Huawei is one of the financially strong tech company globally and apparently, the company isn’t in need of any financial backing going by recent statements from the company’s CEO. Richard Yu, CEO of Huawei’s consumer Business at the IT Leaders Summit held today in Shenzen, China, disclosed why the company isn’t going public anytime soon and that is because it is investing in the future. He hinted that a public listing would make the company shift its focus to short term profits for investors.
Richard Yu also stated that basic research was a very important factor for the core competitiveness of enterprises and countries. Huawei has invested heavily in Research and Development (R&D) over the years and we see the result in the innovative technology that accompanies its smartphones.
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Earlier in the week at Huawei’s 2018 Annual Report press conference, Guo Ping, the rotating chairman of Huawei, also talked about the issue of an IPO. He pointed out that Huawei has no listing plan yet. He also stressed that going public will not solve the problem of the US government. Huawei is said to be a 100% private enterprise held by employees. The company implemented the employee stock ownership plan through the trade unions with the total number of participants put at 96,768. The participants were said to be employees of the company only and no government parastatal or institutions held Huawei’s equity. That would need a lot of convincing for parties like the US government to believe. The company is in profitable ways, though, going by its recent financial report.
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