Huawei Founder Hints at Possible Public Offering
In a letter to employees, Huawei (pvt) founder Ren Zhengfei, made references to the potential for a public offering in the future, something the founder has denied in the past. Huawei has been in a difficult position, a result of US trade sanctions, and has seen some of its business segment shrink rapidly. The letter to employees was specific about the effect the creation of false accounts might have on one of the company’s businesses entering the capital markets, stating that falsifying accounts would move from a disciplinary issue to a legal one, with dismissal the immediate result.
The letter preceded Huawei’s full year financial report, which saw sales growth of 3.8%, the slowest in 10 years, with negative growth in the company’s overseas markets, and indicated that the company will encourage talented employees to take positions outside of the Mainland over the next 3 to 5 years to bolster its sagging international prospects, and made a number of references to its aggressive employees, hundreds of whom volunteered to be demoted when the US sanctions were first introduced. “To go to the battlefield, to shoot, to be injured, is always our priority” was the mantra in the letter, reiterating his philosophy, but his references to a potential IPO seem to take more weight outside of the company.
The letter preceded Huawei’s full year financial report, which saw sales growth of 3.8%, the slowest in 10 years, with negative growth in the company’s overseas markets, and indicated that the company will encourage talented employees to take positions outside of the Mainland over the next 3 to 5 years to bolster its sagging international prospects, and made a number of references to its aggressive employees, hundreds of whom volunteered to be demoted when the US sanctions were first introduced. “To go to the battlefield, to shoot, to be injured, is always our priority” was the mantra in the letter, reiterating his philosophy, but his references to a potential IPO seem to take more weight outside of the company.
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