Huawei founder Ren Zhengfei hints for the first time that a public listing of one of its business units might be on the cards
- Ren tells employees that faking accounts may be a legal problem in the future if one of Huawei’s businesses enters the capital market
- Group revenue rose 3.8 per cent year on year to US$136.7 billion but the company recorded negative growth in its overseas markets as sanctions kicked in
Ren Zhengfei, the leader of embattled Chinese tech giant Huawei Technologies Co, hinted in a letter to employees on Sunday that the company may be exploring the capital market, marking a subtle shift from previous statements that it has no plans to go public.
The letter, published on Huawei’s official employee website, tackled the uncertainties the company is facing as US trade sanctions continue to affect its business. Ren issued a warning to staff not to falsify accounts, or else they will face dismissal.
“If one of our businesses gradually enters the capital market in the future, falsifying accounts may not be a disciplinary issue, but a legal issue,” he wrote.
While Ren was not explicit on whether Huawei has such a plan, the suggestion was a marked difference from the Shenzhen-based company’s previous statements, which have said it is not considering an IPO.
Ren’s letter was dated March 30, the day before the telecommunications equipment giant reported its slowest annual revenue growth in a decade.
Group revenue rose 3.8 per cent year on year to 891.4 billion yuan (US$136.7 billion) but the company recorded negative growth in its overseas markets as trade sanctions continued to eat into earnings.
Huawei declined to comment on the letter.
