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After five years, what signal has the change of Huawei's board of directors released?

After five years, Huawei released the results of the latest board election on its intranet. Judging from the list of members announced, Liang Hua is still the chairman, and the vice chairman has not changed, which are Xu Zhijun, Hu Houkun, and Meng Wanzhou.

Unlike previous years, the current board of directors has been expanded, from the original 13 to 17 members, Zhang Pingan, Zheng Liangcai, Cha Jun, Hou Jinlong, Yang Chaobin and Ying Weimin have been added, while Xu Wenwei and Yan Lida are no longer directors.

On the same day, Huawei's board of directors also confirmed Vice Chairmen Xu Zhijun, Ken Hu, and Meng Wanzhou as rotating chairmen of the company. Among them, Meng Wanzhou's rotation time will start on April 1 this year and will last for six months.

Judging from the signals released by the current Huawei's board of directors, Huawei's management model still adopts the collective leadership model, and most of the new members elected to the board of directors are leaders of Huawei's core business, involving HUAWEI CLOUD, digital energy, software and hardware, ICT solutions, HR, and supply.

After five years, what signal has the change of Huawei's board of directors released?

Huawei's rotation system is rare in the governance model of global companies, and this model has undergone many changes.

Before 2004, major strategic decisions were mainly made by Huawei's founder Ren Zhengfei or then chairman Sun Yafang, and then gradually decentralized, and then transformed into collective leadership. After the board change in 2018, the original rotating CEO system was terminated and the rotating chairman system was used to manage the company.

This is Huawei's fourth board election, and the biggest change is that the subdivision of the board of directors has been adjusted, and two new executive directors have been added as non-voting delegates, namely Zheng Liangcai, President of the Human Resources Management Department, and He Tingbo, President of HiSilicon.

Among the six new board members, in addition to Zheng Liangcai, Huawei CLOUD CEO Zhang Pingan, Academia Sinica President Zha Jun, Huawei Digital Energy President Hou Jinlong, ICT Products and Solutions President Yang Chaobin, and Huawei Chief Supply Officer Ying Weimin.

From the specific business that the board members are responsible for, there are not only the "ICT basic business" that is regarded as Huawei's granary, but also the Huawei Cloud and digital energy, which is responsible for the development of the "locomotive" business, as well as the supply chain and chip and software continuity supply business.

After five years, what signal has the change of Huawei's board of directors released?

A number of Huawei insiders interviewed by reporters said that this adjustment represents Huawei's business focus in the next stage, focusing on both software and hardware business, and on the other hand, implementing ICT capabilities through cloud business and digital energy business to seek profit margins.

"It is somewhat surprising that the person in charge of the operator and enterprise business was not selected, but from the current market space, the incremental mining of the two major markets is indeed facing certain challenges, and in the implementation of the corps business, internal adjustments are also continuing, and the business volume of a single corps is still small." The above-mentioned insiders believe that the current management camp adjustment also represents an internal judgment on the current market environment.

In addition, the shareholding employee representative committee voted to elect eleven alternate directors: He Gang, Bai Yi, Cao Jibin, Zhou Hong, Bian Honglin, Jin Yuzhi, Lu Yong, Zou Zhilei, Jiang Yafei, Hu Kewen and Wang Huanan. In the event of a vacancy in a Director, an alternate Director shall be replaced as a Director in accordance with the relevant procedures. Among them, He Gang is the chief operating officer of Huawei Device Company, Bian Honglin is the technical leader of Huawei's automotive business, and Bai Yi is the head of investment of Huawei Hubble Technology.

In this re-election, Meng Wanzhou's "on-duty" is also the focus of attention from the outside world.

According to Huawei's official website description of "corporate governance", Huawei implements collective leadership at the governance level, does not tie the company's fate to individuals, and follows the principles of common values, focus on responsibility, democratic centralization, separation of powers and checks and balances, and self-criticism.

Among them, the board of directors is the highest responsible body for the company's strategy, operation management and customer satisfaction, undertakes the mission of leading the company forward, exercises the decision-making power of the company's strategy and management, and ensures that the interests of customers and shareholders are safeguarded.

According to Huawei's official website, the rotating chairman's responsibility is to focus on the management of the company internally, and lead the company forward by leading the work of the standing committee of the board of directors and the board of directors. The rotating chairman is the top leader of the company during his term of office, leading the company's board of directors and executive board. The rotating chairman rotates for a period of six months.

On April 1, Meng Wanzhou will usher first rotation at Huawei as rotating chairman. According to the official website information, Meng Wanzhou graduated from Huazhong University of Science and Technology with a master's degree. He joined Huawei in 1993. He has served as the company's international accounting director, chief financial officer and president of the accounting management department of Huawei Hong Kong. He is currently the vice chairman, rotating chairman and CFO of the company.

Meng Wanzhou's most recent public appearance was at Huawei's "Breaking Through Wujiang Heavenly Danger" pledge conference.

According to the video leaked online, Meng Wanzhou said when presenting the flag to Huawei's software pipeline tool team: "Huawei's 30 years of IPD R&D practice and R&D tools are like pearls. Today, the company shines brightly through the series of assembly lines. ”

Huawei said that at present, the company's chip design EDA tool team has worked with EDA companies to jointly build EDA tools required for processes above 14nm, and has basically realized the localization of EDA tools above 14nm, and will complete its full verification in 2023.

This means that Meng Wanzhou's tenure will be a key period for Huawei in the software business.

In the eyes of the industry, Huawei is engaged in a long-term software and hardware two-line battle. Compared with hardware, how to extend from the engineering software that Huawei is good at to the basic software at the lower level is a tough battle for the current Huawei.

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