 
these integrated teams as they help us give full 
play to our complete business portfolio.
■ Keeping the business strategy in mind as we 
build up a team of managers who can lead the 
businesses towards global leadership through 
the following actions:
– We encourage managers to work together 
towards shared goals and deepen their 
understanding of the company's strategic intent.
– We stay true to the manager selection 
mechanism, focus on their responsibility 
fulfillment results and contributions, and 
continue to implement a manager resume 
system, in order to select the right commanders 
and managers and allow more bright minds to 
stand out.


76       Huawei Investment & Holding Co., Ltd.
– We have continued to implement the term 
of office system for managers and encourage 
them to grow through mobility programs, 
including vertical and horizontal rotations. This 
will allow the company to seize new industry 
opportunities and build a more dynamic 
management team.
– We continue to strengthen manager 
specialization by using exams to facilitate 
learning and combining training with practice. 
This aims to help managers better prepare for 
and fulfill their jobs.
– We encourage administrative teams to 
effectively fulfill their responsibilities and inspire 
passion across the organization.
■ Assigning employees to positions that best 
suit them, continuing to actively source 
outstanding talent from around the world, and 
unleashing the potential of current employees, 
to keep enriching talent and maintain the 
dynamics of teams across the company:
– We have continued to bring in talent from 
around the world, regardless of background or 
seniority. With top minds and high-end talent 
joining us, we will be able to lead technological 
innovation and guide future customer needs.
– We have adopted talent supply strategies 
that are tailored to our organizations and are 
working to create a diverse talent mix.
– We have strengthened the operations of 
our talent planning committees and steadily 
advanced an orderly mobility system for 
employees and a training and practice system 
through the Strategic Reserve in order to upskill 
and reskill employees. These efforts will help 
our employees unleash their potential.
– We continued to roll out the Professional Staff 
Transformation Program in 2023 to create a 
stable specialist team.
– We redoubled efforts to systematically 
strengthen locally-hired teams, providing local 
talent with well-paced upskilling, enabling them 
to maximize their value and act as a stronghold 
for local operations.
– With a focus on both performance and 
capabilities, we ramped up efforts to improve 
competency and qualifications (C&Q) 
management. We are also reinforcing the 
operations of profession committees and 
capability development committees to maximize 
the value of experts.
■ Continuing the implementation of the 
Contribute and Share system based on 
responsibility fulfillment results and 
developing a differentiated incentive 
mechanism:
– The company is encouraging employees at 
different levels to better fulfill their operational 
responsibilities, and the development of an 
incentive mechanism that varies by business, 
development stage, and employee group, as a 
way to help organizations and employees deliver 
greater value.
– We are also channeling more resources towards 
our dedicated employees on the front lines. This 
is encouraging outstanding employees to make 
more contributions and motivating employees 
to take up positions within our business teams 
that are highly challenging or urgently need to 
be filled, thus generating even greater value for 
our customers.
■ Staying customer-centric and inspiring 
dedication:
– Huawei has and always will live by its core 
values of customer centricity, dedication, 
perseverance, and growth through reflection.
– On this basis, we are making every effort to 
create a dedicated, enterprising, and dynamic 
organizational climate in line with our diverse 
business portfolio and talent mix.
– We care deeply about our employees and will 
continue to ensure their physical and mental 
wellbeing by constantly improving their working 
and living environments and organizing various 
wellness activities.


2023 Annual Report
        77
Cyber Security and Privacy Protection
Embracing Changes, Challenges, and Opportunities
Over the last year, we have come even closer to the digital world as emerging technologies like AI flourished 
and data volumes experienced explosive growth. An increasing number of industries are accelerating digital and 
intelligent transformation, driving new development within the real economy through deeper digital integration. 
The digital economy is growing rapidly thanks to digital and intelligent technologies.
However, the growing digital economy is also amplifying cyber security risks. The increasing popularity of open 
source has led to the outbreak of zero-day vulnerabilities, and there have been record numbers of data leaks and 
rampant ransomware attacks and telecom fraud. Mitigating security risks in cyberspace is increasingly difficult. 
Therefore, the question has now become: How can we build intrinsic security to support network operators and 
customers in responding to cyberattacks? How can we build data security and ransomware protection solutions to 
cope with the challenges standing in the way of digital transformation?
Over the past 30-plus years, Huawei has worked with carriers to build over 1,500 networks and help millions 
of enterprises go digital. During this time, we have connected over three billion people around the world and 
maintained a solid track record in security throughout. As digital transformation continues to pick up speed, we are 
acutely aware that cyber security and privacy protection will become key to business success in the future digital 
world. With this in mind, Huawei has continued to make cyber security and privacy protection a top priority. We 
strive to tackle both the challenges and opportunities this new age presents through management transformation, 
technological innovation, and open collaboration. We are committed to fostering a better life for all in the future 
digital world by offering secure and trustworthy products, solutions, and services, and by taking concrete steps to 
manage related risks in our supply chains. We also share our experiences and capabilities with our suppliers and 
partners so that we can strengthen cyber security and privacy protection capabilities together.
Cyber Security and Privacy Governance: Continuous Improvement to 
Provide Secure and Trustworthy Products, Solutions, and Services That 
Help Customers Build Network Resilience and Mitigate Risks
■ In 2023, we continued to enhance our end-to-end 
cyber security and privacy protection assurance 
system to ensure our efforts in this area were 
robust and up-to-date.
Our five-year trustworthiness transformation 
to improve software engineering capabilities: 
In late 2018, Huawei's Board of Directors kicked off 
our trustworthiness transformation with a dedicated 
five-year budget of more than US$2 billion. The 
goal of this transformation was to make Huawei the 
most trusted supplier and partner in the industry 
with secure, trustworthy, and high-quality products 
by systematically improving the company's software 
engineering capabilities. Over the past five years, 
we have successfully transformed and upgraded 
our entire Integrated Product Development (IPD) 
process. For example, in the design phase, we have 
adopted a security-by-design approach by defining 
security function requirements, security design 
patterns, on-shelf trustworthiness technologies, 
and other security-by-design specifications. In the 
development phase, we have developed secure 
coding rules such as the Huawei Clean Code Guide 
and gated check-in rules. In the testing phase, 
we have built new security testing models such 
as penetration testing, fault tolerance testing, 
and resilience testing. We have also incorporated 
security-related specifications into our R&D tool 
chains to further standardize our development 
practices. Furthermore, we have built transformation 
results and practices into our management systems 
and processes to protect the integrity of software 
at the development and supply stages, ensure that 
transformation achievements can be replicated, and 
continuously develop high-quality products that are, 
by default, secure and trustworthy.
Enhancing privacy governance to respect 
and protect user privacy: We have continued 
to improve and refine our privacy compliance 
framework and adapt and implement it worldwide 
to meet the compliance requirements of different 
regions and countries. In addition, Huawei 
Technologies has been ISO/IEC 27701 Privacy 
Information Management System Standard certified.


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We have continued to invest in privacy compliance 
IT tools and platforms that enhance the maturity 
of compliance management in complex scenarios 
such as cross-border personal data transfers and 
the personal data compliance management of 
our suppliers. Thanks to these efforts, we were 
named an Innovative Data Security and Personal 
Data Protection Practitioner by the Cyber Security 
Association of China and presented with the 
Xingyi Best Practice on Data Security for 2023 
award by the China Academy of Information and 
Communications Technology.
We also share our experience and thoughts 
regarding privacy governance solutions, platform 
building, and operational compliance with other 
industry players to contribute to privacy protection 
across the entire industry. In 2023, we worked 
tirelessly to protect the rights of personal data 
subjects by handling more than 29,000 requests 
in a timely and effective manner. We also carried 
out over 60 inspections and audits against industry 
best practices in multiple countries and business 
domains. These efforts have helped ensure the 
effective implementation of our corporate privacy 
protection policies.
Working with customers and partners to 
ensure secure and trustworthy delivery and 
service operations: We have continued to improve 
the security and trustworthiness of our service 
solutions and service delivery based on concrete 
external requirements by improving the reach of 
our global service center network and helping 
our customers make their own networks more 
resilient. We have built systematic IT management 
capabilities targeting multiple scenarios such 
as customer authorization, network operations, 
and cross-border data transfers to ensure that 
exceptions are successfully intercepted and every 
operation is system-based and recorded, making 
our delivery and service operations transparent 
and traceable. We have built a security and 
trustworthiness system for delivery and services 
based on the Enterprise Architecture approach by 
strengthening internal rules, processes, and digital 
capabilities. In 2023, we ensured the security and 
trustworthiness of 955,000 network operations 
worldwide, including network optimizations, 
upgrades, and changes.
As part of our commitment to ecosystem 
development, we shared the knowledge, 
experience, and tools we developed throughout this 
process by opening up our knowledge community 
to partners. Meanwhile, we organized more than 
300 Network Safety Day events with customers 
to strengthen cyber security awareness and 
capabilities and support secure and stable network 
operations together.
Strengthening cyber security risk management 
and capability building within our supply 
chains: We encouraged 80 logistics service 
providers and 180 warehouses around the world 
to perform security self-checks, with 26 key 
logistics nodes receiving ISO 28000 certification. 
We continued to identify, assess, and manage risks 
with relevant suppliers and inspected nearly 1,000 
suppliers for cross-border personal data transfer 
compliance. Through these actions, we helped 
suppliers standardize their own data retention and 
management systems and ensured their security 
and privacy compliance. We also collaborated with 
relevant suppliers on vulnerability management to 
mitigate vulnerability risks, and shared our cyber 
security experiences and capabilities with suppliers, 
channel partners, and ecosystem partners. We have 
developed more than 20 courses and, in 2023, 
provided cyber security training on topics like cyber 
security baselines and vulnerability management 
to more than 1,500 managers and engineers 
from core suppliers. Moreover, we opened up our 
engineering capabilities, such as cyber security tools 
and security test cases, to suppliers to help improve 
their cyber security capabilities.
Improving the expertise of staff working on 
cyber security and privacy protection and 
boosting awareness among all employees: We 
have initiated the development of a cyber security 
and privacy protection knowledge community that 
will help connect people, people and knowledge, 
and knowledge and business. The goal of this 
community is to facilitate rapid knowledge sharing 
and transfer and improve individual expertise of staff 
working on cyber security and privacy protection. 
In 2023, we also kicked off a cyber security and 
privacy governance training camp where our 
employees could grow faster by sharing knowledge 
and experience in business processes and scenarios 
through drills, role-playing, and expert lectures.
By the end of 2023, we had created more than 160 
cyber security and privacy protection enablement 
courses, which were attended over 200,000 
times. We also run a Cyber Security and Privacy 
Protection Awareness Month campaign targeting 
all employees, which features messages from top 
management, expert lectures, and knowledge 
quizzes. This year's event attracted extensive 
employee participation both online and offline.


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Continuous investment in independent 
third-party verification: We continued our 
cooperation with industry-recognized certification 
bodies to test the security capabilities of our 
products against international standards and best 
practices, providing customers with internationally 
recognized security assurance. By the end of 2023, 
we had obtained more than 540 security and 
privacy certificates. In 2023 alone, we obtained 57 
cyber security certificates. Most notably:
– The HongMeng Kernel received Common 
Criteria Evaluation Assurance Level 6 
Augmented (CC EAL6+).
– Huawei Cloud received the new ISO/IEC 
27001 certification from the British Standards 
Institution (BSI).
– Huawei passed the GSMA Network Equipment 
Security Assurance Scheme (NESAS) audit for 
5G base stations, core networks, and network 
management systems.
– Our in-house HiTLS module received ISO/IEC 
19790 certification from BSI.
– Huawei's major smart PV products received 
both IEC 62443 and ETSI EN 303 645 
certifications.
■ Huawei leverages the technical capabilities of our 
2012 Laboratories to innovate and build security 
into products and thus help customers cope with 
the cyber security and privacy challenges and risks 
they face. Major innovations made in 2023 include:
Confidential computing, AI security, and 
data security technologies developed by the 
2012 Laboratories: We developed a general, 
heterogeneous confidential computing platform 
supporting the full stack of Kunpeng and Ascend 
to ensure the running environment security of 
AI models. In addition, we have developed data 
asset security warehousing solutions to protect AI 
data and model assets throughout the lifecycle. 
At Huawei, we believe that the right approach to 
secure and trustworthy AI is through engineering, 
standardization, and certification. To improve 
data security, we have also developed trustworthy 
dataspace solutions that use a hierarchical policy 
model and control engine to control data in use.
Intrinsic security, ransomware protection, 
and HiSec 3.0 security service solutions for 
ICT infrastructure: We build security capabilities 
directly into our mobile communications 
services to create solutions that feature intrinsic 
security. By using technologies such as security 
configuration check, trustlist-based detection, 
and micro-segmentation, we have bolstered the 
comprehensive, in-depth defense capabilities of 
networks by enabling precise threat detection 
and rapid responses without service disruption. 
In addition, we have created a ransomware 
protection solution that helps customers transform 
reactive security into proactive defense strategies 
and improve data center resilience. This solution 
features network-storage collaboration, which 
means threat intelligence is shared at the network 
and storage layers so that unknown ransomware 
attacks can be more effectively detected.
In cloud security, Huawei has also launched a 
dozen SaaS-based Qiankun security services. In 
terms of network security, Huawei has released 
the HiSec SASE Security Solution which is 
based on a simplified network architecture that 
integrates management, control, analysis, and 
security, redefining enterprise security boundaries. 
In addition, Huawei has released Qiankun EDR, a 
lightweight security solution deployed at endpoints 
that boasts industry-leading ransomware 
protection capabilities.
Innovative technologies that safeguard 
consumer privacy and data: We are continuously 
upgrading the privacy and security assurance 
capabilities of our consumer devices. For devices 
like smartphones, we have followed the five 
principles of data protection – data minimization, 
on-device data processing, data transparency 
and controllability, identity protection, and data 
security assurance – to develop a variety of new 
protection functions, including the App Guard, the 
App Security Center, the Security & Privacy Center, 
and Image Privacy. This creates an end-to-end 
privacy and security assurance system that protects 
consumers while using devices. As mentioned 
above, Huawei's HongMeng Kernel has also been 
awarded the industry's first CC EAL6+ certification, 
the highest security level available in the field of 
operating system (OS) kernels.
Cloud-native security and cloud security 
services: Cloud security is said to be 30% R&D 
and 70% operations. Guided by this principle, we 
have built a cloud-native security architecture 
with a single security operations center and seven 
lines of defense. This architecture features unique 
capabilities such as situational security management 
and incident response automation to address 


80       Huawei Investment & Holding Co., Ltd.
hundreds of billions of attacks every year. Huawei 
Cloud also offers the SecMaster security operations 
platform, over 20 cloud security services, and more 
than 700 ecosystem-oriented security products to 
provide customers with secure, stable, and high-
quality cloud services and support the development of 
their own security operation systems and capabilities.
Security for digital power: Based on our insight 
into the development trends of new power 
systems, we have worked to enhance the security 
of PV power stations by bolstering the intrinsic 
security of products and utilizing technologies 
like intrusion detection, secure boot, and digital 
certificate management. The security capabilities of 
our major PV products have been certified against 
internationally recognized standards including IEC 
62443 and ETSI EN 303 645.
Intelligent automotive components that ensure 
both security and privacy: We provide cyber 
security solutions such as Trust Ring to support the 
critical intelligent automotive components used to 
build intelligent driving and cockpit products. These 
solutions come with industry-leading security and 
privacy capabilities, helping carmakers make better 
cars. Our intelligent cockpit solution now supports 
account-dedicated isolation, allowing users to 
access personal data through zero-touch face 
authentication. In addition, a driver privacy mode 
and speech privacy shield have been introduced 
to protect privacy when multiple passengers 
are onboard, securing private conversations and 
business calls.
Shared Responsibility, Joint Capability Building, and Collaboration for 
Shared Success
Cyber security and privacy protection are common challenges for all as we stride towards a digital and intelligent 
world. These are challenges that all stakeholders – including governments, industry and standards organizations, 
and enterprises – have a shared responsibility to tackle. Huawei's cyber security principles are built upon 
integrity, trustworthiness, capability, accountability, openness, and transparency. Therefore, we welcome closer 
communication and collaboration with all stakeholders to jointly confront emerging risks and challenges during 
this world-changing transformation.
In 2023, we collaborated with external stakeholders 
around the world in many areas:
■ We continued to contribute security proposals 
to standards organizations that will drive the 
development of security standards in different 
industries.
Connectivity: We have contributed more than 
300 cyber security proposals to 3GPP and GSMA, 
maintaining our longstanding position as a leader 
in the industry. These include 3GPP Security 
Assurance Specifications (SCAS) for 5G-Advanced 
Management Function (MnF) and the Next 
Generation Real Time Communication (NG-RTC) 
security specifications.
Computing: We contributed security proposals, 
including an AI computing platform security 
framework, general confidential computing 
framework, and remote attestation procedures 
(RATS) architecture to ISO/IEC, ETSI, and the 
National Information Security Standardization 
Technical Committee of China (TC260), and worked 
with industry partners to drive the development 
and application of computing security technologies.
■ Our joint innovation with customers continued to 
evolve.
We deepened our joint innovation with China 
Mobile in the cyber security domain, expanding 
our cooperation beyond 5G security to also cover 
computing network security. We teamed up with 
China Mobile Zhejiang to create and test intrinsic 
security solutions for 5G networks and jointly build 
a global showcase of the 5G Mobile Cybersecurity 
Knowledge Base. In addition, we worked with China 
Mobile Fujian to provide security services such 
as device access control, dynamic access control, 
and security situational awareness by opening up 
5G network capabilities, thus meeting the security 
requirements of fully-connected 5G factories. Our 
joint project won the security track first prize in 
the Blooming Cup 5G Application Competition. We 
also worked with China Mobile Guizhou to explore 
and verify computing network security capabilities, 
such as a ransomware protection solution featuring 
network-storage collaboration, confidential 
computing, and data free flow with trust 
(DFFT), to meet the security and trustworthiness 
requirements of data sharing, exchange, free flow 
with trust, and trading scenarios in the context of 


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In Egypt, Huawei rolled out various programs for ICT talent 
ecosystem development, best practice sharing, and awareness 
enhancement to improve local cyber security readiness. At the 
2023 Egypt Edition of the Cybersecurity Innovation Series, Egypt's 
National Telecom Regulatory Authority presented Huawei with 
the Cyber Awareness Plan of Year 2023 award.
In Indonesia, we renewed the memorandum of understanding 
(MoU) on cyber security cooperation with the National Cyber 
and Crypto Agency (BSSN). We will strengthen cooperation with 
key stakeholders such as local governments, universities, and 
enterprises in talent cultivation and capability improvement to 
jointly address cyber security challenges.
the "Eastern Data, Western Storage" and "Eastern 
Data, Western Computing" initiatives. The project 
won second prize at the Huacai Cup Computing 
Power Innovation Application Competition.
In 2023, Huawei and PLN – Indonesia's national 
electric power company – entered a strategic 
partnership agreement and launched a joint 
innovation lab. This partnership aims to explore 
digital network operations and cyber security 
applications and conduct joint innovations in 
technologies such as in-depth application detection, 
digital map, network slicing, and situational 
awareness. Huawei is helping PLN devise a 
top-down plan for network architecture that will 
meet business development requirements over 
the next five years, build enterprise network 
construction standards and evolution solutions, and 
incubate innovative solutions for digital network 
operations. We are also working together on cyber 
security in core electric power production processes, 
including the meter data management system, 
to ensure digital operations security for customer 
networks and core applications.
Huawei and China CITIC Bank set up a Financial 
Digital Joint Innovation Lab to explore DFFT 
applications in the finance industry and develop 
secure data flow technologies. Based on key 
technologies such as data security modeling, 
core access control algorithms, and quantum 
key distribution, we have been able to deliver 
security features such as high-performance data 
use control engines, transparent data encryption 
and decryption, hardware-based trusted execution 
environments, and certificate storage and source 
tracing. We have also incubated new storage 
appliances and provided a shared space across 
hardware and software for DFFT and data use. 
Together, Huawei and China CITIC Bank released 
the Technical White Paper on Financial Data Free 
Flow with Trust which highlighted innovative 
practices in infrastructure construction to support 
the adoption of DFFT in the finance industry.
■ We actively worked with government organizations 
around the world to support local talent cultivation 
by sharing knowledge and experience.
In Thailand, Huawei actively participated in cyber 
security contests, organized cyber security training 
and enablement sessions, and won the Prime 
Minister Awards – Thailand Cybersecurity Excellence 
Award – for the second consecutive year.
In Malaysia, Huawei worked closely with the local 
government and carriers on talent cultivation and 
cyber security awareness and ecosystem building. 
In recognition of these contributions, Huawei 
received the Cyber Security Education Innovation of 
the Year 2023 award in Malaysia.
In Brazil, we worked with the local government on 
knowledge sharing and talent cultivation, driving 
the refinement and implementation of the Digital 
Brazil framework.


82       Huawei Investment & Holding Co., Ltd.
■ We intensified cooperation with local universities and 
industry organizations to help improve cyber security 
capabilities and awareness in individual regions.
In the Middle East, as a commercial member of the 
Organisation of the Islamic Cooperation-Computer 
Emergency Response Team (OIC-CERT), we 
participated in the development of the 
OIC-CERT 5G Security Framework which contributes 
to the development of local cyber security 
certification guidelines, standards, and ecosystems. 
We also cooperated with the International 
Telecommunication Union Arab Regional 
Cybersecurity Centre (ITU-ARCC) to develop the 
Arab Cybersecurity Industry Development Strategy 
Maturity Module which helps local enterprises 
identify cyber security threats and enhance their 
response capabilities.
In Spain, we signed an MoU with the University 
of León to jointly build a 5G security lab and 
experience center. This partnership aims to provide 
a real-world environment for experimentation and 
training, and facilitate local cyber security research 
and talent cultivation.
In Africa, we inked MoUs or worked with the 
Communications Regulators' Association of 
Southern Africa, the East African Communications 
Organization, and the African Internet Governance 
Forum on cultivating local talent through 5G 
cyber security training and other projects. Huawei 
was also honored with the prestigious Advancing 
Internet Governance in Africa Contribution Award 
at the African Internet Governance Forum 2023.
Openness. Collaboration. Shared Success.
We are facing an increasingly complex environment, with new opportunities and segments emerging left and right:
■ Communications: We will begin to see 
large-scale adoption of 5.5G and new short-range 
communications technologies as the industry's 
vision for next-generation communications network 
standards gradually takes shape.
■ Computing: The Kunpeng and Ascend ecosystems 
are progressing day by day, and research into new 
computing architectures is expanding.
■ Audio and video: Technologies like ultra-high-
definition (UHD) audio and video, 3D audio, and 
graphics engines are thriving.
■ Smart devices: Seamless AI Life experience and 
HarmonyOS Connect will see broad adoption 
across many aspects of work and life.
■ Security: Countries and regions around the world 
are actively exploring ways to enhance network 
and data infrastructure security, learning from 
each other's experience, and looking for technical 
mechanisms to make security more controllable 
and manageable.
■ Industrial transformation: Industries are 
expanding the scope of digitalization, embarking 
on a new journey that combines digital, intelligent, 
and green transformation.
Over the next 10 to 20 years, communications and 
computing will become the two most important 
building blocks of a fully connected, intelligent world. 
Huawei will continue to openly collaborate with 
industry organizations and ecosystem partners across 
various domains, including the public and private 
sectors, academia, research institutes, and users. We 
will continue to make standards contributions, and 
share the industry insights and technical challenges we 
have identified, in order to drive industry development 
and technology advancement. We will also use a 
systems engineering approach to create greater synergy 
between software, hardware, chips, networks, cloud, 
edge, and devices, and promote integrated innovation 
together. This will help make our products and solutions 
more competitive. As always, we will continue to work 
with industry partners to cultivate thriving industry 
ecosystems and create an open and collaborative 
industry environment that thrives on shared success.
Huawei manages supply chain security risks from three aspects – supplier management, open source software 
management, and R&D and production management. We encourage close collaboration between upstream and 
downstream players throughout the industry so that we can jointly build a favorable cyber security environment 
conducive to development. A stronger industry in turn strengthens security. This is how we can drive the 
sustainable development of the digital economy. We look forward to closer communication and collaboration 
with all stakeholders in terms of security standards, technological innovation, security governance, testing, and 
verification. Together, let's build cyber security and privacy protection capabilities, share value, and foster a better 
life for all in the future digital and intelligent world.


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        83
Group photos – 13th GIO Roundtable, MWC Barcelona 2024
Since 2018, Huawei has worked closely with leading industry organizations via the Global Industry Organizations (GIO) Roundtable to discuss 
the reference architecture, roadmap, pace, and best practices for digital transformation in various industries, and explore how we can better 
promote cross-domain and cross-technology information sharing and collaboration in various forms between industry organizations. Our 
ultimate purpose is to accelerate digital transformation across all industries. The roundtable pictured above focused on data elements, the 
outlook and path for unlocking their value, and their high-value application scenarios (e.g., manufacturing, healthcare, and transportation), as 
well as data exchange, data definition, and digital platform ecosystems.
Key Progress and Industry Contributions
Huawei actively works with global industry organizations, and we hold more than 450 key positions in 
nearly 800 academic associations, standards organizations, industry alliances, and open source communities. 
We foster deeper partnerships and mutual recognition of standards between industry organizations, and 
work hard to address industry challenges, breakpoints, and bottlenecks.
■ Standardization: We firmly support the unification 
of global standards and actively promote global 
consensus on connectivity through organizations like 
ITU, 3GPP, and GSMA. We are helping our partners 
ensure a smooth evolution towards 5.5G, F5.5G, and 
Net5.5G. In 2023 alone, we submitted nearly 12,000 
contributions to standards organizations worldwide.
■ Industry development:
– In the industrial software field, we joined 
forces with partners to release the Industrial 
Digital and Intelligent Transformation White 
Paper 2030.
– In the audio and video field, we promoted the 
release of HDR Vivid and Audio Vivid standards 
for devices, chips, vehicles, and many other 
domains.
– In the public sector, we proactively responded 
to input requests from different countries on 
industrial policy, such as China's five-year action 
plan for the national AI development strategy.
– In response to the Green Economy Initiative of 
the United Nations Environment Programme, we 
contributed to green standards, further improved 
the competitiveness of our green ICT and digital 
power products, and are working to embed new 
innovation into green industry practices.
■ Ecosystem development: We have fully defined 
our philosophy, approaches, guidelines, and 
processes for developing ecosystems in domains 
such as HarmonyOS, Kunpeng, Ascend, and cloud 
computing. We are working hard to cultivate 
thriving developer and university talent ecosystems, 
create more fertile ground for open source, and 
support the success of core open source projects. 
These are part of our broader efforts to offer the 
world another standards option.


84       Huawei Investment & Holding Co., Ltd.
Academic Associations
Huawei embraces an open and diverse academic culture. We actively engage with global academic 
associations as part of our efforts to explore challenges that industries face and cultivate STEM talent. 
Together, we are invigorating academic pursuits while driving economic progress.
■ Probing the endless frontiers of science 
through sharing, exchange, and industry-
academia collaboration:
– In 2023, we shared our thoughts on the future 
of wireless, optical, and foundational software 
at international academic conferences, and we 
are working with researchers worldwide to draft 
a tech blueprint for the intelligent world.
– We worked more closely with organizations 
such as the China Computer Federation to 
release more than 70 new research topics in a 
bid to drive progress in computer science.
– We continue to support MindSpore-based 
academic research and have supported the 
publication of more than 900 papers at leading 
conferences to drive advancements in AI.
■ Contributing new ideas to academic associations: 
We have published more than 1,270 papers in high-
impact conferences and journals like the Association 
for Computing Machinery (ACM) and the Institute 
of Electrical and Electronics Engineers (IEEE). Among 
these papers, Accurate medium-range global weather 
forecasting with 3D neural networks was published 
in Nature and named one of the top 10 scientific 
advances in 2023 by Science.
■ Cultivating STEM talent through top 
competitions: To inspire and engage the next 
generation of STEM talent, we contribute real-
world industry challenges to multiple competitions 
hosted by academic organizations, such as the 
International Collegiate Programming Contest 
(ICPC), Computer Vision Foundation (CVF), and 
Society for Information Display (SID).
Standards Organizations
We actively contribute to standards organizations, work with customers and partners to drive 
technological upgrade in fields such as connectivity, media, devices, and computing, and are working to 
help all industries go digital, intelligent, and green.
■ We are promoting efforts to open up, 
co-develop, and share global standards, 
helping outline a new vision for the industry.
– Within 3GPP, we are actively contributing to 
5G-Advanced Release 19 through efforts like 
informing specifications with new-value use 
cases based on technical innovation, in order to 
drive the industry forward.
– Through the European Telecommunications 
Standards Institute (ETSI), we are supporting 
efforts to release F5G Advanced standards for 
the fixed network domain, guide the evolution 
from F5G to F5.5G, bring 10 gigabit experience 
everywhere, and drive industry progress.
– Within IEEE, as part of our broader efforts 
to enable industry upgrade, we are working 
together to drive the evolution of network 
standards for 400G/800G and time-sensitive 
networking (TSN) in order to support the 
evolution of carrier, enterprise, industrial, 
electric power, and vehicle-mounted networks.
– Within the ITU, we are exploring how to more 
effectively utilize global spectrum for international 
mobile telecommunications (IMT), and are 
helping upgrade optical industry standards.
– Within ISO/IEC Joint Technical Committee (JTC) 
1, we are contributing to standardization on 
AI-based image coding and decoding and 
trusted multimedia source tracing, in order to 
facilitate industry innovation.
– Within the World Wide Web Consortium (W3C), 
we are helping promote the release of MiniApp 
specifications that make it easier for developers 
to develop HarmonyOS apps.
– We promoted the release of audio and video 
standards such as HDR Vivid and Audio Vivid to 
build a new UHD industry ecosystem.
– We worked with partners to promote the 
large-scale application of computing 
performance benchmarks and the development 
of full-stack computing ecosystems.
– Our Pangu models received the industry's first 
"Excellent" rating in China, in recognition of 
their contribution to a thriving industry.
■ We are working to drive consensus on 
standards and help shape new ecosystems.
– We are contributing to unified global 
standards for AI management systems, working 
with others to build unified AI interface 
specifications and computing power benchmark 
specifications, and supporting the development 
of full-stack AI ecosystems.


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– Together with partners, we are developing 
standards for new electric power, PV power 
and energy storage system safety, mobility 
electrification, and green and low-carbon 
systems to bring safer renewable electric power 
to all industries.
– We are helping promote industry standards for 
5G, big data, AI, and foundation models to fuel 
industry digitalization.
Industry Alliances
Huawei is a committed partner in major industry alliances around the world. Together, we are working to 
promote sustainable industry development and help vertical industries go digital.
■ Promoting industry competitiveness and 
sustainable development: We are working closely 
with industry organizations such as GCC, UWA, 
WAA, GIIC, SparkLink Alliance, and WBBA, as well 
as partners all along the value chain, to promote 
industry-wide consensus, standards development, 
testing and certification, and talent cultivation. These 
efforts will promote sustainable development in 
industries such as diversified computing, audio and 
video, WLAN, IoT, short-range communications, and 
fixed networks.
Open Source Communities
Huawei is a firm supporter and major contributor to open source communities, where we advocate 
for inclusion, fairness, openness, solidarity, and sustainability. Through our work with developers and 
partners to build world-class open source communities, we aim to accelerate software innovation and 
create thriving industry ecosystems.
■ Huawei actively participates in major open 
source organizations and projects. We strongly 
advocate for open source software development. 
Huawei is a premium or founding member of more 
than 20 international open source foundations, 
including the Apache Software Foundation, the 
Linux Foundation, the Eclipse Foundation, the 
OpenAtom Foundation, the OpenInfra Foundation, 
the Cloud Native Computing Foundation (CNCF), 
and the PyTorch Foundation. We actively contribute 
to more than 200 open source communities. In 
particular, we serve in board member positions 
of dozens of open source communities and serve 
in hundreds of core roles, including Technical 
Steering Committee member, Project Management 
Committee member, Project Team Lead, 
Maintainer, and Core Committer.
■ With a focus on foundational software, Huawei 
has launched more than 10 influential open 
source projects to build a stronger foundation 
for digital infrastructure ecosystems. Huawei 
has launched multiple platform-level open source 
projects, such as KubeEdge, MindSpore, Volcano, 
openEuler, openGauss, OpenHarmony, Karmada, 
openGemini, and Kuasar. These foundational 
software projects have attracted an incredible 
■ Strengthening international industry collaboration 
to advance digital transformation: Huawei is an 
active partner in international industry organizations 
such as GSMA, CSIA, CCIA, CESA, GSA, AII, 5GAIA, 
5GDNA, and 5GAA. We actively contribute industry 
white papers, testbeds, and standards to support 
the development and application of new digital 
technologies in sectors such as communications, 
electronics, manufacturing, electric power, iron and 
steel, coal mining, oil and gas, and ports. Together, we 
are driving digital transformation forward.
number of contributors, including software 
vendors, developers, research institutes, and 
universities from all over the world. We have 
donated openEuler and OpenHarmony to the 
OpenAtom Foundation, and donated KubeEdge, 
Volcano, Karmada, and Kuasar to CNCF. These 
projects have united the contributions of global 
participants through a more open approach, and 
are further promoting the digital transformation of 
industries.
■ We are building a foundational software 
ecosystem with industry partners. Under the 
guidance of the OpenAtom Foundation, the 
OpenHarmony community has attracted more 
than 6,700 individual contributors and over 70 
organization contributors that have submitted 
more than 100 million lines of code. The openEuler 
community has rallied more than 1,300 organization 
members (e.g., top enterprises, research institutes, 
and universities), and over 16,800 individual open 
source contributors. openEuler itself has seen 
over two million downloads across more than 130 
countries and regions. Partners have released more 
than 20 commercial distributions of openEuler, with 
over 6.1 million commercial deployments in total.


86       Huawei Investment & Holding Co., Ltd.
■ We are helping to build sustainable and 
trusted open source communities. Huawei 
actively works with partners from the software 
security industry to improve the security of open 
source ecosystems and address increasingly 
complex security challenges. We are deeply 
engaged in the development and promotion 
of major global software supply chain security 
standards and specifications, such as OpenChain 
and SPDX. We continue to fulfill our corporate 
social responsibilities to help build globally trusted 
open source ecosystems.
Ecosystems
We openly collaborate with ecosystem partners and developers to create value and help others succeed. 
We are speeding up efforts to open up our platform capabilities to ecosystem partners and developers 
in areas like HarmonyOS, Kunpeng, Ascend, and cloud computing. Together, we will continue to improve 
development experience, enable innovation, and create value.
■ Increasing ecosystem investment to help 
partners create value. We are enabling ecosystem 
partners on all fronts, working together to drive 
shared success, and creating greater value for our 
customers. We have increased our support for 
ecosystem partners and invested tens of billions 
of yuan to stimulate application innovation based 
on Huawei's open capabilities. We are offering 
promotional support and sharing opportunities 
with ecosystem partners to help them achieve 
business success. By the end of 2023, we had 
worked with more than 46,000 ecosystem partners 
and developed more than 36,600 innovative 
applications together, accelerating innovation in 
industries like finance, energy, transportation, 
manufacturing, healthcare, and education.
■ Enabling developers to innovate and grow by 
sharing experience, opening up capabilities, and 
enriching development tools. To help improve 
development efficiency, we provide comprehensive 
toolsets to support different scenarios, including 
hardware, application, AI, data, and digital content 
development. We are also working to cultivate 
and enable developers through various activities 
and competitions. In 2023, we held 7 flagship 
contests, over 30 themed summits, and over 1,000 
online activities, reaching millions of developers 
worldwide. We also supported developer growth 
and innovation through programs like the Shining-
Star Program, the OpenMind Program, and the 
Innovation Support Program. By the end of 2023, 
we had opened up more than 100,000 APIs and 
served over 9.5 million developers.
■ Helping universities cultivate talent for digital, 
green, and intelligent transformation. Huawei 
has launched a variety of programs, including the 
100 Seed Schools Program, the OpenHarmony 
Stars program, our updated business-academia 
talent development program, and the talent 
development acceleration program. We have 
released a total of 67 textbooks. Through our 
Intelligent Base 2.0 program, we have expanded 
the scope of our technical cooperation with 
universities. In 2023, Huawei held 77 training 
sessions in the information field, and engaged 
in competitions such as the China International 
College Students' Innovation Competition, the 
Huawei ICT Competition, and other innovation-
oriented events, benefiting more than 4,600 
teachers and over 500,000 students. These are part 
of our efforts to cultivate next-generation talent 
for the industry.
Industrial Policies
We are working to help unleash the business and social value of the ICT industry by sharing digital 
economy best practices and promoting digital inclusion.
■ Sharing digital economy best practices to 
promote digital inclusion. Huawei and IDC 
worked together to propose the concept of "Digital 
First Economy", encouraging policymakers to 
introduce more favorable policies that support 
digital infrastructure, digital economy ecosystems, 
and digital talent development. We have also 
shared best practices from different countries and 
regions in advancing their digital economies. These 
are part of our broader efforts to create greater 
social and business value and promote sustainable 
development through digital inclusion. At the World 
Economic Forum, ITU, and other international 
organizations and open forums, we regularly share 
our experience and best practices in promoting 
digital transformation, digital inclusion, and more.
■ Advising on industrial policy to advance 
digital transformation. To promote inclusive 
and sustainable digital transformation around 
the world, we actively participate in public 
consultations on digital economy planning and 
industrial policy, sharing recommendations on 
digital development in the countries and regions 
where we operate.


2023 Annual Report
        87
Results of Operations
Financial Performance
(CNY Million)
2023
2022
YoY
Revenue
704,174
642,338
9.6%
Gross profit
325,364
281,925
15.4%
– Gross profit margin
46.2%
43.9%
2.3%
Total operating expenses
(283,644)
(271,279)
4.6%
– as % of revenue
40.3%
42.2%
(1.9)%
Other income, net
62,681
31,570
98.5%
Operating profit
104,401
42,216
147.3%
– as % of revenue
14.8%
6.6%
8.2%
Net finance expenses
(6,659)
1,018
(754.1)%
Income tax
(10,646)
(8,384)
27.0%
Net profit
86,950
35,562
144.5%
Huawei's total revenue in 2023 was CNY704,174 million, which was a 9.6% YoY increase. Our net profit was 
CNY86,950 million.
■ Due to industries' digital, intelligent, and low-carbon transformation and our more competitive products, our 
revenue continued to grow. 
■ The increase in our profit was mainly attributed to revenue growth, our improved product portfolio, higher-
quality operations, and gains from the sales of some businesses. 
Total operating expenses
(CNY Million)
2023
2022
YoY
Research and development expenses
164,721
161,494
2.0%
– as % of revenue
23.4%
25.1%
(1.7)%
Selling and administrative expenses
118,923
109,785
8.3%
– as % of revenue
16.9%
17.1%
(0.2)%
Total operating expenses
283,644
271,279
4.6%
– as % of revenue
40.3%
42.2%
(1.9)%
We continued to invest in future-oriented basic research and open innovation in domains such as cloud and 
computing, intelligent automotive components, and foundational technologies. However, since our revenue grew, 
our R&D expenses as a percentage of revenue declined YoY.
We also continued to invest in the development of new business domains, ecosystem building, and digital 
transformation, and our operating efficiency increased thanks to ongoing transformation. As a result, our selling 
and administrative expenses as a percentage of revenue decreased YoY.


88       Huawei Investment & Holding Co., Ltd.
Net finance expenses
(CNY Million)
2023
2022
YoY
Net foreign exchange losses
474
277
71.1%
Other net finance losses
6,185
(1,295)
(577.6)%
Total net finance expenses
6,659
(1,018)
(754.1)%
Huawei's net finance expenses in 2023 totaled CNY6,659 million. This change was mainly attributed to the increase 
in other net finance losses.
Financial Position
(CNY Million)
December 31, 
2023
December 31, 
2022
YoY
Non-current assets
390,503
289,008
35.1%
Current assets
873,094
774,796
12.7%
Total assets
1,263,597
1,063,804
18.8%
Among which: Cash and short-term investments
475,317
373,452
27.3%
                   Trade receivables
97,224
87,177
11.5%
                   Contract assets
53,886
52,527
2.6%
                   Inventories and other contract costs
154,558
163,282
(5.3)%
Non-current liabilities
304,597
196,870
54.7%
Among which: Long-term borrowings
291,688
183,183
59.2%
Current liabilities
451,432
429,858
5.0%
Among which: Short-term borrowings
16,726
13,961
19.8%
                   Trade payables
86,362
85,272
1.3%
                   Contract liabilities
95,101
87,575
8.6%
Equity
507,568
437,076
16.1%
Total liabilities and equity
1,263,597
1,063,804
18.8%
As of December 31, 2023, Huawei's balance of total assets had reached CNY1,263,597 million, which was an 
increase of 18.8% YoY. Our current assets accounted for 69.1% of our total assets. 
As of December 31, 2023, our total short-term and long-term borrowings increased by CNY111,270 million YoY. 
The primary purpose of these borrowings was to continue to invest in future-oriented basic research and open 
innovation.


2023 Annual Report
        89
Cash Flow from Operating Activities
(CNY Million)
2023
2022
YoY
Net profit
86,950 
35,562
144.5%
Adjustment for depreciation, amortization, impairment, 
net foreign exchange losses and non-operating income 
and expenses
(9,012)
8,353
(207.9)%
Cash flow before changes in operating assets and 
liabilities
77,938 
43,915
77.5%
Changes in operating assets and liabilities
(8,131)
(26,118)
(68.9)%
Cash flow from operating activities
69,807 
17,797
292.2%
In 2023, our cash flow from operating activities was CNY69,807 million, which was a YoY increase of 292.2%. This 
increase was attributed to growth in our profit and operating efficiency.
Financial Risk Management
In 2023, we closely monitored the changes in our external environment and proactively assessed their impact on 
Huawei using the financial risk management system we have built over the past years. In addition, we continued 
to amend and improve our financial risk management policies and processes to further enhance our ability to 
withstand financial risks and better support our business development.
Liquidity Risk
We have continuously worked to improve our capital structure and short-term liquidity planning, budgeting, and 
forecasting systems to better assess mid- to long-term liquidity needs and short-term funding shortfalls. We 
have implemented prudent financial measures to meet our liquidity needs and guarantee our company's business 
development, including maintaining a robust capital structure and financial flexibility, keeping a proper level of 
funds, gaining access to adequate and committed credit facilities, creating effective cash plans, and centralizing 
cash management. As of December 31, 2023, our cash and short-term investments amounted to CNY475,317 
million, which shows that we properly managed our liquidity risks.
(CNY Million)
2023
2022
YoY
Cash flow from operating activities
69,807
17,797
292.2%
Cash and short-term investments
475,317
373,452
27.3%
Short-term and long-term borrowings
308,414
197,144
56.4%
Foreign Exchange Risk
Our presentation currency is CNY, but we have foreign currency exposures related to buying, selling, and financing in 
currencies other than CNY. According to our established foreign exchange risk management policy, material foreign 
exchange exposures are hedged based on a comprehensive analysis of market liquidity and hedging costs. We have 
developed a complete set of foreign exchange management policies, processes, and instructions. These include:
■ 
Natural hedging: We structure our operations to match currencies between procurement and sales transactions, 
to the greatest extent possible.
■ 
Financial hedging: For certain currencies where natural hedging does not fully offset the foreign currency 
position, we hedge through forward foreign exchange transactions. In countries where local currencies 
depreciate sharply or that have strict foreign exchange controls, we manage foreign exchange exposures using 
different measures, including exchange rate protection and financial hedging. We have also adopted solutions 
like accelerating customer payment and promptly transferring cash out of these countries to minimize risks.


90       Huawei Investment & Holding Co., Ltd.
With other conditions remaining unchanged, exchange rate fluctuations would impact our net profit as follows:
(CNY Million)
2023
2022
USD depreciates by 5%
347
1,013
EUR depreciates by 5%
(28)
(106)
Interest Rate Risk
Interest rate risks mainly arise from Huawei's long-term borrowings. By analyzing interest rate exposures, the 
company uses a combination of fixed-rate and floating-rate financing tools to mitigate these interest rate risks.
1. Major interest-bearing long-term financial instruments held by the company as at December 31, 2023
2023
2022
Effective
Interest Rate(%)
(CNY Million)
Effective
Interest Rate(%)
(CNY Million)
Fixed-rate long-term financial instruments:
 Long-term borrowings
3.64
61,676
3.74
53,219
Floating-rate long-term financial instruments:
 Long-term borrowings
3.69
230,013
3.86
129,964
Total
291,688
183,183
2. Sensitivity analysis
Assuming that the interest rate increased by 50 basis points on December 31, 2023 and other variables remained 
unchanged, the company's net profit and equity would decrease by CNY956 million (in 2022, the amount decreased 
by CNY533 million).
Credit Risk
The company has established and implemented globally consistent credit management policies, processes, IT 
systems, and quantitative credit risk assessment tools. It has established dedicated credit management teams across 
all regions and business units, and set up centers of expertise specializing in credit management in Europe and 
Asia Pacific. The company uses quantitative risk assessment models to determine customer credit ratings and credit 
limits and quantify transaction risks. It has also set risk control points for key activities across the end-to-end sales 
process to manage credit risks in a closed loop. Huawei's Credit Management Department regularly assesses global 
credit risk exposures and develops IT tools to help field offices monitor risk status, estimate potential losses, and 
determine bad debt provisions as appropriate. To minimize risk, a special process is followed if a customer defaults 
on a payment or poses an unacceptably high credit risk.
Sales Financing
With its global coverage, Huawei's sales financing team maintains close contact with customers to understand 
their financing needs and taps into a wide range of financing resources around the world. As a bridge for 
communication and cooperation between financial institutions and customers, the sales financing team provides 
customers with specialized financing solutions that contribute to ongoing customer success. Huawei remains 
committed to working with our financing partners to build a mutually beneficial financing ecosystem. Therefore, 
we engage our partner financial institutions to provide sales financing facilities in export credit, leasing, factoring 
and other products with financial institutions undertaking risks and realizing the returns. Huawei has established 
systematic financing policies and project approval processes to strictly control financing risk exposures. Huawei 
only shares risks with financial institutions on certain projects, and measures and recognizes the risk exposures to 
ensure that business risks are under control.


2023 Annual Report
        91
Management's responsibilities 
for the consolidated financial 
statements summary
Management is responsible for the preparation of the 
consolidated financial statements summary on the 
basis described in note 2 to the consolidated financial 
statements summary.
Auditors' responsibilities
Our responsibility is to express an opinion on whether 
the consolidated financial statements summary is 
consistent, in all material respects, with the audited 
consolidated financial statements based on our 
procedures, which were conducted in accordance with 
International Standard on Auditing 810 (Revised), 
Engagements to Report on Summary Financial 
Statements.
KPMG Huazhen LLP
Certified Public Accountants
15th Floor, China Resources Tower
2666 Keyuan South Road
Shenzhen 518052, China
March 27, 2024
Independent auditors' report on the consolidated financial statements 
summary to the Board of Directors of 
Huawei Investment & Holding Co., Ltd.
Opinion
The consolidated financial statements summary 
of Huawei Investment & Holding Co., Ltd. and its 
subsidiaries (the Group) set out on pages 92 to 134, 
which comprises the summary consolidated statement 
of financial position as at December 31, 2023, the 
summary consolidated statement of profit or loss 
and other comprehensive income and the summary 
consolidated statement of cash flows for the year 
then ended, and related notes, is derived from the 
audited consolidated financial statements of the 
Group for the year ended December 31, 2023.
In our opinion, the accompanying consolidated 
financial statements summary is consistent, in all 
material respects, with the audited consolidated 
financial statements, on the basis described in note 2 
to the consolidated financial statements summary.
Consolidated financial statements 
summary
The consolidated financial statements summary 
does not contain all the disclosures required by IFRS 
Accounting Standards.  Reading the consolidated 
financial statements summary and our report thereon, 
therefore, is not a substitute for reading the audited 
consolidated financial statements of the Group and 
our report thereon.
The audited consolidated financial 
statements and our report thereon
We expressed an unmodified audit opinion on the 
audited consolidated financial statements for the year 
ended December 31, 2023 in our report dated 
March 27, 2024.
Independent Auditors' Report


92       Huawei Investment & Holding Co., Ltd.
Summary Consolidated Statement of Profit or Loss and Other Comprehensive Income
93
Summary Consolidated Statement of Financial Position
94
Summary Consolidated Statement of Cash Flows
95
Notes to the Consolidated Financial Statements Summary
1
Reporting entity
96
2
Preparation basis of the consolidated financial statements summary
96
3
Material accounting policies
96
4
Accounting judgments and estimates
109
5
Changes in accounting policies
111
6
New standards and amendments issued but not yet effective for the year ended 
December 31, 2023
112
7
Segment information
112
8
Revenue
113
9
Other income, net
114
10
Personnel expenses
114
11
Finance income and expenses
115
12
Income tax in the summary consolidated statement of profit or loss and other 
comprehensive income
115
13
Other comprehensive income
116
14
Property, plant and equipment
117
15
Goodwill and intangible assets
118
16
Interests in associates and joint ventures
119
17
Other investments and derivatives
120
18
Deferred tax assets/(liabilities)
121
19
Inventories and other contract costs
121
20
Contract assets
122
21
Trade and bills receivable
122
22
Other assets
123
23
Cash and cash equivalents
124
24
Loans and borrowings
124
25
Trade and bills payable
128
26
Contract liabilities
129
27
Other liabilities
129
28
Provisions
129
29
Leases
130
30
Capital commitments
132
31
Related parties
132
32
Group enterprises
133
33
Contingent liabilities
134
34
Subsequent events
134
35
Comparative figures
134
Consolidated Financial Statements Summary


2023 Annual Report
        93
Summary Consolidated Statement of Profit or Loss and Other 
Comprehensive Income
(CNY million)
Note
2023
2022
Revenue
8
704,174
642,338
Cost of sales
 
(378,810)
(360,413)
Gross profit
 
325,364
281,925
Research and development expenses
 
(164,721)
(161,494)
Selling and administrative expenses
 
(118,923)
(109,785)
Other income, net
9
62,681
31,570
Operating profit
 
104,401
42,216
Finance income and expenses
11
(6,659)
1,018
Share of associates' and joint ventures' results (post tax)
 
(146)
712
Profit before tax
 
97,596
43,946
Income tax
12
(10,646)
(8,384)
Profit for the year
 
86,950
35,562
 
Other comprehensive income (after tax and 
reclassification adjustments)
13
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit obligations
 
133
65
Equity investments at fair value through other 
comprehensive income (FVOCI) - net change in fair 
value
 
1,350
(1,169)
1,483
(1,104)
Items that may be reclassified 
subsequently to profit or loss:
Non-equity financial assets at FVOCI - net change in fair 
value and impairment loss
 
172
(250)
Translation differences on foreign operations
 
1,225
3,514
Share of other comprehensive income of associates and 
joint ventures
 
1
(1)
1,398
3,263
Other comprehensive income
 
2,881
2,159
 
Total comprehensive income
 
89,831
37,721
 
Profit for the year attributable to:
Equity holders of the Company
 
86,893
35,534
Non-controlling interests
 
57
28
86,950
35,562
Total comprehensive income attributable to:
Equity holders of the Company
 
89,773
37,694
Non-controlling interests
 
58
27
89,831
37,721
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


94       Huawei Investment & Holding Co., Ltd.
Summary Consolidated Statement of Financial Position
(CNY million)
Note
December 31,
2023
December 31, 
2022 
Assets
Property, plant and equipment
14
156,495
137,024
Goodwill and intangible assets
15
8,537
8,048
Right-of-use assets
29
25,402
23,286
Interests in associates and joint ventures
16
7,336
7,109
Other investments and derivatives
17
154,510
83,055
Deferred tax assets
18
12,456
11,760
Contract assets
20
1,340
1,025
Trade and bills receivable
21
7,014
3,073
Other assets
22
17,413
14,628
Non-current assets
 
390,503
289,008
Inventories and other contract costs
19
154,558
163,282
Contract assets
20
52,546
51,502
Trade and bills receivable
21
102,050
87,804
Other assets
22
88,141
98,451
Other investments and derivatives
17
282,896
226,488
Cash and cash equivalents
23
192,903
147,269
Current assets
 
873,094
774,796
 
Total assets
 
1,263,597
1,063,804
 
Equity
Equity attributable to equity holders of the Company
 
507,428
436,975
Non-controlling interests
 
140
101
Total equity
 
507,568
437,076
 
Liabilities
Loans and borrowings
24
291,688
183,183
Deferred tax liabilities
18
3,433
3,804
Lease liabilities
 
7,460
7,275
Other liabilities
27
2,016
2,608
Non-current liabilities
 
304,597
196,870
Loans and borrowings
24
16,726
13,961
Employee benefits
 
98,861
97,697
Income tax payable
 
6,687
4,217
Trade and bills payable
25
90,845
92,104
Contract liabilities
26
95,101
87,575
Lease liabilities
 
3,375
3,296
Other liabilities
27
119,668
114,426
Provisions
28
20,169
16,582
Current liabilities
 
451,432
429,858
 
Total liabilities
 
756,029
626,728
 
Total equity and liabilities
 
1,263,597
1,063,804
 
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


2023 Annual Report
        95
Summary Consolidated Statement of Cash Flows
(CNY million)
Note
2023
2022
Cash receipts from goods and services
 
770,927
711,048
Cash paid to suppliers and employees
 
(757,254)
(746,228)
Other operating cash flows
 
56,134
52,977
Net cash generated from operating activities
 
69,807
17,797
Net cash (used in)/generated from investing activities
 
(98,759)
6,270
Net cash generated from/(used in) financing activities
 
73,193
(8,622)
 
Cash and cash equivalents
Net increase
 
44,241
15,445
At January 1
 
147,269
128,395
Effect of foreign exchange rate changes
 
1,393
3,429
At December 31
23
192,903
147,269
 
The notes on pages 96 to 134 form part of this consolidated financial statements summary.


96       Huawei Investment & Holding Co., Ltd.
Notes to the Consolidated Financial Statements Summary
1	 Reporting entity
Huawei Investment & Holding Co., Ltd. (the Company) 
is a limited liability company established in Shenzhen 
in the People's Republic of China (PRC).  The 
Company's registered office is at Building 1, Zone B, 
Huawei Base, Bantian, Longgang District, Shenzhen 
City, PRC. The Company's ultimate controlling party is 
the Union.
The Company and its subsidiaries (the Group) 
principally provide information and communications 
technology (ICT) infrastructure and smart 
devices.  This includes providing products, services 
and solutions to customers in the fields of 
communications networks, IT, smart devices, cloud 
services, digital power and intelligent automotive 
solutions.  The principal activities and other 
particulars of the Company's major subsidiaries are 
set out in note 32(b) to the consolidated financial 
statements summary.
2	 
Preparation basis of the 
consolidated financial statements 
summary
The Group has prepared a full set of consolidated 
financial statements (consolidated financial 
statements) for the year ended December 31, 2023 in 
accordance with IFRS Accounting Standards.
The consolidated financial statements summary has 
been prepared and presented based on the audited 
consolidated financial statements for the year ended 
December 31, 2023 in order to disclose material 
financial information relating to the Group's business 
operation.
3	 Material accounting policies
(a)	
Basis of preparation of the consolidated 
financial statements
The consolidated financial statements have been 
prepared under the historical cost basis modified 
for the fair valuation of some financial instrument 
classifications (see note 3(e)).
The preparation of the consolidated financial 
statements requires management to make 
judgments, estimates and assumptions that affect 
the application of policies and reported amounts 
of assets, liabilities, income and expenses. 
Estimates and associated assumptions are based 
on historical experience and various other factors 
that are believed to be reasonable under the 
circumstances.  Actual results may differ from 
these estimates.
Estimates and underlying assumptions are 
reviewed regularly and revised when required.  
Revisions to accounting estimates are recognized 
in the period in which the estimate is revised if the 
revision affects only that period, or in the period 
of the revision and future periods if the revision 
affects both current and future periods.
Judgments made by management in the 
application of IFRS Accounting Standards that have 
significant effect on the consolidated financial 
statements and major sources of estimation 
uncertainty are discussed in note 4.
(b)	
Functional and presentation currency
All financial information in the consolidated 
financial statements summary is presented in 
millions of Chinese Yuan (CNY), which is the 
Company's functional currency.
(c)	
Consolidation
(i)	Business combinations
The Group accounts for business combinations 
using the acquisition method when the acquired 
set of activities and assets meets the definition of 
a business and control is transferred to the Group. 
 
To be considered a business, an acquiree must 
comprise inputs and a substantive process that 
together significantly contribute to the ability to 
create outputs.  
The Group may determine that an acquired 
set of activities and assets is not a business if 
substantially all of the fair value of the gross 
assets acquired is concentrated in a single 
identifiable asset or group of similar identifiable 
assets.
The consideration transferred in the acquisition 
is generally measured at fair value, as are the 
identifiable assets and liabilities.  Any goodwill 
that arises is tested annually for impairment (see 
note 3(k)(ii)).  Any gain on a bargain purchase 
is recognized in profit or loss immediately.  
Transaction costs are expensed as incurred.


2023 Annual Report
        97
(ii)	
Subsidiaries
The financial statements consolidate the results, 
assets, liabilities and cash flows of all subsidiaries 
which the Group controls.
Subsidiaries are consolidated from the date that 
control commences until the date that control 
ceases.  Intra-group balances, transactions, cash 
flows and any unrealized gains arising from 
intra-group transactions are eliminated in 
preparing the consolidated financial statements.  
Unrealized losses resulting from intra-group 
transactions are eliminated in the same way as 
unrealized gains but only to the extent that there 
is no evidence of impairment.
The Group controls an entity when it is exposed, 
or has rights, to variable returns from its 
involvement with the entity and has the ability to 
affect those returns through its power over the 
entity.  When assessing whether the Group has 
power, only substantive rights are considered.
(iii)	Non-controlling interests
Non-controlling interests represent the carrying 
value of the net assets of subsidiaries attributable 
to non-controlling equity holders.  The Group 
measures non-controlling interests at the 
non-controlling interests' proportionate share of 
the subsidiary's net identifiable assets.  Changes 
in the Group's interests in a subsidiary that do 
not result in a loss of control are accounted for 
as equity transactions, whereby adjustments are 
made to the amounts of controlling and 
non-controlling interests within consolidated 
equity to reflect the change in relative interests, 
but no adjustments are made to goodwill and no 
gain or loss is recognized. 
(iv)	
Loss of control
When the Group loses control of a subsidiary, it is 
accounted for as a disposal of the entire interest 
in that subsidiary, with a resulting gain or loss 
being recognized in profit or loss.  Any interest 
retained in that former subsidiary at the date 
when control is lost is recognized at fair value or, 
when appropriate, the cost on initial recognition 
of an investment in an associate or a joint venture 
(see note 3(d)).
(d)	
Associates and joint ventures
An associate is an entity in which the Group 
has significant influence, but not control or 
joint control, over its management, including 
participation in the financial and operating policy 
decisions.
A joint venture is an arrangement whereby the 
Group and other parties contractually agree to 
share control of the arrangement, and have rights 
to the net assets of the arrangement.
An investment in an associate or a joint venture 
is accounted for in the consolidated financial 
statements using the equity method until the 
date on which significant influence or joint control 
ceases.  It is initially recognized at cost and 
subsequently adjusted to include the Group's share 
of the profit or loss and other comprehensive 
income (OCI) of the associate or the joint venture.
Unrealized profits and losses resulting from 
transactions between the Group and its associates 
and joint ventures are eliminated to the extent 
of the Group's interest in the investee, except 
where unrealized losses provide evidence of an 
impairment of the asset transferred, in which case 
they are recognized immediately in profit or loss.
(e)	
Financial instruments 
(i)	Recognition and derecognition 
Financial instruments, comprising financial assets 
and financial liabilities, are recognized in the 
consolidated statement of financial position when 
the Group becomes a party to the contractual 
provisions of the instrument.
The Group derecognizes a financial asset when 
the contractual rights to the cash flows from the 
asset expire, or it transfers the rights to receive 
the contractual cash flows in a transaction in 
which substantially all of the risks and rewards of 
ownership of the financial asset are transferred or 
where it neither transfers nor retains substantially 
all of the risks and rewards of ownership and 
loses control.  When control is retained, the Group 
continues to recognize the financial asset to the 
extent of its continuing involvement.  Financial 
assets are also derecognized when they are 
written off.  Financial assets are written off when 
there is no reasonable expectation of further 
recoveries even though there may be enforcement 
actions ongoing.


98       Huawei Investment & Holding Co., Ltd.
The Group derecognizes a financial liability 
when its contractual obligations are discharged, 
canceled, or expire.
Financial assets and financial liabilities are 
offset and the net amount presented in the 
consolidated statement of financial position 
when, and only when, the Group currently has a 
legally enforceable right to set off the recognized 
amounts and intends either to settle them on a 
net basis or to realize the asset and settle the 
liability simultaneously.
(ii)	
Classification and measurement
All financial assets and liabilities are initially 
recognized at fair value, with the exception of 
trade receivables without a significant financing 
component, which are measured at their 
transaction price, determined in accordance with 
the Group's accounting policies for revenue.  
Subsequently, measurement depends on the 
financial assets/liabilities classification as follows:
■	 Financial assets measured at fair value through 
profit or loss (FVPL)
Non-equity financial assets are classified as 
FVPL if they arise from contracts which do 
not give rise to cash flows which are solely 
principal and interest, or otherwise where they 
are held in a business model which mainly 
realizes them through sale.  Such assets are 
re-measured to fair value at the end of each 
reporting period.  Gains and losses arising 
from re-measurement are taken to profit or 
loss, as are transaction costs.
Equity investments are classified as FVPL 
unless they are designated as at FVOCI on 
initial recognition (see below).  Dividends from 
equity investments, irrespective of whether 
classified as FVPL or FVOCI, are recognized in 
profit or loss as finance income.
■	 Financial assets measured at FVOCI
Non-equity financial assets are classified as 
FVOCI where they arise from contracts that 
give rise to contractual cash flows which 
are solely principal and interest and that are 
held in a business model which realizes some 
through sale and some by holding them to 
settlement.  They are recognized initially at fair 
value plus any directly attributable transaction 
costs, or in the case of trade receivables, at the 
transaction price.  
At the end of each reporting period they are 
re-measured to fair value, with the cumulative 
gain or loss compared to their amortized cost 
(AC) being recognized as fair value reserve 
through other comprehensive income, except 
for the recognition in profit or loss of expected 
credit losses, interest income (calculated using 
the effective interest method) and foreign 
exchange gains and losses.
When these assets are derecognized, the 
cumulative gain or loss is reclassified from 
equity to profit or loss.
Equity investments are designated as at 
FVOCI where they are considered strategic to 
the Group.  Such designation is made on an 
instrument-by-instrument basis, but may only 
be made if the investment meets the definition 
of equity from the issuer's perspective.  
Amounts accumulated in the fair value reserve 
in respect of these investments are transferred 
directly to retained earnings on the disposal 
of the investment.  These investments are not 
subject to impairment.
■	 Financial assets measured at amortized cost
Financial assets are held at amortized cost 
when they arise from contracts that give rise 
to contractual cash flows which are solely 
principal and interest and are held in a 
business model that mainly holds the assets to 
collect contractual cash flows.  
Financial assets measured at amortized cost 
when they are not purchased or originated 
credit-impaired are measured at amortized 
cost using the effective interest method.  For 
those purchased or originated credit-impaired, 
the Group applies the credit-adjusted effective 
interest rate since initial recognition.  These 
assets are also subject to impairment losses 
(see note 3(k)).  Interest income is calculated 
based on the gross carrying amount of the 
financial asset unless the financial asset is 
credit impaired, in which case interest income 
is calculated on the amortized cost (i.e. gross 
carrying amount less loss allowance). Interest 
income is included in finance income.
■	 Financial liabilities
Financial liabilities are classified as measured 
at amortized cost or FVPL. A financial liability 
is classified as FVPL if it is a derivative, 
contingent consideration or it is designated 


2023 Annual Report
        99
as such on initial recognition.  Other financial 
liabilities are stated at amortized cost using 
the effective interest method.  Interest is 
included in finance expenses unless capitalized 
into an asset (see note 3(t)).
■	 Derivative financial instruments
Derivative financial instruments are recognized 
at fair value. At the end of each reporting 
period the fair value is re-measured. 
Derivatives are classified as assets when their 
fair value is positive or as liabilities when their 
fair value is negative. The gain or loss on 
re-measurement to fair value is recognized 
immediately in profit or loss, except where the 
derivatives are accounted for as hedges of a 
net investment in a foreign operation (see note 
3(f)).
(f)	
Hedge accounting
The Group holds certain derivatives to hedge 
the foreign exchange risk on net investments in 
foreign operations. 
At the inception of the hedging relationship, the 
Group documents the risk management objective, 
the strategy for undertaking the hedge, and the 
economic relationship between the hedged item 
and the hedging instrument, including whether 
the value changes of the hedged item and the 
hedging instrument are expected to offset each 
other. 
Hedge effectiveness is assessed on an ongoing 
basis at the hedging commencement date and 
each subsequent reporting date. A hedge is 
considered effective when:
(i)	 there is an economic relationship between the 
hedged item and the hedging instrument;
(ii)	the effect of credit risk does not dominate the 
value changes that result from that economic 
relationship; and
(iii)	
the hedge ratio of the hedging relationship is 
the same as that resulting from the quantity 
of the hedged item that the Group actually 
hedges and the quantity of the hedging 
instrument that the Group actually uses to 
hedge that quantity of hedged item.
When a hedging relationship is no longer effective 
because of changes in the hedge ratio, but the risk 
management objective for the designated hedging 
relationship remains the same, the Group adjusts 
the hedge ratio so that it meets the qualifying 
criteria again.
To the extent that the hedge is effective, changes 
in the fair value of the derivative are recognized 
in other comprehensive income and presented 
within equity.  Gains and losses representing 
hedge ineffectiveness are recognized in profit or 
loss.  The balances from any hedging relationships 
for which hedge accounting is no longer applied 
remain in the translation reserve.  The cumulative 
amount recognized in other comprehensive income 
is reclassified to profit or loss as a whole or in 
part on disposal or partial disposal of the foreign 
operation. 
(g)	
Investment property
Investment properties are land and buildings 
which are owned or held under a leasehold 
interest (see note 3(j)) to earn rental income 
and/or for capital appreciation.
Investment properties are stated at cost less 
accumulated depreciation (see note 3(h)(ii)) and 
impairment losses (see note 3(k)). Rental income 
from investment properties is accounted for as 
described in note 3(q)(ii).
(h)	
Other property, plant and equipment
(i)	Cost
Items of property, plant and equipment are stated at 
cost less accumulated depreciation and impairment 
losses (see note 3(k)). Cost includes expenditure 
that is directly attributable to the acquisition of 
the assets including for self-constructed assets, the 
cost of materials, direct labor, the initial estimate, 
where appropriate, of the costs of dismantling and 
removing the items and restoring the site on which 
they are located, and an appropriate proportion of 
production overheads and borrowing costs.
Construction in progress is transferred to other 
property, plant and equipment when it is ready for 
its intended use.
Gains or losses arising from the retirement 
or disposal of an item of property, plant and 
equipment are determined as the difference 
between the net disposal proceeds and the 
carrying amount of the item and are recognized in 
profit or loss on the date of retirement or disposal.


100       Huawei Investment & Holding Co., Ltd.
(ii)	Depreciation
Depreciation is calculated to write off the cost of 
items of investment property and other property, 
plant and equipment, less their estimated residual 
value, if any, using the straight-line method over 
their estimated useful lives as follows:
■	 Buildings	
30 years
■	 Machinery	
2 to 10 years
■	 Motor vehicles	
5 years
■	 
Electronic and other equipment	
2 to 5 years
■	 
Decoration and leasehold 
improvements	
2 to 15 years
Where components of an item of investment 
property and other property, plant and equipment 
have different useful lives, the cost of the item is 
allocated on a reasonable basis between the parts 
and each part is depreciated separately.  Both 
the useful life of an item of investment property 
and other property, plant and equipment and its 
residual value, if any, are reviewed annually.
Freehold land and construction in progress are not 
depreciated.
(i)	Goodwill and intangible assets 
(i)	Goodwill
Goodwill represents the excess of the fair value 
of consideration paid to acquire a subsidiary over 
the acquisition date fair value of the acquiree's 
identifiable assets acquired less liabilities, including 
contingent liabilities, assumed as at the acquisition 
date, less impairment losses (see note 3(k)(ii)).
(ii)	Other intangible assets
Other intangible assets are stated at cost less 
accumulated amortization and impairment losses 
(see note 3(k)).
(iii)	
Amortization
Goodwill is not amortized but subject to 
impairment testing (see note 3(k)(ii)) annually.
The cost of other intangible assets with finite 
useful lives is amortized to profit or loss on a 
straight-line basis over the assets' estimated useful 
lives from the date they are available for use.  
Their estimated useful lives are as follows:
■	 Software	
2 to 10 years
■	 Patents and royalties	
2 to 10 years
■	 Trademark and others	
2 to 20 years
Both the useful lives and method of amortization 
are reviewed annually and revised when necessary.
(iv)	
Research and development
Research and development costs are all 
costs directly attributable to research and 
development activities together with costs which 
can be allocated on a reasonable basis to such 
activities.  The nature of the Group's research and 
development activities is such that the criteria 
for the recognition of such costs as assets are 
generally not met until late in the development 
stage of the project when the remaining 
development costs are immaterial.  Therefore, 
expenditure on research and development 
activities is generally recognized as an expense in 
the period in which it is incurred.
(j)	
Leases
A contract is, or contains, a lease if on inception 
the contract conveys the right to control the use 
of an identified asset for a period of time, the 
lease term, in exchange for consideration.
The lease term is the non-cancelable period of 
the lease, together with any additional periods, 
when there is an enforceable option to extend the 
lease and it is reasonably certain that the Group 
will extend the term, or when there is an option 
to terminate the lease and it is reasonably certain 
that the Group will not exercise the right to 
terminate.  The lease term is reassessed if there is 
a significant change in circumstances.
(i)	As a lessee
At commencement, or on the modification, of a 
contract that contains a lease component, the 
Group allocates the consideration in the contract 
to each lease component on the basis of its 
relative stand-alone price. 
The Group recognizes a right-of-use asset and a 
lease liability at the lease commencement date.  
The right-of-use asset is initially measured at cost, 
which comprises the initial amount of the lease 
liability adjusted for any lease payments made at 
or before the commencement date, plus any initial 
direct costs incurred and an estimate of costs to 


2023 Annual Report
        101
dismantle and remove the underlying asset or to 
restore the underlying asset or the site on which it 
is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated 
using the straight-line method from the 
commencement date to the end of the lease term.  
If the lease transfers ownership of the underlying 
asset to the Group by the end of the lease term 
or if the Group expects to exercise a purchase 
option, the right-of-use asset will be depreciated 
over the useful life of the underlying asset, which 
is determined on the same basis as those of the 
Group's other property, plant and equipment.
Right-of-use assets are further reduced by 
impairment losses, if any, and adjusted for certain 
re-measurements of the lease liability.
The lease liability is initially measured at the 
present value of the total lease payments that are 
not paid on the commencement date, discounted 
using either the interest rate implicit in the 
lease, if readily determinable, or more usually, an 
estimate of the Group's incremental borrowing 
rate on the inception date for a loan with similar 
terms to the lease.
The incremental borrowing rate is estimated by 
obtaining interest rates from various external 
financing sources and making certain adjustments 
to reflect the terms of the lease and type of the 
asset leased. 
Lease payments included in the measurement of 
the lease liability comprise the following:
■	 fixed payments, including payments which are 
substantively fixed;
■	 variable lease payments that depend on an 
index or a rate, initially measured using the 
index or rate as at the commencement date;
■	 amounts expected to be payable under a 
residual value guarantee; and 
■	 the exercise price under a purchase option that 
the Group is reasonably certain to exercise, 
lease payments in an optional renewal period 
if the Group is reasonably certain to exercise 
an extension option, and penalties for early 
termination of a lease unless the Group is 
reasonably certain not to terminate early.
The lease liability is measured at amortized cost 
using the effective interest method. It is 
re-measured when there is a change in future 
lease payments arising from a change in an 
index or rate, if there is a change in the Group's 
estimate of the amount expected to be payable 
under a residual value guarantee, if the Group 
changes its assessment of whether it will exercise 
a purchase, extension or termination option 
or if there is a revised in-substance fixed lease 
payment.
When the lease liability is re-measured in this 
way, a corresponding adjustment is made to the 
carrying amount of the right-of-use asset, or is 
recorded in profit or loss if the carrying amount of 
the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
As permitted by IFRS 16 Leases, the Group does 
not recognize right-of-use assets and lease 
liabilities for leases of low-value assets and 
short-term leases.  Payments associated with these 
leases are recognized as an expense on a 
straight-line basis over the lease term.
(ii)	As a lessor
When the Group acts as a lessor, it determines at 
lease inception whether each lease is a finance 
lease or an operating lease.
To classify each lease, the Group makes an 
overall assessment of whether the lease transfers 
substantially all of the risks and rewards incidental 
to ownership of the underlying asset. If this is the 
case, then the lease is a finance lease; if not, then 
it is an operating lease.  
When the Group is an intermediate lessor, it 
accounts for its interest in the head lease and 
the sub-lease separately. It assesses the lease 
classification of a sub-lease with reference to the 
right-of-use asset arising from the head lease, not 
with reference to the underlying asset. If a head 
lease is a short-term lease to which the Group 
applies the exemption described above, then it 
classifies the sub-lease as an operating lease.
The Group recognizes lease payments received 
under operating leases as income on a 
straight-line basis over the lease term as part of 
revenue (see note 3(q)(ii)).


102       Huawei Investment & Holding Co., Ltd.
(k)	Impairment of assets
(i)	Impairment of financial assets, contract 
assets and lease receivables
The Group recognizes an allowance for 
impairment on non-equity financial assets held 
at FVOCI and AC, and also on contract assets 
and lease receivables on an expected credit loss 
basis.  Increases and decreases in the impairment 
allowance are recognized in profit or loss.  The 
expected credit losses are the difference (on a 
present value basis) between the contractual cash 
flows (or transaction price) and the present value 
of cash flows expected to be received based on 
the Group's past loss experience and reasonable 
and supportable expectations, at the end of the 
reporting period, about future credit conditions.
For trade receivables, contract assets and lease 
receivables, the Group recognizes impairment both 
individually and using provision matrices based 
on the probability that the customer will default 
during the lifetime of the asset, and the loss that 
will be incurred given the default (the lifetime 
expected loss).  The Group defines default as the 
customer being more than 90 days past due. 
For all other financial assets that are not 
purchased or originated credit-impaired, the Group 
recognizes impairment initially based on the 
probability that the customer or counterparty will 
default in the next 12 months unless there has 
been a significant deterioration in credit quality, 
or the financial asset becomes credit impaired in 
which case the impairment allowance is increased 
to the lifetime expected loss.  
An asset is credit-impaired when it has one or 
more of the loss events described below:
■	 significant financial difficulty of the borrower 
or issuer;
■	 a breach of contract, such as a default or past 
due event;
■	 the restructuring of a loan or advance by the 
Group on terms that the Group would not 
consider otherwise; 
■	 it is probable that the borrower will enter 
bankruptcy or other financial reorganization; or 
■	 the disappearance of an active market for a 
security because of financial difficulties of the 
issuer. 
In the case of purchased or originated 
credit-impaired financial assets, the Group only 
recognizes the cumulative changes in lifetime 
expected credit losses since initial recognition as a 
loss allowance.
(ii)	Impairment of other non-financial assets
Internal and external sources of information are 
reviewed at the end of each reporting period 
to identify indications that non-financial assets, 
including property, plant and equipment, 
right-of-use assets, intangible assets and other 
long-term assets may be impaired.
Goodwill is tested for impairment at least annually. 
For the purposes of impairment testing, goodwill 
is allocated to each cash generating unit, or a 
group of cash generating units, that is expected 
to benefit from the synergies of the acquisition.  
Where impairment testing is of a cash generating 
unit (or group of units), an impairment loss is 
recognized in profit or loss where the recoverable 
amount is less than the carrying amount of the 
unit (or group of units) and the impairment loss 
recognized is allocated first to reduce the carrying 
amount of any goodwill allocated to the unit (or 
group of units).
Other assets are impaired and an impairment 
loss is recognized in profit or loss where the 
recoverable amount of the asset is less than 
its carrying amount, and reversed where there 
has been a favorable change in the recoverable 
amount.  Impairment of goodwill is not reversed.
The recoverable amount of an asset or group of 
assets is the greater of its fair value less costs 
of disposal and value in use.  Value in use is the 
total estimated future cash flows from the asset 
or, where the asset does not generate cash flows 
independent of other assets, a group of assets, 
discounted to their present value using a 
pre-tax discount rate that reflects current market 
assessments of the time value of money and the 
risks specific to the asset, or group of assets.
(l)	Inventories
Inventories are assets which are held for sale in 
the ordinary course of business, in the process 
of production for such sales or in the form of 
material or supplies to be consumed in the 
production process or in the rendering of services.


2023 Annual Report
        103
Inventories are carried at the lower of cost and net 
realizable value.
Cost is calculated based on the standard cost 
method with periodic adjustments of cost variance 
to arrive at the actual cost, which approximates to 
weighted average cost.  Cost includes expenditures 
incurred in acquiring the inventories and bringing 
them to their present location and condition.  
The cost of manufactured inventories and work 
in progress includes an appropriate share of 
overheads based on normal operating capacity.
Net realizable value is the estimated selling 
price in the ordinary course of business, less the 
estimated costs of completion and the estimated 
costs necessary to make the sale.
When inventories are sold, the carrying amount 
of those inventories is recognized as an expense 
in the period in which the related revenue is 
recognized.  Any write-down of inventories to net 
realizable value and all losses of inventories are 
recognized as an expense in the period the 
write-down or loss occurs. 
(m)	
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank 
and on hand, demand deposits with banks and 
other financial institutions, demand deposits with 
third party merchants, and short-term, highly 
liquid investments that are readily convertible 
into known amounts of cash and which are 
subject to an insignificant risk of changes in value, 
having been within three months of maturity at 
acquisition.  Bank overdrafts that are repayable 
on demand and form an integral part of the 
Group's cash management are also included as a 
component of cash and cash equivalents for the 
purpose of the consolidated statement of cash 
flows.
(n)	Employee benefits
(i)	Short-term employee benefits, contributions 
to defined contribution retirement plans 
and other long-term employee benefits
Salaries, profit-sharing and bonus payments, 
paid annual leave and contributions to defined 
contribution retirement plans and non-monetary 
benefits are recognized as liabilities and in 
profit or loss or in the cost of related assets in 
the period in which the associated services are 
rendered by employees.  Where payment or 
settlement is expected to be made 12 months 
after the end of the reporting period, these 
amounts are discounted and stated at their 
present values.
(ii)	Defined benefit obligations
The Group's obligation in respect of defined 
benefit plans is calculated separately for each plan 
by estimating the total amount of future benefit 
that employees have earned in return for their 
service in the current and prior periods which is 
then discounted to present value.  The calculation 
is performed by management using the projected 
unit credit method.
Service cost and interest cost on the defined 
benefit obligations and any curtailment gains 
and losses are recognized in profit or loss. 
Re-measurements arising from changes in 
actuarial assumptions regarding the amounts 
of future benefits are recognized immediately 
in other comprehensive income and shall not 
be reclassified to profit or loss in a subsequent 
period.  However, the Group may transfer those 
amounts recognized in other comprehensive 
income within equity.
(o)	Income tax
Income tax expense comprises current and 
deferred tax.  It is recognized in profit or loss 
except to the extent that it relates to a business 
combination, or items recognized in other 
comprehensive income or directly in equity. 
Current tax comprises the expected tax payable 
or receivable on the taxable income or loss for 
the year and any adjustment to the tax payable or 
receivable in respect of prior years. The amount 
of current tax payable or receivable is the best 
estimate of the tax amount expected to be paid 
or received that reflects uncertainty, if any.  It is 
measured using tax rates enacted or substantively 
enacted at the reporting date.  Current tax also 
includes any tax arising from dividends.
Deferred tax is recognized in respect of temporary 
differences between the carrying amounts of 
assets and liabilities for financial reporting 
purposes and their tax bases.  Deferred tax assets 
also arise from unused tax losses and unused tax 
credits.  Deferred tax is not recognized for:


104       Huawei Investment & Holding Co., Ltd.
■	 temporary differences on the initial recognition 
of assets or liabilities in a transaction that is 
not a business combination and that affects 
neither accounting nor taxable profit or loss 
and does not give rise to equal taxable and 
deductible temporary differences;
■	 temporary differences related to investments in 
subsidiaries, associates and joint arrangements 
to the extent that the Group is able to control 
the timing of the reversal of the temporary 
differences and it is probable that they will not 
reverse in the foreseeable future; 
■	 taxable temporary differences arising on the 
initial recognition of goodwill; and
■	 those related to the income taxes arising from 
tax laws enacted or substantively enacted 
to implement the Pillar Two model rules 
published by the Organization for Economic 
Co-operation and Development.
Deferred tax assets are recognized to the 
extent that it is probable that future taxable 
profits will be available against which the asset 
can be utilized.  Future taxable profits are 
determined based on the reversal of relevant 
taxable temporary differences.  If the amount of 
taxable temporary differences is insufficient to 
recognize a deferred tax asset in full, then future 
taxable profits, adjusted for reversals of existing 
temporary differences, are considered, based on 
the business plans for individual subsidiaries in 
the Group.  Deferred tax assets are reviewed at 
each reporting date and are reduced to the extent 
that it is no longer probable that the related 
tax benefit will be realized; such reductions are 
reversed when the probability of future taxable 
profits improves.
The amount of deferred tax recognized is 
measured based on the expected manner of 
realization or settlement of the carrying amount 
of the assets and liabilities, using tax rates 
enacted or substantively enacted at the reporting 
date.  Deferred tax assets and liabilities are not 
discounted.
A provision is recognized for those matters for 
which the tax determination is uncertain but 
it is considered probable that there will be a 
future outflow of funds to a tax authority.  The 
provisions are measured at the best estimate of 
the amount expected to become payable.
Current tax balances and deferred tax balances, 
and movements therein, are presented separately 
from each other and are not offset.  Current tax 
assets are offset against current tax liabilities, and 
deferred tax assets against deferred tax liabilities, 
if the Group has legally enforceable rights to set 
off current tax assets against current tax liabilities 
and the following additional conditions are met:
■	 in the case of current tax assets and liabilities, 
the Group intends either to settle on a net 
basis, or to realize the asset and settle the 
liability simultaneously; or
■	 in the case of deferred tax assets and 
liabilities, if they relate to income taxes levied 
by the same taxation authority on either:
–	 the same taxable entity; or
–	 different taxable entities, which, in each 
future period in which significant amounts 
of deferred tax liabilities or assets are 
expected to be settled or recovered, intend 
to realize the current tax assets and settle 
the current tax liabilities on a net basis or 
realize and settle simultaneously.
(p)	Provisions and contingent liabilities
Provisions are recognized for liabilities of uncertain 
timing or amount when the Group has a legal or 
constructive obligation arising as a result of a past 
event, it is probable that an outflow of economic 
benefits will be required to settle the obligation 
and a reliable estimate can be made.  Where the 
time value of money is material, provisions are 
stated at the present value of the expenditure 
expected to settle the obligation.
Where it is not probable that an outflow of 
economic benefits will be required, or the amount 
cannot be reliably estimated, disclosure is made 
of the contingent liability, unless the probability 
of outflow of economic benefits is remote.  
Possible obligations, whose existence will only be 
confirmed by the occurrence or non-occurrence 
of one or more future events are also disclosed 
as contingent liabilities unless the probability of 
outflow of economic benefits is remote.
The main types of provisions are as follows:
(i)	Provision for warranties
The Group provides assurance warranties for its 
standard products.  The Group estimates the costs 


2023 Annual Report
        105
that may be incurred under its assurance warranty 
obligations and records a liability in the amount of 
such costs when revenue is recognized.  Warranty 
costs generally include spare parts, labor costs 
and service center support.  Factors that affect 
the Group's warranty liability include the amount 
of products sold, and historical and anticipated 
rates of warranty claims.  The Group periodically 
reassesses its warranty liabilities and adjusts the 
amounts as necessary.
(ii)	Provision for onerous contracts
A provision for onerous contracts is recognized 
when the expected benefits to be derived by 
the Group from a contract are lower than the 
estimated cost of meeting its obligations under 
the contract.  The provision is measured at the 
present value of the lower of the expected cost 
of terminating the contract and the expected 
net cost of continuing with the contract, which 
is determined based on the incremental costs 
of fulfilling the obligation under the contract 
and an allocation of other costs directly related 
to fulfilling the contract.  Before a provision is 
established, the Group recognizes any impairment 
loss on the assets associated with that contract.
(q)	Revenue
Revenue is income arising from sales of products, 
provision of services or use by others of the 
Group's properties under leases in the ordinary 
course of the Group's business.
(i)	Revenue from customer contracts
Revenue is measured based on the consideration 
the Group expects to be entitled to, from the 
contract with the customer and excludes those 
amounts collected on behalf of third parties.  The 
Group recognizes revenue when it transfers control 
over a good or service (or a bundle of goods or 
services) to a customer. 
i.	
Contract combinations and modifications
The Group combines separate customer contracts 
with the same customer or related parties of the 
same customers entered into at or near the same 
time when those contracts are negotiated as a 
package to form a single commercial objective, 
contain significant pricing dependencies or the 
goods or services promised in the contracts are a 
single performance obligation. 
Contract modifications are generally treated either 
as a new separate contract, or as a prospective 
change to an existing contract.  In cases when the 
additional or the remaining goods and services are 
not distinct from those transferred before the date 
of modification, modifications are accounted for 
through a cumulative catch-up adjustment.
ii.	 Warranties
If a warranty attached to a product sold by 
the Group is a distinct service in addition to 
standard assurance, the Group recognizes the 
warranty service as a separate performance 
obligation (POB) for which revenue is allocated 
and recognized on a straight-line basis over 
the warranty period.  Otherwise, warranties 
provided by the Group are standard assurance and 
accounted for as a warranty provision at the time 
of the sale (see note 3(p)).
iii.	 Timing of revenue recognition
The Group determines at contract inception 
whether it transfers the control of a good 
or service (or a bundle of goods or services) 
underlying a POB to the customer over time or 
at a point in time.  A POB is satisfied and related 
revenue is recognized over time by measuring the 
progress towards complete satisfaction of that 
POB, if one of the following criteria is met:
■	 the customer simultaneously receives and 
consumes the benefits provided by the Group's 
performance as the Group performs;
■	 the Group's performance creates or enhances 
an asset that the customer controls as the 
asset is created or enhanced; or
■	 the Group's performance does not create an 
asset with an alternative use to the Group and 
the Group has an enforceable right to payment 
for performance completed to date.
If a POB is not satisfied over time and the control 
over the related good or service is not transferred 
over time in accordance with the above criteria, 
it is recognized at a point in time when control is 
transferred.
iv.	 Variable consideration
Revenue is measured at the fair value of the 
consideration received or receivable, adjusted at 
contract inception for penalties, price concessions, 


106       Huawei Investment & Holding Co., Ltd.
returns, trade discounts, volume rebates and 
other sales incentives, such as coupons, provided 
that the level of expected return of goods, 
volume rebates and other incentives given 
can be estimated reliably and that revenue is 
only recognized to the extent that it is highly 
probable that a significant reversal in the amount 
of cumulative revenue recognized will not 
occur.  When making an estimate for variable 
consideration, the Group considers several 
factors, including but not limited to, contract 
commitments, business practices, historical 
experience, customer take-up rates, and expected 
purchase volumes. 
v.	 Significant financing component
The amount of consideration in a sales contract is 
adjusted for the existence of significant financing 
component in determining the transaction price 
only when the payment term exceeds one year in 
duration between performance and the expected 
payment date. 
The Group recognizes interest income where 
payment is received more than one year in arrears 
of satisfaction of a performance obligation, 
reflecting a deemed lending of cash to a customer. 
 
Such interest income is presented in finance 
income.  
The Group adopts the practical expedient under 
IFRS 15 Revenue from Contracts with Customers 
(IFRS 15) and does not account for the significant 
financing components where the Group anticipates 
at contract inception that the timing difference 
between transfer of control of a good or service to 
a customer, and the expected customer payment 
for that good or service will be one year or less.
vi.	 Stand-alone selling prices (SSP)
The transaction price of a contract with a 
customer is allocated to each POB in proportion to 
its SSP.  
The Group uses directly observable SSP or 
estimated SSP in allocating transaction price to 
products. In establishing the estimated SSP, the 
Group mainly uses an average price approach by 
product category. Average price of a product is 
calculated with reference to the historical 
stand-alone product sale transactions for the 
product and the product category is determined 
with reference to the product family and 
geographical region. 
For services that are regularly sold on a 
stand-alone basis, most of such services are 
customized and priced on a project basis, 
therefore the transaction prices generally reflect 
the SSP. For the services where an observable 
transaction price is unavailable such as the 
services sold in a bundle with products, the Group 
determines the SSP using a cost-plus approach, 
taking into account several factors, including 
but not limited to labor cost, competition and 
company business strategy.
When a significant discount is granted and is 
specifically attributable to one or more POB, 
that discount is allocated to the identified POB(s) 
if the allocation reflects the Group's regular 
sales pattern.  In all other cases the discount is 
allocated to the contract as a whole.  
vii.	Contract assets and liabilities  
A contract asset arises when revenue is recognized 
under a contract with a customer before the 
Group becomes unconditionally entitled to 
consideration.  Contract assets are reclassified to 
trade receivables when the right to consideration 
becomes unconditional.
When consideration is received (or the right to 
consideration is unconditional) before the related 
revenue is recognized, a contract liability is 
recognized. 
For a single contract with the customer, either 
a net contract asset or a net contract liability is 
presented.  For multiple contracts, contract assets 
and contract liabilities of unrelated contracts are 
not presented on a net basis.
Trade receivables are recognized when the right to 
consideration under a revenue contract becomes 
unconditional, regardless of the billing date.
viii.	
Refund liabilities
A refund liability, such as for rebates to customers, 
other sales-based incentives granted, and expected 
product returns, is recognized when the Group 
expects to refund some or all of the customer 
contract consideration.  Refund liabilities are 
presented in other liabilities in the consolidated 
statement of financial position. 
ix.	 Contract costs
Certain incremental acquisition costs (those paid 
to acquire a contract such as commission) and 


2023 Annual Report
        107
fulfilment costs (those incurred to deliver services 
to customers) are initially capitalized to the extent 
that the costs are recoverable, and subsequently 
recognized as expense over the period of expected 
benefit, which is generally the associated contract 
duration. 
Incremental acquisition costs are expensed as 
incurred where the amortization period of the 
asset that would have been recognized is one year 
or less.
The Group recognizes a contract cost impairment 
when the carrying amount of unamortized 
contract costs exceeds the difference between 
the remaining consideration expected and the 
associated contract costs relating to providing 
those goods and services under the contract.
The Group divides its business into five operating 
segments: ICT Infrastructure Business, Consumer 
Business, Cloud Computing Business, Digital Power 
Business and Intelligent Automotive Solution Business. 
The principal business activities of each segment are 
described in note 7. The specific revenue accounting 
policies applied by the Group in relation to the main 
activities, based on the characteristics of contracts 
and the business practices of the segments, are 
described below:
ICT Infrastructure Business
In the ICT infrastructure business, whose customers 
include telecom carriers and governments and 
enterprises, contracts typically involve multiple 
promises, including sales of equipment, software and 
a wide range of services, which are usually separate 
POBs.  When the Group provides bespoke end-to-end 
solutions, such as data center projects and turnkey 
projects, if the goods and services in the contract are 
not distinct, the solution contract contains one single 
POB.  Except for those related to certain standard 
products for government and enterprise customers, 
warranties provided for ICT infrastructure business 
products are generally recognized as a distinct 
service.
There are two sales patterns within the ICT 
infrastructure business. One is direct sales to end 
customers and the other is distribution through 
channel partners.  Generally, the Group directly sells 
to carrier customers, and payments are received 
according to the payment milestones set out in 
the contracts before or after the obligations are 
fulfilled, usually including advance, delivery, and 
completion payment milestones. The control of goods 
is transferred to the customer when the goods are 
delivered to the customer's designated location or 
installed.  The Group usually sells to government and 
enterprise customers through distribution channels. 
If a distribution channel is the principal, the control 
of goods is generally transferred when the goods are 
delivered to the location designated by the channel. 
If the channel is an agent, the control of goods is 
transferred when the goods are delivered to the 
location designated by the second-tier channels or 
end-users that meet the criteria for a principal.
In most cases, solutions recognized as a single POB 
and services meet the criteria for the transfer of 
control over time.  The Group primarily uses the 
output method to measure progress.  For services 
such as hardware installation, network integration, 
network optimization, and network planning, the 
Group divides the whole service into several delivery 
milestones according to the deliveries specified in the 
contract to measure the performance progress.  For 
services such as customer support, managed services 
and training, the Group generally recognizes revenue 
using the straight-line method.
Consumer Business
The consumer business mainly provides terminal devices 
and services that can be sold on a stand-alone basis, 
such as mobile phones and tablets. The consumer 
business generally sells its products through distribution 
channels. Additionally, the Group sells products to 
consumers directly through self-operated online 
platforms and retail stores. Full payment is commonly 
received in advance.  In most cases, control of the 
goods is transferred when the goods are delivered 
to distribution channels or consumers. The nature 
of warranties for terminal devices and accessories is 
generally standard assurance.
For third-party applications, goods and services sold 
through the Group's online platforms and distribution 
channels, the Group is a principal if it controls a 
promised good or service before it is transferred to a 
customer, otherwise the Group is an agent.
Cloud Computing Business
The cloud computing business mainly provides 
customers with cloud services, such as elastic 
computing, storage, networks, security, and 
databases.  Cloud services are mainly classified into 
contracts with periodic service access or contracts 
with usage services, where the former is charged on 
a subscription basis and the latter is charged based 
on actual utilization. In both contract types, POBs are 


108       Huawei Investment & Holding Co., Ltd.
satisfied over time and the Group recognizes revenue 
over the related contract period using a straight-line 
method or actual consumption volume multiplied by 
agreed charge rates.
Digital Power Business
The digital power business mainly sells products 
and solutions such as smart photovoltaics (PV), data 
center facilities, and DriveONE (including e-mobility 
products for new energy vehicles), and generally 
includes POBs of sales of equipment, installation 
services and operation and maintenance services.  
Except for DriveONE products that are directly 
sold to automobile manufacturers, the Group sells 
other digital power products primarily through 
distribution channels. In most cases, control of the 
goods is transferred when the goods are delivered 
to distribution channels. The nature of warranties 
for digital power products is generally standard 
assurance.
Intelligent Automotive Solution Business
The intelligent automotive solution business 
mainly provides automobile manufacturers with 
intelligent automotive components and accessories, 
automated driving systems and related services, 
primarily through a direct sales model. The control 
of goods is transferred to the customer when the 
goods are delivered to the customer's designated 
location.  Revenue related to software and services 
is recognized when the control of software and 
services is transferred to the customer.  The nature 
of warranties for intelligent automotive products is 
generally standard assurance.
(ii)	Rental income from operating leases
Rental income receivable under operating leases is 
recognized in profit or loss in equal installments 
over the periods covered by the lease term, except 
where an alternative basis is more representative 
of the pattern of benefits to be derived from the 
use of the leased asset.  Lease incentives granted 
are recognized in profit or loss as an integral part 
of the aggregate net lease payments receivable.  
Variable lease payments that do not depend on 
an index or a rate are recognized as income in the 
accounting period in which they are earned.
(r)	
Government grants 
Government grants are recognized at fair value 
when there is reasonable assurance that they will 
be received and that the Group will comply with 
the conditions attached to them. 
Grants that compensate the Group for the cost 
of an asset are initially recognized as deferred 
income and then recognized in profit or loss on a 
systematic and rational basis over the useful life of 
the related asset. 
Grants that compensate the Group for expenses to 
be incurred in the future are initially recognized as 
deferred income and then recognized in profit or 
loss in the same periods in which the expenses are 
incurred. Otherwise, the grants are recognized in 
profit or loss directly.  
(s)	
Translation of foreign currencies
(i)	Foreign currency transactions
Foreign currency transactions during the year are 
translated into the respective functional currencies 
of group entities at the foreign exchange rates 
ruling at the transaction dates. 
Monetary assets and liabilities denominated 
in foreign currencies are translated into the 
functional currency at the foreign exchange 
rates ruling at the end of the reporting period.  
Exchange gains and losses are recognized in profit 
or loss, except those arising from derivatives used 
to hedge net investments in foreign operations 
(see note 3(f)).
Non-monetary assets and liabilities that are 
measured in terms of historical cost in a foreign 
currency are translated using the foreign exchange 
rates ruling at the transaction dates. Non-monetary 
assets and liabilities denominated in foreign 
currencies that are stated at fair value are translated 
using the foreign exchange rates ruling at the dates 
the fair value was measured.
(ii)	Foreign operations
The results of foreign operations, except for 
foreign operations in hyperinflationary economies, 
are translated into the presentation currency 
of the Group (CNY) at the exchange rates 
approximating the foreign exchange rates ruling 
at the dates of the transactions.  Statement of 
financial position items are translated into CNY 
at the closing foreign exchange rates at the end 
of the reporting period.  The resulting exchange 
differences are recognized in other comprehensive 
income and accumulated separately in equity 
in the translation reserve.  If the operation is a 
non-wholly-owned subsidiary, then the relevant 
proportionate share of the translation difference is 
allocated to the non-controlling interests.


2023 Annual Report
        109
The results and financial position of foreign 
operations in hyperinflationary economies are 
translated to CNY at the exchange rates ruling 
at the end of the reporting period.  Prior to 
translating the financial statements of foreign 
operations in hyperinflationary economies, their 
financial statements for the current year are 
restated to account for changes in the general 
purchasing power of the local currencies.  The 
restatement is based on relevant price indices at 
the end of the reporting period.
When a foreign operation is disposed of in its 
entirety or partially such that control, significant 
influence or joint control is lost, the cumulative 
amount in the translation reserve related to that 
foreign operation is reclassified to profit or loss as 
part of the gain or loss on disposal.
(t)	
Borrowing costs
Borrowing costs that are directly attributable to 
the acquisition, construction or production of an 
asset which necessarily takes a substantial period 
of time to get ready for its intended use or sale 
are capitalized as part of the cost of that asset.  
Other borrowing costs are expensed in the period 
in which they are incurred.
4	 Accounting judgments and 
estimates
Significant judgments and key sources of estimation 
uncertainty are as follows: 
(a)	Revenue recognition
Revenue is recognized when control of a good 
or service is transferred to a customer.  Where 
revenue is recognized over time, the Group 
primarily uses the output method to measure 
progress.  Judgments applied when using the 
output method include assessing progress and 
milestones achieved and determining if that 
represents the value of goods and/or services 
delivered to the customer to date.  Where revenue 
is recognized at a point in time, the Group 
assesses the transfer of control by reference to 
the contractual terms and the circumstance of 
the arrangements including a consideration of 
past business practice, such as whether the Group 
has a legal right to payment, title has passed, the 
customer has the risks and rewards of ownership, 
or the customer is using the asset to generate 
value for themselves.  
In determining the transaction price and the 
amounts allocated to performance obligations, 
variable consideration is estimated using the 
most likely amount or expected value based on 
the nature of the specific consideration and the 
analysis of relevant contract terms, considering 
historical, current and expected information. 
The collectability of a consideration is estimated 
at contract inception, based on the Group's 
assessment of the customer's ability and intention 
to pay when due, and is reassessed if there are 
significant changes in the facts and circumstances.
For sales to distribution channels, judgments 
and estimates are also applied in determining 
when the control of the goods is transferred to 
channels and at what amount revenue should be 
recognized. The judgments include whether the 
channel is a principal or an agent in a transaction, 
and whether the channel's next sale is part of one 
arrangement. The Group monitors the channel 
inventory level with reference to the channel's 
normal turnover cycle and sales forecast, taking 
into consideration various factors including 
product characteristics, historical experience, 
market demand and external competition.  
Revenue is only recognized when the control of 
the goods is transferred and to the extent that it 
is highly probable that a significant reversal will 
not occur.
The Group judges a contract modification as a 
separate contract when the increase in contract 
scope is due to additional distinct promised goods 
or services and the price increases reflect the SSP 
of such goods or services plus any appropriate 
adjustments.  Otherwise, a contract modification 
is judged as a prospective change to an existing 
contract when the remaining goods or services are 
distinct from those transferred before the date of 
the modification, or accounted for as cumulative 
catch-up adjustment to the revenue when the new 
or remaining goods or services are not distinct 
from those transferred.
Estimation is inherent in revenue recognition and 
revenue may materially change if management's 
estimation were to change or be found inaccurate 
or with the occurrence of unexpected events.


110       Huawei Investment & Holding Co., Ltd.
(b)	Impairment of trade receivables and 
contract assets
The credit risk of customers is regularly assessed 
with a focus on the customer's ability and 
willingness to pay, reflected by the Group's 
estimation of the expected credit loss allowance 
on trade receivables and contract assets.  The 
Group estimates expected credit loss by assessing 
the loss that will be incurred given customer 
default based on past payment experience and 
adjusted by the cash flow expected from collateral 
or credit risk mitigation received where these are 
considered to be integral to the asset, and by 
assessing the probability of default considering 
information specific to the customer as well 
as pertaining to the country and economic 
environment in which the customer operates. The 
estimate also incorporates forward-looking data.
Impairment is assessed on an individual basis for 
trade receivables and contract assets meeting 
pre-determined criteria, including customers 
in financial difficulties, and contracts with risk 
mitigation arrangements or significant financing 
arrangements, amongst others.  Apart from 
receivables and contract assets that have been 
assessed and provided for individually, allowances 
are estimated using provision matrices by 
management with reference to the customers' 
credit risk ratings and aging analysis of the 
remaining trade receivable and contract asset 
balances.  Different provision matrices have 
been developed by the Group based on different 
customer groups which exhibit different risk 
characteristics. 
If the financial condition of customers were to 
deteriorate or improve, or actual future economic 
performance is different to the Group's estimates, 
additional allowances or reversals may be required 
in future periods.
(c)	
Net realizable value of inventories
The net realizable value of inventories is the 
estimated selling price in the ordinary course of 
business, less the estimated costs of completion 
and the estimated costs necessary to make the 
sale, adjusted by the losses for obsolescence 
and redundancy.  These estimates are based on 
the current market condition, economic lives of 
the Group's products, availability of components 
required to assemble the Group's products and 
the historical experience of inventory losses.  
They could change significantly as a result of 
industrial technology upgrades, competitor 
actions, development of the Events as described 
in note 4(j) or other changes in market condition.  
Management will reassess the estimations at the 
end of each reporting period.
(d)	
Impairment losses of other 
non-financial assets
The carrying amounts of other non-financial 
assets (including property, plant and equipment, 
right-of-use assets, goodwill and intangible 
assets and other long-term assets) are reviewed 
periodically in order to assess whether the 
recoverable amounts have declined below their 
carrying amounts. In order to determine the 
recoverable amount, the Group uses assumptions 
and develops expectations, which requires 
significant judgment. The Group uses all readily 
available information in determining an amount 
that is a reasonable approximation of recoverable 
amount, including estimates based on reasonable 
and supportable assumptions and projections 
of production volume, sales price, amount of 
operating costs, discount rate and growth rate.
(e)	
Income tax and deferred tax assets
The Group is subject to income taxes in 
numerous jurisdictions.  Significant judgment is 
required in determining the Group's provision 
for income taxes. There are certain transactions 
and computations for which the ultimate tax 
determination is uncertain during the ordinary 
course of business.  The Group recognizes 
liabilities in the relevant accounting period based 
on estimates of the probabilities of whether 
additional taxes will be due.  Where the final 
tax outcome of these matters is different from 
the amounts that were initially recorded, such 
differences will impact current and deferred tax 
liabilities and the taxation charge for the year.
Estimation uncertainty also arises from the 
recognition of deferred tax assets in respect of 
unused tax losses and credits and deductible 
temporary differences. Deferred tax assets are 
recognized to the extent that it is probable that 
future taxable profits will be available against 
which they can be utilized.  Recognition primarily 
involves judgment regarding the future financial 
performance of each group entity, considering the 
reversal of existing taxable temporary differences 
and the periods in which tax losses can be utilized. 
 
Adverse changes to the operating environment 
or changes in the Group's organization structure 


2023 Annual Report
        111
could result in a future write-down of the deferred 
tax assets recognized.
(f)	
Provision for warranties
As explained in note 28(b), the Group makes 
provision for assurance warranties, taking into 
account the Group's recent claim experience and 
anticipated claim rates for affected products.  As 
the Group is continually upgrading its product 
designs and launching new models, it is possible 
that the recent claim experience is not indicative 
of future claims that it may receive in respect of 
affected product sales.  
(g)	
Other provisions
The Group makes provisions for onerous contracts, 
outstanding litigations and claims based on 
project budgets, contract terms, available 
knowledge, legal advice and past experience.  The 
Group recognizes provisions to the extent that it 
has a present legal or constructive obligation as a 
result of a past event; that it is probable that an 
outflow of resources will be required to settle the 
obligation; and that the amount can be reliably 
estimated.  
The Group makes provisions for onerous contracts 
in respect of losses arising from non-cancelable 
procurement agreements when there is a change 
in the Group's procurement demands such that 
the Group may not proceed with committed 
purchase orders or use the goods concerned.  
Provisions are made considering the contract 
terms, the suppliers' losses resulting from the 
Group's termination of the agreements and the 
extent to which the goods under the committed 
purchase orders will no longer be used in the 
Group's production. In estimating the losses 
for redundancies, inventories held on hand and 
non-cancelable purchase orders are evaluated 
as a whole.  Judgment is required in making 
the estimates and the ultimate outcome may 
be different.  The Group regularly updates its 
production plan and procurement demands, 
estimates probable losses, and adjusts provisions 
accordingly.
(h)	
Depreciation and amortization
Property, plant and equipment and right-of-use 
assets are depreciated on a straight-line basis over 
the estimated useful lives, after considering the 
estimated residual value.  Intangible assets with 
finite useful life are amortized on a 
straight-line basis over the estimated useful lives.  
Both the period and method of depreciation 
and amortization are reviewed annually.  The 
depreciation and amortization expense for future 
periods is adjusted if there are significant changes, 
such as operational efficiency or changes in 
technologies, from previous estimates.
(i)	Fair value of financial instruments
Some of the Group's financial instruments 
are measured at fair value.  In estimating the 
fair value of a financial instrument, the Group 
uses market-observable data to the extent it 
is available.  Where directly market-observable 
data are not available, the Group uses valuation 
techniques that include unobservable inputs 
to estimate the fair value of certain financial 
instruments. The Group regularly reviews 
significant unobservable inputs and relevant 
valuation results.
(j)	
Financial impact of the Entity List event 
On May 16, 2019 and August 19, 2019 (dates in 
note 4(j) are in U.S. time), the U.S. Commerce 
Department's Bureau of Industry and Security (BIS) 
added Huawei Technologies Co., Ltd. and certain 
non-US affiliates to the Entity List. On August 17, 
2020, BIS amended the Foreign-Produced Direct 
Product Rule by expanding the scope of control 
over foreign-produced items, and further added 
certain Huawei non-US affiliates to the Entity List. 
Upon being added to the Entity List, export, 
re-export or in-country transfer of items subject 
to the U.S. Export Administration Regulations 
(including hardware, software, technology, etc.) to 
the listed entities shall be subject to a BIS license 
requirement (collectively referred to as the Events).
As a result, supplies of relevant items to the 
Group and sales of certain products of the Group 
are adversely affected.  The Group has been 
taking active measures to mitigate the impact of 
the Events. Management has applied significant 
judgments to estimate the impacts arising 
from the Events and relevant impairments and 
provisions have been recognized and adjusted 
continually based on the development of the 
Events.
5	 Changes in accounting policies
The International Accounting Standards Board (IASB) 
has issued several amendments to IFRS Accounting 


112       Huawei Investment & Holding Co., Ltd.
Standards that are effective from January 1, 2023, of 
which the following are relevant to the Group:
■	 Amendments to IAS 8, Accounting policies, 
changes in accounting estimates and errors: 
Definition of Accounting Estimates
■	 Amendments to IAS 12, Income tax: International 
Tax Reform – Pillar Two Model Rules
■	 Amendments to IAS 12, Income tax: Deferred Tax 
related to Assets and Liabilities arising from a 
Single Transaction
■	 Amendments to IAS 1, Presentation of financial 
statements, and IFRS Practice Statement 2, Making 
materiality judgements: Disclosure of Accounting 
Policies
The adoption of these amendments does not have a 
material effect on the Group's consolidated financial 
statements.
6	 New standards and amendments 
issued but not yet effective for 
the year ended December 31, 
2023
The IASB has issued a number of new standards 
and amendments which will affect the financial 
statements in subsequent accounting periods. They 
are not expected to have a significant impact on the 
Group's consolidated financial statements.
7	 Segment information
Operating segments are determined based on the 
types of customers, products and services provided, 
as well as the Group's organization structure, 
management requirement and reporting system.  
The financial information of the different segments 
is regularly reviewed by the Group's most senior 
executive management for the purpose of resource 
allocation and performance assessment.
The Group divides its business into the following five 
operating segments: 
■	 ICT Infrastructure Business
The ICT infrastructure business mainly works on 
information distribution, interaction, transmission, 
processing, and storage, with a focus on two 
industries: connectivity and computing.  The ICT 
infrastructure business provides global telecom 
carriers as well as government and enterprise 
customers with leading and innovative ICT 
products, solutions, and services. Our offerings 
include wireless networks, cloud core networks, 
data communication, optical, computing, data 
storage as well as services and software.
■	 Consumer Business
The consumer business pursues a "1 + 8 + 
N" Seamless AI Life strategy.  Driven by the 
HarmonyOS ecosystem, the consumer business 
focuses on five key scenarios: smart office, 
fitness & health, smart home, easy travel, and 
entertainment.  It provides smartphones, tablets, 
personal computers, wearable devices, converged 
home devices, Huawei Zhixuan cars, as well as the 
applications and services that run on these devices 
for consumers and businesses.
■	 Cloud Computing Business
The cloud computing business focuses on 
delivering Everything as a Service by making 
Huawei's ICT know-how, products, and solutions 
accessible in the form of cloud services.  It 
provides customers, partners, and developers in 
different industries with innovative technologies, 
including artificial intelligence, data governance, 
media services, and software and hardware 
development tools.
■	 Digital Power Business
The digital power business integrates digital and 
power electronics technologies, with a focus on 
clean power generation, mobility electrification, 
and green ICT power infrastructure.  It provides 
low-carbon products and solutions covering smart 
PV and energy storage systems, smart charging 
networks, DriveONE (including e-mobility products 
for new energy vehicles), data center facilities, 
and site power facilities, to help build a greener 
industry and to promote sustainable development.
■	 Intelligent Automotive Solution Business
The intelligent automotive solution business 
focuses on providing new components for 
intelligent connected electric vehicles, and aims 
to help the automotive industry go intelligent, 
connected, and electric.  It provides products and 
solutions including intelligent driving, intelligent 
cockpits, intelligent vehicle control, and intelligent 
vehicle cloud services.
Segment revenue includes both sales to external 
customers and inter-segment sales.


2023 Annual Report
        113
(a)	Revenue information in respect of 
business segments
(CNY million)
2023
2022
ICT Infrastructure
361,997
353,978
Consumer
251,496
214,463
Cloud Computing
55,287
45,342
Digital Power
52,607
50,806
Intelligent Automotive 
Solution
4,737
2,077
Other items
8,624
3,978
Elimination
(30,574)
(28,306)
Total
704,174
642,338
(b)	Geographical revenue information
(CNY million)
2023
2022
China
471,303
403,999
Europe, the Middle 
East and Africa 
(EMEA)
145,343
149,206
Asia Pacific
41,041
48,048
Americas
35,362
31,898
Others
11,125
9,187
Total
704,174
642,338
8	 Revenue
(CNY million)
2023
2022
Revenue from contracts 
with customers
703,246
641,420
Rental income
928
918
704,174
642,338
Revenue from contracts with customers is analyzed by 
timing of revenue recognition as follows:
(CNY million)
2023
2022
Recognized at a point 
in time
564,255
513,594
Recognized over time
138,991
127,826
703,246
641,420
Further disaggregation of revenue by business and 
geography is set out in note 7.
The amount of revenue recognized for the year ended 
December 31, 2023 from POBs satisfied (or partially 
satisfied) in previous years amounted to CNY1,789 
million (2022: CNY2,612 million).  The revenue was 
constrained in prior years as the relevant customers 
were high credit risk rated and the collectability 
of sales consideration was estimated to be low, or 
certain terms of relevant sale contracts were not 
agreed upon then. 
Transaction price allocated to remaining 
performance obligations
As at December 31, 2023, the aggregated amount 
of transaction price allocated to the remaining 
performance obligations under the Group's existing 
customer contracts was CNY91,439 million (2022: 
CNY83,535 million).  This amount mainly represents 
the remaining performance obligations under the 
Group's ICT infrastructure business contracts.  The 
Group will recognize the revenue in future when 
control of the corresponding service or product is 
transferred to the customer as stipulated in note 
3(q).  74% of the amount is expected to occur over 
the next year (2022: 76%), while the remaining 
portion is expected to occur in the years that follow.  
The amounts disclosed above do not include any 
estimated amounts of variable consideration that are 
constrained.
The Group does not disclose information about 
remaining performance obligations that have original 
expected durations of one year or less as permitted 
by IFRS 15.
Revenue is recognized when a performance obligation 
is satisfied in accordance with the accounting policies 
in note 3(q).  The timing of payment from customers 
relative to revenue recognition generates either 
contract assets or trade receivables for payments 
received in arrears or contract liabilities for payments 
received in advance.  
Contract assets and contract liabilities are presented 
in notes 20 and 26 respectively.


114       Huawei Investment & Holding Co., Ltd.
9	 Other income, net
(CNY million)
Note
2023
2022
Fair value changes in financial instruments arising from disposals of 
subsidiaries and businesses
(i)
55,853
24,524
Government grants
(ii)
7,327
6,552
Commissions on individual income tax payments withheld
 
614
640
Gain on disposal of subsidiaries
 
–
59
Factoring expenses
 
(1,308)
(1,147)
Impairment of property, plant and equipment, intangible assets, 
goodwill, right-of-use assets, joint ventures and associates
 
(62)
(229)
Donations
 
(275)
(187)
Net loss on disposal of property, plant and equipment, intangible 
assets and right-of-use assets
 
(226)
(80)
Others, net
 
758
1,438
62,681
31,570
(i)	 The Group disposed of Honor business and certain subsidiaries engaged in manufacturing and sales of server products in prior years. 
According to the contract terms, the Group would receive the consideration in installments and there exists uncertainty over the 
ultimate consideration the Group is entitled to. Therefore, the financial instruments arising from the disposals were both measured 
at fair value through profit or loss. Cash receipts on the financial instruments are presented within investing cash flows.
During the year ended December 31, 2023, the Group and the buyer of the Honor business entered into a supplementary agreement 
and the Group's contractual rights and obligations pertaining to the sale were completely executed and discharged.  The financial 
instrument arising from the disposal of server product manufacturing and sales subsidiaries is included in other liabilities as at 
December 31, 2023.
(ii)	 During the year ended December 31, 2023, government grants recognized as other income, net included unconditional grants of 
CNY744 million (2022: CNY976 million), and conditional grants of CNY6,583 million (2022: CNY5,576 million) which are generally 
related to research and development projects.
10 Personnel expenses
(CNY million)
2023
2022
Salaries, bonuses and allowances
156,446
153,022
Defined benefit plans
6,205
6,137
Defined contribution plans and others
19,194
17,772
181,845
176,931
Defined contribution plans
The Group contributes to defined contribution retirement plans for eligible employees.  The plans are managed 
either by the governments in the countries where the employees are employed, or by independent trustees.  
Contribution levels are determined by the relevant laws and regulations concerned.


2023 Annual Report
        115
11 Finance income and expenses
(CNY million)
Note
2023
2022
Interest income on financial assets at amortized cost
– deposits and wealth management products
 
6,490
3,085
– other financial assets
 
717
413
Interest income on financial assets at FVOCI
 
393
185
Interest income on lease receivables
 
14
21
Net gains on financial instruments mandatorily at FVPL
(i)
–
5,548
Dividend income and others
 
1,264
807
Finance income
 
8,878
10,059
Interest expense on loans and borrowings
 
(11,679)
(7,596)
Less: interest expense capitalized
(ii)
204
124
Interest cost on employee benefit obligations
 
(691)
(638)
Interest expense on lease liabilities
29(a)(ii)
(479)
(417)
Other interest expense
 
(321)
(202)
Net losses on financial instruments mandatorily at FVPL
(i)
(1,811)
–
Net losses on disposal of financial assets at FVOCI
13(b)
(261)
–
Net foreign exchange loss
(iii)
(474)
(277)
(Impairment loss)/reversal of impairment loss
 
(3)
4
Bank charges
 
(22)
(39)
Finance expenses
 
(15,537)
(9,041)
Net finance (expenses)/income
 
(6,659)
1,018
(i)	 The net gains or losses mainly include fair value changes in investment funds, equity securities and beneficiary rights as well as 
compound financial instruments mandatorily at FVPL as disclosed in note 17.
(ii)	 Interest expenses capitalized represent interest costs on specific loans for property construction purpose.
(iii)	For the year ended December 31, 2023, net foreign exchange loss included net fair value gain of CNY2,800 million on foreign 
exchange forward contracts that were not designated as hedging instruments (2022: net fair value loss of CNY557 million).
12 
Income tax in the summary consolidated statement of profit or loss and 
other comprehensive income
Charge for the year 
(CNY million)
2023
2022
Current tax 
Provision for the year
10,314
9,487
Under provision in respect of prior years
1,597
142
11,911
9,629
Deferred tax 
Origination and reversal of temporary differences
(1,163)
(1,285)
Effect of changes in tax rates on opening deferred tax balances
(102)
40
(1,265)
(1,245)
10,646
8,384


116       Huawei Investment & Holding Co., Ltd.
13 Other comprehensive income
(a)	Tax effects relating to each component of other comprehensive income
(CNY million)
2023
2022
Before-tax 
amount
Tax (expense)/
benefit
Net-of-tax 
amount
Before-tax 
amount
Tax (expense)/
benefit
Net-of-tax 
amount
Re-measurement of defined benefit 
obligations
– The Group
151
(18)
133
71
(6)
65
Net change in the fair value and 
impairment loss of financial assets 
measured at FVOCI
Net change in the fair value of equity 
investments
 
 
 
 
 
 
– The Group
1,644
(294)
1,350
(1,521)
352
(1,169)
Net change in the fair value and impairment 
loss of non-equity financial assets
 
 
 
 
 
 
– The Group
176
(4)
172
(266)
16
(250)
1,820
(298)
1,522
(1,787)
368
(1,419)
Translation differences on foreign 
operations
– The Group
1,202
23
1,225
3,500
14
3,514
– Share of associates and joint ventures
1
–
1
(1)
–
(1)
1,203
23
1,226
3,499
14
3,513
3,174
(293)
2,881
1,783
376
2,159
(b)	Components of other comprehensive income, including reclassification adjustments
(CNY million)
2023
2022
Net change in the fair value and impairment loss of financial assets 
measured at FVOCI
 
 
Changes in fair value recognized during the year
1,557
(1,791)
Reclassification adjustments for amounts transferred to profit or loss
 
 
– Loss on derecognition (note 11)
261
–
Loss allowances recognized
2
4
Net deferred tax (debited)/credited to other comprehensive income
(298)
368
Net movement in the fair value reserve during the year
1,522
(1,419)
Translation differences on foreign operations
Recognized during the year
 
 
– Translation differences
1,357
3,592
– Effective portion of changes in fair value of hedging instruments
(158)
(93)
Reclassification adjustments for amounts transferred to profit or loss
 
 
– Liquidation or disposal of subsidiaries
4
–
Net deferred tax credited to other comprehensive income
23
14
Net movement in the translation reserve during the year
1,226
3,513


2023 Annual Report
        117
14 Property, plant and equipment 
(CNY million)
Freehold 
land
Buildings
Machinery
Electronic
 and other 
equipment
Motor 
vehicles
Construction 
in progress
Investment 
property
Decoration 
and leasehold
 improvements
Total
Cost:
At January 1, 2022
415
37,306
48,821
91,856
589
18,998
429
31,447
229,861
Exchange adjustments
(10)
(8)
(6)
539
3
230
50
97
895
Additions
10
294
1,765
3,448
56
29,520
453
122
35,668
Transfer from construction 
in progress
–
4,374
6,971
11,411
1
(26,301)
–
3,544
–
Transfer to investment 
property
–
(340)
(77)
–
–
–
517
(31)
69
Disposals
–
–
(450)
(1,971)
(35)
(30)
(19)
(328)
(2,833)
Reclassified as assets held 
for sale
–
–
(9)
(1)
–
–
–
(8)
(18)
Hyperinflation adjustments
–
–
4
266
13
5
–
136
424
At December 31, 2022
415
41,626
57,019
105,548
627
22,422
1,430
34,979
264,066
At January 1, 2023
415
41,626
57,019
105,548
627
22,422
1,430
34,979
264,066
Exchange adjustments
(3)
(111)
(17)
(73)
(20)
54
(58)
(178)
(406)
Additions
25
55
2,590
3,627
68
40,560
26
55
47,006
Transfer from investment 
property
51
212
–
–
–
–
(263)
–
–
Transfer from construction 
in progress
–
2,790
7,608
8,274
2
(21,609)
–
2,935
–
Transfer to inventory
–
(658)
(201)
(1)
–
–
–
(454)
(1,314)
Disposals
–
–
(1,098)
(6,753)
(65)
(13)
(5)
(452)
(8,386)
Reclassified as assets held 
for sale
–
(4)
(70)
(15)
–
–
–
(6)
(95)
Hyperinflation adjustments
–
–
3
302
31
10
–
88
434
At December 31, 2023
488
43,910
65,834
110,909
643
41,424
1,130
36,967
301,305
Accumulated depreciation 
and impairment:
At January 1, 2022
–
6,353
19,983
61,045
417
6
114
17,809
105,727
Exchange adjustments
–
18
(1)
359
2
(1)
(2)
72
447
Depreciation charge for 
the year
–
1,244
5,472
12,104
53
–
93
3,686
22,652
Transfer to investment 
property
–
(6)
(1)
–
–
–
14
–
7
Impairment loss
–
–
33
129
–
75
–
4
241
Disposals
–
–
(410)
(1,631)
(32)
(1)
(10)
(320)
(2,404)
Reclassified as assets held 
for sale
–
–
(1)
(1)
–
–
–
(2)
(4)
Hyperinflation adjustments
–
–
3
232
8
–
–
133
376
At December 31, 2022
–
7,609
25,078
72,237
448
79
209
21,382
127,042
At January 1, 2023
–
7,609
25,078
72,237
448
79
209
21,382
127,042
Exchange adjustments
–
(10)
6
(21)
(10)
6
(3)
(119)
(151)
Depreciation charge for 
the year
–
1,388
6,351
13,284
54
–
53
3,642
24,772
Transfer from investment 
property
–
10
–
–
–
–
(10)
–
–
Transfer from construction 
in progress
–
–
–
2
–
(2)
–
–
–
Transfer to inventory
–
(102)
(94)
(1)
–
–
–
(387)
(584)
Impairment loss
–
–
35
6
–
2
–
–
43
Disposals
–
–
(493)
(5,628)
(62)
(1)
–
(439)
(6,623)
Reclassified as assets held 
for sale
–
–
(10)
(7)
–
–
–
(2)
(19)
Hyperinflation adjustments
–
–
2
250
23
–
–
55
330
At December 31, 2023
–
8,895
30,875
80,122
453
84
249
24,132
144,810
Carrying amount:
At December 31, 2023
488
35,015
34,959
30,787
190
41,340
881
12,835
156,495
At December 31, 2022
415
34,017
31,941
33,311
179
22,343
1,221
13,597
137,024


118       Huawei Investment & Holding Co., Ltd.
Based on the use of related assets, the depreciation charge for the year is allocated to cost of sales, research and 
development expenses, and selling and administrative expenses. Impairment losses are charged to cost of sales 
and other income, net in the summary consolidated statement of profit or loss and other comprehensive income.
As at December 31, 2023 and 2022, the Group did not hold any property, plant and equipment as collateral for 
liabilities or contingent liabilities.
15 Goodwill and intangible assets
(CNY million)
Goodwill
Software
Patents and
 royalties
(note(a))
Trademark 
and others
Total
Cost:
At January 1, 2022
4,114
2,496
13,526
3,231
23,367
Exchange adjustments
320
10
20
26
376
Additions
–
396
1,048
176
1,620
Disposals
(10)
(412)
(862)
(1,088)
(2,372)
At December 31, 2022
4,424
2,490
13,732
2,345
22,991
At January 1, 2023
4,424
2,490
13,732
2,345
22,991
Exchange adjustments
72
–
8
6
86
Additions
–
613
1,084
549
2,246
Disposals
–
(477)
(300)
(462)
(1,239)
At December 31, 2023
4,496
2,626
14,524
2,438
24,084
Amortization and impairment:
At January 1, 2022
3,784
2,048
7,926
1,505
15,263
Exchange adjustments
317
9
21
16
363
Amortization for the year
–
240
889
466
1,595
Impairment loss
16
–
–
4
20
Disposals
(11)
(362)
(839)
(1,086)
(2,298)
At December 31, 2022
4,106
1,935
7,997
905
14,943
At January 1, 2023
4,106
1,935
7,997
905
14,943
Exchange adjustments
70
(1)
6
5
80
Amortization for the year
–
387
862
419
1,668
Disposals
–
(477)
(207)
(460)
(1,144)
At December 31, 2023
4,176
1,844
8,658
869
15,547
Carrying amount:
At December 31, 2023
320
782
5,866
1,569
8,537
At December 31, 2022
318
555
5,735
1,440
8,048


2023 Annual Report
        119
(a)	 As at December 31, carrying amounts of patents and royalties are analyzed as follows:
(CNY million)
2023
2022
Patents
5,038
4,507
Royalties
828
1,228
5,866
5,735
(b)	 Based on the use of the related assets, the amortization charge for the year is allocated to cost of sales, 
research and development expenses, and selling and administrative expenses. Impairment losses are charged 
to cost of sales and other income, net in the summary consolidated statement of profit or loss and other 
comprehensive income.
(c)	 As at December 31, 2023 and 2022, all of the carrying amount of goodwill was allocated across multiple 
cash-generating units and the amount so allocated to each unit was not significant.
(d)	 As at December 31, 2023 and 2022, the Group did not hold any intangible assets whose title is restricted or 
pledged as security for liabilities.
16 Interests in associates and joint ventures
(CNY million)
2023
2022
Associates
6,615
6,414
Joint ventures
721
695
7,336
7,109
Associates and joint ventures are accounted for using the equity method.  None of the associates and joint 
ventures is individually significant.
Aggregate carrying amounts and summarized financial information of associates and joint ventures are as follows:
(CNY million)
Associates
Joint ventures
2023
2022
2023
2022
Aggregate carrying amount
6,615
6,414
721
695
Aggregate amount of the Group's share of 
associates' and joint ventures'
 
 
 
 
(Loss)/profit for the year
(106)
504
(40)
208
Other comprehensive income
–
(1)
–
–
Total comprehensive income
(106)
503
(40)
208


120       Huawei Investment & Holding Co., Ltd.
17 Other investments and derivatives
(CNY million)
Note
2023
2022
Financial assets at amortized cost
Fixed deposits
 
111,215
72,183
Debt securities
(i)
3,575
60
114,790
72,243
Loss allowances
(7)
(3)
114,783
72,240
Financial assets mandatorily at FVPL
Investment funds
(ii)
165,847
153,254
Equity securities and beneficiary rights
(iii)
136,552
62,495
Compound financial instruments
(iv)
3,746
3,946
Derivatives
(v)
482
305
306,627
220,000
Financial assets at FVOCI
Debt securities
(i)
5,950
9,077
Equity securities
(iii)
10,046
8,226
15,996
17,303
437,406
309,543
Non-current portion
 
154,510
83,055
Current portion
 
282,896
226,488
437,406
309,543
(i)	 Debt securities comprise investments in fixed rate bonds, floating rate notes, certificates of deposit, commercial paper, etc.  Debt 
securities are measured at amortized cost where the Group intends to hold them to collect contractual cash flows. Other debt 
securities are classified as FVOCI since they are held to collect and for sale, and also give rise to cash flows which are solely 
principal and interest.  The loss allowances on debt securities at FVOCI amounted to CNY2 million as at December 31, 2023 (2022: 
CNY3 million).
(ii)	 Investment funds comprise structured deposits, bond funds, money market funds and variable net asset value wealth management 
products.  Investment funds are measured at FVPL where the Group intends to sell them or where the investments do not give rise 
to cash flows which are solely principal and interest.
(iii)	Equity securities and beneficiary rights represent equity investments and interests in equity investment arrangements. These 
investments are designated at FVOCI where they are considered strategic to the Group and meet the definition of equity from the 
issuers' perspective, or measured at FVPL.  Dividend income received on equity investments at FVOCI amounted to CNY61 million 
(2022: CNY80 million) for the year ended December 31, 2023. 
Certain equity investments at FVOCI were disposed of during the year ended December 31, 2023, and the corresponding cumulative 
gain in fair value reserve of CNY3 million was transferred to retained earnings upon disposal of these investments (2022: CNY35 
million).
(iv)	Compound financial instruments comprise equity instruments with redemption options and convertible notes which are classified at 
FVPL.
(v)	 Derivatives mainly comprise foreign exchange forward contracts.
(vi)	As at December 31, 2023 and 2022, the Group did not hold any investments pledged as collateral for liabilities or contingent 
liabilities.


2023 Annual Report
        121
18 Deferred tax assets/(liabilities)
(a)	Components of recognized deferred tax 
assets/(liabilities) 
(CNY million)
2023
2022
Accruals, defined 
benefit obligations, 
refund liabilities 
and unperformed 
obligations
5,373
5,708
Fair value changes of 
financial instruments
(1,953)
(1,618)
Depreciation and 
impairment of 
property, plant and 
equipment
(3,856)
(4,301)
Unrealized profit
4,556
4,736
Tax losses
4,900
3,654
Undistributed profits 
of subsidiaries
(1,237)
(1,129)
Write-down of 
inventories
656
652
Provision for loss 
allowances
429
376
Others
155
(122)
Total
9,023
7,956
Reconciliation to the summary consolidated statement 
of financial position:
(CNY million)
2023
2022
Net deferred tax assets
12,456
11,760
Net deferred tax 
liabilities
(3,433)
(3,804)
9,023
7,956
(b)	Deferred tax assets not recognized
Deferred tax assets were not recognized on certain 
unused tax losses, deductible temporary differences 
and unused tax credits in accordance with the 
accounting policy set out in note 3(o).
As at December 31, 2023, deferred tax assets had 
not been recognized in respect of unused tax losses 
amounting to CNY313,696 million (2022: CNY207,383 
million) and deductible temporary differences 
amounting to CNY188,276 million (2022: CNY185,272 
million);  additionally, unused tax credits relating 
to overseas withholding income tax and corporate 
income tax incurred as well as certain research and 
development expenditure totaling CNY2,853 million 
(2022: CNY4,408 million) had not been recognized as 
deferred tax assets. 
19 
Inventories and other contract 
costs
(CNY million)
2023
2022
Inventories
Raw materials
73,422
87,650
Manufacturing work in 
progress
34,534
28,751
Finished goods and 
consumables
28,631
29,036
Dispatched goods and 
contract work in 
progress
12,660
14,106
Other inventories
5,042
3,374
154,289
162,917
Other contract costs
269
365
154,558
163,282
As at December 31, 2023 and 2022, the Group did 
not hold any inventories pledged as collateral for 
liabilities or contingent liabilities.
(a)	Amount of inventories recognized as an 
expense and included in profit or loss:
(CNY million)
2023
2022
Carrying amount of 
inventories sold
282,697
271,396
Write-down of 
inventories
583
6,196
283,280
277,592
The write-down is included in cost of sales.
(b)	Contract costs
The Group's contract costs represent contract 
fulfilment costs incurred to deliver services to 
customers, which will be charged to cost of sales 
when the corresponding performance obligations are 
satisfied.
No provision for impairment was required on contract 
costs as at December 31, 2023 or 2022.


122       Huawei Investment & Holding Co., Ltd.
20 Contract assets
(CNY million)
2023
2022
Gross carrying amount
54,189
52,821
Loss allowances (note 21(b))
(303)
(294)
53,886
52,527
Non-current portion
1,340
1,025
Current portion
52,546
51,502
53,886
52,527
Contract assets relate to the Group's rights to 
consideration for performance obligations that have 
been satisfied but not billed, primarily from ICT 
infrastructure business contracts.  Contract assets are 
transferred to receivables when the right to payment 
becomes unconditional, other than the passage of 
time.  This usually occurs when the Group issues an 
invoice to the customer in accordance with the billing 
milestones agreed in the contract, which are generally 
upon passing of the product acceptance tests.
Significant changes in the gross balances of contract 
assets during the year are as follows:
(CNY million)
2023
2022
At January 1
52,821
52,810
Addition during the year
50,267
47,836
Transfers to receivables or 
reversal during the year
(48,768)
(48,640)
Exchange adjustments
(131)
815
At December 31
54,189
52,821
21 Trade and bills receivable
(CNY million)
Note
2023
2022
Trade receivables
Trade receivables from 
third parties
(i)
97,152
87,143
Trade receivables from 
related parties
31
72
34
97,224
87,177
Bills receivable
Bank and finance 
company acceptance 
bills
 
5,207
809
Commercial acceptance 
bills
 
5,777
1,647
Letters of credit
 
856
1,244
(ii)
11,840
3,700
109,064
90,877
Non-current portion
 
7,014
3,073
Current portion
 
102,050
87,804
109,064
90,877
(i)	 As at December 31, 2023, the Group's trade receivables 
that may be sold through reverse factoring arrangements 
amounted to CNY6,885 million (2022: CNY7,112 million).  
These trade receivables are managed in a business model 
whose objective is achieved by both collection and sale, and 
are therefore measured at FVOCI.
(ii)	 The Group's bills receivable are due within twelve months 
from issuance date.
(a)	Aging analysis 
At the end of the reporting period, the aging analysis 
of trade receivables is as follows:
(CNY million)
2023
2022
Not past due
73,604
65,195
Less than 90 days past due
15,767
16,108
90 days to 1 year past due
8,101
6,876
1 year and above past due
3,402
2,170
100,874
90,349
Loss allowances
(3,650)
(3,172)
97,224
87,177
Trade receivables are generally due within 30 days 
from the date of billing.
(b)	Loss allowances of trade receivables 
and contract assets
Loss allowances in respect of trade receivables and 
contract assets are recorded using an allowance 
account unless the Group is satisfied that there is no 
reasonable expectation of further recoveries in which 
case the receivables are written off (see note 3(e)(i)).
The movement in loss allowances in respect of trade 
receivables and contract assets during the year is as follows: 
(CNY million)
Note
2023
2022
At January 1
 
3,497
3,148
Loss allowances 
recognized
 
774
297
Uncollectible amounts 
written-off
 
(92)
(472)
Collection of previously 
written-off debtors
 
39
154
Disposal of a subsidiary
 
–
(1)
Exchange adjustments
 
(231)
371
At December 31
 
3,987
3,497
Representing loss 
allowances
 
 
 
– on trade receivables
 
3,650
3,172
– on contract assets
20
303
294
– included in OCI on trade 
receivables at FVOCI
 
34
31
Total
 
3,987
3,497


2023 Annual Report
        123
Loss allowances recognized on trade receivables 
and contract assets are included in selling and 
administrative expenses.
During the year ended December 31, 2023, the 
loss allowances of trade receivables and contract 
assets increased mainly due to additional allowance 
recognized on the long-aged receivables due from 
certain customers in Asia Pacific. 
(c)	Transferred trade receivables not 
derecognized in their entirety
As at December 31, 2023, the Group's undue trade 
receivables with the face value of CNY8 million (2022: 
CNY9 million) have been transferred to banks and the 
Group received the corresponding remittance of CNY8 
million (2022: CNY9 million).  As these transactions 
are with recourse, the Group therefore has retained 
substantially all the risks and rewards and continues 
to recognize these trade receivables and the relevant 
financing as loans and borrowings (note 24).
As at December 31, 2023, the Group's trade 
receivables with the carrying amount of CNY2,760 
million (2022: CNY3,256 million) have been 
transferred to banks.  These trade receivables are 
covered by insurance policies issued by third party 
credit insurance agencies with the transferees as 
the loss payees.  In these transactions, the Group 
retains risk not covered by the insurance, therefore 
the Group has neither transferred nor retained 
substantially all the risks and rewards in relation to 
the trade receivables and the Group is considered to 
have retained control of these trade receivables as the 
transferees have no practical ability to sell these trade 
receivables without the Group's consent.  As such, 
the Group continues to recognize the transferred 
trade receivables of CNY527 million (2022: CNY567 
million) and associated liabilities of CNY564 million 
(2022: CNY610 million) to the extent of its continuing 
involvement.  The associated liabilities are included 
in other liabilities.  As at December 31, 2023, loss 
allowances of CNY409 million (2022: CNY405 million) 
were made on these transferred receivables.
(d)	Collateral
As at December 31, 2023 and 2022, except as 
disclosed in note 21(c), the Group did not hold any 
other trade and bills receivable pledged as collateral 
for liabilities or contingent liabilities.
22 Other assets
(CNY million)
Note
2023
2022
Advance payments to suppliers
 
51,985
47,386
Prepayment for acquisition of long-term assets
 
7,971
8,881
Tax receivables on unbilled deliveries
(i)
5,079
4,963
Income tax related assets
 
1,639
1,488
Other tax related assets
 
16,322
13,255
Pledged and restricted deposits with banks
 
1,961
1,608
Other third party receivables
 
17,190
33,968
Other long-term deferred assets
 
2,938
1,131
Related party receivables
31
278
386
Assets held for sale
 
191
13
105,554
113,079
Non-current portion
 
17,413
14,628
Current portion
 
88,141
98,451
105,554
113,079
(i)	 Under certain tax regulations, value added tax (VAT) and other surcharges are payable at the earlier of delivery of goods and 
services or issuance of VAT invoices.  These balances represent VAT and surcharge receivable from customers on unbilled deliveries 
and will be reclassified to trade receivables upon billing.


124       Huawei Investment & Holding Co., Ltd.
23 Cash and cash equivalents
(CNY million)
2023
2022
Cash on hand
5
7
Deposits with banks and other financial institutions
171,416
138,999
Highly liquid short-term investments
21,023
8,131
Deposits with third party merchants
459
132
192,903
147,269
Short-term investments included in cash and cash equivalents are highly liquid, readily convertible into known 
amounts of cash and subject to an insignificant risk of changes in value.  As at December 31, 2023, these 
short-term investments comprised reverse repurchase agreements with maturities of less than three months of 
CNY19,500 million (2022: CNY500 million), money market funds of CNY1,024 million (2022: CNY7,631 million), 
and fixed income structured notes of CNY500 million (2022: nil). Money market funds comprise investments in 
short-term debt securities which have constant or low volatility net asset values and are measured at FVPL. The 
fixed income structured notes are securities issued by Chinese security companies with guaranteed principal and 
fixed income.
As at December 31, 2023, cash and cash equivalents of CNY1,116 million (2022: CNY836 million) were held in 
countries where exchange controls or other legal restrictions were in force.
As at December 31, 2023, the Group held cash equivalents of CNY6,772 million (2022: CNY8,312 million) in 
multicurrency pooling arrangements to meet its day-to-day cash requirements.  The facilities allow participating 
subsidiaries to place deposits and borrow funds from the counterparty banks in any freely convertible currency 
subject to the overall balance on the pools being positive.
As at December 31, 2023 and 2022, the Group did not hold any cash and cash equivalents pledged as collateral 
for liabilities or contingent liabilities.
24 Loans and borrowings
Contractual terms of the Group's loans and borrowings are summarized below.
(CNY million)
2023
2022
Short-term loans and borrowings:
 
 
– Unsecured
432
228
Long-term loans and borrowings:
 
 
– Intra-group guaranteed
23
205
– Trade receivables financing (note 21(c))
8
9
– Unsecured
236,949
140,484
– Corporate bonds
71,002
56,218
307,982
196,916
308,414
197,144
Non-current portion
291,688
183,183
Current portion
16,726
13,961
308,414
197,144
Intra-group guaranteed loans are external borrowings which have been raised by one group entity but contractual 
payments of principal and interest are guaranteed by another group entity.


2023 Annual Report
        125
Terms and repayment schedule
A summary of the main terms and conditions of outstanding loans and borrowings are as follows:
At December 31, 2023
(CNY million)
Interest rate 
per annum
Total
1 year 
or less
1 to 5 
years
Over 5 
years
Intra-group guaranteed bank 
loans:
CNY
variable
3.96%
23
23
–
–
Trade receivables financing:
United States Dollar (USD)
variable
9.06%
8
2
6
–
Unsecured bank loans:
CNY
variable
2.80% ~ 3.96%
191,186
404
38,662
152,120
Euro (EUR)
variable
4.73% ~ 4.94%
8,051
20
4,693
3,338
EUR
fixed
5.07%
1
1
–
–
Hong Kong Dollar (HKD)
variable
6.00% ~ 6.94%
37,711
6,518
17,668
13,525
Saudi Arabian Riyal (SAR)
variable
2.89% ~ 8.35%
179
179
–
–
Bahrain Dinar (BHD)
variable
5.80%
12
12
–
–
Nigerian Naira (NGN)
fixed
19.00%
201
201
–
–
Pakistani Rupee
fixed
17.12%
37
37
–
–
USD
variable
6.16%
3
3
–
–
237,381
7,375
61,023
168,983
Corporate bonds:
CNY
fixed
2.87% ~ 3.65%
46,094
9,152
36,942
–
USD
fixed
4.00% ~ 4.13%
24,908
174
24,734
–
71,002
9,326
61,676
–
308,414
16,726
122,705
168,983


126       Huawei Investment & Holding Co., Ltd.
At December 31, 2022
(CNY million)
Interest rate 
per annum
Total
1 year 
or less
1 to 
5 years
Over 5 
years
Intra-group guaranteed 
bank loans:
CNY
variable
4.26%
205
182
23
–
Trade receivables financing:
USD
variable
4.92%
9
2
6
1
Unsecured bank loans:
CNY
variable
2.95% ~ 4.31%
102,764
135
21,388
81,241
EUR
variable
2.36% ~ 3.05%
5,266
–
4,291
975
HKD
variable
5.26% ~ 6.51%
22,039
–
17,663
4,376
SAR
variable
1.80% ~ 4.75%
43
43
–
–
BHD
variable
5.80%
104
104
–
–
NGN
fixed
19.00%
75
75
–
–
EUR
fixed
1.75%
6
6
–
–
USD
variable
5.62% ~ 5.68%
10,415
10,415
–
–
140,712
10,778
43,342
86,592
Corporate bonds:
CNY
fixed
2.87% ~ 3.65%
31,954
2,999
28,955
–
USD
fixed
4.00% ~ 4.13%
24,264
–
24,264
–
56,218
2,999
53,219
–
197,144
13,961
96,590
86,593
Certain of the Group's banking facilities are subject to compliance with covenants relating to financial ratios.  In 
the event of breach, the drawn down facilities would become payable on demand.  The Group regularly monitors 
its compliance with these covenants.  As at December 31, 2023 and 2022, no covenants had been breached.


2023 Annual Report
        127
Corporate bonds
The Group's CNY and USD corporate bonds were issued by the Company and its wholly-owned subsidiaries 
respectively.  Main terms of the outstanding corporate bonds are as follows: 
Corporate bond 
Issue date 
Principal amount
 million
Interest rate 
per annum 
Term 
USD bond
May 19, 2015
1,000
4.125%
10 years
USD bond
May 6, 2016
2,000
4.125%
10 years
USD bond
February 21, 2017
500
4.000%
10 years
CNY medium-term note
March 6, 2020
2,000
3.240%
5 years
CNY medium-term note
March 23, 2020
2,000
3.380%
5 years
CNY medium-term note
April 24, 2020
2,000
3.090%
5 years
CNY medium-term note
January 29, 2021
4,000
3.580%
3 years
CNY medium-term note
March 5, 2021
4,000
3.650%
3 years
CNY medium-term note
January 10, 2022
4,000
2.960%
3 years
CNY medium-term note
January 24, 2022
3,000
3.260%
5 years
CNY medium-term note
February 28, 2022
4,000
2.990%
3 years
CNY medium-term note
July 22, 2022
4,000
2.870%
3 years
CNY medium-term note
January 16, 2023
3,000
3.450%
5 years
CNY medium-term note
February 10, 2023
3,000
3.400%
5 years
CNY medium-term note
March 6, 2023
3,000
3.450%
5 years
CNY medium-term note
April 17, 2023
4,000
3.050%
3 years
CNY medium-term note
August 28, 2023
3,000
2.980%
5 years
USD bonds are fully guaranteed by the Company.


128       Huawei Investment & Holding Co., Ltd.
Reconciliation of movements of major liabilities to cash flows arising from financing activities
Year ended December 31, 2023
Related liabilities
(CNY million)
Other loans and 
borrowings
Corporate 
bonds
Long-term assets
 installments
Lease 
liabilities
Balance at January 1, 2023
140,926
56,218
1,647
10,571
Proceeds from borrowings
140,128
24,950
–
–
Repayment of borrowings
(44,911)
(12,000)
–
–
Long-term assets acquired
–
–
283
–
Installment payments
–
–
(722)
–
New leases
–
–
–
4,256
Payment of lease liabilities
–
–
–
(3,556)
Interest incurred during the year
8,378
2,491
–
479
Interest paid
(8,568)
(2,158)
–
(344)
Amortization of capitalized interests and 
transaction costs
120
62
29
–
Non-cash transactions (note)
(750)
–
–
–
Termination of leases
–
–
–
(5)
Exchange adjustments
2,089
1,439
67
(566)
Balance at December 31, 2023
237,412
71,002
1,304
10,835
Note:	 Under certain financing arrangements, the Group's entitlement to consideration from customer contracts is 
transferred for cash to financial institutions before the Group obtains unconditional rights, giving rise to financial 
liabilities included in loans and borrowings.  The Group derecognizes the relevant loans and borrowings under 
these arrangements upon becoming unconditionally entitled to the relevant contract consideration.
25 Trade and bills payable
(CNY million)
Note
2023
2022
Trade payables
Related party trade payables
31
875
1,054
Third party trade payables
 
85,487
84,218
86,362
85,272
Bills payable
Bank acceptance bills
 
1,390
1,745
Letters of credit payable
 
3,093
5,087
4,483
6,832
90,845
92,104


2023 Annual Report
        129
26 Contract liabilities
Significant changes in contract liabilities during the year are as follows:
(CNY million)
2023
2022
At January 1
87,575
78,149
Revenue recognized that was included in the contract liability balance at the 
beginning of the year
(57,716)
(62,204)
Increases due to cash received or billing for unperformed obligations
65,307
69,848
Exchange adjustments
(65)
1,782
At December 31
95,101
87,575
The balance of contract liabilities represents consideration received or billing in advance of performance, after 
offsetting the balance of contract assets under the same contract. Contract liabilities mainly include deferred 
warranty service income, vouchers, and advance receipts or billing related to sales of goods or services from ICT 
infrastructure business, consumer business and cloud computing business. 
27 Other liabilities
(CNY million)
Note
2023
2022
Accrued expenses
 
25,093
23,480
Refund liabilities
(i)
17,980
14,883
Other taxes payable
 
15,637
14,112
Due in relation to property, plant and equipment
 
15,545
11,430
Due in relation to intangible assets
 
1,845
2,051
Derivatives
(ii)/17(v)
304
173
Others
 
45,280
50,905
121,684
117,034
Non-current portion
 
2,016
2,608
Current portion
 
119,668
114,426
121,684
117,034
(i)	 Refund liabilities mainly comprise the rebates and other sales-based incentives to customers.
(ii)	 As at December 31, 2023, the carrying value of the foreign exchange derivatives held as hedging instruments amounted to CNY5 
million (2022: CNY30 million).
28 Provisions 
(CNY million)
Note
2023
2022
Warranties
(b)
6,975
4,793
Onerous contracts with customers
 
1,326
719
Onerous contracts with suppliers
(c)
6,635
8,309
Others
(d)
5,233
2,761
20,169
16,582


130       Huawei Investment & Holding Co., Ltd.
(a)	Movement in provisions during the year is shown as below:
(CNY million)
Warranties
Onerous
 contracts with 
customers
Onerous 
contracts with
 suppliers
Others
Total
At January 1, 2023
4,793
719
8,309
2,761
16,582
Provisions made/(reversals)
6,867
881
(431)
2,430
9,747
Provisions utilized
(4,770)
(277)
(1,243)
(214)
(6,504)
Exchange adjustments
85
3
–
256
344
At December 31, 2023
6,975
1,326
6,635
5,233
20,169
(b)	Warranties
The provision for warranties is determined based on estimates made from historical and forecast warranty data 
associated with similar products, the amounts of products under warranty at the end of the reporting period and 
their corresponding remaining warranty periods.  
(c)	Provision for onerous contracts with suppliers
The Group has entered into certain non-cancelable procurement agreements in its normal course of business.  
As a result of the Events disclosed in note 4(j) and changes in market demand for products, certain items under 
these procurement agreements may not be capable of being used in production and provision has been made for 
the estimated losses arising from fulfilling, amending or terminating relevant agreements in accordance with the 
accounting policy set out in note 3(p).  The provision is charged to cost of sales.
(d)	Others
Others are mainly provisions for outstanding claims, cases and disputes.
29 Leases
(a)	As a lessee
The Group leases office premises, staff apartments, warehouses, production equipment and motor vehicles in its 
normal course of business.  These leases typically run for an initial period of one to ten years.  Some property 
leases contain extension options after the contract period and only a limited number of leases comprise variable 
payments.  The Group also holds land use rights in the PRC, which are recognized as right-of-use assets at the 
date the Group became entitled to the rights.


2023 Annual Report
        131
Information about leases for which the Group is a lessee is presented below. 
(i)	Right-of-use assets
(CNY million)
Land use
 rights
Buildings
Motor 
vehicles and 
others
Total
Cost:
At January 1, 2022
14,677
13,513
1,607
29,797
Exchange adjustments
4
219
63
286
Additions
834
3,923
462
5,219
Transfer to investment property
(69)
–
–
(69)
Derecognition
–
(2,021)
(474)
(2,495)
Hyperinflation adjustments
–
47
4
51
At December 31, 2022
15,446
15,681
1,662
32,789
At January 1, 2023
15,446
15,681
1,662
32,789
Exchange adjustments
(9)
(61)
26
(44)
Additions
2,391
3,518
738
6,647
Transfer to inventory
(737)
–
–
(737)
Derecognition
(1)
(2,149)
(725)
(2,875)
Hyperinflation adjustments
–
74
–
74
At December 31, 2023
17,090
17,063
1,701
35,854
Accumulated depreciation and impairment:
At January 1, 2022
1,458
5,838
835
8,131
Exchange adjustments
1
106
24
131
Depreciation charge for the year
303
2,793
476
3,572
Impairment loss
–
48
–
48
Transfer to investment property
(7)
–
–
(7)
Derecognition
–
(1,937)
(474)
(2,411)
Hyperinflation adjustments
–
36
3
39
At December 31, 2022
1,755
6,884
864
9,503
At January 1, 2023
1,755
6,884
864
9,503
Exchange adjustments
(1)
(6)
13
6
Depreciation charge for the year
323
3,131
410
3,864
Impairment loss
–
9
–
9
Transfer to inventory
(56)
–
–
(56)
Derecognition
–
(2,144)
(724)
(2,868)
Hyperinflation adjustments
–
(5)
(1)
(6)
At December 31, 2023
2,021
7,869
562
10,452
Carrying amount:
At December 31, 2023
15,069
9,194
1,139
25,402
At December 31, 2022
13,691
8,797
798
23,286
During the years ended December 31, 2023 and 2022, certain right-of-use assets were derecognized as a result of 
lease cancellation or entering into finance sub-leases.


132       Huawei Investment & Holding Co., Ltd.
(ii)	Amounts recognized in profit or loss
(CNY million)
Note
2023
2022
Interest expenses on lease 
liabilities
11
479
417
Expenses relating to 
short-term leases
 
442
544
Expenses relating to leases 
of low-value assets, 
excluding short-term 
leases of low-value 
assets
 
35
31
Variable lease payments 
not included in the 
measurement of lease 
liabilities
 
54
39
Income from subleasing 
right-of-use assets
 
136
92
(iii)	
Amounts recognized in summary 
consolidated statement of cash flows
(CNY million)
2023
2022
Total cash outflow for leases
6,988
4,723
(b)	As a lessor
Most of the Group's leases are operating leases under 
which certain properties are leased out (see note 8).
As at December 31, a maturity analysis of 
undiscounted lease payments to be received after the 
reporting date is as follows:
(CNY million)
2023
2022
Within 1 year
128
115
After 1 year but within 2 years
68
104
After 2 years but within 3 years
57
78
After 3 years but within 4 years
54
76
After 4 years but within 5 years
50
73
After 5 years
176
324
533
770
30 Capital commitments
(CNY million)
2023
2022
Contracted for acquisition and 
construction of long-term 
assets
21,518
21,843
Investment commitment
2,385
1,096
Total
23,903
22,939
31 Related parties
A related party is a person or an entity that has 
control or joint control or significant influence over 
the Group, or is a member of its key management 
personnel, or is member of the Group, including joint 
ventures and associates.
Transactions between the Group and related parties 
are conducted on an arm's length basis. Outstanding 
receivables and payables with related parties are 
collected or paid in accordance with contracts, 
without additional interest or collateral.
Details of the Group's significant transactions with 
related parties are set out below.
Transactions with related parties
(CNY million)
Associates
2023
2022
Sales of goods and services
1,534
554
Purchase of goods and services
2,352
2,400
Balances with related parties
(CNY million)
Associates
December 
31, 2023
December 
31, 2022
Trade receivables
      72
            34
Contract assets
       9
            84
Other assets
     278
          386
Trade payables
     875
        1,054
Contract liabilities
     206
            18
Other liabilities
     211
            76


2023 Annual Report
        133
32 Group enterprises
(a)	Parent and ultimate controlling party 
The Group's ultimate controlling party is the Union of Huawei Investment & Holding Co., Ltd.
(b)	Major subsidiaries 
Name of subsidiary
Place of 
incorporation
Proportion of 
ownership interest
Principal activities
 
2023
2022
Huawei Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of 
telecommunication and related products and 
provision of support and maintenance services
Huawei Device Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of mobile 
communication products and ancillaries
Huawei Machine Co., Ltd.
Chinese 
mainland
100%
100%
Manufacture of telecommunication products
Shanghai Huawei Technologies 
Co., Ltd.
Chinese 
mainland
100%
100%
Development of telecommunication products
Beijing Huawei Digital 
Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development of telecommunication products
Huawei Tech. Investment 
Co., Limited
Hong Kong, 
China
100%
100%
Trading of materials
Huawei International Co. Limited Hong Kong, 
China
100%
100%
Distribution of telecommunication products
Huawei International Pte. Ltd.
Singapore
100%
100%
Distribution of telecommunication products
Huawei Technologies Japan K.K.
Japan
100%
100%
Development and sale of telecommunication 
products and ancillary services
Huawei Technologies 
Deutschland GmbH
Germany
100%
100%
Development and sale of telecommunication 
products and ancillary services
Huawei Device (Shenzhen) 
Co., Ltd.
Chinese 
mainland
100%
100%
Development, manufacture and sale of mobile 
communication products and ancillaries
Huawei Device (Hong Kong) 
Co., Limited
Hong Kong, 
China
100%
100%
Sale and related services of mobile 
communication products and ancillaries
Huawei Cloud Computing 
Technologies Co., Ltd.
Chinese 
mainland
100%
100%
Development and sale of cloud products
Huawei Technical Service 
Co., Ltd
Chinese 
mainland
100%
100%
Installation and maintenance of 
telecommunication products and ancillaries, 
including consultancy
Huawei Software Technologies 
Co., Ltd.
Chinese 
mainland
100%
100%
Sale of cloud products and services
HiSilicon Technologies CO., 
LIMITED
Chinese 
mainland
100%
100%
Development and sale of semiconductors
HiSilicon (Shanghai) 
Technologies CO., LIMITED
Chinese 
mainland
100%
100%
Development and sale of semiconductors
Hisilicon Optoelectronics Co., 
Limited
Chinese 
mainland
100%
100%
Development, manufacture and sale of 
optoelectronic products related to information 
technology
Huawei Technologies 
Coöperatief U.A.
Netherlands
100%
100%
Intermediate parent company for certain 
overseas subsidiaries


134       Huawei Investment & Holding Co., Ltd.
33 Contingent liabilities
(a)	 On September 2, 2014 (dates in note 33 are in 
U.S. time), T-Mobile USA, Inc. ("T-Mobile") filed 
a civil action against the Group's subsidiary, 
Huawei Device USA Inc., in relation to the 
alleged misappropriation of trade secrets relating 
to certain of T-Mobile's mobile phone test 
equipment.  The two parties reached a settlement 
on November 8, 2017.
On January 16, 2019, the United States 
Department of Justice issued an indictment 
against Huawei Device USA Inc. and Huawei 
Device Co., Ltd., containing 10 charges in relation 
to the alleged theft of trade secrets relating to 
the above equipment and alleged wire fraud and 
obstruction of justice.  The charges relate to the 
years from 2012 to 2014.
(b)	 On January 24, 2019, the United States 
Department of Justice issued an indictment against 
Huawei Technologies Co., Ltd., Huawei Device USA 
Inc. and other parties.   The indictment contains 
13 charges in relation to alleged bank and wire 
fraud, violation of the International Emergency 
Economic Powers Act of the United States with 
respect to certain transactions involving Iran, and 
associated matters.
On February 13, 2020, the United States 
Department of Justice issued a superseding 
indictment which, on top of the charges filed on 
January 24, 2019, added Huawei Device Co., Ltd. 
and Futurewei Technologies, Inc. as defendants, 
and added 3 new charges of alleged racketeering 
conspiracy, alleged conspiracy to steal trade 
secrets and alleged conspiracy to commit wire 
fraud.  The superseding indictment also includes 
new allegations including the defendants' alleged 
involvement in transactions involving North Korea 
and Iran.
The Group has engaged external counsels to assist 
it in respect of the matters referred to in (a) and 
(b) above.  With regard to the matter referred to 
in (a) above, due to the complexity of the charges 
contained in this indictment, its overlapping with 
the superseding indictment issued on February 13, 
2020 referred to in (b) above and the difficulties 
for the parties to prepare for the trial as a result of 
the continuing outbreak of COVID-19 pandemic, the 
US Government and the defendants filed motions 
on September 5, 2019, March 17, 2020, February 
23, 2021, February 18, 2022, January 18, 2023 and 
January 9, 2024, respectively, requesting the trial to 
be postponed, and such motions were granted by 
the judge. Pursuant to the judge's latest decision on 
January 10, 2024, the trial will be continued until 
October 27, 2025.  With regard to the matter referred 
to in (b) above, it is currently in the process of 
pre-trial discovery and the trial date has not yet been 
scheduled.  
Given the relatively early stage of these proceedings, 
as at the date of approval of these financial 
statements, management considers that both 
the timing and the outcome of these matters are 
inherently uncertain, and that the amount of any 
possible obligation of the Group, if any, cannot be 
reliably estimated.  Accordingly, these indictments 
give rise to contingent liabilities for the Group and 
no provision has been made in this regard in these 
financial statements.  It is also not practicable at 
this stage for the Group to disclose an estimate of 
the possible future financial effect on the Group's 
financial statements of these matters.
34 Subsequent events
(a)	 Subsequent to December 31, 2023 and up to the 
date of approval of these financial statements, 
the Group has issued two super & short-term 
commercial papers, with an aggregate principal 
amount of CNY6,000 million;
(b)	 Subsequent to December 31, 2023 and up to the 
date of approval of these financial statements, 
the Group has drawn accumulatively CNY15,632 
million from two credit facilities entered into by 
Huawei Technologies Co., Ltd., a wholly-owned 
subsidiary of the Group.
35 Comparative figures
The presentation of certain prior year comparative 
figures has been adjusted to reflect current year 
presentation requirements. None of these changes 
were material.


2023 Annual Report
        135
Risk Factors
At Huawei, risk factors are defined as those that could cause uncertainty regarding the company's ultimate 
achievement of its business objectives. We identify such factors in our strategic plans, business operations, financial 
systems, or the external environment. In this section, we will detail the major risk factors that could significantly 
impact the company's survival, reputation, financial position, operating results, or long-term prospects.
■	 Business managers, as the primary risk owners 
in their respective business domains, proactively 
identify and manage risks to ensure they remain at 
an acceptable level.
At Huawei, risk management is incorporated into both 
strategic planning and business planning processes. During 
strategic planning, we systematically identify and manage 
strategic risks. During business planning, we balance 
risk and cost to formulate appropriate countermeasures, 
and monitor and report on risks as part of performance 
management during routine operations. Huawei ensures 
uninterrupted business operations by identifying major 
risk factors during strategic decision making and business 
planning, and taking necessary measures to control risks 
during operations and execution.
Strategic Risks
Digital technology is reshaping the world around 
us. The intelligent world is approaching faster than 
ever and we want to make sure that it is an inclusive 
world in which everyone can benefit from the 
positive changes brought about by digital technology. 
Mature commercial applications of new technologies 
– particularly 5.5G, AI, and cloud computing – are 
accelerating the digital and intelligent transformation 
of all industries, presenting enormous opportunities. 
That said, Huawei's external environment is more 
volatile and complex than ever. With the world facing 
the formidable challenge of deciding how globalization 
should proceed, global economic growth will likely 
slow over the next few years. This expected stagnation 
will only be compounded by the US government's 
sustained efforts to contain the development of 
leading technologies outside its borders. Despite these 
challenges, we will continue working hard to survive 
and thrive.
The digital economy has already become the world's 
main engine for economic growth, and green and 
low-carbon development is key to sustaining this 
growth. The three concurrent trends of digital, 
intelligent, and green industrial development will each 
present tremendous growth opportunities within the 
Huawei uses an Enterprise Risk Management (ERM) 
system that accounts for our unique organizational 
structure and operating model, in line with the 
Committee of Sponsoring Organizations of the 
Treadway Commission (COSO) framework and 
referencing the ISO 31000 risk management standard. 
Under this system, we have defined a robust set of 
ERM policies and processes, continuously refined our 
ERM organizations and operating mechanisms, and 
ramped up efforts to improve risk management and 
response. Huawei's ERM system ensures the following:
■	 The Board of Directors approves company plans 
for managing major risks and crises, and handles 
unexpected major incidents.
Huawei's Risk Management System


136       Huawei Investment & Holding Co., Ltd.
information processing and communications industries. 
In light of this, Huawei will continue focusing on 
leveraging its ICT strengths to enable the digital and 
intelligent transformation of all industries, and working 
with partners and developers to ultimately bring digital 
to every person, home and organization for a fully 
connected, intelligent world. Going forward, we will 
remain committed to embracing a globalized supply 
chain and working with partners worldwide to develop 
leading products and build diverse ecosystems.
External Risks
Macro environment: We expect growth to slow in 
many economies in 2024. Despite slight drops in 
inflation, many economies will still have higher interest 
rates than those commonly seen over the last decade. 
This will discourage investment and affect consumer 
spending. Furthermore, regional conflicts, geopolitical 
tensions, and protectionism will continue to undermine 
both business and consumer confidence. Given this 
uncertain business environment, Huawei will closely 
monitor risk and promptly adapt response strategies.
Compliance: Operational compliance provides a solid 
foundation on which Huawei can survive and continue 
serving and contributing to the world. Huawei has 
always been dedicated to compliance with applicable 
laws and regulations in the countries and regions in 
which it operates. Through sustained investment, we 
have established a compliance management system that 
applies to all our businesses and employees worldwide 
and covers all legal obligations, including but not 
limited to trade compliance, financial compliance, anti-
bribery compliance, intellectual property (IP) and trade 
secret protection, and cyber security and privacy. This 
enables the systematic management of compliance risks 
through established policies, organizations, regulations, 
processes, and so on.
Despite these efforts, we may still feel the impact 
of the complex legal environments of some of the 
countries and regions in which we operate. For 
example, there may be a lack of clarity or transparency 
in regards to local laws or ambiguity surrounding legal 
systems or law enforcement. Huawei will continue, 
as always, to learn from industry best practices and 
take preventive measures to address these risks. The 
certainty of legal compliance is our best bulwark 
against the uncertainty of the external environment.
Trade: In 2023, we continued to face pressure from 
the global economy and international trade. Emerging 
challenges such as increasing geopolitical tensions, 
rising inequality, and worsening climate change are 
concerning both countries and regions in terms of 
globalization. The probability of trade protectionism 
and freight route barriers is increasing. Against this 
complex backdrop, trade is being politicized and 
increasingly connected to security. Many have decided 
to cope with these challenges by reducing dependency 
and mitigating risk, which only further disrupts 
globalization efforts. In addition, tightening financial 
policies have increased risks to global trade and 
industrial production.
Despite the increasing policy uncertainty and tight 
monetary policies in most economies around the 
world, the global economy still demonstrated greater-
than-expected resilience in 2023. And so, a return 
to multilateral trade systems must be supported by 
both individual countries and regions to make the 
international trade environment more stable, open, 
and sustainable. This will catalyze economic recovery 
and create more opportunities for prosperity and 
development.
As always, Huawei supports open and healthy global 
markets and advocates for cooperation in both trade 
and the economy. We will continue to provide security 
assurance based on standards and verification and 
do our utmost to uphold international trade rules. 
We believe that our sustained, long-term efforts in 
digital innovation and application will fuel emerging 
businesses such as AI and green energy, support 
the digital, intelligent, and green transformation of 
economies worldwide, and create new engines of 
growth for both trade and the global economy.


2023 Annual Report
        137
Natural disasters: It is our mission and primary social 
responsibility to maintain stable network operations. 
In 2023, when a powerful earthquake struck Türkiye, 
disrupting communications for 13 million people, we 
immediately dispatched over 100 experts to work 
alongside our customers in the affected areas. This 
team worked day and night to recover communications 
and maintain stable network operations. In the last 
year, Huawei has similarly helped respond to typhoons 
in Japan and floods around the world, including in the 
Democratic Republic of Congo, Pakistan, and Nigeria.
Epidemics and natural disasters like earthquakes, 
typhoons, and floods can impact Huawei's business 
operations in many different ways and thus can impact 
the operations of the networks we have deployed. 
We have developed contingency plans to respond to 
different types of natural disasters and epidemics, and 
continue to improve our capabilities in this regard. 
This has helped us ensure our own business continuity, 
and more importantly, ensure network stability for our 
customers.
Country-specific risks: Huawei currently operates in 
more than 170 countries and regions worldwide. The 
complex international economic and political landscape 
we operate in exposes us to a variety of different risks 
in different countries and regions. These risks include 
economic and political instability, exchange rate 
fluctuations, capital controls, and sovereign defaults. 
Any one of these risks could hinder Huawei's local 
business operations and bring uncertainty to our local 
business development.
In 2024, the high interest rates of developed economies 
will deal a blow to emerging markets with heavier 
debt loads, exposing them to risks such as default, 
capital outflows, and currency depreciation. Considering 
this, we will closely monitor any changes in the 
environment, such as those related to post-pandemic 
economic recovery, regional conflicts, and commodity 
price fluctuations, and promptly employ effective 
countermeasures to help achieve business objectives.
Operational Risks
Information security: Although Huawei has a robust 
information security management system and takes 
stringent information security measures to protect its 
IP, it is impossible to completely prevent the improper 
use of our proprietary assets and information. Even 
when we are able to protect our IP through judicial 
means, it is still possible for us to suffer losses due to 
improper usage.
Intellectual property: Huawei has long been 
dedicated to independent innovation and will continue 
to be. We respect the IP of third parties while actively 
protecting our own. We also constantly work to 
improve our IP risk control system. Despite this, there 
still exists the possibility that rights holders may file 
IP claims against Huawei and third parties may still 
infringe upon our IP. Huawei will continue to build 
a high-value IP portfolio and IP capabilities globally. 
Furthermore, we will continue to follow international 
rules and industry conventions to address IP disputes 
and safeguard the operational security of our global 
businesses.


138       Huawei Investment & Holding Co., Ltd.
Corporate 
Governance 
Report
139 Shareholders and the Employee 
Shareholding Scheme
139 The Shareholders' Meeting and 
the Representatives' Commission
141 Board of Directors
147 Supervisory Board
151 Independent Auditor
152 Business Structure
153 
Improving the Internal Control 
System


2023 Annual Report
        139
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.
Shareholders and the Employee 
Shareholding Scheme
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", or 
the virtual restricted shares plan), which involved 
151,796 individuals, either current employees or 
retired beneficiaries, as of December 31, 2023. 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, 2023, Mr. Ren's investment accounted 
for nearly 0.73% of the Company's total share capital.
The Shareholders' Meeting and 
the Representatives' Commission
The Shareholders' Meeting, the company's 
authoritative body, comprises two shareholders: the 
Union and Mr. Ren Zhengfei.
The Representatives' Commission (the "Commission") 
is the organization through which the Union fulfills 
shareholder responsibilities and exercises shareholder 
rights. The Commission consists of no more than 
115 representatives of shareholding employees 
("Representatives") and exercises rights on behalf of 
all shareholding employees. In 2023, the Commission 
held one meeting. At the meeting, a new Board 
of Directors was elected, resulting in a new set of 
regular and alternate directors. The Commission also 
reviewed and approved the report from the Board of 
Directors on the company's financial and operating 
results, the work report from the Supervisory Board, 
and proposals for matters such as annual profit 
distribution and annual capital increases.
The Commission holding a meeting in March 2023


140       Huawei Investment & Holding Co., Ltd.
The Representatives and Alternate Representatives are elected by the shareholding employees with voting 
rights, and serve for a term of five years. In the event that there is a vacancy in the Commission, the Alternate 
Representatives shall take up the vacancy in a predetermined sequence.
The shareholding employees with voting rights elect the Commission on a one-vote-per-share basis, after which 
the Commission elects the company's Board of Directors and Supervisory Board on a one-vote-per-person basis. 
The Commission, along with the Board of Directors and Supervisory Board, decides on, manages, and monitors 
major company matters.
Members of the current Commission are:
Mr. Ren Zhengfei, Ms. Sun Yafang, Mr. Liang Hua, 
Mr. Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun, 
Ms. Meng Wanzhou, Mr. Yu Chengdong, Mr. Wang Tao,
Ms. Chen Lifang, Mr. Peng Zhongyang, Ms. He Tingbo,
Mr. Li Yingtao, Mr. Yao Fuhai, Mr. Tao Jingwen, 
Mr. Yan Lida, Mr. Li Jie, Mr. Ren Shulu, Mr. Li Dafeng,
Mr. Song Liuping, Mr. Tian Feng, Mr. Yi Xiang, 
Mr. Li Jianguo, Mr. Peng Bo, Ms. Zhao Minglu, 
Ms. Shi Yanli, Ms. Zhang Xiaoqing, Mr. Yang Shubin, 
Mr. Zou Zhilei, Mr. Lu Yong, Mr. Yang Yougui, 
Mr. Li Peng, Mr. Cao Jibin, Mr. Wu Weitao, 
Mr. Chen Hao, Mr. Wang Shengniu, Mr. Wang Jianfeng, 
Mr. Chen Lei, Mr. Wu Hui, Mr. Meng Ping, Mr. Lyu Ke, 
Mr. Jiang Xisheng, Mr. Pan Shaoqin, Mr. Jiang Yafei, 
Mr. Wang Weijian, Mr. Su Liqing, Mr. Luo Wencheng, 
Mr. Zhang Hongxi, Mr. Xiong Lening, Mr. Ying Weimin, 
Mr. Wu Kunhong, Mr. Wei Chengmin, Mr. Wu Qinming, 
Mr. Xie Guohui, Mr. Wang Kexiang, Mr. Tang Qibing, 
Mr. Sun Fuyou, Mr. Ma Yue, Mr. Zhou Jianjun, 
Mr. Xun Su, Mr. Lu Qi, Mr. Lin Baifeng, 
Mr. Shen Huifeng, Mr. Zheng Liangcai, 
Mr. Ma Qingqing, Mr. Wang Hua'nan, Mr. Bai Limin, 
Ms. Yang Li, Mr. Hou Jinlong, Mr. Hu Kewen, 
Mr. Zhang Shunmao, Mr. Zha Jun, Mr. Zhou Hong, 
Mr. Ma Haixu, Mr. Liu Shaowei, Mr. Tang Xinhong, 
Mr. Yang Chaobin, Mr. Gong Ti, Mr. Cai Changtian, 
Mr. Gao Ji, Mr. Xiong Yan, Mr. Wang Yixiang, 
Mr. Li Zhoujian, Mr. He Gang, Mr. Zhang Ping'an, 
Mr. Bian Honglin, Mr. Xu Qinsong, Mr. Li Xiaolong, 
Mr. Zhu Ping, Mr. Shao Yang, Mr. Zhu Yonggang, 
Mr. Chen Yue, Mr. Bai Yi, Mr. Wu Congcheng, 
Ms. Song Yanling, Mr. Zuo Defeng, Mr. Xia Jian, 
Mr. Wang Nanbin, Mr. Zheng Pingfang, Ms. Cao Yi, 
Mr. Ran Weidong, Mr. Du Yanxin, and Mr. Wang Yanmin.
Elect
One vote
per share
Elects
Elects
Elects
One vote
per person
Shareholding employees with voting rights
Representatives’ Commission
Supervisory Board
Board of Directors
Executive Committee
of the Board of Directors
Executive Committee
of the Supervisory Board


2023 Annual Report
        141
The main responsibilities of the BOD are to:
■	 Develop proposals for corporate governance.
■	 Review proposals to increase or decrease the 
company's registered capital, as well as proposals 
related to profit distribution and loss recovery.
■	 Review the company's stock options plan and 
other long-term incentive plans.
■	 Review or approve the company's plans for 
entering and exiting different industries, and 
approve the company's strategic plan.
■	 Approve major organizational restructuring, 
management system development, and business 
transformation.
■	 Approve major financial policies, financial plans, 
and business transactions.
■	 Approve the company's annual budget proposal, 
annual operations report, and annual audit report.
■	 Approve the appointment/removal, compensation, 
and long-term incentives of senior management.
■	 Approve major HR policies and plans at the 
corporate level.
■	 Approve proposals for managing major risks and 
crises, and manage major emergencies.
■	 Approve the development of internal controls and 
compliance systems.
In 2023, the BOD held 12 meetings. At the meetings, 
the BOD reviewed and approved matters such as the 
company's medium-to-long-term strategic plan, as 
well as the company's annual business plan, audit 
report, profit distribution, and capital increases.
The BOD has 17 members, who are elected by the 
Commission and then voted in by the Shareholders' 
Meeting. In March 2023, a new BOD was elected, 
resulting in a new set of regular and alternate 
directors. The BOD elected deputy chairs and 
executive directors, and determined the directors who 
will attend BOD Executive Committee meetings as 
non-voting attendees.
Board of Directors
The Board of Directors (BOD) is the highest body responsible for corporate strategy, operations management, 
and customer satisfaction. The BOD's mission is to lead the company forward. It exercises decision-making 
authority for corporate strategy and operations management, and ensures customer and shareholder interests are 
protected.


142       Huawei Investment & Holding Co., Ltd.
From the left in the first row: Mr. Li Jianguo, Mr. Zhang Ping'an, Mr. Hu Houkun, Mr. Xu Zhijun, Mr. Liang Hua, Ms. Meng Wanzhou, Mr. Wang Tao, and 
Mr. Yu Chengdong
From the left in the second row: Mr. Yang Chaobin, Mr. Zha Jun, Mr. Zheng Liangcai, Mr. Hou Jinlong, Ms. He Tingbo, Mr. Peng Bo, Mr. Ren Zhengfei, 
Mr. Tao Jingwen, and Mr. Ying Weimin
Members of the current BOD are as follows:
■	 Chairman: Mr. Liang Hua
■	 Deputy Chairs: Mr. Xu Zhijun, Mr. Hu Houkun, and 
Ms. Meng Wanzhou
■	 Executive directors: Mr. Wang Tao, Mr. Zhang 
Ping'an, Mr. Yu Chengdong, and Mr. Li Jianguo
■	 Directors who will attend BOD Executive 
Committee meetings as non-voting attendees: Ms. 
He Tingbo and Mr. Zheng Liangcai
■	 Directors: Mr. Ren Zhengfei, Mr. Tao Jingwen, Mr. 
Peng Bo, Mr. Zha Jun, Mr. Hou Jinlong, Mr. Yang 
Chaobin, and Mr. Ying Weimin
In the event that there is a vacancy in the BOD, alternate directors will take up the vacancy in a predetermined 
sequence. Alternate directors are Mr. He Gang, Mr. Bai Yi, Mr. Cao Jibin, Mr. Zhou Hong, Mr. Bian Honglin, Mr. Jin 
Yuzhi, Mr. Lu Yong, Mr. Zou Zhilei, Mr. Jiang Yafei, Mr. Hu Kewen, and Mr. Wang Huanan.


2023 Annual Report
        143
Mr. Liang Hua 
(Howard Liang)
Chairman
Born in 1964, Mr. Liang holds a doctorate degree 
from Wuhan University of Technology. Mr. Liang 
joined Huawei in 1995 and has served as President 
of Supply Chain, CFO of Huawei, President of the 
Business Process & IT Mgmt Dept, President of the 
Global Technical Service Dept, Chief Supply Chain 
Officer, Chairman of the Audit Committee, and 
Chairman of the Supervisory Board. Mr. Liang is now 
Chairman of Huawei's Board of Directors.
Mr. Xu Zhijun
(Eric Xu)
Deputy Chairman, 
Rotating Chairman
Mr. Xu holds a doctorate degree from Nanjing University 
of Science & Technology. He joined Huawei in 1993 and 
has served as President of the Wireless Network Product 
Line, Chief Strategy & Marketing Officer, Chief Products 
& Solutions Officer, Chairman of the Investment Review 
Board, Rotating CEO of Huawei, and Chairman of the 
Strategy & Development Committee (SDC). Currently, 
Mr. Xu serves as Deputy Chairman of the Board and 
Rotating Chairman of Huawei.
Mr. Hu Houkun
(Ken Hu)
Deputy Chairman, 
Rotating Chairman
Born in 1968, Mr. Hu holds a bachelor's degree from 
Huazhong University of Science and Technology. 
Mr. Hu joined Huawei in 1990 and has served as 
President of the Marketing & Sales Dept in China, 
President of the Latin America Region, President of 
the Global Sales Dept, Chief Sales & Service Officer, 
Chief Strategy & Marketing Officer, Chairman of the 
Global Cyber Security and User Privacy Protection 
Committee (GSPC), Chairman of the BOD of Huawei 
USA, Deputy Chairman of the Board, Rotating CEO, 
and Chairman of the HRC. Currently, Mr. Hu serves as 
Deputy Chairman of the Board and Rotating Chairman 
of Huawei.
Ms. Meng Wanzhou 
(Sabrina Meng)
Deputy Chairwoman, 
Rotating Chairwoman
Ms. Meng holds a master's degree from Huazhong 
University of Science and Technology. Ms. Meng 
joined Huawei in 1993 and has held positions 
including Director of the International Accounting 
Dept, CFO of Huawei Hong Kong, and President of 
the Accounting Mgmt Dept. Ms. Meng now serves 
as Deputy Chairwoman of the Board, and Rotating 
Chairwoman and CFO of Huawei.
Since 2003, Ms. Meng has led the establishment 
of Huawei's globally unified finance organizational 
structure, processes, regulations, and IT platforms. 
From 2007 to 2014, Ms. Meng implemented the 
Integrated Financial Services (IFS) Transformation 
Program across the company around the world, 
making fine-grained management part of Huawei's 
DNA for sustainable growth.
In 2014, Ms. Meng led the company's data 
transformation and established a comprehensive data 
management system, creating a single source for data 
and making data a strategic asset of the company. 
During the same period, Ms. Meng implemented 
transformation programs for Internal Controls over 
Financial Reporting (ICFR), Consistency of Inventory 
Accounts and Goods (CIAG), treasury management, 
and tax management. This has transformed the 
finance team into a business partner and value 
integrator, and supported the rapid and stable 
development of the company's business worldwide.
Since 2019, Ms. Meng has developed a blueprint 
for the digital transformation of finance based 
on the company's strategic vision and long-term 
development plan. She has led the development of 
key risk indicators and risk control models, making 
contactless risk controls a reality at Huawei. She 
has guided the establishment of an agile operations 
management system which has facilitated intelligent 
operations management and decision-making based 
on data and AI algorithms. She has also guided the 
establishment of an integrated management platform 
for key financial operations scenarios, to achieve 
collaborative operations and matrix management 
based on data sharing and real-time interactions.
Under Ms. Meng's leadership, Huawei has established 
a world-leading digital and intelligent finance 
organization, laying a solid foundation for the 
company's operations and supporting the company's 
efforts to realize its strategies in the new era.


144       Huawei Investment & Holding Co., Ltd.
Mr. Wang Tao
(David Wang)
Executive Director
Born in 1972, Mr. Wang holds a master's degree from 
Xi'an Jiaotong University. Mr. Wang joined Huawei in 
1997 and has served as R&D Manager in Wireless, Vice 
President of the UMTS Technical Sales Dept, President 
of Technical Sales of the European Area, Managing 
Director of Huawei Italy and Switzerland, President 
of the Wireless Network Product Line, President of 
the Network Product Line, President of ICT Strategy & 
Marketing, and President of ICT Products & Solutions. 
Currently, Mr. Wang serves as an Executive Director 
of the Board, Chairman of the ICT Infrastructure 
Managing Board, and Chairman of the Investment 
Review Board.
Ms. He Tingbo
Director
Born in 1969, Ms. He holds a bachelor's degree 
in semiconductor physics, a bachelor's degree 
in communications engineering, and a master's 
degree from Beijing University of Posts and 
Telecommunications. Ms. He joined Huawei in 
1996 and has held positions in the chip business 
(development, research, architecture, and supply 
chain). She has served as R&D Director, President 
of HiSilicon, and President of the 2012 Laboratories. 
Currently, Ms. He serves as Chair of Huawei Scientist 
Committee, ITMT Director, and President of HiSilicon.
Mr. Zhang Ping'an
Executive Director
Born in 1972, Mr. Zhang holds a master's degree 
from Zhejiang University. Mr. Zhang joined Huawei 
in 1996 and has served as Product Line President, 
Vice President of Strategy & Marketing, Regional 
Vice President, Vice President of the Global Technical 
Service Dept, CEO of Huawei Symantec, COO of the 
Enterprise BG, President of the Telecom Software 
Business Dept, and President of the Consumer Cloud 
Service Dept. Currently, Mr. Zhang serves as an 
Executive Director of the Board and CEO of Huawei 
Cloud Computing Technologies.
Mr. Yu Chengdong 
(Richard Yu)
Executive Director
Born in 1969, Mr. Yu holds a master's degree from 
Tsinghua University. He joined Huawei in 1993 and 
has served as 3G Product Director, Vice President 
of the Wireless Technical Sales Dept, President of 
the Wireless Network Product Line, President of the 
European Area, and Chief Strategy & Marketing 
Officer. Currently, Mr. Yu serves as CEO of the 
Consumer BG, Chairman of the Board of Directors of 
the Intelligent Automotive Solution BU, and Director 
of the Investment Review Board for Smart Devices and 
Intelligent Automotive Components.
Mr. Li Jianguo
Executive Director
Born in 1964, Mr. Li holds a master's degree in 
engineering from Huazhong University of Science and 
Technology. Mr. Li joined Huawei in 1993 and has 
served as a product R&D engineer, Deputy Manager 
of the Development and Pilot (D&P) Dept, Manager 
of the Manufacturing Dept, Executive Vice President of 
Huawei Electric, Director of the Electronics Assembly 
Business Dept, Deputy Director of the Supply Chain 
Mgmt Dept, Director of the Product Engineering & 
Process Development Dept under the Central Research 
& Development Unit (CRDU), Director of the PDT/
TDT Leaders Mgmt Dept under the CRDU, President 
of the Manufacturing SBG, an executive member of 
the Supervisory Board, and a member of the Board. 
Currently, Mr. Li serves as an Executive Director of the 
Board and President of the Manufacturing Dept.
Mr. Zheng Liangcai
Director
Born in 1975, Mr. Zheng holds a bachelor's degree 
from Tsinghua University. Mr. Zheng joined Huawei in 
1999 and has served as General Manager of the Rio 
de Janeiro Representative Office, General Manager 
of the Mexico Representative Office, President of 
the Northern Latin America Region, President of the 
Southern South America Region, President of the 
Latin America Area, and as a member of the ICT 
Infrastructure Managing Board, Investment Review 
Board (IRB), and Human Resources Committee 
(HRC). Currently, Mr. Zheng serves as a member of 
the Executive Steering Committee (ESC), Platform 
Coordination Committee, Disciplinary and Supervisory 
Committee, Global Cyber Security and User Privacy 
Protection Committee (GSPC), and President of the 
Human Resource Mgmt Dept. Mr. Zheng is also a 
member of the Board who will attend BOD Executive 
Committee meetings as a non-voting attendee.


2023 Annual Report
        145
Mr. Ren Zhengfei
Director
Born on October 25, 1944 into a rural family where 
both parents were school teachers, Mr. Ren Zhengfei 
spent his primary and middle school years in a remote 
mountainous town in Guizhou Province. In 1963, he 
studied at the Chongqing Institute of Civil Engineering 
and Architecture. After graduation, he was employed 
in the civil engineering industry until 1974 when he 
joined the military's Engineering Corps as a soldier 
tasked to establish the Liao Yang Chemical Fiber 
Factory. Subsequently, Mr. Ren had taken positions as 
a Technician, an Engineer, and was lastly promoted 
as a Deputy Director, which was a professional role 
equivalent to a Deputy Regimental Chief, but without 
military rank. Because of his outstanding performance, 
Mr. Ren was invited to attend the National Science 
Conference in 1978 and the 12th National Congress of 
the Communist Party of China in 1982. Mr. Ren retired 
from the army in 1983 when the Chinese government 
disbanded the entire Engineering Corps. He then 
worked in the logistics service base of the Shenzhen 
South Sea Oil Corporation. As he was dissatisfied with 
his job, he decided to establish Huawei with a capital 
of CNY21,000 in 1987. He became the CEO of Huawei 
in 1988 and has held the title ever since.
Mr. Tao Jingwen
Director
Born in 1971, Mr. Tao graduated from Beijing 
University of Posts and Telecommunications. Mr. Tao 
joined Huawei in 1996 and has served as a product 
development engineer, Deputy General Manager of 
the Market Technology Section, Executive Deputy 
Director of the International Technical Sales Dept, 
Executive Vice President and President of the Sub-
Sahara Region, President of the Global Technical 
Sales & Marketing Dept, President of Huawei Device, 
President of the West European Region, and President 
of the Quality, Business Process & IT Mgmt Dept.
Mr. Zha Jun
Director
Born in 1971, Mr. Zha holds a master's degree from 
Zhejiang University. Mr. Zha joined Huawei in 1997 
and has served as A8010 Development Manager, UMG 
SPDT Leader, Director of the IMS Product Family, 
President of the Router & Cyber Security Product Line, 
and President of the Fixed Network Product Line, and 
President of the Central Research Institute. Currently, 
Mr. Zha serves as Director of the 2012 Laboratories 
and Chairman of the Research and Innovation 
Management Committee.
Mr. Peng Bo 
(Vincent Peng)
Director
Born in 1976, Mr. Peng holds a bachelor's degree 
in engineering from Harbin Institute of Technology. 
Mr. Peng joined Huawei in 1999 and has served as 
Director of the Vodafone Account Dept, Vice President 
of the European Area, President of the Carrier BG 
Global Sales Dept, President of the Global Sales & 
Accounts Business Dept, and President of the West 
European Region, Vice President of the Public Affairs 
and Communications Dept, and President of the 
Corporate Communications Dept. Currently, Mr. Peng 
serves as a member of the Board and President of the 
Global Procurement Qualification Mgmt Dept.
Mr. Hou Jinlong
Director
Born in 1970, Mr. Hou holds a bachelor's degree from 
Shanghai Jiao Tong University. Mr. Hou joined Huawei 
in 1996 and has served as Wireless GSM R&D Product 
Director, Chief Engineer of the Wireless Account 
Dept, Wireless MSC 6.0 Pilot PDT Leader, Wireless 
Technical Sales Director, Director of the Wireless 
Network Marketing Dept, CEO of TD Tech, President 
of the Network Energy Product Line, President of the 
IT Product Line, President of Cloud & AI Products 
& Services, and President of the Cloud & AI BG. 
Currently, Mr. Hou serves as President of Huawei 
Digital Power Technologies.
Mr. Yang Chaobin
Director
Born in 1972, Mr. Yang holds a master's degree 
from University of Science and Technology of China. 
Mr. Yang joined Huawei in 1998 and has served as 
Director of the Wireless Network Research Dept, 
President of the LTE Product Line, Chief of the Sweden 
Research Center, Director of the Wireless Network 
Solutions Dept, Director of the Wireless Network 
Marketing Dept, President of the 5G Product Line, 
and President of the Wireless Network Product Line. 
Currently, Mr. Yang serves as a member of the Board 
and President of ICT Products & Solutions.


146       Huawei Investment & Holding Co., Ltd.
Executive Committee
The BOD has established the Executive Committee, 
which acts as the standing executive body of the 
BOD. Entrusted by the BOD, the Executive Committee 
examines and reflects on major issues within the 
company, decides on issues authorized by the BOD, 
and oversees their execution. In 2023, the BOD 
Executive Committee held 17 meetings.
Members of the current BOD Executive Committee 
are Mr. Xu Zhijun, Mr. Hu Houkun, Ms. Meng 
Wanzhou, Mr. Wang Tao, Mr. Zhang Ping'an, Mr. Yu 
Chengdong, and Mr. Li Jianguo.
Rotating chairs
The BOD and its Executive Committee are led by 
rotating chairs. During their term, each rotating chair 
serves as the foremost leader of the company. The 
term of each rotating chair lasts six months. The 
rotation sequence is as follows:
■	 Mr. Hu Houkun:
October 1, 2023 to March 31, 2024
■	 Mr. Xu Zhijun:
April 1, 2024 to September 30, 2024
■	 Ms. Meng Wanzhou:
October 1, 2024 to March 31, 2025
Mr. Ying Weimin
Director
Born in 1973, Mr. Ying holds a master's degree from 
Shanghai Institute of Technical Physics of the Chinese 
Academy of Sciences. Mr. Ying joined Huawei in 
1998 and has served as President of the LTE Product 
Line, President of the GSM & UMTS & LTE Product 
Line, Director of the Wireless R&D Mgmt Dept, and 
President of the Global Procurement Qualification 
Mgmt Dept. Currently, Mr. Ying serves as a member of 
the Board, Chief Supply Chain Officer, and Director of 
the Group Procurement Management Committee.
Audit Committee
The Audit Committee (AC) operates under the BOD 
to oversee internal controls, including the internal 
control system, internal and external audits, corporate 
processes, legal compliance, and adherence to the 
Business Conduct Guidelines (BCGs).
The main responsibilities of the AC are to:
■	 Approve the annual internal audit plan, and review 
its scope, required resources, and audit outputs.
■	 Approve corporate policies for internal controls; 
approve the corporate development plan for 
internal controls and the plan's key milestones; 
and regularly assess the company's internal 
control status.
■	 Evaluate the effectiveness of the ethics and 
compliance function, legal compliance, and 
adherence to corporate policies.
■	 Approve the selection of the external auditor, 
notify the BOD of any proposed change to the 
external auditor for approval, approve related 
budgets, and evaluate the work of the external 
auditor.
■	 Supervise the completeness, accuracy, and legal 
compliance of the company's financial statements; 
and review compliance with and application of 
accounting policies as well as financial disclosures.
■	 Approve internal control Key Performance 
Indicators (KPIs), and instruct Global Process 
Owners (GPOs) and business executives to report 
internal control results.
The AC generally holds monthly meetings and 
convenes special sessions as necessary. Business 
executives and various experts are invited to attend 
as non-voting participants.
In 2023, the committee held nine meetings, focusing 
on topics such as anti-corruption, internal controls, 
internal and external audits, and oversight of level-1 
organizations. At the meetings, the AC reviewed and 
approved the company's annual internal controls 
plans, internal and external audit plans, and the 
annual oversight plans of level-1 organizations like 
ICT Infrastructure Business, Consumer Business, 
Digital Power, and Huawei Cloud Computing. The AC 
also reviewed the progress and execution results of 
the above-mentioned plans, and instructed business 
executives of the organizations that failed to deliver 
the expected results regarding internal controls 
improvement to report on their internal controls.


2023 Annual Report
        147
Supervisory Board
As Huawei's highest oversight body, the Supervisory Board exercises the authority of oversight on behalf of the 
company's shareholders. The Supervisory Board is responsible for the company's survival, development, and 
long-term prospects. Its core authorities are reflected in leader management, business reviews, and strategic 
vision. Through the observation of managers and cultivation of managerial candidates, the Supervisory Board 
promotes the development of leadership pipelines, aiming to ensure that the company has qualified successors. 
By establishing a rule-based, systematic oversight framework, the Supervisory Board comprehensively oversees 
matters such as the responsibility fulfillment of BOD directors and other executives, the company's operating 
and financial status, and compliance and internal control systems, gradually guiding the company to change 
from experience-based management to rule-based management and enabling businesses to operate freely within 
preset boundaries.
In 2023, the Supervisory Board improved its basic institutions and organization, observed managers, managed 
the resource pool of managerial candidates, inspected and examined major areas with potential risks, oversaw 
the company's operations management, and guided and managed the development of subsidiary boards. In 2023, 
the Supervisory Board held 18 meetings, and its members attended all BOD meetings as non-voting participants, 
overseeing and reviewing BOD responsibility fulfillment, and overseeing and assessing the responsibility 
fulfillment of BOD directors and other executives.
The Supervisory Board has 15 members, who are elected by the Commission and then voted in by the 
Shareholders' Meeting. On March 29, 2022, a new Supervisory Board was elected, resulting in a new set of 
regular and alternate members.


148       Huawei Investment & Holding Co., Ltd.
Members of the Executive Committee of the Supervisory Board are Mr. Guo Ping, Mr. Li Jie, Ms. Chen Lifang, Mr. Yao 
Fuhai, Mr. Li Dafeng, Mr. Li Yingtao, and Mr. Ma Qingqing.
From the left in the first row: Mr. Ren Shulu, Mr. Yao Fuhai, Mr. Guo Ping, Mr. Li Jie, and Mr. Li Yingtao
From the left in the second row: Mr. Song Liuping, Mr. Lyu Ke, Ms. Chen Lifang, Mr. Tian Feng, Ms. Shi Yanli, Mr. Peng Zhongyang, Ms. Yang Li, 

Mr. Li Peng, Mr. Li Dafeng, and Mr. Ma Qingqing
Members of the new Supervisory Board are as follows:
■	 Chairman:	
Mr. Guo Ping
■	 Deputy Chairman:	
Mr. Li Jie
■	 Executive members:	 
Ms. Chen Lifang, Mr. Yao 
Fuhai, Mr. Li Dafeng, Mr. Li 
Yingtao, and Mr. Ma Qingqing
■	 Members:	

Mr. Song Liuping, Mr. Ren 
Shulu, Mr. Tian Feng, Mr. 
Peng Zhongyang, Ms. Shi 
Yanli, Ms. Yang Li, Mr. Lyu Ke, 
and Mr. Li Peng
In the event that there is a vacancy in the Supervisory 
Board, its alternate members will take up the 
vacancy in a predetermined sequence. Currently, the 
Supervisory Board has four alternate members: Mr. 
Wei Chengmin, Mr. Xu Qinsong, Mr. Wu Qinming, and 
Mr. Gao Ji.
The Supervisory Board has established the Executive 
Committee, which acts as the standing executive 
body of the Supervisory Board. Entrusted by the 
Supervisory Board, the Executive Committee examines 
and reflects on major issues within the company, 
decides on issues authorized by the Supervisory 
Board, and oversees their execution. In 2023, the 
Executive Committee of the Supervisory Board held 
20 meetings.


2023 Annual Report
        149
Born in 1966, Mr. Guo holds a master's degree from 
Huazhong University of Science and Technology. Mr. 
Guo joined Huawei in 1988 and has served as R&D 
Project Manager, General Manager of Supply Chain, 
Director of Huawei Executive Office, Chief Legal 
Officer, President of the Business Process & IT Mgmt 
Dept, President of the Corporate Development Dept, 
Chairman and President of Huawei Device, Rotating 
CEO of Huawei, Chairman of the Finance Committee, 
Deputy Chairman of the Board of Directors, and 
Rotating Chairman of Huawei. Currently, Mr. Guo 
serves as Chairman of the Supervisory Board.
Mr. Guo Ping
Chairman of the 
Supervisory Board
Born in 1967, Mr. Li holds a bachelor's degree in 
wireless communications and a master's degree 
in computer image processing from Xi'an Jiaotong 
University. Mr. Li joined Huawei in 1992 and has 
served as an R&D engineer, General Manager of 
a representative office in China, General Manager 
of the Moscow Representative Office, President of 
the Commonwealth of Independent States Region, 
President of the Global Technical Sales Dept, President 
of the Global Technical Service Dept, President of the 
Human Resource Mgmt Dept, President of the Joint 
Committee of Regions, President of Huawei University, 
and President of the Corporate Leadership Mgmt 
Dept. Currently, Mr. Li serves as Deputy Chairman of 
the Supervisory Board and Chief Compliance Officer.
Mr. Li Jie
Deputy Chairman of 
the Supervisory Board
Born in 1971, Ms. Catherine Chen graduated from 
Northwest University in China. She joined Huawei in 
1995 and has served as Chief Representative of the 
Beijing Representative Office, Vice President of the 
International Marketing Dept, Deputy Director of the 
Domestic Marketing Management Office, President 
of the Public Affairs and Communications Dept, and 
a member of the Board of Directors. Currently, Ms. 
Catherine Chen serves as an executive member of the 
Supervisory Board and Chairwoman of the Subsidiary 
Board Directors Resources Bureau.
Ms. Chen Lifang 
(Catherine Chen)
Executive Member of 
the Supervisory Board
Born in 1968, Mr. Yao holds a bachelor's degree from 
University of Electronic Science and Technology of 
China. Mr. Yao joined Huawei in 1997 and has served 
as Director of the Pricing Center, Vice President of 
the Business Process & IT Mgmt Dept, Vice President 
of the Strategy Cooperation Dept, Vice President 
of the Global Technical Sales Dept, President of 
the Global Technical Service Dept, President of 
the Global Procurement Qualification Mgmt Dept, 
Chief Supply Chain Officer, Director of the Group 
Procurement Management Committee, a member of 
the Supervisory Board, and a member of the Board 
of Directors. Currently, Mr. Yao serves as an executive 
member of the Supervisory Board and Chair of the 
Supervisory Board Lower House.
Mr. Yao Fuhai
Executive Member of 
the Supervisory Board
Born in 1966, Mr. Li holds a bachelor's degree from 
the Department of Radio Engineering, Changchun 
Institute of Posts and Telecommunications, and a 
master's degree in signal and information processing, 
Harbin Institute of Technology. Mr. Li joined Huawei 
in 1996 and has served as Deputy Sales Director of 
the Beijing Office, General Manager of the Tianjin 
Office, General Manager of the Shijiazhuang Office, 
Director of the China Telecom Account Dept, Vice 
President of the Eastern and Southern Africa Region, 
Director of the MTN Account Dept, President of the 
Eastern and Southern Africa Region, President of 
the Middle East and Africa Area, President of the 
Sales & Delivery Finance Mgmt Dept, and Director 
of the ICT Infrastructure Managing Board Office. 
Currently, Mr. Li serves as an executive member of the 
Supervisory Board.
Mr. Li Dafeng
Executive Member of 
the Supervisory Board


150       Huawei Investment & Holding Co., Ltd.
Born in 1969, Mr. Li holds a doctorate degree from 
Harbin Institute of Technology. Mr. Li joined Huawei 
in 1997 and has served as Chief of the Sweden 
Research Center, Director of the Product Mgmt Dept 
of Wireless Marketing, Director of the Research 
Dept of Products & Solutions, Director of the 
General Technology Office of Products & Solutions, 
President of the Central Research & Development 
Unit, President of the 2012 Laboratories, President of 
Products & Solutions, President of Network Products 
& Solutions, and President of Administration of the 
2012 Laboratories. Currently, Mr. Li serves as an 
executive member of the Supervisory Board.
Mr. Li Yingtao
Executive Member of 
the Supervisory Board
Born in 1973, Mr. Ma holds a master's degree in 
system engineering from Northwestern Polytechnical 
University. Mr. Ma joined Huawei in 1997 and has 
served as an R&D engineer, Senior Product Manager 
of the Marketing & Sales Dept, Overseas Marketing 
Director, Director of the Human Resource Dept of 
Strategy & Marketing, and Director of the Consumer 
BG Human Resource Dept. Currently, Mr. Ma serves 
as an executive member of the Supervisory Board, 
President of the Corporate Leadership Mgmt Dept, 
Vice President of the Consumer BG, and Vice 
President of the Intelligent Automotive Solution BU.
Mr. Ma Qingqing
Executive Member of 
the Supervisory Board
Born in 1966, Mr. Song completed his postdoctoral 
research at Beijing Institute of Technology in 1996. 
Mr. Song joined Huawei in 1996 and has served as 
Manager of the Product Strategy Planning Dept, 
Director of the IPR Dept, Director of the External 
Cooperation Dept, PSST member, President of the 
Legal Affairs Dept, President of the Patent Review 
Board, Director of the Trade and Customs Compliance 
Committee, a member of the Disciplinary and 
Supervisory Sub-committee of the Human Resources 
Committee, a member of the Platform Coordination 
Committee, and Chief Compliance Officer. Currently, 
Mr. Song serves as a member of the Supervisory 
Board and Chief Legal Officer.
Mr. Song Liuping
Member of the Supervisory Board
Mr. Ren holds a bachelor's degree from Yunnan 
University. Mr. Ren joined Huawei in 1992 and has 
served as General Manager at the Lanzhou Office, the 
Guangzhou Office, and the Fuzhou Office, Director 
of the Customer Relationship Mgmt Dept, Director 
of the Internal Service Mgmt Dept, and President of 
the Capital Construction Mgmt Dept. Currently, Mr. 
Ren serves as a member of the Supervisory Board, 
Chief Logistics Officer, and President of the Power 
Assurance Dept.
Mr. Ren Shulu 
(Steven Ren)
Member of the 
Supervisory Board
Born in 1969, Mr. Tian holds a bachelor's degree 
from Xidian University. Mr. Tian joined Huawei in 
1995 and has served as General Manager of the 
Shijiazhuang Office, HR Director of the Domestic 
Marketing Dept, Director of the Market Finance Dept, 
EVP of the Middle East and Northern Africa Area, 
President of the Middle East Region, President of the 
China Region, CEO of Huawei Agisson, Vice President 
(Acting) of the Human Resource Mgmt Dept, EVP 
of Huawei University, Director of the Institute of 
Education of Huawei University, Director of the 
Disciplinary and Supervisory Sub-committee of the 
Human Resources Committee, an executive member 
of the Management Team of the Joint Committee of 
Regions, Director of the Subsidiary Board Directors 
Resources Bureau, President of the Central Asia 
and Russia Area, a member of the Management 
Team of the Corporate Leadership Mgmt Dept, a 
member of the Audit Committee, a member of the 
ICT Infrastructure Managing Board, Director of the 
Disciplinary and Supervisory Committee, President 
of the Asia Pacific Area, President of the Internal 
Audit Dept, and a member of the Supervisory Board. 
Currently, Mr. Tian serves as a member of the 
Supervisory Board, Director of the Audit Committee, 
and Deputy Chairman of the Supervisory Board 
Lower House.
Mr. Tian Feng
Member of the Supervisory Board


2023 Annual Report
        151
Independent Auditor
An independent auditor is responsible for auditing a 
company's annual financial statements. In accordance 
with applicable accounting standards and audit 
procedures, the independent auditor expresses an 
opinion as to whether the financial statements are 
true and fair.
The scope of the financial audit and the annual audit 
results are subject to review by the Audit Committee. 
Any relationship or service that may potentially affect 
the objectivity and independence of the independent 
auditor must be discussed with the Audit Committee. 
The independent auditor may discuss any issues 
identified or any difficulties encountered during the 
course of the financial audits with the Audit Committee.
KPMG has been Huawei's independent auditor since 2000.
Born in 1968, Mr. Peng holds a bachelor's degree 
from Huazhong University of Science and Technology. 
Mr. Peng joined Huawei in 1997 and has served as 
Technical Service Engineer of the South China Area, 
Transmission Project Manager and Development 
Engineer of the Russia Representative Office, 
General Manager of the Yemen Representative 
Office, Assistant to President of the Middle East and 
Northern Africa Region, President of the Northern 
Africa Region, President of the China Region, 
President of the Corporate Leadership Mgmt Dept, 
and President of the Enterprise BG. Currently, Mr. 
Peng serves as a member of the Supervisory Board 
and the Lead of the Strategic Reserve.
Mr. Peng Zhongyang
Member of the 
Supervisory Board
Born in 1968, Mr. Lyu holds a master's degree 
in information and electronics engineering from 
Zhejiang University, and an EMBA from China Europe 
International Business School. Mr. Lyu joined Huawei 
in 1993 and has served as a software engineer, 
project manager, Director of the Corporate Technical 
Cooperation Dept, Chief Operating Officer of Huawei 
Technologies India Private Limited (HTIPL), HR 
Director of R&D, President of the Human Resource 
Mgmt Dept, President of Huawei University, Lead 
of the Strategic Reserve, President of the Corporate 
Leadership Mgmt Dept, and Chairman of the 
Corporate Advisory Committee. Currently, Mr. Lyu 
serves as a member of the Supervisory Board, a 
member of the Supervisory Board Upper House, and 
the Leader of the Supervisory Board Upper House 
Secretary Team.
Mr. Lyu Ke
(Jack Lyu)
Member of the 
Supervisory Board
Born in 1974, Ms. Shi holds a master's degree from 
Central University of Finance and Economics. Ms. Shi 
joined Huawei in 2000 and has served as Director of 
the China Accounting Shared Service Center, Director 
of the Argentina Accounting Shared Service Center, 
Director of the Revenue Business Center, Director 
of the Accounting Solution Business Center, CFO of 
the West European Region, Vice President of the 
Accounting Mgmt Dept, President of the Accounting 
Mgmt Dept, and President of the Subsidiary Mgmt 
Dept. Currently, Ms. Shi serves as a member of the 
Supervisory Board and Deputy CFO of the Group 
Finance Mgmt Dept.
Ms. Shi Yanli
Member of the 
Supervisory Board
Born in 1963, Ms. Yang holds a master's degree from 
Huazhong University of Science and Technology. Ms. 
Yang joined Huawei in 1998 and has served as Head 
of the HR Director Office, Assistant to HR Director 
of Sales & Services, Deputy HR Director of the 
Commonwealth of Independent States Area, Director 
of the Talent Mgmt Dept of the Human Resource 
Mgmt Dept, HR Director of the CEE & Nordic 
European Region, and Director of the HR Section 
of the Human Resources Committee. Currently, Ms. 
Yang serves as a member of the Supervisory Board, 
Chief Ethics & Compliance Officer, and Director of the 
Committee of Ethics and Compliance.
Ms. Yang Li
Member of the 
Supervisory Board
Born in 1977, Mr. Li holds a bachelor's degree from 
Tongji University. Mr. Li joined Huawei in 1999 
and has served as General Manager of the Xi'an 
Representative Office, Assistant to the President 
of the China Region, President of the Eastern and 
Southern Africa Region, President of the Southern 
Africa Region, President of the West European Region, 
and President of the Carrier BG. Currently, Mr. Li 
serves as a member of the Supervisory Board and 
President of ICT Sales & Service.
Mr. Li Peng
Member of the Supervisory Board


152       Huawei Investment & Holding Co., Ltd.
Business Structure
As one of Huawei's core businesses, the ICT 
Infrastructure Business comprises the Carrier Business, 
the Enterprise Business, and ICT Infrastructure. By 
working on information distribution, interaction, 
transmission, processing, and storage, Huawei helps 
customers build CT and IT infrastructure with its leading, 
innovative products, solutions, and services.
■	 In the carrier market, Huawei continuously 
innovates with leading carriers, to explore business 
scenarios and verify key technologies, thus helping 
carriers constantly enhance their core digital 
infrastructure capabilities, growing together with 
them in their new business domains, and serving 
as an enabler of carriers' digital and intelligent 
transformation.
■	 In the enterprise market, Huawei works to build 
a “partner + Huawei” open cooperation system 
for NAs and the commercial and distribution 
segments. With a focus on industries' valued 
scenarios, Huawei provides integrated solutions 
to accelerate the digital and intelligent 
transformation of industries, and creates new 
value together with them.
■	 ICT Infrastructure comprises Connectivity, 
Computing, Data Storage, and Carrier Software 
and Service. In Connectivity, Huawei proactively 
works with industry partners to define 5.5G and 
build leading, innovative network infrastructure 
based on wireless, optical, intelligent IP, and 
cloud core networks, as part of the effort to 
continuously drive the connectivity industry 
Group Functions
Corporate
Development
Strategy
Finance
Cyber Security &
Privacy Protection
2012 Laboratories
Supply Chain
Logistics Services
Quality, BP & IT
Human Resources
Leadership Management
PR & GR
Legal Afairs
Internal Audit
Ethics & Compliance
Regional Organizations
HiSilicon
Intelligent 
Automotive 
Solution 
Business
Digital
Power
Huawei
Cloud
Computing
Consumer 
Business
ICT Infrastructure Business
ICT 
Infrastructure 
Enterprise
Business
Carrier
Business
forward. In Computing, Huawei works alongside 
its partners around the world to develop digital 
infrastructure ecosystems based on Kunpeng, 
Ascend, and foundational software like Euler, 
CANN, and MindSpore, establishing the computing 
backbone for the digital world. In Data Storage, 
Huawei proactively embraces new media and new 
applications, and builds a secure, reliable, green, 
and efficient storage pedestal for a rich variety 
of application scenarios. In Carrier Software and 
Service, by focusing on the entire lifecycle of ICT 
infrastructure, including planning, construction, 
network O&M, optimization, and operations, 
Huawei works with its partners to deliver users 
better service experience and facilitate carrier and 
enterprise customers' business success.
The Consumer Business continues to put consumers 
at the center of everything it does. By focusing on 
quality products, the Consumer Business aims to 
create an inspired AI experience across all scenarios 
and build a brand that has a human touch and 
is liked and trusted by consumers. The Consumer 
Business also works to build a prosperous HarmonyOS 
ecosystem and achieve business success together with 
its partners.
Huawei Cloud Computing provides stable, reliable, 
secure, trustworthy, and innovative cloud services to 
customers. Huawei Cloud Computing aims to deliver 
Everything as a Service, accelerate intelligence, 
reshape industries, and build the cloud foundation 
for an intelligent world with ubiquitous cloud and 
pervasive intelligence.


2023 Annual Report
        153
Digital Power offers enterprise and industry customers 
products and solutions like smart PV, smart charging 
networks, data center facility, critical power supply, 
and DriveONE. Digital Power is committed to 
integrating digital and power electronics technologies 
to provide customers with high-quality, highly-
efficient, green, and low-carbon power electronics 
products, facilitating customers' business success.
The Intelligent Automotive Solution Business has 
brought Huawei's expertise in ICT to the intelligent 
automotive sector, providing new components for 
intelligent connected vehicles and helping car OEMs 
build better vehicles with ICT technologies.
HiSilicon provides board-level chipsets and module 
solutions to sectors like smart devices, home 
appliances, and automotive electronics. It offers 
end-to-end technological capabilities like sensing, 
connectivity, computing, and display to help devices 
go digital, connected, intelligent, and low-carbon. 
Based on chipsets and components, HiSilicon works to 
empower connected smart devices, enable innovations 
across different sectors, and help customers achieve 
business success.
To gradually build a shared service platform to 
support the development of our multiple businesses 
and create an anchor for corporate policy execution, 
the company operates a Platform Coordination 
Committee. This committee is designed to drive group 
functions to optimize their execution and operations, 
simplify cross-function operations, and strengthen 
collaboration, so that group functions will become the 
best service organizations available to support and 
promote business operations. Group functions provide 
business support, services, and oversight. They are 
positioned to offer accurate, timely, and effective 
services to field offices and strengthen oversight while 
delegating sufficient authority to them.
Improving the Internal Control 
System
Huawei continued to design and implement an 
internal control system based on its organizational 
structure and operating model. The internal control 
framework and its management system apply to all 
business and financial processes of the company and 
its subsidiaries and business units. The internal control 
system is based on the five components of the COSO 
framework: Control Environment, Risk Assessment, 
Control Activities, Information & Communication, and 
Monitoring. It also covers internal controls of financial 
statements to ensure their truthfulness, integrity, and 
accuracy.
Control Environment
A control environment is the foundation of an internal 
control system. Huawei is committed to a corporate 
culture of integrity, business ethics, and compliance 
with laws and regulations. Huawei has issued the 
BCGs to identify acceptable business conduct. The 
BCGs must be observed by all employees, including 
senior executives. Regular training programs are 
offered, and all employees are requested to sign 
the BCGs to ensure that the BCGs have been read, 
understood, and observed.
Huawei has implemented a mature governance 
structure, with clearly defined authorization 
and accountability mechanisms. The governance 
structure comprises the Board of Directors (BOD), 
its committees, group functions, and multi-level 
management teams. Huawei clearly defines the roles 
and responsibilities of its organizations to ensure the 
effective separation of authority and responsibilities 
as well as checks and balances through mutual 
oversight. The CFO of Huawei is in charge of 
internal controls. The internal control management 
department reports to the CFO for any possible 
defects and improvements already made in terms 
of internal controls, and assists the CFO in building 
the internal control environment. The internal audit 
department independently monitors and assesses the 
status of internal controls for all business operations.
Risk Assessment
Huawei has a department dedicated to internal 
controls and risk management to regularly assess 
risks to the company's global business processes. 
This department identifies, manages, and monitors 
significant risks, forecasts potential risks caused by 
changes to the internal and external environments, 
and submits risk management strategies along 
with risk mitigation measures for decision making. 
All process owners are responsible for identifying, 
assessing, and managing business risks and taking 
necessary internal control measures. Huawei has 
instituted a mechanism for improving internal controls 
and risk controls to efficiently manage critical risks.


154       Huawei Investment & Holding Co., Ltd.
Control Activities
Huawei has established the Global Process 
Management System and the Business Transformation 
Management System, released the global Business 
Process Architecture (BPA), and appointed Global 
Process Owners (GPOs) in line with the BPA.
Responsible for building processes and internal 
controls, GPOs:
■	 Identify key control points and the Separation of 
Duties Matrix for each process, and apply these to 
all regional offices, subsidiaries, and BUs.
■	 Conduct compliance tests on key control points 
and issue test reports to ensure the effectiveness 
of internal controls is continuously monitored.
■	 Optimize processes and internal controls based 
on business pain points and key requirements 
for financial statements. The aim is to improve 
operating efficiency and financial results, ensure 
compliance and the accuracy and reliability of 
financial statements, and help achieve business 
objectives.
■	 Perform annual assessments of internal controls, 
comprehensively assess overall process design 
and process execution within each business 
unit, and then report the results to the Audit 
Committee (AC).
Information & Communication
Huawei has developed multi-dimensional information 
and communication channels to ensure the timely 
acquisition of external information from customers, 
suppliers, and other parties. It has also created formal 
channels for transferring internal information, and 
offered an online space, the Xinsheng Community, 
for employees to freely communicate their thoughts 
and ideas. Corporate management holds regular 
meetings with departments at all levels to effectively 
communicate management orientation to employees 
and ensure effective implementation of management 
decisions. All business policies and processes are 
available on the company's Intranet.
Managers and process owners regularly organize 
training programs on business processes and internal 
controls to ensure that up-to-date information is 
made available to all employees. The company has 
established a mechanism for process owners at all 
levels to regularly communicate with each other, 
review the execution of internal controls, follow up 
on internal control issues, and implement 
improvement plans.
Monitoring
Huawei has established an internal complaint channel, 
an investigation mechanism, an anti-corruption 
mechanism, and an accountability system. The 
Agreement on Honesty and Integrity that Huawei 
has signed with its suppliers clearly stipulates that 
suppliers may report improper conduct by Huawei 
employees through the channels stipulated in the 
Agreement to assist the company in monitoring 
the integrity of its employees. The internal audit 
department independently assesses the overall status 
of the company's internal controls, investigates 
any suspected violations of the BCGs, and reports 
the audit and investigation results to the AC and 
senior management. Huawei has also implemented 
a mechanism for internal control appraisals of GPOs 
and regional managers, holding them accountable 
and pursuing impeachment when and where 
necessary. The AC and the CFO regularly review the 
company's internal control status, and listen to and 
review reports on action plans for improving internal 
controls and plan execution progress. Both have the 
authority to request the relevant GPOs or business 
executives to explain their internal control issues and 
take corrective actions.


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Sustainability
Harmony
All-inclusiveness
Reliability
Environment
156 Introduction
160 Digital Inclusion
166 Security and Trustworthiness
168 Environmental Protection
173 Healthy and Harmonious Ecosystem
187 Respecting Human Rights
Sustainable 
Development


156       Huawei Investment & Holding Co., Ltd.
Introduction
Sustainable development is a responsibility shared by the entire world. As a leading global provider of ICT 
infrastructure and smart devices, Huawei's vision is to bring digital to every person, home and organization for 
a fully connected, intelligent world. We believe that if we S.H.A.R.E. (work towards sustainability, harmony, all-
inclusiveness, reliability, and environmental friendliness), we can create a better, sustainable, and digital future. We 
want to maximize equality and inclusion by making technology accessible to all and strike a balance between social 
development and environmental protection through technological innovation. We also want to develop secure and 
reliable ICT infrastructure and services that safeguard the digital world and work with our industry partners to build a 
healthy and harmonious business ecosystem. 
Sustainability strategies and 2023 progress
TECH4ALL's education 
programs have benefited 
630 schools and more than 
400,000 people, including 
K–12
1 students and teachers, 
unemployed young people, 
and senior citizens. 
400,000
Huawei's ICT solutions 
have brought connectivity 
to 90 million people in 
rural and remote areas 
in nearly 80 countries 
around the world.
90 million
Huawei's digital 
technologies have helped 
preserve biodiversity and 
sustainably manage and 
use natural resources 
in 53 of the world's 
protected areas. 
53
Huawei has worked with 
seniors universities, local 
community organizations, 
and nursing homes to 
provide digital literacy 
training in 210 cities in 
China, benefiting more 
than 42,000 senior citizens. 
42,000
Digital Inclusion
TECH4ALL: Since the launch of Huawei's TECH4ALL digital inclusion initiative in 2019, we have implemented a number 
of projects that leverage digital technologies and multi-stakeholder partnerships to make the world more inclusive and 
sustainable.
Huawei was awarded 57 
cyber security certificates, 
giving our customers 
internationally-recognized 
security assurances.
57
Huawei supported stable 
communications during 
over 300 disasters and 
major events. 
300
We promptly and 
effectively handled over 
29,000 requests from 
personal data subjects to 
protect their rights. 
29,000
We carried out over 60 
inspections and audits 
against industry best 
practices, ensuring that our 
corporate privacy protection 
policies are well enforced. 
60
Security and Trustworthiness
Taking responsibility to build trust: Cyber security and privacy protection are a top priority at Huawei, and so 
we are continuing to invest and remain transparent in both areas. We have worked hard to improve our software 
engineering capabilities and practices, build resilient networks, develop trustworthy and high-quality products, and 
support stable network operations. 
Huawei's digital power 
solutions have helped 
customers generate 997.9 
billion kWh of green 
power and save 46.1 
billion kWh of electricity. 
997.9 billion
Only 0.5% of the e-waste 
from Huawei's ICT 
business, and zero e-waste 
from our smart device 
business, went to landfills. 
0.5%
The average energy 
efficiency of Huawei's 
main products has 
increased 2.6 times since 
2019 (base year).
2.6x
A total of 780,000 devices 
have extended their 
lifespan through our 
trade-in program. 
780,000
Environmental Protection
Contributing to a clean, efficient, low-carbon, and circular economy: Huawei aims to continuously explore an 
optimal way to build a low-carbon, circular economy and find innovative solutions that make our own value chain 
greener. As part of these efforts, we have integrated requirements including compliance with environmental laws 
and regulations, energy efficiency, and environmental benefits into our business activities, such as R&D, operation, 
procurement, manufacturing, and supply chain.
1	
K–12 refers to the educational journey from kindergarten to the 12th grade.


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        157
2023 sustainability honors and awards
Honor/Award
Issued By
Climate A List
CDP
2023 Sustainability Champion Award
AfricaCom
GSMA GLOMO's "Best Mobile Innovation for Emerging 
Markets" for Huawei's RuralLink solution
GSMA
Innovative Breakthrough in Mobile Technology Award 
and Outstanding Award for Huawei's Green Target 
Network program
Global TD-LTE Initiative (GTI)
Neurons Awards Special Jury Prize for a TECH4ALL 
project designed to protect endangered wild Atlantic 
salmon in Norway
Jury of World AI Cannes Festival (WAICF) 2023
First Prize in China Outstanding ICT Case Studies for a 
TECH4ALL project designed to monitor biodiversity in the 
Yellow River Delta National Nature Reserve
China Association of Communication Enterprises
Smartphone OS/UI Elderly-friendliness Assessment – Five 
Stars for HarmonyOS 3
China Telecom Research Institute
Top Employer in Europe
Top Employers Institute
Climate Performance Assessment Gold Rating
Climate Choice (commissioned by Telefonica 
and T-Systems) 
Customs Compliance Award
Jordan Customs
Best Contribution to Cyber Security
Vietnam Information Security Association 
(VNISA) 
Best Data Privacy Governance
Association of Big Data & AI (ABDI), Indonesia
Prime Minister Award: Best of Contributor in Human 
Capital Development Award
National Innovation Agency (NIA), Thailand
Hong Kong Authorized Economic Operator Partnership 
Scheme Gold Award
Hong Kong Customs
Huawei invested over 
CNY18.6 billion in 
employee benefits. 
CNY18.6 billion
Huawei operated over 
300 social contribution 
programs worldwide as 
part of its community 
responsibilities.
300
The Seeds for the Future 
2.0 program has been 
implemented in more 
than 150 countries and 
regions, benefiting over 
3.4 million people.
3.4 million
Huawei assessed the 
sustainability performance 
of over 1,600 major 
suppliers, representing 
over 90% of our 
procurement spending.
1,600
Healthy and Harmonious Ecosystem
Collaborating for the common good: Huawei is committed to operating with integrity and complying with 
applicable laws and regulations. We value employee development and help employees realize their full potential. 
We conduct due diligence on our global supply chain to ensure its sustainability and we actively contribute to 
the communities we operate in. Our goal is to work with all industry partners to build a healthy and harmonious 
business ecosystem.


158       Huawei Investment & Holding Co., Ltd.
2023 sustainability milestones 
Time
Milestone
February 2023
Huawei joined the UNESCO Global Alliance for Literacy (GAL) and agreed to work with the 
GAL's Secretariat, the Institute for Lifelong Learning (UIL), to promote ICT-powered literacy 
initiatives. As per the cooperation agreement, Huawei will fund an expansion of the UIL's 
current initiatives to increase educators' use of technology in developing countries. Huawei 
is the first private company to become an associate member of the GAL. 
June 2023
On the 50th anniversary of World Environment Day, Huawei and the International 
Union for Conservation of Nature (IUCN) held the 3rd Tech4Nature Summit, where 
global partners shared real-world examples of how technology has improved biodiversity 
conservation. Digital technologies, such as cloud computing, IoT, mobile Internet, big 
data, and AI, can enable smarter sensing, analysis, and management in protected areas 
and better support conservation efforts. At the summit, Huawei, IUCN, and the Chinese 
Academy of Forestry jointly launched the Smart Protected Areas White Paper which 
summarizes their own studies on how technology empowers conservation. 
July 2023
Huawei held the Eco-Connect Sub-Saharan Africa 2023 in Johannesburg, South Africa. 
Themed "Leading Digital for New Value Together", the conference attracted nearly 3,000 
partners and customers from more than 10 countries in the region. During the event, 
Huawei announced its plan to invest US$30 million in the region for partner capability 
enhancement, joint brand activities, joint solution innovation, and local talent cultivation.
August 2023
Huawei launched HarmonyOS 4, which comes with upgraded accessibility capabilities such 
as Smart Q&A, easy hearing aid connection, Senior mode, and Celia Call. These features 
help users with special needs and the elderly overcome accessibility challenges in their 
work and life, and give users more ways to communicate with the world.
September 2023
Huawei joined the 2nd Digital with Purpose Global Summit hosted by the Global Enabling 
Sustainability Initiative (GeSI), where more than 200 leaders from around the world 
gathered to provide insights on revolutionary digital enabling solutions that can help 
meet the Sustainable Development Goals (SDGs). Huawei's Autonomous Driving Storage 
Solution was shortlisted for the Digital with Purpose Award, which was designed to 
recognize digital solutions that drive sustainable development. 
November 2023
Huawei held its 2023 Sustainability Forum and five regional sessions in China, Italy, Ghana, 
Pakistan, and Brazil. Themed "Thriving Together with Tech: Realizing Sustainable Development", 
the event showcased the best sustainability practices of Huawei and its partners. Attendees 
from all over the world explored how digital infrastructure can better drive sustainable 
development and contribute to a greener and more inclusive intelligent world. 
December 2023
At the 28th Conference of the Parties to the UN Framework Convention on Climate 
Change (COP 28), Huawei released the Twin Skills for the Twin Transition: Defining Green 
Digital Skills and Jobs white paper. Developed in collaboration with the ATHENA Research 
Centre, the Sustainable Development Unit under AE4RIA, PwC, and EIT Digital, the white 
paper focuses on developing a new classification system for Green Digital Skills that can 
guide the reskilling and upskilling necessary to build and use the net-zero technologies 
required to meet the Paris Agreement objectives. 


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Sustainability management
Huawei has established a systematic sustainability management system based on standards such as ISO 
26000 and the Responsible Business Alliance (RBA) Code of Conduct. We closely watch both our internal and 
external environments to identify sustainability risks and opportunities and drive continuous improvement in our 
management system. This will support the implementation of our sustainability strategies, ensure operational 
compliance, and continuously improve stakeholder satisfaction.
Huawei established its Corporate Sustainable Development (CSD) Committee over 10 years ago. This Committee 
meets each quarter and convenes special meetings as necessary to discuss and decide on sustainability issues. In 
2023, major topics discussed by the Committee included sustainability-related work priorities, the sustainability 
management system, energy conservation and emissions reduction, business- and function-specific strategic plans 
and work priorities related to sustainability, digital inclusion, employee care, and the circular economy. 
A dozen senior executives serve on the Committee, representing a wide variety of departments, including HR, 
manufacturing, logistics, procurement, and R&D. Four of the current committee members are also members of 
Huawei's Board of Directors. The CSD Committee is chaired by Tao Jingwen, a board member and the President of 
the Quality, Business Process & IT Department. 
For more details about Huawei's sustainability management, visit: 
https://www.huawei.com/en/sustainability/management
Framework of Huawei's sustainability management system
Business
environment
Stakeholders
Customers
Business
environment
Stakeholders
Customers
6.
Su
st
ai
na
bil
it
y
m
an
ag
e
me
nt
sy
ste
m
im
pr
ov
em
en
t
• Q
ua
lity
an
d o
per
ati
on
s o
rga
niz
ati
on
• C
ap
acit
y b
uild
ing
• In
fra
str
uct
ur
e
3.
Or
ga
niz
ati
on
an
d s
kil
ls
su
pp
or
t
2. Planning
• Countermeasures for
risks and opportunities
Sustainability solution
planning
Change planning
•
•
Huawei's
sustainability 
management 
system 
Requirements
• I
ssu
e c
lo
su
re
• C
aus
e a
nal
ysi
s
• C
on
tin
uo
us
im
pro
ve
me
nt
• K
no
wle
dge
ma
nag
em
ent
• D
ocu
me
nt
ma
na
ge
me
nt
Satisfaction
1. Leadership
• Sustainability strategies,
principles, and objectives
Sustainability policies, rules,
and standards
Tiered sustainability
management authorization
Sustainability culture,
incentives, and accountability
•
•
•
5. Performance   
appraisal
• Customer satisfaction
surveys
Maturity assessments
Measurements, analyses,
and evaluations
Sustainability reviews
Management reviews
•
•
•
•
4. Process operations
• Major business processes (IPD/LTC/ITR)
End-to-end sustainability management
(incorporating sustainability
requirements into processes)
Building sustainability into the entire
value chain (suppliers/partners)
•
•


160       Huawei Investment & Holding Co., Ltd.
Focusing on material topics
Sustainability organization memberships
Material topics represent the most significant impacts of an organization on the economy, environment, and 
people. In 2023, we reviewed our material topic matrix through stakeholder surveys and interviews, external 
consulting and insights, engagement with the media and the public, as well as internal risk assessment and 
strategic alignment. Following the review, we increased the priority of "sustainability management", "digital talent 
development", and "circular economy" in order to better respond to stakeholder requirements. 
High
Low
High
Importance to stakeholders
Importance to Huawei's business
Circular economy
Cyber security and 
privacy protection
Use of renewable energy
Combating climate 
change/Conserving energy 
and reducing emissions
Supply chain 
due diligence 
management
Supporting stable 
communications
Caring for employees 
(including occupational 
health and safety)
Sustainability 
management
Digital inclusion
Respecting human rights
Compliance with 
business ethics
Gender 
equality
Digital talent 
development
Biodiversity protection
Stakeholder 
engagement
Information 
accessibility
Community 
participation and 
contributions
Introduction and Addendum
Digital Inclusion
Security and Trustworthiness
Environmental Protection
Healthy and Harmonious Ecosystem
Digital Inclusion
In 2019, Huawei launched the TECH4ALL initiative to promote digital inclusion. Over the past five years, we have 
worked with more than 40 partners, including UNESCO and IUCN, and made substantial progress in TECH4ALL's 
four areas of focus: education, environment, health, and development. We have developed innovative applications 
and content using digital technologies, such as broadband connectivity and IoT, which have brought long-term 
positive changes to rural and remote areas, underserved communities, and environmental protection efforts.


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Driving equity and quality in education
At the Digital Learning Week in 2023, UNESCO acknowledged that innovative digital technologies had 
demonstrated their potential to enrich and transform education. They will transform how we learn, enhance the 
quality of learning, make education more inclusive, and improve education administration and governance. As part 
of our efforts to contribute to UN SDG 4 (Quality Education), Huawei is working with global partners, including 
education organizations, governments, universities, and carriers, and using digital technologies to make educational 
resources more accessible, including high-quality education for underserved communities and people in rural and 
remote areas. By the end of 2023, Huawei's TECH4ALL education programs had benefited 630 schools and more 
than 400,000 people, including K–12 teachers and students, unemployed young people, and senior citizens.
Technology-enabled Open School Systems for All
The Technology-enabled Open School Systems for 
All (TeOSS) project is led by UNESCO and jointly 
implemented by Huawei and the Egyptian, Ethiopian, 
and Ghanaian ministries of education. The project 
aims to implement and promote a new model of open 
learning by providing school terminal access, network 
connectivity, and education cloud platforms. As part 
of this project, we built a national training center 
and online platform in Egypt, allowing K–12 teachers 
to develop digital skills through offline training and 
access high-quality online teaching resources. The 
project has been piloted in 34 schools in Ethiopia and 
Ghana, benefiting 831 teachers.
In October 2023, UNESCO and Huawei jointly held 
the International Forum on Digital Platforms and 
Competencies for Teachers in Cairo, Egypt. More than 
330 government representatives, education experts, 
and scholars from over 50 countries attended the 
forum and shared the progress that the TeOSS project 
had made over the past three years.
The TeOSS project enables K–12 teachers, students, and other 
educators in Egypt to use digital technology and content for 
teaching and learning.
DigiSchool in China: Improving scientific and technological literacy in K–12 schools
In 2021, Huawei launched the DigiSchool project in 
Yudu county, Jiangxi province, China. Together with 
universities and other partners, we have developed a 
series of inquiry-based and multidisciplinary science 
and technology courses and STEAM
1 resources for 
teachers and students in remote and rural areas. These 
have been used to build engaging and interactive 
spaces where students can learn about cutting-edge 
technologies like 5G and AI. By the end of 2023, more 
than 4,800 teachers and students from 29 elementary 
and middle schools in rural areas of Ningxia, Jiangxi, 
and Hebei provinces had benefited from this project. 
Our efforts have helped the teachers improve their 
digital literacy and inspired the students' curiosity 
about science and technology.
Huawei's DigiSchool inspires rural children's curiosity about 
science and technology.
1	
STEAM education is a learning approach that integrates science, technology, engineering, arts, and mathematics, aiming to guide 
student inquiries, discussions, and problem solving in these fields.


162       Huawei Investment & Holding Co., Ltd.
Tech4Nature
In 2020, Huawei and IUCN launched the Tech4Nature 
program. In China, Mexico, Mauritius, Switzerland, 
and Spain, we implemented multiple Tech4Nature 
pilots that explored the use of digital technology to 
protect ecosystems and endangered species. We also 
supported nearly 300 protected areas in earning the 
IUCN Green List certification through digital platforms.
In Mexico's Dzilam State Reserve, we have collected and analyzed 
more than 80,000 images and videos and over 600,000 audio 
recordings. This data helped identify 146 species, including seven 
wild jaguars.
DigiTruck and SmartBus: Benefiting over 80,000 people from 16 countries
Since 2019, Huawei and its partners have run 
DigiTruck and SmartBus, two Skills on Wheels projects, 
to equip unemployed young people and senior citizens 
in remote areas with digital skills, and provide cyber 
security training for middle school students. By the 
end of 2023, over 80,000 people from 16 countries 
in Africa, the Middle East, and Europe had benefited 
from these projects.
DigiTruck and SmartBus have benefited over 80,000 people 
from 16 countries in Africa, the Middle East, and Europe.
Conserving nature with technology
Biological diversity resources are the pillars upon which we build civilizations. Conserving nature and biodiversity 
is key to slowing global warming and achieving sustainable development. Huawei believes that digital technology 
can help people protect nature and tackle climate crises, so we are working closely with global environmental 
protection organizations, carriers, and partners on projects that explore the use of ICT to protect forests and 
wetlands and increase the efficiency of biodiversity and natural resource conservation and management.
By the end of 2023, Huawei had harnessed the power of digital technology to implement conservation projects in 
53 of the world's protected areas. These projects have helped protect many endangered species, including Hainan 
gibbons, jaguars, Oriental storks, Bonelli's eagles, and Atlantic salmon. Our conservation efforts have also helped 
protect tropical rainforests, mangrove forests, coral reefs, estuaries, and other typical ecosystems.


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        163
In the Hainan Tropical Rainforest National Park, Huawei works with 
partners to monitor the calls of Hainan gibbons.  More than 100,000 
audio recordings have been collected and transmitted in real time 
and individual gibbons now can be automatically identified.
In Pointe aux Feuilles on the eastern coast of Mauritius, Huawei 
works with local NGOs to restore coral reefs using digital technology. 
Nearly 25,000 coral fragments have been planted underwater, which 
helps restore the biodiversity of these ecosystems.
Using digital technology to protect endangered birds in the Yellow River Delta Wetland
Capturing invasive salmon with intelligent automatic filtering systems
Since 2022, Huawei has partnered with the Yellow River Delta National Nature Reserve which oversees the world's 
youngest wetland ecosystem. This wetland is home to more than 90 endangered bird species, as well as China's 
largest population of Oriental storks. The use of technology has reduced the impact of human activities on the 
environment, and created more possibilities for biodiversity conservation. Now 47 species can be automatically 
identified, helping the nature reserve work more efficiently. In November 2023, the China Association of 
Communication Enterprises awarded this project the first prize in the China Outstanding ICT Case Studies awards.
The survival of Norway's native wild salmon (Atlantic salmon) is under threat from invasive species. Since 2021, 
Huawei has been working with Berlevåg Jeger-og Fiskerforening (BJFF), an NGO and association of hunters and 
anglers in Norway, to use innovative technologies against invasive species. We have deployed a system that 
automatically identifies and filters different types of salmon in the Storelva and Kongsfjord Rivers in northeastern 
Norway, with the one in the Kongsfjord River being solar-powered. The system has so far identified and captured 
Huawei helps the Yellow River Delta National Nature Reserve work more efficiently.


164       Huawei Investment & Holding Co., Ltd.
The automatic salmon identification and filtering system in the Kongsfjord River in Norway
more than 6,000 invasive salmon with an accuracy of over 99%. This helps Atlantic salmon and other local fish 
species swim upstream and complete their migratory spawning process without interference, and effectively 
conserves the local salmon ecosystem.
Enabling inclusive health and well-being
Huawei believes that everyone should have equal access to technology and the benefits it can bring. We are 
committed to bridging the digital divide and leaving no one behind in the digital world. Through our TECH4ALL 
initiative, we strive to help senior citizens better adapt to the digital world, facilitate smooth communication for 
people with disabilities, and address the digital inequalities faced by underserved communities.
Helping senior citizens navigate the digital world through digital literacy training
Huawei has leveraged its device products and expertise 
in Internet applications to develop a range of courses 
and teach senior citizens simple and useful digital skills, 
so that they can adapt to the digital world. By the end 
of December 2023, Huawei and its partners, such as the 
Seniors University of China, had provided training and 
coaching to more than 42,000 senior citizens in seniors 
universities, local community organizations, and nursing 
homes across 210 cities in China.
Huawei's training program for senior citizens helps them adapt 
to the digital world.


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        165
Information accessibility
In 2023, Huawei helped partners develop a sign 
language model that can better understand sign 
language and more accurately translate between 
sign language and Chinese, in order to help people 
with hearing impairments express and communicate 
information more conveniently and accurately.
The sign language model helps people with hearing 
impairments express and communicate information more 
conveniently and accurately.
Driving inclusive digital development
According to ITU, 2.6 billion people around the world were still not connected to the Internet in 2023. To achieve 
universal and meaningful connectivity by 2030, we need to invest more in the digital development of rural and 
remote areas in low- and middle-income countries, including building infrastructure, formulating policies and 
regulations, and developing localized digital skills training courses and content. This will give local residents access 
to affordable devices, data, and services. By the end of 2023, Huawei's ICT solutions had brought connectivity to 90 
million people in rural and remote areas in nearly 80 countries around the world.
Smart Villages project in Pakistan: Driving balanced rural development
In Pakistan, a large number of people live in rural and remote areas and lack digital infrastructure as well as 
the knowledge and basic digital skills needed to fully utilize the Internet. To help address the problem, Huawei, 
the ITU Telecommunication Development Sector (ITU-D), the Pakistani Ministry of Information Technology and 
Telecommunication's Universal Service Fund (USF), and the UN Development Programme (UNDP) jointly launched 
the Smart Villages project. In the village of Gokina where the project was piloted, Huawei deployed a 4G wireless 
network, providing broadband access to the village's 1,000 households. Now, villagers can more quickly and easily 
access quality healthcare resources through online consultation services. Thanks to the wider network coverage, 
more digital training projects are being rolled out. For example, teachers and students at the Islamabad Model 
School for Girls in Gokina can now access more online education resources.


166       Huawei Investment & Holding Co., Ltd.
Teachers and students at the Islamabad Model School for Girls in Gokina can now access more online education resources.
Security and Trustworthiness
Over the last year, we have come even closer to the digital world as emerging technologies like AI flourished 
and data volumes experienced explosive growth. An increasing number of industries are accelerating digital and 
intelligent transformation, driving new development within the real economy through deeper digital integration. 
The digital economy is growing rapidly thanks to digital and intelligent technologies.
However, the growing digital economy is also amplifying cyber security risks. The increasing popularity of open 
source has led to the outbreak of zero-day vulnerabilities, and there have been record numbers of data leaks and 
rampant ransomware attacks and telecom fraud. Mitigating security risks in cyberspace is increasingly difficult. 
Therefore, the question has now become: How can we build intrinsic security to support network operators and 
customers in responding to cyberattacks? How can we build data security and ransomware protection solutions to 
cope with the challenges standing in the way of digital transformation? How can we ensure stable information and 
communications services for people during natural disasters and emergencies?
Cyber security and privacy protection
Huawei has continued to make cyber security and privacy protection a top priority. We strive to tackle both the 
challenges and opportunities this new age presents through management transformation, technological innovation, 
and open collaboration. We are committed to fostering a better life for all in the future digital world by offering 
secure and trustworthy products, solutions, and services, and by taking concrete steps to manage related risks in 
our supply chain. We also share our experiences and capabilities with our suppliers and partners so that we can 
strengthen cyber security and privacy protection capabilities together.


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        167
Openness and transparency
Cyber security and privacy protection are common challenges for all as we stride towards a digital and intelligent 
world. These are challenges that all stakeholders – including governments, industry and standards organizations, 
and enterprises – have a shared responsibility to tackle. Huawei's cyber security principles are built upon 
integrity, trustworthiness, capability, accountability, openness, and transparency. Therefore, we welcome closer 
communication and collaboration with all stakeholders to jointly confront emerging risks and challenges during this 
world-changing transformation.
(For further information, see the Cyber Security and Privacy Protection section on pages 77 to 82 of this report.)
Supporting stable communications
The information and communications products and services that run on ICT infrastructure do more than just enrich 
people's day-to-day lives. They are also crucial for disaster relief and major event support. As an ICT infrastructure 
provider, Huawei's primary responsibility is to support the stable operations and services of customer networks.
In 2023, more than 6,000 of our professional engineers worked side by side with customers and partners to 
safeguard global ICT networks 24/7 and provide timely support for over 300 major events and disasters.
Restoring critical communications after a major earthquake in Türkiye
On February 6, 2023, a 7.8-magnitude earthquake struck the province of Kahramanmaras in southeastern Türkiye. 
The earthquake was felt in 10 neighboring provinces and was followed by over 8,000 aftershocks, resulting in a 
large number of casualties. The earthquake also damaged more than 3,000 communications sites, and this caused 
widespread disruption to local networks and affected the communications of 13 million people. Communications 
networks are a lifeline for disaster relief. It is incredibly difficult to make progress in disaster relief without access 
to networks.
Right after the earthquake struck, the Huawei team rushed to the affected areas and worked with carriers to 
recover communications services. We restored more than 1,900 sites within 72 hours after the earthquake, and over 
2,500 within a week. Within a month, we restored more than 3,000 damaged sites and communications in 94% of 
the affected areas. We also deployed more than 100 shared sites for emergency use to support disaster relief.
Our team worked tirelessly to make the impossible possible. The Ministry of Communications and three major carriers 
in Türkiye praised Huawei for restoring communications and maintaining critical network access for disaster relief.
Huawei engineers work side by side with 
carriers to rapidly get networks back online in 
the affected areas in Türkiye.


168       Huawei Investment & Holding Co., Ltd.
Restoring networks in southern and northern China after typhoon Doksuri
On July 27, 2023, super typhoon Doksuri landed in Jinjiang, Fujian province, China, causing serious damage to the city of 
Quanzhou and surrounding areas. The typhoon continued to travel north and brought heavy rainfall to 14 provinces in 
northern China. The worst-affected areas included Beijing, Hebei, Heilongjiang, and Jilin. The rains caused water levels in 
dams to rise. Floods swept through villages and damaged a large number of houses and base stations.
Huawei was prepared to weather this storm. We promptly initiated the emergency assurance plan for flood seasons 
and tracked the movement of the typhoon. Before the typhoon made landfall, the Fujian Representative Office had 
several network assurance teams at the ready, and Huawei engineers stayed at carriers' network management centers 
to provide onsite support. Once the typhoon made landfall, the representative offices in Fujian and northern China 
contacted the carriers' local assurance teams and worked with them to coordinate resources for emergency repairs. 
The onsite engineers quickly transported diesel generators to the affected areas, repaired optical cables, and deployed 
drone base stations to restore communications as fast as possible. They also opened a green channel to ensure quick 
delivery of disaster relief supplies.
Huawei deployed more than 600 people to support the disaster relief. Our teams worked hard for more than 20 days 
and successfully helped customers repair more than 10,000 damaged sites, which minimized the duration of network 
interruptions and supported the government's rescue and relief efforts.
Huawei engineers restore communications after typhoon Doksuri.
Environmental Protection
Green and low-carbon development is becoming a global priority, and many countries see green industry 
development as an important tool for economic restructuring. Huawei believes that digital technology will be a key 
enabler of nature conservation, green development, and response to environmental challenges. We have already 
seen how digitalization and decarbonization can build upon each other to promote green development. And so, 
as part of our long-standing pledge of "Tech for a Better Planet", Huawei uses innovative ICT solutions to address 
climate and environmental challenges, protecting our shared home. Our solutions focus on three areas: advancing 
energy conservation and emissions reduction, promoting renewable energy, and contributing to a circular economy. 


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Advancing energy 
conservation and 
emissions reduction
Contributing to a 
circular economy
We continue to take managerial 
and technical measures to drive 
green innovation and practices. We 
also engage with upstream and 
downstream partners to reduce 
environmental impacts and work 
together to build a greener supply 
chain. Our innovative ICT solutions 
can help other industries reduce 
their carbon emissions, and we take 
every responsible step that we can to 
minimize carbon emissions. 
We use ICT to improve the efficiency 
of generating and utilizing electricity 
from renewable energy, drive the 
transition to renewable energy, 
and provide green power for the 
intelligent world. 
We are moving to a less resource-
intensive and more sustainable mode 
of development. Our actions include 
selecting more eco-friendly materials, 
reducing the use of raw materials 
and single-use plastics, making 
products more durable and easier 
to disassemble, and improving our 
product recycling system. 
Promoting renewable energy
Huawei's non-stop efforts in environmental protection have won recognition from the environmental non-profit 
organization CDP, who once again placed Huawei on its 2023 "Climate A List" and awarded our company the title 
"Supplier Engagement Leader 2023".
Advancing energy conservation and emissions reduction
For years, Huawei has worked hard to incorporate green development into strategic plans, processes, and product 
and business designs of different departments. We continue to make the most of resources in our products and 
solutions in order to minimize carbon emissions from the very beginning. We also use a systematic supplier 
management mechanism that includes multiple types of incentives to encourage our top 100 suppliers to 
implement their own emissions reduction projects. This mechanism also helps the suppliers respond to Huawei's 
environmental requirements so that we can work together to build a greener supply chain.
■	 Digital technologies that enable industrial energy savings
We have been innovating non-stop to provide leading eco-friendly products and solutions to our customers, extract 
the maximum value from resources, and enable green development across industries.


170       Huawei Investment & Holding Co., Ltd.
"0 Bit 0 Watt" energy-saving solutions: Reducing mobile network energy consumption by 
28% while ensuring a better user experience
Huawei's High-Quality 10 Gbps CloudCampus Solution: Cutting campus Wi-Fi energy use 
by 20%
Huawei's FTTO solution: Cutting network energy consumption of commercial buildings by 30%
Huawei is helping customers build green, highly efficient 
networks by leveraging our technical expertise in wireless 
network construction, including our multi-antenna, ultra-
broadband, and energy-efficient equipment and our "0 
Bit 0 Watt" energy-saving solutions. In 2023, Huawei's 
wireless solutions helped a carrier reduce mobile 
network energy consumption by nearly 28%.
With Huawei's green Wi-Fi solution for smart campuses, 
users can check network energy consumption and energy 
efficiency ratios in real time. The solution intelligently 
recommends time windows during which energy saving 
is possible based on tidal network traffic patterns, and 
implements energy saving policies accordingly. The 
solution, once deployed, can cut the average annual 
power consumption of a campus Wi-Fi network by 20%. 
Huawei's FTTO solution replaces network cables with 
optical fiber, which reduces the need for facilities such 
as weak-current equipment rooms, air conditioners, 
and fire-fighting facilities. This solution can cut network 
energy consumption by 30%, and allows commercial 
buildings to deploy a single network for multiple services 
including office, merchant management, security, and 
broadcasting. 


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■	 Shifting towards a greener supply chain
As a leading global provider of ICT infrastructure and smart devices, Huawei remains committed to reducing the 
environmental impact of our production and operating activities. As such, we have taken a series of measures and 
work with our partners to facilitate the shift towards a green and low-carbon supply chain. This includes initiatives 
in domains such as supplier energy saving management, production and manufacturing, and product logistics and 
transportation. 
Building a greener supply chain with suppliers
Green manufacturing that saves energy and cuts carbon emissions
Since 2011, Huawei has participated in the Green 
Choice initiative, which was launched by the Institute of 
Public and Environmental Affairs (IPE). We encourage 
suppliers to manage themselves better and require 
them to rectify all discovered problems within a 
designated timeframe, to ensure their compliance 
with environmental protection requirements. In June 
2023, Huawei held its third Supplier Carbon Emissions 
Reduction Conference, themed "Green and Low-carbon 
Development for Shared Success", where attendees 
discussed plans for achieving green and low-carbon 
development.
Huawei's manufacturing department prioritizes green 
development within its operations while maintaining 
high product quality. By taking measures such as green 
design, green packaging, and equipment and facility 
energy conservation, we are constantly making our 
production greener. 
One area of manufacturing that has historically consumed 
vast amounts of energy is the burn-in testing conducted 
to guarantee product performance and reliability before 
mass production and shipment. Traditionally, this testing 
is conducted in a high-temperature burn-in room that 
consumes enough electricity in a single day to power a 
three-member household for a month. Huawei, however, 
has used its self-heating technologies to replace the 
burn-in rooms, which has slashed the amount of energy 
used during testing. In 2023, we used these advanced 
technologies to multiple ICT and digital power products, 
reducing our own electricity consumption by more than 
300,000 kWh.
Promoting renewable energy
At Huawei, we increase the use of renewable energy in our own operations and help customers generate green 
power. By the end of 2023, our digital power solutions had helped customers generate 997.9 billion kWh of green 
power and save 46.1 billion kWh of electricity. 


172       Huawei Investment & Holding Co., Ltd.
From design to processes: Greater synergies mean greener packaging
Huawei adopts a green packaging strategy known as 
"6R1D": Right packaging, Reduce, Returnable, Reuse, 
Recovery, Recycle, and Degradable. We aim to design 
packaging that provides sufficient protection for our 
products and has a minimal impact on the environment. 
We use innovative designs to reduce our use of plastics, 
and are continuing to explore lightweight, recyclable, 
degradable, and reliable green packaging solutions.
In 2023, for example, Huawei continued to improve 
its packaging designs and processes. We now use 
packaging that protects hardware during transportation 
and can be reused in different factories. This packaging 
can save about 46,000 disposable cartons every year.
Yalong Hydro's 1-GW hydro-solar hybrid power plant
In the province of Sichuan in western China, Huawei 
helped Yalong Hydro build the first phase of the 
Kela PV Plant. This hydro-solar hybrid power plant 
has a total installed capacity of 1 GW. The plant was 
connected to the grid in June 2023 and has an annual 
energy yield of 2 billion kWh, enough to power one 
million households.
The plant fully considers the needs of the local animal 
husbandry industry. The PV module support pillars are 
raised high above the ground, leaving adequate space 
for vegetation and grazing. The PV modules also reduce 
ground water evaporation, making it easier for plants 
to grow. This shows that synergies can be built between 
the PV and animal husbandry industries.
The first phase of the Kela PV Plant supports the local animal 
husbandry while generating green power. 
Contributing to a circular economy
Huawei is pursuing more eco-friendly materials, more durable products, greener packaging, and less waste 
throughout our product lifecycles so that all resources can be efficiently used, reused, and recycled. For example, 
our trade-in program has helped extend the lifespans of 780,000 devices.


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        173
Healthy and Harmonious Ecosystem
Achieving the UN Sustainable Development Goals requires the joint efforts of stakeholders such as businesses, 
governments, NGOs, and individuals. Businesses can apply their creativity and innovation to solve sustainable 
development challenges. As a responsible technology company, Huawei brings in outstanding talent from around 
the world and provides employees with a comfortable and inclusive workplace and ample room for growth. We are 
also doing what we can to develop skilled ICT workforces for local communities to facilitate digital transformation. 
Huawei remains committed to openness and collaboration for shared success. As such, we are working with our 
partners along the value chain, both upstream and downstream, to build a healthy and harmonious business 
ecosystem. We are also applying ICT to more industries and driving sustainable social development with our digital, 
intelligent, and low-carbon solutions.
Caring for employees
Huawei takes a positive, open, and diverse approach to human resources and welcomes talent from across the 
globe. We provide excellent work environments and development opportunities, coupled with reasonable rewards, 
allowing employees to pursue meaningful and promising careers. We also publish world-class problems that 
help talented people unlock their potential and encourage them to explore new frontiers in a bid to drive global 
prosperity and social progress. In 2023, the Universum survey of the World's Most Attractive Employers ranked 
Huawei 22nd in the IT category, while 44 Huawei subsidiaries were recognized as a Top Employer by the Top 
Employers Institute. 
■	 Employee health and safety
At Huawei, it is a company policy to care for our employees and always put their safety first. We are fully committed 
to creating a safe, healthy workplace for all of our employees. We require all of our business domains to meet or 
exceed the requirements of local laws and regulations as well as those from stakeholders including governments, 
customers, and employees. This must be achieved in accordance with the ISO 45001 occupational health and safety 
management system while considering internal and external environments. We always adhere to our rules regarding 
occupational health and safety management, and have ensured the healthy and safe development of all business 
domains. We have also extended the social responsibilities associated with environment, occupational health and 
safety (EHS) to our supply chain. We encourage more suppliers to share the EHS responsibilities of the supply chain 
and drive the sustainable development of employees, the environment, and society at large.
In 2023, we continued to improve our EHS management system, which included redesigning the EHS business process 
architecture, making a structural update to the EHS management system manual, and driving the enforcement of 
EHS risk management within all business domains. In terms of safety, we provide training on the Process Safety 
Management (PSM) methodology to prevent risks during the design phase, which can help avoid accidents at 
the very source. In terms of environment, we are working to manage pollution by disposing of different types of 
waste in different ways and reusing waste as much as possible. For occupational health, Huawei has established a 
comprehensive employee health and benefits system that meets all occupational health monitoring requirements. 
In 2023, Huawei invested over CNY18.6 billion into employee benefits worldwide to provide employees with 
comprehensive social security and competitive commercial insurance.


174       Huawei Investment & Holding Co., Ltd.
Spending on employee benefits (2019–2023)
2019
2020
2021
2022
2023
13.98
11.89
15.04
17.14
18.63
Unit: CNY billion
Huawei keeps improving working and living environments in hardship regions, with more employees moving to safe, comfortable, and 
beautiful accommodation.
Huawei Shanghai Representative Office won the WELL Gold rating
Huawei always strives to create comfortable and healthy 
workplaces that help improve employee well-being.
Huawei Shanghai Representative Office has always 
placed employees at the center of everything, from 
site selection and building design to construction and 
daily operations. The office has made continuous 
improvements based on the WELL building standard, 
which serves as an effective reference for improvements 
to workplace construction and operation standards. 
After one year of testing and evaluation, the office was 
awarded the WELL Gold rating in July 2023.
The WELL certification system is the world's first 
building standard to focus on enhancing people's 
health and wellbeing through the built environment. 
The WELL building standard has been developed based 
on scientific research across a number of disciplines 
such as medicine and architecture, and it focuses on 
ten concepts: air, water, nourishment, light, movement, 
thermal comfort, sound, materials, mind, and 
community. It serves as a guide for design, construction, 
and property management, and aims to improve users' 
health, well-being, and productivity.


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        175
Huawei Shanghai Representative Office awarded the WELL Gold rating
EHS management: Safeguarding global service delivery
In October 2023, Huawei held the Global Service 
Delivery EHS Conference in Dongguan, China. Over 100 
EHS managers from more than 40 countries attended 
the conference, where they discussed EHS management 
and career development. During the event, recent 
achievements such as scenario-based EHS management 
methodologies and tools were released, and regional 
representatives shared their best practices in EHS 
management.
In 2023, Huawei organized more than 20 EHS training 
sessions for service delivery projects, including on-site 
training, golden seed training, lectures, and regional 
training, through which a total of 410 EHS professionals 
were certified. We have also developed and applied new 
tools such as a mobile applet built based on WeLink—
Huawei's internal office platform—that supports onsite 
delivery project management and a smart helmet for 
safety inspection. These tools can monitor issues online, 
Huawei has won the "Zero Accident" Award from the 
Indonesian Ministry of Labour for nine consecutive years.
automatically generate reports, and conduct inspections 
by scanning codes, boosting EHS management efficiency 
in service delivery projects.
■	 Employee training and development
Huawei offers two distinct career paths for employees: the manager path and the expert path. Employees can advance 
while switching between these two paths. All employees receive regular performance and career development reviews, 
and are given plenty of training and mobility opportunities during career development. We have implemented a 
mechanism for department-initiated talent transfers and an internal talent market for free mobility. Both are intended 
to drive employee mobility and help our employees become more versatile in multiple fields. Talented people are 
not confined to one domain and are instead given the opportunity to work in different professions and domains. This 
helps them reskill and upskill, giving them more room for growth. They also have the chance to work in different 
locations. At Huawei, we offer employees a global platform, exposing them to many new experiences and new 
insights that will help them grow quickly. 


176       Huawei Investment & Holding Co., Ltd.
■	 A diverse and inclusive workforce
Huawei values diversity and inclusion in its workforce and is committed to creating a workplace in which all 
employees enjoy equal opportunities. By the end of 2023, Huawei had about 207,000 employees from 162 different 
countries and regions. 
Huawei is committed to complying with applicable regulations such as the Universal Declaration of Human Rights, and 
our Caring for Employees Policy lays out the principles and requirements that we believe a good employer must meet to 
ensure employee care. These principles and requirements cover child labor, forced or involuntary labor, health and safety, 
diversity, non-discrimination, humane treatment, working hours, compensation and benefits, freedom of association, 
privacy protection, and learning and development. We have put in place processes, systems, and baselines to ensure 
that our employee care policy is effectively implemented. When it comes to hiring, remuneration, access to training, 
New employee development
Huawei's new employee development programs take various forms, such as training, self-study, exams, certifications, 
mentorship, and hands-on practices. The programs include new employee orientation (NEO), delivery practice camps, 
learning of position-specific essential knowledge and skills, position-specific hands-on practices and mentoring, as well as 
assessments and tests. 
To help new employees quickly settle into their positions, we have prepared a learning syllabus and established a 
mentorship program. The syllabus lists the learning objectives, courses, learning instructions, and completion criteria for 
each new employee and each position group. This ensures that each new employee's development plan is effectively 
implemented and that they receive proper guidance during self-study. After years of practice and improvement, we have 
basically hit all the targets we set for new employee development. 
To support these two career development paths, Huawei provides comprehensive, systematic training resources and 
platforms to empower our employees at different stages of their careers. Our digital learning platform, iLearning, 
now offers over 20,000 online courses, helping our employees pursue personalized learning anytime from anywhere 
and supporting their reskilling and upskilling. We also have over 20,000 online knowledge communities, through 
which peers and experts from different domains share their experience and insights. 
Our smart classroom solution supports hybrid teaching to boost efficiency. The solution offers a rich array of tools 
and migrates teaching resources to the cloud, aiming to bring digital to every classroom and deliver an immersive 
learning experience. At Huawei, we believe that the brightest minds should develop even brighter minds, so we 
constantly attract and cultivate excellent trainers from both inside and outside the company. In 2023, we offered 
employees a wide range of training activities, and employees spent an average of 63 hours in training.
Flexible career paths with no limits
Thought & Visionary Leader
Strategic Leader
Professional Chief
Business
Leader
Functional
Leader
Project
Leader
Expert
First-line 
Manager
Senior
Professional
Professional
Two career paths
Training & rotations
for all-around expertise
Cross-domain encounters
for rapid growth of
versatile talent
Opportunities to work
on a global platform
for a diverse team and a 
global vision


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        177
promotion, and termination or retirement, we never engage in or support any form of discrimination based on race, 
national or social origin, caste, birth, religion, disability, gender, sexual orientation, marital status, union membership, 
political opinions, age, or any other condition that could give rise to discrimination. We prohibit the use of child labor 
and forced labor, and have effective measures in place to prevent the recruitment and use of such labor. 
We have released the Employee Business Conduct Guidelines (BCGs), and require every employee to sign, study, and 
know every detail of the BCGs. These Guidelines describe the legal and ethical requirements that employees must 
comply with when engaging in business activities. This means that Huawei employees must have a strong sense of social 
responsibility while complying with all applicable laws and regulations. Anyone who is found to have violated the BCGs 
will be subject to disciplinary action (including termination of employment and legal action if necessary). 
We value diversity in our workforce and respect the lifestyles of all of our employees. We encourage our employees 
from different regions and departments to interact and communicate with each other in a way that suits their particular 
needs. We aim to create an environment that makes it easy for everyone to practice and follow their beliefs and 
customs, whatever they may be. For example, we have prayer rooms on our campuses, and halal food is available in our 
cafeterias. For nursing mothers, we provide lactation rooms. We also provide facilities like cafes, gyms, and libraries. All 
of these facilities help us provide quality services that meet the diverse needs of our employees. 
79.9%
79.8%
79.5%
79.0%
78.9%
20.1%
20.2%
20.5%
21.0%
21.1%
2019
2020
2021
2022
2023
Employee age (2023)
Male and female employees (2019–2023)
Level of education in 2023
Male
Female
30–50
68%
Below 30
30%
Over 50
2%
Bachelor's degree
39%
Other
7%
Master's degree
49%
PhD or higher
5%
Huawei selects its Top 10 Cafeterias and Best Offices every year and organizes a wide range of team activities to offer employees a 
comfortable, inclusive workplace.


178       Huawei Investment & Holding Co., Ltd.
Xinsheng Community – Huawei employees' Roman Forum 
Moving towards a diverse and inclusive world
The Xinsheng Community, launched on June 29, 2008, is one of our employees' favorite internal communication platforms. 
It consists of several sections, including corporate files, technical exchanges, management improvement, Huawei People, 
and Hall of Fame. 
In 2023, about 110,000 users visited the Xinsheng Community every day, including 90,000 Huawei employees and 20,000 
external visitors. Everyone is encouraged to speak their mind as long as they follow the Xinsheng Community Regulations. 
Users are free to share their experiences and thoughts, and we do everything we can to protect their privacy. This helps 
foster a climate in which all voices are encouraged and valued. 
Huawei has always valued diversity and inclusion. In 2023, we promoted the course Cognitive Diversity Theory: Why We 
Emphasize Diversity and Inclusion for HR professionals through an internal website, and pushed it to HR teams at all levels 
and related domains. 
With this course, we want more HR professionals and managers to realize how a diverse workforce can generate greater 
synergy and better benefit the organization as a whole. This can encourage them to work harder to develop a more 
diverse, inclusive team. 
We have also established employee communication mechanisms as part of our efforts to create an open, inclusive 
workplace that encourages mutual respect and diversity. For example, we gather our employees' opinions and 
suggestions through our organizational climate survey, Manager Feedback Program (MFP), the manager open day 
program, and more. Employees can also report violations, file complaints, and seek assistance through multiple 
channels such as the dedicated complaint mailbox of our Committee of Ethics and Compliance (CEC) and our HR 
service hotline. Huawei keeps all reporters' information strictly confidential and prohibits any attempts to threaten 
or retaliate against reporters. 
Business ethics 
Huawei works hard to conduct its business with integrity and conform to business ethics standards and all 
applicable laws and regulations. This key principle is upheld by our highest levels of management. We have worked 
for years to build a compliance management system that aligns with industry best practices and embed compliance 
management into every aspect of our business activities and processes, and these efforts continue to this day. 
Huawei emphasizes a culture of integrity and invests heavily to make it a reality. As such, every Huawei employee 
is required to strictly adhere to our Business Conduct Guidelines. 
(For further information, see the Regulatory Compliance section on pages 70 to 72 of this report.)
Supply chain responsibilities
Huawei endorses the UN Guiding Principles on Business and Human Rights and is serious about the societal 
and environmental impact of our global procurement and supply chain. We have teamed up with customers and 
suppliers to further the sustainable development of our global supply chain. We have incorporated corporate social 
responsibility (CSR) requirements into both our Quality First strategy and activities that take place across all of our 
value chain. We offer premium prices to suppliers that offer higher quality in a bid to encourage them to improve 
their CSR performance. We have also integrated CSR requirements into our global procurement processes, from 
material and supplier qualification, selection, and appraisal to performance management and procurement fulfillment.


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■	 Procurement CSR management system
New supplier
qualification
and selection
Cooperation
with customers,
industry peers,
and other
stakeholders
Risk
assessment
Supplier
learning and
enablement
Supervision
and auditing
Supplier
performance
management
Laws, 
regulations, and 
international 
standards
Huawei's CSR red lines in procurement 
Huawei has established its procurement CSR management 
system based on the OECD Due Diligence Guidance 
for Responsible Business Conduct and the IPC-1401 
Corporate Social Responsibility Management System 
Standard, and incorporated CSR requirements into our 
procurement strategy and business processes. We require 
all of our suppliers to comply with all applicable laws and 
regulations, and encourage them to promote diversity and 
improve their own CSR management by adopting globally 
recognized industry standards. The CSR agreements that 
we sign with suppliers are prepared according to the 
Responsible Business Alliance (RBA) Code of Conduct 
and the Joint Audit Cooperation (JAC) Supply Chain 
Sustainability Guidelines. These agreements cover labor 
standards, health and safety, environmental protection, 
business ethics, and management systems. Huawei 
requires that all suppliers abide by the CSR agreements 
and convey the same requirements to their own suppliers. 
To support the strategic goal of sustainable procurement, we regularly deliver CSR training to all members of the 
procurement team. This training covers CSR agreements, red lines, processes, and audit practices related to CSR in 
procurement. CSR requirements are incorporated into the performance indicators of all teams in our procurement 
department. 
■	 Supplier risk rating and auditing
Huawei conducts supply chain due diligence using a risk-based approach. We work with suppliers to identify CSR 
risks and opportunities, and take actions to prevent and mitigate CSR risks. Every year, we assess all major suppliers, 
which represent 90% or more of our procurement spending, and assign each supplier one of three risk ratings 
(high, medium, or low). We develop an annual sustainability audit plan to deal with suppliers that are assessed as 
posing medium or high risk. In addition, we perform onsite assessments on all potential suppliers to examine their 
sustainability systems. No company that fails the assessment is eligible for consideration to become a Huawei supplier. 
We consider the use of child labor or forced labor to be red-line issues, and we have zero tolerance for any behavior that 
crosses CSR red lines. In 2023, none of our suppliers were found to have crossed any CSR red lines. 
1.   Use of child labor
2.   Use of prison labor (including using prisons 
as suppliers or subcontractors) or forced labor 
(including restricting personal freedom or 
detaining personal identity documents)
3.   Violence, physical punishment, sexual harassment, 
illegal body searches, cross-gender body searches, 
and other similar behavior
4.   Salary payments below the local minimum wage
5.   Negligence that leads to major fires or explosions
6.   Working conditions that seriously endanger personal 
health and safety or lead to fatal field incidents
7.   Illegal emissions of any hazardous or toxic wastes, 
including waste water, gas, and residue.
8.   Negligence that leads to media crises or serious 
mass disturbances, such as collective labor 
disputes, mass brawls, mass poisoning, unnatural 
deaths, or other incidents causing casualties.
9.   Unsafe and unhealthy working environments 
that lack effective measures to prevent potential 
health and safety accidents, or diseases that may 
be caused due to exposure in workplaces (e.g., 
collective infections).
10.  Corruption or dishonest acts that violate the 
requirements of "no bribery, no gifts, no conflicts 
of interest, no falsification, no cutting corners, no 
fraud, and keeping promises".


180       Huawei Investment & Holding Co., Ltd.
In 2023, we assigned CSR risk ratings to over 1,600 major suppliers using the new methodology. We also conducted 
317 onsite CSR audits and more than 900 onsite EHS reviews on engineering subcontractors. 
If we find an issue during an onsite audit, we help the supplier resolve the issue using the CRCPE methodology 
(check, root cause analysis, correct, prevent, and evaluate). This methodology helps suppliers identify common 
problems and develop targeted solutions. 
In 2023, we further refined our supplier CSR risk 
rating methodology. We now evaluate each supplier's 
CSR performance and the effectiveness of their risk 
prevention and management system by focusing on 
five criteria: CSR performance rating, health and safety 
risk, environmental risk, labor risk, and audit results. 
We pay special attention to the improvements made 
by suppliers posing medium and high risks. 
To better meet customer requirements, we have 
prepared and continued to update our Supplier CSR 
Audit Checklist in accordance with industry best 
practices. We conduct supplier CSR audits using 
internationally recognized methods such as onsite 
inspections, employee interviews, management 
interviews, documentation reviews, and online 
searches. We also use the Blue Map database 
developed by the Institute of Public and Environmental 
Affairs (IPE) to assess supplier compliance with 
■	 Supplier performance management
Every year, Huawei appraises suppliers' sustainability performance as part of their overall performance appraisals. 
During this process, we also consider how they manage the sustainability of their own suppliers. Suppliers are 
classified into four grades (A, B, C, or D) based on their sustainability performance. In 2023, we improved our supplier 
sustainability performance appraisal methodology, which now looks at five criteria: environmental protection, carbon 
emissions reduction, labor management, EHS accidents, and management systems. In the past year, we appraised the 
sustainability performance of over 1,600 major suppliers. 
The amount of business we do with each supplier depends partly on their sustainability performance, which is also a 
factor considered in our tendering, supplier selection, portfolio management, and other processes. When suppliers are 
equally matched in other factors, those that perform better in sustainability are given priority in terms of the share 
of business or business opportunities. The reverse is true for low-performing suppliers. Depending on the situation, 
we may instruct suppliers with poor sustainability performance to resolve existing issues within a specified timeframe. 
Alternatively, we may reduce their share of business or offer them fewer business opportunities. We may even 
terminate our business relationships with those that display exceptionally poor sustainability performance. 
Audit 
results
Environmental 
risk
CSR 
performance 
rating
Health and 
safety risk
Labor risk
CSR risk 
rating
Criteria of supplier CSR risk assessment
environmental requirements. In 2023, seven suppliers 
resolved identified issues within a specified timeframe 
with the support of Huawei. 
280
319
318
305
317
2019
2020
2021
2022
2023
Number of suppliers on which Huawei conducted CSR
audits onsite (2019–2023)
Supplier CSR risks identified in 2023 audits
Health and safety
42%
Labor standards
26.8%
Environmental 
protection
9.9%
Business ethics
3.7%
Management 
systems
17.6%


2023 Annual Report
        181
■	 Supplier capability improvement
As part of our efforts to help suppliers perform more sustainably, we regularly provide them with sustainability 
training and coaching. We also encourage our suppliers to adopt industry best practices and embed sustainability 
requirements into their business strategies to reduce operating risks and boost efficiency. Furthermore, we invite 
leading suppliers from different industries to share their experience in dealing with risky items and scenarios such as 
printed circuit boards (PCBs), lithium batteries, and hazardous chemicals. 
In 2023, we invited 15 industry-leading suppliers to share their best practices in EHS, and more than 500 suppliers 
participated in these sessions. In addition, over 600 of our suppliers' safety managers passed Huawei's online exam on 
production safety and red lines. 
Huawei maintains close engagement and 
collaboration with industry stakeholders. Together 
with the upstream and downstream partners in our 
supply chain, we drive CSR standardization, perform 
CSR-related due diligence, and make continued efforts 
to improve CSR management and supply resilience. 
We work hand-in-hand with our partners to build a 
responsible supply chain. 
In 2023, Huawei shared information on supply chain 
due diligence with more than 50 customers, including 
that related to supply chain traceability, forced labor, 
and due diligence on conflict minerals. Huawei also 
recommended suppliers for joint audits organized by the 
telecom carrier association JAC. We actively participated 
in industry exchanges on sustainability organized by 
customers. Through these exchanges, we learned from 
■	 Stakeholder engagement and cooperation
Huawei shares supplier sustainability management practices at 
the 5th Telecom Industry Climate Change and Circular Economy 
Forum hosted by a customer.
the advanced management experience of customers 
and other vendors, and shared Huawei's best practices 
in supplier sustainability management. Together, we aim 
to develop a more sustainable value chain. 
Forum on Environmental Protection and Factory Safety for PCB Companies: Improving 
industry awareness of production safety and environmental protection
In December 2023, Huawei and several PCB industry associations held the Forum on Environmental Protection and Factory 
Safety for PCB Companies, providing a platform through which industry stakeholders could share their experience in 
sustainability. At the event, many companies, including Huawei, shared their best practices in relation to production safety 
and environmental protection. These included the use of innovative technologies to achieve safe and green manufacturing 
and help the industry achieve sustainable development. Additionally, eight upstream suppliers shared their experience at 
the forum upon Huawei's recommendation.
■	 Responsible management of minerals
Huawei is committed to and works to drive the responsible procurement of products containing raw materials, 
including tin, tantalum, tungsten, gold (3TG), cobalt, and mica. We have established a risk-based responsible mineral 
management system in accordance with the OECD Due Diligence Guidance for Responsible Business Conduct and the 
Chinese Due Diligence Guidelines for Mineral Supply Chain. The responsible management of minerals is an integral 
part of our procurement CSR management system, and has been embedded to supplier qualification, supervision, and 
auditing processes. As a downstream company in the mineral supply chain, Huawei does not directly purchase any 


182       Huawei Investment & Holding Co., Ltd.
minerals, and there are at least seven tiers between Huawei and mining companies. We require that our suppliers do 
not purchase conflict minerals, and ask them to cascade this requirement to their own suppliers, in order to prevent 
or reduce the risk that minerals contained in their products may directly or indirectly support human rights abuses, 
harm the environment or personal health and safety, or breed corruption. Huawei also actively works with global 
industry peers through industry initiatives like the Responsible Minerals Initiative (RMI) and the Responsible Critical 
Mineral Initiative (RCI). Together with partners up and down the supply chain, we conduct supply chain surveys, create 
a complete list of all related smelters, and push these smelters to apply for or maintain the Responsible Minerals 
Assurance Process (RMAP) certification.
In 2023, in response to the RMI's call, Huawei added mica to its list of due diligence on responsible mineral 
management. This means that we now identify suppliers of six minerals: tin, tantalum, tungsten, gold (3TG), cobalt, and 
mica. According to the Conflict Minerals Reporting Template (CMRT) and the Extended Mineral Report Template (EMRT), 
we urge suppliers to identify and investigate all smelters within their supply chains, and our suppliers must require that 
no identified smelters purchase minerals from conflict-affected and high-risk areas (CAHRAs), and urge smelters that 
have not obtained the RMAP certification to get the certification within a specified timeframe when necessary. 
For more details, visit: 
Huawei Responsible Management of Minerals: 
https://www.huawei.com/en/sustainability/the-latest/stories/responsible-management-of-minerals 
Huawei Statement on Responsible Mineral Supply Chain Due Diligence Management: 
https://www.huawei.com/en/declarations/huawei-statement-on-responsible-mineral-supply-chain 
Community responsibilities
Huawei actively fulfills its responsibilities to local communities. We are committed to helping local communities 
benefit from the digital world by providing basic connectivity and digital technologies such as cloud and AI. We 
work with governments, partners, and international organizations around the world to organize a variety of 
activities that contribute to sustainable development goals, such as innovation and infrastructure construction, ICT 
talent cultivation, gender equality, and environmental protection. These activities will inject vitality into local digital 
economies and help create fertile soil for the ICT industry in the countries and regions where Huawei operates. In 
2023, Huawei operated over 300 social contribution programs worldwide. 
■	 Seeds for the Future 2.0: Cultivating ICT talent to stimulate innovation
In the digital economy, ICT talent plays an instrumental role in driving digital transformation and unleashing 
productivity. In 2008, Huawei launched its flagship talent development program – Seeds for the Future. In July 2021, 
we integrated various talent development projects across the company and officially launched the Seeds for the 
Future 2.0 program, which is also known as SEEDS. The program includes a range of digital talent development 
projects related to basic digital skills training, talent leadership, intergovernmental talent cooperation, technology 
competitions, and vocational skills certifications that help increase employability. The program aims to develop ICT 
talent in the countries and regions in which we operate and improve their abilities to use new technologies and 
platforms to innovate and create. The ultimate goal is to advance science and technology and drive global digital 
inclusion. In 2023, we held more diverse activities through the Huawei Cloud Developer Institute and ICT Academy 
than the previous year, benefiting developers and industry professionals around the world. By the end of December 
2023, the Seeds for the Future 2.0 program had been implemented in more than 150 countries and regions, benefiting 
over 3.4 million people.


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        183
Seeds for the Future 2.0 (SEEDS)
In 2021, Huawei Chairman Liang Hua announced the Seeds for 
the Future 2.0 program, which plans to invest US$150 million 
in digital talent development over five years, and aims to 
benefit over 3 million additional people. 
SEEDS：
SURPASS (European Leadership Academy, ASEAN Academy, etc.)
EXPLORATION (Huawei ICT Academy, Seeds for the Future, etc.)
EMPLOYABILITY (Huawei Cloud Startup Program, Huawei Cloud 
Developer Institute, etc.)
DARING TO CHALLENGE (Tech Arena, ICPC, etc.)
SUSTAINABILITY (Women in Tech, talent programs in cooperation 
with NGOs, etc.)
In 2008, the Seeds for the Future program was launched in 
Thailand, including training programs, the Tech4Good 
Global Competition, and the Alumni Community.
Seeds for the Future 
partner 
universities
countries and 
regions
students
500+
140
17,000+
countries and regions
people
150+
3.4+ million
Tech4Good Global Competition
The Tech4Good Global Competition, which was 
launched in 2021 as part of the Seeds for the Future 
program, encourages participants to propose innovative 
digital solutions that address sustainability issues and 
create both business and social value. 
At the 2023 Tech4Good Startup Sprint in China, the 
previous year's winning teams from Algeria, Italy, and 
Ireland went on field trips to see some commercial 
applications of digital technologies, and received 
guidance on their projects from startup entrepreneurs 
and technical experts. Following a careful review by the 
Tech4Good startup investment committee, the Algerian 
team was awarded a US$100,000 startup fund for their 
farm hazard warning and monitoring system. This fund 
created more possibilities for the team to implement 
their ideas and achieve business success. 
At the 2023 competition, Team Namibia won the First 
Prize with their AI-powered teaching solution that 
caters to the needs of every student. The Second and 
The winning teams of the Tech4Good Global Competition on 
their tour in China in 2023
Third Prizes went to Team Uzbekistan's farm irrigation 
optimization solution and Team Germany's drinking 
water purification solution, respectively. Team Brazil and 
Team Uzbekistan won the People's Choice Award based 
on public voting. The winning teams will be invited to 
participate in a digital tour in China in 2024.


184       Huawei Investment & Holding Co., Ltd.
First Seeds for the Future Global Ambassador Election
In 2023, Huawei held the first Seeds for the Future 
Global Ambassador Election. Voting was done online 
and open to the public, and the 10 alumni with the 
most votes became ambassadors of the program. As 
representatives of global Seeds for the Future alumni, 
the ambassadors participated in a range of activities 
throughout the year, including online workshops and 
offline industry events, as well as Huawei's flagship 
events and international multilateral conferences. 
The ambassador from Ecuador attended MWC 
Barcelona to learn about the latest developments in the 
communications industry. The ambassador from Ireland 
chaired the Talent & Green Summit at COP 28 and 
highlighted the importance of green and sustainable 
development for the digital economy. The ambassador 
from the Philippines spoke at the Asia Pacific Digital 
Talent Summit, as part of Huawei's annual flagship 
event HUAWEI CONNECT, and discussed new ways 
to shape future leaders with the Executive Director 
of ASEAN Foundation. On behalf of global Seeds for 
the Future alumni, the ambassadors have promised to 
An online workshop with global Seeds for the Future 
ambassadors
In 2023, which marked the 10th anniversary 
of Seeds for the Future in Latin America and 
the Caribbean (LAC), outstanding Seeds for 
the Future alumni in the region attended the 
LAC ICT Talent Summit and the LAC Seeds for 
the Future Alumni Reunion in Colombia. They 
discussed the roles that youth and different 
organizations play in driving sustainable 
development and ways to fulfill their 
responsibilities with stakeholders from UNESCO, 
UN-Habitat, Huawei, and local tech firms, as 
well as government representatives.
In August 2023, 160-plus students from 15 
countries in the Middle East and Central Asia 
participated in a two-week Seeds for the Future 
project in Qatar and the UAE. The students 
experienced some of the high-tech applications 
first-hand at Qatar's World Cup stadiums and 
the UAE's Sharjah Research Technology and 
Innovation Park. They also had the opportunity 
to talk with local government officials, 
representatives of carriers and international 
organizations, and startup entrepreneurs during 
several workshops, which gave them a better 
understanding of the importance of science and 
technology for sustainable social development.
demonstrate their passion and skills during their year-
long term to make sure that the voices of young people 
are heard by more people. 


2023 Annual Report
        185
Helping young talent upskill through tech competitions to advance basic sciences and 
the ICT industry
Huawei continues to share resources and build 
platforms by participating in, supporting, and sponsoring 
top international technology competitions, such as the 
International Collegiate Programming Contest (ICPC). 
In addition to helping young people improve their skills, 
we team up with academia to work on problems in 
basic research and industry development. Together, we 
share knowledge, promote innovation, and advance 
science and technology.
In 2023, Huawei and its partners held various 
competitions and training activities, such as the ICPC 
Training Camps, the ICPC Challenge Championship, and 
bootcamps. More than 50 experts from Huawei and 
the industry gave lectures and guided participants to 
hone their skills and acquire new knowledge. Within 
just a year, Huawei published over 50 problems for 
participants to work on, shared its industry expertise 
in multiple fields, such as software algorithms, math, 
physics, and materials chemistry, and maintained 
engagement with academia. 
Students from around the world compete at the ICPC Challenge 
Championship powered by Huawei.
Huawei also collaborates with academia to build 
and improve research and experiment platforms and 
cultivate urgently-needed new talent to drive the 
development of new technologies in fields like devices, 
computing, and connectivity.
Making continued investment to build a thriving talent ecosystem
At Huawei, we believe that it is important to integrate industry transformation requirements into every part of talent 
cultivation. This includes training for teachers, students, industry professionals, and lifelong learners. We aim to 
cultivate high-caliber, inter-disciplinary talent with digital and intelligent skills who will promote enterprise innovation 
and push the industry forward. This will in turn drive greater efforts into talent cultivation, creating a positive circle. 
With this goal in mind, we have worked with 2,700 colleges and universities in over 100 countries and regions to train 
more than one million students through the Huawei ICT Academy. We also hold the annual Huawei ICT Competition 
that provides an international platform for university students to compete and share ideas. The seventh Huawei ICT 
Competition in 2023 attracted 120,000 university students from 74 countries and regions. The Huawei ICT Academy 
and Huawei ICT Competition have both been listed as key partner flagship programs by UNESCO's Global Skills 
Academy.
In addition, Huawei continues to optimize its certification system, which covers both career and specialist certifications. 
By the end of 2023, we had presented over 850,000 certifications worldwide, including more than 27,000 Huawei 
Certified ICT Expert (HCIE) certifications. Engineers who hold our certifications are valuable resources for the digital 
and intelligent transformation of industries worldwide.
Huawei ICT Competition 2022–2023 Global Final Closing & Awarding Ceremony


186       Huawei Investment & Holding Co., Ltd.
■	 Promoting gender equality and helping women improve digital skills
In the digital age, increasing women's visibility and engagement in tech opens up new possibilities for technological 
advancement and brings new value to the world. 
Since 2020, Huawei has been running its Women in Tech flagship initiative, which focuses on three themes: Tech for 
Her, Tech by Her, and Tech with Her. 
A range of Women in Tech programs have been rolled out around the world, and have already benefited many 
women. Through these programs, Huawei works with governments, partners, and third-party organizations to 
help more women improve their digital skills, provide platforms on which women can showcase their talents and 
capabilities, and drive a more equitable and inclusive digital world.
Huawei and the ITU Regional Office for Asia and the Pacific organized Girls in ICT activities, including 
tours, field trips, discussions with experts, and training sessions on cloud, AI, and other digital skills. These 
activities benefited more than 60 female students aged between 18 and 25, and aimed to encourage 
more women to join the ICT industry.
Huawei held the fourth session of the School for Female Leadership in the Digital Age in Spain. A total 
of 29 female trainees from 29 European countries participated in this training session. The program is 
designed to empower young female leaders and contribute to an inclusive and sustainable digital future 
in Europe.
April 2023
June 2023
Huawei, alongside the 
ITU and the National 
Innovation Agency of 
Thailand, launched a 
Digital Bus roadshow 
on International 
Women in Engineering 
Day, hoping to 
encourage more 
women to join the ICT 
industry.
Huawei, the Greek Public Employment Service (DYPA), and local partner INTERLEI jointly delivered 
online training on ICT knowledge and skills for unemployed women aged 25 to 49, in order to increase 
their employability. The first phase of the program benefited 500 female trainees.
Huawei, together with Peru's Ministry of Women, TV Peru, and a third-party non-profit organization, 
held the country's first awards ceremony celebrating outstanding women, where they presented 
awards to 21 outstanding local women working in seven different fields, and signed an MoU to 
continue supporting this program.
Female intern awards were presented for the first time at the Closing Ceremony of the Middle East & 
Central Asia Finals of the Huawei ICT Competition. A total of 31 female ICT students received certificates 
and earned internships at Huawei, and these internships often lead to an offer for employment.
Huawei signed an MoU with MaMa Doing Good, a local non-profit organization in Kenya, to provide 
digital skills training for more than 10,000 women. Huawei also donated electronic devices needed for 
training, such as computers, to the organization.
Huawei partnered with Egypt's National Council for Women (NCW) to launch a Women in Tech 
program. The program plans to provide online digital training to 2,000 women over the course of two 
years to help them improve digital skills and play bigger roles in the ICT industry.
September 2023
December 2023


2023 Annual Report
        187
Respecting Human Rights
Huawei believes that connectivity is a basic right for every human being. We want to build better network 
connectivity and provide convenient and affordable information and communications services to billions of people 
around the world using our innovative technologies. Ubiquitous broadband and connectivity will create jobs, 
promote development, decrease poverty, and improve quality of life. In addition, connectivity will help us respond 
to global challenges, reduce the human impact on the environment, and provide essential communications services 
to support rescue and relief efforts during natural disasters.
Huawei is committed to adhering to all applicable international conventions and national laws and policies, and 
respects all basic human rights as promoted by the Universal Declaration of Human Rights. We develop products 
and services in compliance with international standards and certifications. We strive to prevent our business 
activities from causing or contributing to any adverse impacts on human rights. Huawei has been a member of 
the United Nations Global Compact (UNGC) since 2004, and a member of the Responsible Business Alliance (RBA) 
since 2018. In addition, Huawei is committed to the UN Guiding Principles on Business and Human Rights (UNGPs) 
and standards released by the International Labour Organization.
Huawei's Corporate Sustainable Development Committee is responsible for overseeing any human rights risks that 
may exist within our business activities or supply chain, and strengthening our management of key areas that may 
impact human rights.
■	 Ensuring that technology is used to benefit humanity: Technology should be used to enhance human, social, and 
environmental well-being. Huawei firmly opposes any use of technology that has an adverse impact on human 
rights. We carefully evaluate the long-term and potential impact of our new technologies on society, based on widely 
recognized industry standards, throughout the design, development, and use of our products, and work hard to ensure 
that our products and services are used in accordance with their intended commercial purpose. To address the unknown 
risks that may arise from the widespread use of new technologies, Huawei has expanded its existing processes and 
governance programs, and we are committed to working with our suppliers, partners, and customers to manage any 
potential adverse impact of technology development.
■	 Protecting privacy: Huawei attaches great importance to privacy protection, and we take our responsibilities seriously. 
We are committed to complying with all applicable privacy laws worldwide, including China's Personal Information 
Protection Law and the EU's General Data Protection Regulation (GDPR). Huawei has embedded privacy protection 
requirements into our corporate governance and every phase of our personal data processing lifecycle. We follow the 
principles of privacy and security by design and by default and conduct privacy impact assessments before the release of 
any product or service, paying careful attention to sensitive personal data and sensitive usage. Huawei also requires its 
suppliers to comply with requirements for personal data protection. In addition, Huawei requires all of its employees to 
receive privacy training to enhance their understanding of the domain, and we encourage our employees to participate 
in professional privacy certification programs. More than 500 Huawei employees have been certified by the International 
Association of Privacy Professionals, placing Huawei among the top companies globally in this regard.
■	 Safeguarding labor rights: Huawei supports and protects the rights of its employees through detailed, equitable regulations 
that cover all stages of an employee's relationship with the company, including recruitment, employment, and exit. We are 
committed to providing equal opportunities to all employees. When it comes to employee recruitment, promotion, and 
compensation, we do not discriminate against anyone on the basis of race, religion, gender, sexual orientation, nationality, 
age, or disability. We prohibit all use of forced labor, whether overt or covert, and all use of child labor.
■	 Maintaining a responsible supply chain: Huawei has established a CSR management system for procurement in 
accordance with the UN's Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for 
Responsible Business Conduct. The CSR agreements that we sign with suppliers are prepared according to internationally 
recognized industry standards such as the Responsible Business Alliance Code of Conduct, the Joint Audit Cooperation 
Supply Chain Sustainability Guidelines, and the IPC-1401 Corporate Social Responsibility Management System Standard. 
During this process, Huawei also works closely with its supply chain partners, both upstream and downstream. In 
addition, we comply with our customers' sustainability requirements and conduct joint audits with them. We also 
require our direct suppliers to cascade our requirements to their sub-tier suppliers, asking them to respect the rights of 


188       Huawei Investment & Holding Co., Ltd.
their employees and comply with all legal requirements regarding environmental protection, health and safety, privacy, 
and anti-bribery compliance. Together, our goal is to create a responsible supply chain. Huawei has a comprehensive 
qualification process for all new suppliers, and carries out risk-informed annual audits on current suppliers. All suppliers 
are evaluated based on their sustainability performance, the results of audits, and the completion of any corrective 
actions. Huawei has a zero-tolerance policy towards the use of forced labor. If a supplier is found to have violated this 
policy, we will take disciplinary action against them, such as terminating our business relationship. To date, no use of 
forced labor has been discovered among our suppliers.
Respecting human rights has been a long-standing focus for Huawei. While remaining committed to observing 
applicable laws, regulations, and standards, we actively communicate with international organizations, governments, 
and industry institutions to develop human rights standards and guidelines for the use of new technologies. At 
the same time, we will continue to optimize management mechanisms and work with our suppliers, partners, and 
customers to promptly identify, manage, and mitigate any human rights risks or adverse impacts.
For more details about sustainability at Huawei, visit: https://www.huawei.com/en/sustainability/sustainability-report 


2023 Annual Report
        189
Abbreviation Full Name
3GPP
3rd Generation Partnership Project
AC
Audit Committee
ACM
Association for Computing Machinery
ADN
Autonomous Driving Network
AI
Artificial Intelligence
AII
Alliance of Industrial Internet
aPaaS
Application Platform as a Service
API
Application Programming Interface
AR
Augmented Reality
ARPU
Average Revenue Per User
BCGs
Business Conduct Guidelines
BG
Business Group
BOD
Board of Directors
CAGR
Compound Annual Growth Rate
CC
Common Criteria for Information 
Technology Security Evaluation
CCSA
China Communications Standards 
Association
CFO
Chief Financial Officer
CPU
Central Processing Unit
CSR
Corporate Social Responsibility
DC
Data Center
DOU
Dataflow of Usage
EAL
Evaluation Assurance Level
ECC
Electronic Communications Committee
EHS
Environment, Occupational Health and 
Safety
EMEA
Europe, the Middle East and Africa
ESS
Energy Storage System
ETSI
European Telecommunications 
Standards Institute
EV
Electric Vehicle
FBB
Fixed Broadband
FTTH
Fiber to the Home
FTTO
Fiber to the Office
FTTR
Fiber to the Room
FVOCI
Fair Value Through Other 
Comprehensive Income
FVPL
Fair Value Through Profit or Loss
Abbreviation Full Name
FWA
Fixed Wireless Access
GIO
Global Industry Organizations
GPO
Global Process Owner
GSMA
Global System for Mobile 
Communications Association
HD
High Definition
HDR
High Dynamic Range
HIMA
Harmony Intelligent Mobility Alliance
HMS
HUAWEI Mobile Services
IaaS
Infrastructure as a Service
ICPC
International Collegiate Programming 
Contest
ICT
Information and Communications 
Technology
IETF
Internet Engineering Task Force
IFRS
International Financial Reporting 
Standards
IoT
Internet of Things
IP
Internet Protocol
ISP
Internet Service Provider
IT
Information Technology
IUCN
International Union for Conservation of 
Nature
LAN
Local Area Network
MIMO
Multiple-Input Multiple-Output
MWC
Mobile World Congress
NAS
Network-Attached Storage
NGO
Non-Governmental Organization
O&M
Operations and Maintenance
OECD
Organisation for Economic 
Co-operation and Development
OPEX
Operating Expenditure
OS
Operating System
OXC
Optical Cross-Connect
PaaS
Platform as a Service
PC
Personal Computer
PCB
Printed Circuit Board
POB
Performance Obligation
PON
Passive Optical Network
Abbreviations, Financial Terminology, and Exchange Rates


190       Huawei Investment & Holding Co., Ltd.
Financial Terminology
Operating profit
Gross profit less research and development expenses, selling and administrative expenses, plus other (expenses)/
income, net
Cash and short-term investments
Cash and cash equivalents plus other current investments
Working capital
Current assets less current liabilities
Liability ratio
Total liabilities expressed as a percentage of total assets
Cash flow before change in operating assets and liabilities
Net profit plus depreciation, amortization, impairment, exchange loss, interest expense, loss on disposal of property, 
plant and equipment and intangible assets, and other non-operating expense, less exchange gain, investment 
income, gain on disposal of property, plant and equipment and intangible assets, and other non-operating income
Exchange Rates
CNY/USD
2023
2022
Average rate
7.0884
6.7643
Closing rate
7.0808
6.9533
Abbreviation Full Name
PUE
Power Usage Effectiveness
PV
Photovoltaics
R&D
Research and Development
SaaS
Software as a Service
SDG
Sustainable Development Goal
SME
Small- and Medium-sized Enterprise
SSP
Stand-alone Selling Price
SUV
Sport Utility Vehicle
Abbreviation Full Name
TCO
Total Cost of Ownership
TWS
True Wireless Stereo
UNESCO
United Nations Educational, Scientific 
and Cultural Organization
UNGP
UN Guiding Principles on Business and 
Human Rights
VR
Virtual Reality
WAN
Wide Area Network


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Tel: +86-755-28780808
www.huawei.com
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