Why doesn't a good company as big as Huawei go public?

Why didn't Huawei go public? Why didn't Huawei go public? This is a question that many people are guessing, and everyone's answer is different. I just read an article written by an executive who left Huawei. His analysis is in place, and my views are basically the same as his. The following is his article, which is posted here for everyone to learn. The author of this article, Mr. Hu Yong, worked in Huawei Technologies Co., Ltd. from February 2008 to February 2008, and successively served as vice president of product marketing, vice president of international marketing, vice president of marketing, vice president of brand and public relations, general manager of Chengdu Huawei Company and general manager of Brazil Huawei Company. Before joining Huawei, I worked in Canada Northern Telecom. He used to be the head of Huawei -IBM market change project. He has rich successful experience in enterprise management, corporate strategy, marketing, global brand building, key account management, customer demand management and competition management. There are two things I didn't understand before,' said Mr. Sheng, who is in charge of brand and publicity in China Ping An. First, why doesn't Lenovo return to A shares? Second, why didn't Huawei go public? Through the bear market in 2008, he understood the answer to the first question, that is, the A-share market is too immature and irrational. President Sheng asked me why Huawei didn't go public. I answer this question from three aspects, which may be a reflection of my work in Huawei 12 years. Huawei's shareholding structure In the early days of Huawei's establishment, as a private enterprise, it was difficult to raise funds. At the same time, in order to attract talents, President Ren greatly diluted his own shares, that is, Huawei's full shareholding. Being both an employee and a shareholder, Huawei can unite as one and flourish, and its execution is particularly strong. If Huawei goes public, there will be tens of millions or billionaires. Can an eagle tied with gold soar in the sky? A famous overseas industry analyst once discussed with me why Nortel declined so fast. He said: There are many billionaires discussing the life and death of the company. They have no sense of urgency. Therefore, Nortel missed many opportunities for transformation. In addition, Ren Zong's shares may be very low. If it goes public, it may get out of control. Huawei cannot do without Ren Zong. Business model innovation Before the rise of Huawei and ZTE, the telecommunications industry was a technology-driven industry. Enterprises invest heavily in research and development of new products, then set high prices, earn high profits, recover research and development costs, and then invest in the development of new products; When the product is mass-produced, a large number of followers enter, and the price is reduced, the product life cycle quickly comes to an end, and new products are promoted to the market to earn high profits, forming a virtuous circle. We compare this business model to selling tofu to Wang Xiaoer. Wang Xiaoer opened a tofu shop, which sells for two yuan a catty. Someone saw that it was profitable and opened a second tofu shop. Wang Xiaoer began to reduce the price to one, five, three and four ... There are more and more tofu shops, and the price has dropped to 80 cents. Wang Xiaoer tofu shop closed down. After the IT bubble, Huawei keenly found that the telecommunications industry has changed from technology-driven to customer-driven, because the development of technology far exceeds the current customer demand, and new technologies are increasingly difficult to be proved by the market. Huawei has positioned itself as a mass production company, not a technological innovation company. Huawei has innovated its business model. When new products are put on the market, they are priced according to the mode of mass production after two or three years. At first, they lost money. In this way, western competitors often lose market share because of their cost disadvantages. At the same time, small companies are unlikely to rise again. Imagine: The first tofu shop in Wang Xiaoer is priced at 80 cents. Will anyone open a tofu shop? Recently, China Telecom's CDMA bidding and Huawei's diving price surprised the industry. In fact, in the access network of 1998, each line of UT sells 1800 yuan, and Huawei takes the lead in launching 600 yuan for each line. UT disappeared, and Huawei occupied 70% of the access network market share. ADSL Huawei is also this move, and Huawei's broadband market share is the second in the world. Did Huawei lose money? Facts have proved that Huawei has made a lot of money in the whole product life cycle. If Huawei is a listed company, it must be responsible for its quarterly performance, and it cannot stand on whether a product can be profitable for five years or longer to occupy the market. If we follow the rules of the game of western companies, it is impossible to have Huawei today. The same is true for Huawei to expand the international market. The Brazilian market has been expanding since 1998, and it has suffered losses for eight consecutive years. In 2008, its income will exceed 1 billion dollars. If Huawei is a listed company, it may cut off its Brazilian branch in the third year, and it is impossible to have today's international market performance. -My supplement: Therefore, Huawei can bid "zero" for CDMA, but ZTE can't. Because listed companies are responsible to shareholders, they should assess their business every quarter. But I think the country should have relevant anti-unfair competition laws to ensure fair competition. To the above, I would like to add that Huawei, which is good at guerrilla warfare and attacking from behind, relies on not playing cards according to the rules of the game, and listing is not good for him. -The latest news just came from Sina. Huawei has suspended. This is what I have been looking forward to for a long time. As Huawei's former executives said, Huawei's finance can't be in line with international standards, and some data can't be studied. Therefore, although the negotiations have been going on for more than half a year, they ended without results. Although I don't rule out the impact of the current economic crisis and I don't want to sell it cheaply, I think Ren is short of money at present. If it weren't for the two problems I mentioned, he would have sold it long before the crisis broke out. The lack of money began at the beginning of this year. According to a banker in Shenzhen, Huawei was very short of money in the first half of this year, and so was ZTE.