The current Huawei is not the same Huawei that sold itself to Motorola of the United States for US$10 billion at the end of 2003.
In just two years, Huawei has been transformed into a phoenix and has become the most beautiful player in the field of wireless communication equipment in the world. Its upward momentum is very strong.
2003
The competition in the domestic communications market is extremely fierce. Provincial and municipal telecommunications bureaus with national brand names do not trust Huawei's products, but instead favor foreign manufacturers.
Huawei has encountered obstacles in its domestic bids. It was even unable to get equipment orders from the Guangdong Province Telecommunications Bureau. Instead, it was targeted at every turn, making its business operations very difficult.
The brand is not well-established, and the company has little chance of exploring overseas markets. In most cases, it is wandering around in the Asian, African and Latin American markets, and the profit margins of its products are very pitiful.
The two major telecommunications markets in Europe and North America are not developing smoothly. Most European and American multinational operators do not recognize Huawei's products. There is no hope for the 3G business that supports the company's core business. This makes Mr. Ren feel confused and gradually wants to quit.
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At the end of 2003, Huawei's annual sales were 31.7 billion yuan, a sharp drop of 23% from the previous year.
Taking into account the sensitivity of the digital communications industry, which may be hit by the US government in the future, under various embarrassing circumstances, the far-sighted Mr. Ren finally compromised.
Huawei has been in frequent contact with Motorola and plans to sell it for US$10 billion.
The two parties had already signed a formal intention for the acquisition. Who knew that the new president of Motorola believed that the price of 10 billion U.S. dollars was totally not worth it, so he broke the acquisition agreement and went to court with Huawei over patent infringement.
Learn from the pain
Mr. Ren is determined to develop Huawei, using wolf culture to encourage employees to be self-reliant and self-reliant, and carve out a bloody path.
Huawei has developed a full line of CDMA and WCDMA products and holds core patents. In early 2004, a large 3G order from the British O2 Communications Company was nothing short of a timely blessing.
Since then, Huawei has taken advantage of this shareholder trend to enter the two major communications markets of Europe and North America, and its operating performance has experienced a dazzling surge.
In 2004, Huawei's annual sales were 65.1 billion yuan, a 110.5% increase over the previous year.
In 2005, the annual sales exceeded 100 billion yuan, reaching 110.2 billion yuan, of which overseas sales were 5.873 billion US dollars. This is no longer running, but flying all the way.
Huawei has established 8 regional departments, 55 representative offices and technical service centers around the world. Its sales and service network covers the world, serving more than 270 operators, including 22 of the world's top 50 telecom operators.
Products have entered more than 70 countries including Germany, France, Spain, Brazil, Russia, the United States, Fuso, Egypt, Thailand, Singapore, and South Korea, and the market prospects are promising.
In accordance with HSBC’s prudent assessment;
Referring to the stock prices of similar companies in the world, Huawei's valuation should be between 44 billion and 48 billion US dollars. This is a conservative estimate, and the actual value should still have 15 to 20% room.
In just two years, Huawei has achieved a magnificent transformation from an ugly duckling to a white swan. The current Motorola board of directors is filled with regrets. Tearing up the merger agreement is the stupidest thing they have ever done in their lives.
As a long-term strategic investor in Huawei, Royal Family Fund is expected to hold 13.5% of Huawei's shares after dilution after listing, making it the third largest shareholder.
Hilton Hotel Conference Hall
"Hahaha... Brother Ren, I haven't seen you for a few months, but your spirit is still as strong as before."
"Brother Yaocheng, brother, I won't say anything else."
Mr. Ren held Wang Yaocheng's hand with emotion, shook it vigorously, and said solemnly: "I am here to express my position on behalf of Huawei people today. No matter what happens in the future, Huawei will stand firmly by your side and do the best."
A trustworthy ally.”
Wang Yaocheng knew how important this promise was, so he nodded vigorously and said, "I will keep it in mind. Thank you Brother Ren for your trust."
The two big guys looked at each other and laughed, and successively greeted a group of senior executives participating in the meeting. For Royal Fund, there were Shi Xueyi, director and chairman of the supervisory board of HSBC Bank, Qi Yaonian, director and senior vice president, Wang Huiyang, president of Hong Kong Global Telecommunications Company, and vice president
President Tian Yuan and others, as well as senior executives from Huawei, gathered in Huaizhou to discuss major issues.
The theme of this closed-door meeting is twofold;
First, in early 2006, the company will be listed in Hong Kong and London respectively. The lead underwriter, HSBC, is conducting final high-level coordination with listed Huawei, and is preparing to launch the listing road show after the Spring Festival.
Secondly, this is in response to the second phase of the massive global expansion of Hong Kong Global Communications Company, which will successively build 160,000 sets of 3G base stations and backbone optical fiber networks, involving a large number of network communication equipment and products, and the two parties have further communication.
a few hours later
The closed conference room door opened, and the senior executives participating in the meeting came out chatting and laughing. Mr. Ren said with an uncontrollable smile on his face; "Brother Yaocheng, we are all on your territory today, and we are all guests."
Whatever you want, there is something they have been holding back in their hearts and they don’t have the nerve to ask, it doesn’t matter how old I am anyway, what can we entertain us tonight?”
"What do you mean, you're on my territory? This makes me feel like a bandit."
Wang Yaocheng and Shi Xueyi walked out of the room and laughed when they heard this: "I'm not bragging to you, Mr. Ren, but look where you are now. Where did Huaiyang cuisine originate? This is the home of Huaiyang cuisine.
Ah! If you don’t want to eat anything, then you will never tire of fine food and fine food.
If nothing else, let me tell you about meatballs. You can find these meatballs everywhere.
But we are different in Huaizhou. The best pork leg meat is beaten into mince with an iron rod to ensure that the muscle fibers are not cut off while it is springy. It also has a good chewing texture and is mixed with local wild shrimps from Hongze Lake.
More than a dozen ingredients, including water chestnuts and diced mushrooms, are simmered in soup stock to make it watery. It tastes very different. It is fresh and smooth, with a chewy texture and a special quality inside."
"Ouch! I can't help but salivate when I hear you say that."
"Brother, just keep your heart in mind. In Huaizhou, there are so many fresh vegetables from Hongze Lake, Xuyi thirteen-flavored lobster, and Huaiyang local dishes. You can eat them all for a week without the same thing."
Mr. Ren said with emotion, "What a wonderful place with outstanding people! Huawei is planning to invest in building a production base here, and it happens to be jointly developing with Yangtze River Technology Group. If you want to eat these delicious dishes in the future, you will be able to eat them at any time."
"Welcome, welcome! The government leaders must be extremely happy to know this. This is a great thing!" Wang Yaocheng didn't expect that Mr. Ren would give him an easter egg, so of course he welcomed it with both hands.
Mr. Ren said as he walked; "Huawei is still interested in the complete supporting facilities here. It has two leading companies, Yangtze Technology Group and Atlantic Jinko Wafer Production Base, as well as Corning's high-quality semiconductor components and a high-tech development zone.
More than 400 electronic parts companies have complete supporting facilities.
It has a mature electronic parts industry chain and the largest mobile phone production capacity in the world. All the electronic components you need can be found here.
Being able to settle here will be of great help to Huawei, and I believe it is the best choice."
Wang Yaocheng responded: "Yes! Everyone adds fuel to the flames. I have always adhered to the principle of making the cake bigger. It is the best choice for enterprises to be close to the industrial chain, which is conducive to mutual promotion and improvement."
"Like Huawei and Cisco?"
Faced with Mr. Ren's question, Wang Yaocheng stopped and said seriously; "Although Cisco is a consortium, I hope that Huawei and Cisco can compete fairly in the market, and the winner will be the winner and the loser will be the loser.
Of course, there can be no absolute fairness.
Backed by royal funds and the US market, Cisco's chances of winning are much greater than yours, and it can get strong support from the consortium when needed.
So... Huawei must work hard!"
Ren Zhengfei was not surprised by this and said;
"The 30,000 Huawei employees have been mentally prepared for this. We are not afraid of equal competition at any level, and the international market is so big, Huawei's primary competitive target is not Cisco.
There are many strong players in this market, including world-class manufacturers such as Canada's Nortel Networks, France's Alcatel, Nordic Nokia and Ericsson, and Germany's Siemens. These are all powerful opponents that we need to challenge.
Counting famous people, let’s look at the present day.
Since 2004, thanks to the support and help of Global Communications, Huawei has broken through the obstacles in the European and North American markets, and its corporate development has entered a new stage.
Nowadays, Huawei people are more confident to meet new challenges. We believe that we will usher in an explosive period of corporate development, push Huawei's products to every corner of the world, and become a must-select product in the shopping basket of the world's top communications operators.
I believe in our brothers at Huawei, and I have full confidence in leading them to victory."
Wang Yaocheng said, "Whether a train runs fast or not depends entirely on the headband. I believe that Huawei, under the leadership of Brother Ren, will surely achieve greater success."
"Hahaha... I know, this is the famous investment theory of the God of Wealth. Investing in a company is more about investing in an outstanding entrepreneur, such as investing in Mr. Jobs, investing in Mr. Chambers, and now investing in me.
Ren Zhengfei, it seems that from the perspective of maintaining the golden sign of the God of Wealth, I have to take Huawei to a new level in order to live up to the trust of my brother Yaocheng."
"That's what I mean, thank you Brother Ren for supporting me!"
"Haha... easy to say."
In the evening, Wang Yaocheng personally hosted a grand dinner to entertain a group of Huawei executives who had come from afar.
Relevant leaders of the Huaizhou Municipal Government also attended the banquet. They sincerely welcomed Huawei to invest in Huaizhou and promised to provide preferential policies for high-tech enterprises to settle in and provide full support in terms of land, taxation, water and electricity facilities, and finance.
There was a lot of laughter and laughter during the banquet, and the big guys gathered together and had a good time. The accompanying government office staff recorded all this with their cameras, freezing it in a historical fragment forever.