On August 23, Ren Zhengfei published an article “The company’s entire business policy must change from striving for greatness to striving for profit and cash flow” on Huawei’s internal forum, which exploded online. The article’s chilling words like “global recession,” “three-year crisis,” and “survive” also shook everyone’s heart for a while.
survive the crisis in the next three years
In this article, Ren Zhengfei, founder of Huawei, mentions that the global economy is facing a recession and declining consumer power and that Huawei should change its thinking and business policy from pursuing scale to pursuing profits and cash flow to ensure that it will survive the crisis in the next three years. Make surviving the crisis the main agenda, and shrink and shut down marginal businesses across the board to pass on the chill to everyone.
It is no coincidence that one day after the publication of the article (24), the domestic stock market suddenly fell into a cold flow, the Shanghai index fell almost 2%, the Shenzhen index fell almost 3%, the GEM index fell more than 3%, more than 4,300 stocks fell in response. Apparently, Ren Zhengfei’s speech not only blew against his own employees but also against all walks of life.
Remember that this year, which has been hit by the epidemic, war, and inflation, consumers have sharply reduced their spending, resulting in a rapid increase in stocks of mobile phones, PCs, panels, and other industries and led many companies. such as Acer, Asus and MSI have made destocking their primary goal.
In addition, the graphics card market earmarked for purchase is also facing a price avalanche. As a result, Nvidia said in a statement late Wednesday that third-quarter operating income would be about $5.9 billion. That compares well below the median analyst estimate of $6.92 billion.
For the widespread memory industry, the downward trend started earlier this year, now the situation is more serious when the cloudiness is still unknown.
Words in the end
As a result, Ren Zhengfei’s chilling inside comments apply not only to Huawei itself but also to the industries that are or will be in a downturn due to environmental factors, prompting experts to prepare for the worst.