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E-book Built on Value : The Huawei Philosophy of Finance Management
Huawei pursues sustainable and profitable growth, rather than maxi-mizing the interests of its shareholders or employees. Huawei only exists to serve its customers. Financially speaking, this refers to the value created for the company. For Huawei, a non-public company, value is not the same as capital market valuation. Rather, it relates to the deeper essence of value, reflecting the company’s current and potential capabilities to make profits.At Huawei, sustainable and profitable growth first means that business performance is robust, with profitable revenue, healthy cash flow, and light assets. Second, sustainable and profitable growth means the company is constantly enhancing its core competencies. Third, it means building a healthy and friendly business ecosystem. Business performance must be steady and balanced if it aims to support the company’s long-term survival and development. Huawei’s business model is one that maintains a long-term state of hunger for the company and doesn’t seek to make big money.
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