Ren Zhengfei: Huawei is not listed better

Li Na

Huawei CEO Ren Zhengfei said recently that he would not let Huawei go public because he did not want companies to become short-sighted and near-profitable. In addition, Huawei also plans to expand the investment market in Europe, but for the U.S. market, it needs a Long time to break.

Ren Zhengfei on the 2nd, rare in London to accept foreign media interviews, said that because of his personal style do not like to contact with the media, so Huawei with a sense of mystery, and then as foreign rendering is a security concern of the company.

Commenting on the ownership structure of the company, Ren Zhengfei said he did not intend to go public, but on the grounds that investors are very greedy and would like to drain all of the company, which would make Huawei a short-sighted and short-term company Under the unique ownership structure of Huawei employees, Huawei is one of the reasons why they can catch up with several competitors in the telecom equipment industry.

Respond to the listing issue

As the world's second-largest communications equipment maker, Huawei is being shut out from the United States, the world's largest communications market, due to intelligence agencies and political security concerns. The United States said that the reason for prohibiting network services using Huawei-made equipment for two reasons: First, Ren Zhengwei's early military background, and second, Huawei and the Chinese government are inextricably linked. In response, some people suggested that Huawei listing in the United States, some of the company's equity to Westerners, so as to establish the latter's trust.

However, in Ren Zhengfei's opinion, the "greedy" nature of Western market capital will hurt Huawei's long-term growth. "A large number of theories in traditional economics claim that shareholders have a long-term perspective and they will not pursue short-term interests and will do so in the future Very reasonable and evidence-based investment, but in fact the shareholders are 'greedy' and they want to squeeze every bit of the company's profit as quickly as possible. "

In addition, Ren Zhengfei also explained the internal ownership structure of Huawei, claiming that he holds only 1.4% of the shares, the rest are held by employees. Ren Zhengfei believes that this ownership structure is one of the reasons Huawei can catch up with its peers in the industry. "Huawei employees are also the owners of the company, so they tend to be long-term and not eager to cash in. The company's owners are not greedy Huawei can also stay in the enjoyment of the position, but I can not live forever, maybe one day Huawei people will become greedy. "

Huawei disclosed its ownership structure for the first time in its earnings report in 2009 - when Ren Zhengfei held 1.4% of the shares. Huawei Holdings is a 100% private-owned enterprise held by employees, and the shareholding structure remains unchanged.

Intends to increase investment in Europe

Although Huawei was frequently accused of dumping in the United States and Europe and receiving subsidies from the government, Ren Zhengfei stressed that they must act to prove that they are not engaged in the above act. The evidence shows that at the 2013 exchange rate, Huawei's research and development spending had reached 50 Billion, higher than Ericsson's 4.9 billion US dollars, which helps Huawei to develop high-end products, get rid of low-end image.

Ren Zhengfei believes that the United States will open the door to Huawei in the future, but it will take a long time. "I think we may have a chance to allow the United States to admit that Huawei is an honest and positive company, waiting 10-20 years."

Despite the setback in the U.S. market, Ren Zhengfei is more confident about the European market. He said he hopes Huawei will see Huawei as a European company in the next few years. To prove that Huawei will strengthen its R & D investment in Europe and will hire employees in 2014 The reward program has been extended to all non-Chinese core employees and hopes to attract more talents to work for Huawei.

Earlier, Huawei announced its $ 2 billion investment in Europe for the construction of a local procurement and R & D center in Europe. Huawei currently has more than 7,000 employees throughout Europe.

According to Ren Zhengfei's prediction, Huawei's annual revenue in the next four years is likely to double to reach 70 billion to 80 billion U.S. dollars. However, he said Huawei will not conduct any M & A transactions in the short term in order to enhance its smart device or telecom equipment business.