Jiangxi Health: Huawei's trade union committee, as a grassroots trade union committee, operates and manages according to the trade union law.

The duties of the grassroots trade unions are basically similar to those of some foreign trade union organizations. However, Huawei holds shares in the name of a trade union. As a platform for holding shares, the trade union is managed by a representative of the shareholding employees. It is separate and independent from the trade union committee. What are the activities organized by our company’s trade union committee? It is an employee's leisure activities. There is a life coordination committee including basketball associations, badminton associations, table tennis associations, running associations, photography associations and other associations organized by the trade union committee.

South China Morning Post reporter: Hello! You just mentioned that the veto has a major matter and there is no right to decide. What major issues have veto power? Is there any specific provision?

Jiangxi Health: There are clear regulations. There is a governance charter in Huawei. The governance charter clearly defines what aspects, such as the company's capital increase, capital structure adjustment, governance charter, revision of major governance documents, including candidates for company directors and supervisors. There is a veto power in the nomination of people. This veto is not easy to use. The governance charter clearly stipulates the responsibilities, powers, and checks and balances of each governance organization, including the shareholding employee representative meeting, the company's board of directors, and the board of supervisors.

I will say a few more words about this point. The Huawei governance charter has taken a lot of effort and great energy to make it. Through three years of discussion, the company has absorbed some of the industry, enterprise, family business, and party state systems of ancient and modern China and foreign countries. Of course, it is more of a summary of the thoughts and experiences of Huawei's operations in the past 30 years, including the management of the general manager. A summary of ideas and management philosophy. We also focused on the development of the US Constitution and the stability of the US Constitution, which is very surprising or very agreeable. The US Constitution has only 27 amendments for more than two hundred years, which is very valuable. The stability of the US Constitution for more than two hundred years may be one of the reasons for the rapid development of the United States for more than two hundred years.

New York Times reporter: First, you mentioned that the trade union committee and the shareholding employee representatives will have no relationship in organizational structure. Why is the trade union committee holding stocks instead of holding employee representatives in the business information?

Second, the scope and function of your explanation should be the power of the shareholding employee representative to exercise the shareholder's share of one vote. The trade union committee has the word "trade union". In many cases, there is some confusion about the functions and power relations between the two. Why does Huawei not consider another to avoid such confusion.

Third, you mentioned that the holding of virtual stocks cannot be transferred between employees. If employees leave, they can buy back. In some cases, employees can continue to hold these stocks after they leave the company. Under what circumstances employees can do this. There is no corresponding charter or regulations that are in place to stipulate what circumstances employees can continue to hold.

Jiangxi Health: Your question is very good. In fact, we also want to ask, why can't we let the shareholding employee representative register as a shareholder? In fact, it is true that the Trade and Industry Bureau does not register, and this issue can be registered early. There are several ways for early employee stock ownership:

First, employee stock holdings can be registered directly.

Second, register in the name of a trade union.

Of course there are other ways to engage in a holding company or something else. Later, the corporate legal person of the employee stock ownership association was not registered in the civil administration system. Even if the civil administration system was established, the industrial and commercial bureau did not register as a shareholder, but it has been possible for the trade union to register as a shareholder. We are also embarrassed about this problem, and often ask why it is not, but no one told me.

Can the trade union be changed to other methods? With a lot of companies, this is complicated. There are a maximum of 50 limited liability companies, 200 companies, and more than 90,000 people. In addition to 200, hundreds of companies must be established. More than 200 companies can't do more than 200. The total number of companies cannot exceed 200. , so it doesn't work either. Is there any other way? It may also be too complicated, too costly, and may eventually have other legal issues. Therefore, it is not always easy to understand the use of trade unions as a nominal shareholding, but this is feasible at present, and Huawei has always adopted this approach.

Under what conditions, employees can continue to hold stocks after leaving the company. We stipulate that Huawei can continue to hold jobs after 8 years of work and at the age of 45. This is stipulated. We have a document. You can look at the regulations when you go to the equity exhibition hall in the afternoon.

Financial Times reporter: Thank you Jiang time, there are three questions:

First, regarding the Chinese Trade Union Law. By understanding, according to the Chinese Trade Union Law, the Huawei Trade Union Committee is part of a national trade union (which should be the National Federation of Trade Unions). Huawei should pay a portion of the wages to Huawei’s trade union committee, and part of it will be turned over, eventually to the whole country. The union, is this correct? What kind of control or influence does the General Union have on your trade union committee? At the same time, will there be a management relationship, will there be review and supervision in the year?

Second, the trade union committee is the trade union committee of the holding company, not the trade union committee of Huawei Technologies. You just mentioned that most of the employees of the holding company are management, not ordinary employees, like you, and it means the owners of the trade union committee. Are Huawei's management? Are 7 members of the trade union committee? Which 7? How was it chosen?

Third, the development of the conference today is partly because many politicians abroad have some doubts or doubts about the composition of Huawei. This is a macro background. Does Huawei have any other ideas that are more transparent to its own composition and funding? For example, will KPMG's review report be publicized or KPMG have any communication with the media. Is there any other way for foreigners who have doubts to have more trust in Huawei?

Jiangxi Health: Regarding the labor union funds, the company is accrued according to a certain proportion of wages, and some is used for the activities of grassroots trade unions. At the same time, some of them are handed over to the higher level trade unions. Our superior trade unions are Shenzhen Industrial and Trade Unions. I don’t know what the trade unions have with the above. I don’t know the situation between them.

Second, what kind of relationship does Huawei trade union have with Shenzhen trade unions? First, part of the funds must be handed over to the Shenzhen Trade Union. In addition, registration must be carried out. The qualification certificate of the trade union is issued by the Shenzhen Trade Union and annual review is required. There aren't many other relationships or contacts, including the need to report any Huawei operations, and they won't have to ask too many requests. There is no other thing to do.

Huawei is a trade union, the union of Huawei Investment Holdings Co., Ltd. How did the members of the trade union committee come into being? It is selected by various departments. There are seven members of the trade union committee: Yin Xuquan, Li Jinge, Lu Ke, Shi Yanli, Wu Qinming, Tian Feng, and Cao Yu. These people may not be too familiar with everyone, because there are no board members, Yin Xuquan is the chairman of the trade union, Li Jinge is the vice chairman, these two are members of the board of supervisors, Cao Yu is responsible for the student association, organizes employee activities, and the rest are each department. Manager.

Regarding transparency, maybe this is a good proposal, and it can be considered. Regarding Huawei's transparency, we have been working hard over the past few years. Huawei is not a listed company, but we try to disclose more information for customers, suppliers and consumers to understand the real situation of Huawei.

After a series of recent events, there are indeed pressures, including the media and the government need to know more about Huawei, including Ren Jin’s recent interviews with many media, and even like me, who are more shy and do internal management. It is indeed necessary to do more transparency to make the outside world more aware of Huawei information.

But there is a saying "can never wake up a sleeping person", some people will say that he will stick to his own things, will not listen to you. For customers, partners, including the media, will do more transparent work. Including the transparency of Huawei's equity, understand Huawei's operation and Huawei's mechanism. Welcome friends who have not been to the Huawei equity room to see in the afternoon.

New York Times reporter: Hello! I have two questions:

First, transparency. Are the regulations of the trade union committee open to the public? Where can I get publicly available?

Second, Huawei's mechanism for virtual shares is very organized and systematic. If there are any legal and technical difficulties in converting into publicly listed shares. I know that Huawei does not want to go public. If there is a listing to convert shares, is there any technical or legal difficulty?

Jiangxi Health: Regarding the constitution of the trade union, there is no law that does not require the trade union to make the charter. But this proposal is better, you can do one. However, there is a charter on Huawei's employee shareholding.

The idea that Huawei did not go public has repeatedly indicated that it is not listed. In any case, the 200-person limit exists. First, you must solve the 200-person limit before you can have other.

In addition, when the Ping An listing is not registered as a shareholder, it should also be restricted. When Ping An conducts a listing reform, the trade union does not withdraw from the shareholders as a shareholder. However, the assets held by the employees were not given to the higher-level trade unions, but were held by the employees at the time.

Wall Street Journal reporter: Hello! I have three questions:

First, it has been mentioned that employees hold virtual shares with the power to elect representatives, but only see this power, how to explain that these virtual share holders are the real owners, not the people who share the company's profits?

Regarding the relationship between the shareholding employee representative assembly and the trade union committee, does the shareholding employee representative meeting have any influence on the trade union committee?

Second, the trade union committee has seven members. From the operational point of view, do they have an impact on Huawei investment holding companies and other Huawei companies and entities?

Third, the Huawei Trade Union Committee has certain links with the trade unions in Shenzhen. Will the Shenzhen trade unions have an impact on the operation of the Huawei Trade Union Committee?

Jiangxi Sheng: The power of shareholders to hold shares, as the exercise of shareholder power is to exercise power through one share of one vote to hold employee representatives. More than 90,000 people can't go to the meeting often, and the cost is great. We have formed a consensus. Everyone agrees to elect representatives and more than 110 people will exercise shareholder power on behalf of everyone. In addition to shareholder power, there are other impairment risks, and ultimately the remaining property distribution rights, so in this sense it should be shareholders' equity rather than profit sharing.

Second, the trade union committee has no influence on the shareholding employee representatives. The shareholding employee representatives have no influence on the trade union committee, and the two have no influence on each other. Members of the trade union committee have no influence on business operations, and they have no influence on Huawei's holdings or Huawei's technology, because they do not participate in business operations. They will not participate in business activities in the name and identity of the trade union committee.

Regarding the Shenzhen provincial trade unions and Huawei's grassroots trade unions, the main link is to register with the Shenzhen trade unions and obtain the qualifications of the trade union legal person. The second is annual review. Huawei does not need to report the business operations to the Shenzhen Labor Union.

Reuters reporter: Asked about the trade union committee, after all, is the largest shareholder of Huawei holding 99% of the shares, just said that his role is very small, just for recreational activities, not involved in any company management, is this understanding correct? Are 180,000 employees automatically members of the union? The committee is composed of 7 people. Is it always 7 people? How often do you elect 7 people? How are you elected? Is it direct election of 180,000 people? Can I overlap with 115 shareholding employee representatives? Can you overlap with board members? Can you explain the governance of the trade union committee?

Second, there have been recent reports from the British media that the US CIA intelligence said that Huawei has received funds from China's state-owned capital. Your PPT states that Huawei has no state-owned shareholders. Huawei has issued a lot of bonds. Does it have a state-owned component in its claims?

Jiangxi Health: Of course, not 180,000 employees are members, and members are required to apply. Second, the election of the seven members of the trade union is not a one-vote election, but a departmental election. These people are elected once in three years according to the requirements. The trade unions are not organizing recreational activities. We are talking about physical exercise, physical and mental health activities. In order to make employees work better and live better. As for whether the trade union committee is coincident with the representative, there is no restriction, but according to the trade union law, the main leaders of the enterprise cannot be members of the trade union committee. However, it can be seen that there are no directors in the list who have three supervisors. One of the trade union committees is not a shareholding employee representative, and the other several are shareholding employee representatives. They are not completely coincident, they cannot be overlapped, and they do not have to overlap. There is no such restriction.

The last question is about Huawei’s state-owned capital claims in the United States. This is not true. As we all know, most of what the US government says is not true. I have responded many times about this piece. I can definitely say that there is no state-owned capital in Huawei. This is very clear.

Second, Huawei bond issuance is mainly carried out in Hong Kong and foreign capital markets. Of course, it is not that it does not issue bonds in China. At present, it has not issued bonds in China.

Third, bank loans are mostly from outside the country, accounting for about 70%.

CNBC Reporter: Before you mentioned that Huawei's trade union committee paid a certain fee to the Shenzhen trade union, it is not clear the relationship between the Shenzhen trade union and the higher-level trade union. Members of these trade union committees of Huawei have just mentioned that some of them are members of the board of supervisors and some are representatives of shareholders. From this perspective, are the two really separate? It seems that the trade union committee and the shareholding employee representative meeting are not separated. They are all Huawei's business. How do you convince the customer and the government that the two are separate and independent?

Jiangxi Health: First, I don't know what relationship they have. This is not what we care about or I have to know.

Second, the trade union committee and the shareholding employee representative meeting, in fact, the two duties, funds, and operations are completely separate. You just said that it is Huawei's affairs, but it is a different level of affairs. The trade union committee is mainly the activity of the trade union. This activity is an amateur employee activity. Of course, it includes physical exercise, physical and mental health activities, and is not related to Huawei's daily business.

If you ask the trade union committee members, they may say that they have not played any meetings, and have not done any activities or things. This means that the trade union committee needs to exist as a form of law. It needs to undertake the work of the employee activities that we just said, but it is not the members themselves.

The shareholding employee representative meeting is Huawei's highest authority, and it is necessary to make decisions on Huawei's major business activities.

South China Morning Post reporter: China's trade unions are very lacking in existence. Is this also the case? Because the law requires this union, so establish it and engage in some leisure activities, do you want to express it like this?

Jiangxi Health: What you just said is part of the actual situation.