Huawei has developed into a world-renowned high-tech company, but Huawei has not been listed yet. So what is the reason why Huawei did not choose to go public? Let's analyze it below.
Don't want to be dominated by capital
Huawei has always insisted on not going public, just don't want to be dominated by capital. Generally speaking, capital is profit-seeking, wants to make money, and wants a rate of return. In this case, there may be a gap between the strength of capital and the vision and ideal of the enterprise, which may lead to the enterprise not being able to calm down and do a good job in technology and research and development.
from the development history of Huawei for more than 3 years, Huawei insists on its own ideals and beliefs, relies on its own R&D strength, firmly adheres to its development concept, and invests huge sums of money in R&D of chips and mobile phones, thus leading to the rise of Hisilicon chips and Huawei mobile phones.
If Huawei goes public, it is very likely that its capital is profit-seeking and it wants to make money very much. It may let Huawei do real estate or other industries, but it will not invest heavily in chip research and development at all, and it may not invest heavily in mobile phone research and development, so there may be no Huawei now.
this can refer to the development of Lenovo, which went public very early, but the investment in research and development of Lenovo may not be large until now. Therefore, Huawei insists on not going public, just because it doesn't want to be dominated by capital.
Not going public is to maintain Huawei's cohesion and vitality
Huawei is not going public is to maintain Huawei's cohesion and vitality. Now, Huawei's equity has been highly dispersed. There are about 9, people in Huawei who own Huawei's equity, even Ren Zhengfei holds 1% of Huawei's equity. This shareholding structure is to maintain the cohesiveness and vitality of Huawei.
At present, Huawei's equity is not life-long. If you do well in Huawei, you can get the equity and the right to share out dividends. However, if you leave Huawei, then Huawei will also buy back the equity at a certain price according to the equity regulations, so that Huawei can always encourage Huawei employees to move forward through equity.
But if Huawei goes public, there are not many benefits for the company. One is the group of people who hold Huawei shares, and they have suddenly become extremely rich, perhaps because they are too rich, they have lost the spirit of struggle. For other employees who re-enter Huawei, there will generally be no more equity incentives, and the extent of employee incentives may be weakened. Therefore, the listing of Huawei is not very beneficial for the company. Therefore, Huawei is not listed in order to maintain Huawei's cohesion and vitality.
Conclusion
To sum up, one reason why Huawei doesn't go public is that it doesn't want to be influenced by capital, and the other is to maintain Huawei's cohesion and vitality.