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Published on August 5, 2007

In less than 20 years, Huawei has become a truly formidable global competitor, with a long list of clients worldwide, including in the Western hemisphere. The group has at times clinched contracts for an entire state, or big chunks of countries.

Huawei claims success in almost all aspects of its operations. Its balance sheets present impressive operating results, profitability, potential expansion and future prospects, aiming to be at the forefront with a vast investment in R&D.

What its annual report does not mention is the top management team, the hierarchy of the rapidly expanding business group. The report does not even name the chairman, the CEO and the top brains behind the growth and success.

Little is known about the CEO due to his desire to maintain a low profile. What is known about him is that he is a former military officer with a background in engineering who started Huawei in 1988 with just 200,000 yuan (Bt895,000), a sizeable sum at that time, with loans from banks and, later, capital input from employees.

Though his name is known, Huawei's top executive is reluctant even to spell it out. There is nothing secretive about the background of the man who stands behind Huawei's success; he just does not want to make himself better known than Huawei's success and its quality products.

The annual report does not even list the board of directors, unlike other big names in global business that usually presents impressive lists of directors and their long records of achievement in their respective fields.

The message from Huawei's 2006 annual report was presented by the "Executive management team", with no names mentioned. The report was designed to let clients, rather than investors, know what Huawei has achieved and what it intends to do in future.

There is a subtle warning in this - that Huawei will stop at nothing to become more than just a global player with unlimited potential. The absence of management with impressive credentials does not concern Huawei's executives. In their view, what really counts is the bottom line - impressive figures on the balance sheet. Huawei does not want a low profile in this respect, of course.

The reason for the relatively low profile is that Huawei remains a private company, with employees holding 80 per cent of stock, and the owners and top management the rest. It does not need to attract investors and still shows no desire to become a public company, which would make its shareholders richer many times over their original investment through gains accumulated over the years.

Industrial companies usually occupy a few acres with their factories and facilities; Huawei's business in Shenzhen covers 1.2 square kilometres. Along with factories, R&D and other facilities, the company maintains large green areas and dormitories for employees.

Shenzhen is its headquarters, but Huawei's ambition grows together with its product list and the scope of its operations in telecoms and related fields.

The company has 800 million subscribers already, yet it still wants more and more R&D people with top brains to maintain its competitiveness in all fields.

The next expansion will be into Dong Guan City, Guangdong province, with a total area larger than the present 1.2 square kilometres, and an initial investment of US$500 million (Bt16.9 billion).

The rush to expand operations is to keep up with the growth rate of Huawei's business, currently projected at 30 per cent annually. Though China, with its 1.3 billion population can serve as a major market, Huawei's business abroad accounts for 60 per cent of its total operations, according to its 2006 annual report.

Journalists visiting Huawei's headquarters here will need an extra large bag to carry all Huawei's materials, product catalogues and presentations. It is overwhelming, with frequent updates.

At the Huawei command centre, a team of technicians monitors operations worldwide round the clock. Though guests are allowed to take a brief look at what they do, photographs are not permitted.

A tour of Huawei's entire complex takes a long time in a coach, and involves long walks at times. Huawei has a lot to show to prospective clients from various parts of the world to assure them that what they will get will not be shoddy equipment and systems.

Thailand might be among the few places where the company has yet to construct the desired image for itself, due to misunderstandings and probably misconceptions about its involvement in telecom projects here.

What it wants to assure Thai telecom agencies about is its desire for a long-term presence with competitive product quality and systems superiority. But some telecom executives are not yet convinced due to their earlier affiliations with other operators.

This is hard work for Huawei. It's not just purely competition in product or capability; it's about perception. Maybe this can be straightened out if top Huawei executives ask senior Chinese government officials to explain to the Thai side that there were no links whatsoever with the former prime minister, now in political exile in London.

There are still formidable obstacles to gaining this trust. Truth and perception are difficult to separate. At times, Huawei believes it does not get fair treatment, or even an opportunity to provide an explanation to those who have lingering doubts about its presence and the way it does business here.

Misconceptions might be all right with ordinary people if there is no other choice, but not when they occur among those who have a significant say in deciding bid winners. Huawei does not want such misunderstanding to put it a disadvantage in achieving success in Thailand.

Sopon Onkgara

The Nation

Shenzhen