2019 China Top 100 Brand Value Rankings List adheres to brand standards to win the acknowledgment and trust of more brand professionals and achieve the China Brand Value Network(www.bvrcn.com) trusted by Chinese consumers.

On the recently released 2019 China Top 100 Brand Value Rankings List,  Huawei both took the 6th place with a brand value of 341.856 billion yuan in 2018 and 350.027 billion yuan in 2019 which experienced a 2.4% increase.

Founded in 1987, Huawei was is a leading global information and communications technology (ICT) solutions provider that provides competitive ICT solutions, products and services for operator customers, enterprise customers and consumers. At present, Huawei has operations in more than 170 countries and regions serving more than one third of the world's population. Huawei has about 180,000 employees with more than 160 kinds of nationalities, and the localization ratio of overseas staff is about 70%.

What does Huawei bring to the world?

Huawei brings value to consumers. Working with operators, Huawei built more than 1,500 global network, which helped provide communication possibility for more than two thirds of the world’s population. Working with partners to promote the industry digital transformation , Huawei provides open, flexible, safe ICT infrastructure platform with Client, Connection and Cloud features for enterprise customers in sectors such as government and publish institution, finance, energy, transportation, manufacture, etc. Thus, cloud services with stable, reliable, safe, trustworthy and sustainable evolvement  features are provided for customers. Huawei’s intelligent terminals and smart phones are helping people enjoy high-quality digital work, live and play experiences.

Huawei promotes benign development of the industry. Huawei advocates openness, cooperation, win-win, cooperation with customers partners and friends on business innovation, expansion of industrial value and formation of a healthy and benign industry ecosystem. Huawei joined more than 360 standards organizations, industry alliances and open source community to actively participate and support the development of the mainstream standards and establish a win-win ecosystem. The company oriented itself on hot areas such as cloud computing, NFV/SDN, 5G, etc and cooperated with industry partners to promote the benign development of the industry.

Huawei promote the growth of the economy. Huawei not only brings direct tax contribution to the country it locates and form a industry chain driving effect, but also promotes digital transformation of each industry and economic growth and elevates people’s life quality and happiness.

Huawei promotes the sustainable development of society. As a responsible corporate citizen, Huawei is committed to eliminating the global digital gap.  On the southern slope of Mount Everest and in the Arctic Circle, on the site of West Africa Ebola epidemic region,  Japan tsunami nuclear leakage and China Wenchuan earthquake, we all can find  Huawei people on the scene. To promote the environmental concept of green and low carbon emission, Huawei provides leading energy saving and environmental friendly products and solutions to its customers from product plan, design, research, delivery and commissioning to after sale maintenance. ; Huawei’s “future seed” project has covered 108 countries and regions to help nurture local ICT talent, promote knowledge transfer, enhance people’s understanding and interest in the ICT sector, and to encourage countries and regions to participate in the work of building digital communities.

Huawei provides a stage for the strivers. Adhering to the tenet of “striver-oriented”, Huawei assesses staff and select cadres based on their responsibilities and contributions to the company, which provides a global development platform and dialogue opportunity with the world for the employees. This enables numerous young people have the opportunity to take important positions and rapidly grow, which also makes hundreds of thousands of employees gained reasonable payback and life experiences that worth good aftertaste.

All along, it is a consensus in the industry that Huawei advocates to build a better connected world. Be connected has become a basic rights and survival resource of human beings. It became the basic means of production and indispensable as electricity, and it became the basic driving force for the national economy. Huawei started to focus on investing in 5G research from 2009, and it continues to lead 5G innovation in respect of technology, network and industry. Just like the old Chinese saying, ”Lay a solid foundation and the time will come for you to shine.” The company invested and established 5G Labs to explore new applications and new incubation opportunities. It uses NB-IoT and LTE-V as the starting point to ripen industries such as the mobile IoT, automobile networking, etc. Being connected is not the end, but a new start; the company continuously elevates the experience. Huawei will continue to strengthen R & D investment and remain its leading position in sectors of wireless, optical, data communications to provide zero latency ultra broadband experience to its customers by promoting the network simplification.

In terms of core network clouding, the company has awarded more than 350 NFV commercial contract. The company has deployed full cloud core network for Argentina Ministry of Telecommunication, which can support its 20 million users and significantly increase the efficiency of its whole network resources and operation and maintenance efficiency. In Feburary 2017, Huawei’s NFV solution awarded Best Technology Enabler at MWC 2017.

In terms of 5G core network, the company joins hands with China Mobile to release the first prototype of 5G core network services in the world; by joining hands with industry partners such as China Telecom, State Grid Corporation of China, etc, the company conducted multiple 5G demonstration for vertical industries. In June 2017, the company won the “Best 5G core network” award at the London 5G World Summit.

On audio and video communication, the company accumulatively obtained 135 commercial VoLTE contract to provide high definition audio and video commnication services for 200 million users. By cooperating with China Mobile, the company built the world’s largest VoLTE network; it also assisted Switzerland Sunrise build its quality VoLTE network, which obtained excellent evaluation in P3 network test. Huawei actively promote the digitalized and intelligent evolution for enterprises’  communication.

With respect to video integration, the company strive to enable the vedio business to become operators’ basic business to help operators succeed in this sector. By actively advocating the industry chain, promoting the establishment of video business, supporting the development of IPTV video 3.0 of China Telecom, cooperating with industry partners to initiate the VRIF alliance and promoting the development of ultra-high definiation(UHD) video industry, the company has provided mor than 140 operators and 140 million video users in the world.

With respect to IoT, the company provided luxuriant Application Enablement Platform(AEP) through OceanConnect, a leading full-stack platform in the industry. Through the convenient terminal connection of series Agent, the company helped operators establish open ecosystem, and win-win cooperation is realized by the coorperation with industry partners. Huawei was awarded the Best IoT Platform in IoT World Europe 2017. In 2017 the company assisted China Telecom and other operators to realize public services such as intelligent gas, smart water, etc to benefit the common people.

With respect to digital operation, Huawei’s Convergent Billing Solution(CBS) is providing services for about 2 billion users of operators located in 114 countries and 205 regions. Through the continuous study of telecom billing market, Stratecast | Frost & Sullivan awarded Huawei the 2017 Stratecast Global Product Leadership Award for its Convergent Billing Solution(CBS) and  2017 Stratecast Global Market Leadership Award for its Billing Mediation. As the core engine of digital operation, Universe Analytics provides cloud platform to help operators to establish their big data cloud service capabilities, which can shorten the online period of big data applications and realize the data value liquidity.

With respect to digital operation innovation, Huawei mobile pay solution(Mobile Money) offers a fully online, safe, reliable, flexible and sustainable evolution of mobile financial platform to help the telecommunication enterprises and banks provide high efficiency, low cost finance services for hundreds of millions of users. As a strategic target, Huawei promotes the inclusive finance business and joins the LOP project of Bill Gates Foundation to make the connection in finance service between operators become possible. Huawei also helped Pakistan Jazz company on mobile finance solutions and won 2017 GSMA GLOMO award. The JazzCash in Pakistan provides convenient digital financial services for tens of millions of Pakistan people and contributes greatly for the independence of Pakistan women. As a new media digital business, the video CRBT works with VoLTE, which brings new business opportunities and income for operators, activates and establishes short video ecosystem that lead by operators. July 2017, China Mobile Yunnan branch joined hands with Huawei to first launch the video CRBT business in the world. 

With the respect to cloud services, the tenet of Huawei’s BES  Cloud is to provide the best cloud commercial practice solution for service providers, which support swift, high-efficiency and excellent commercial operation and experience to help the service provider realize the digitalized transformation. The 2017 Annual Report indicated that Huawei Service provided indoor coverage digital solutions for Russia football stadium.

With the advent of the era of 5G, the popularity of IoT, AR, VR, car networking businesses which require high business agility, bandwidth, latency becomes possible. To adapt to the business evolution of 5G era, based on full cloud strategy and profound research of 5G technology and business, Huawei joined hands closely with operators to help operators build open could platforms. Through cloudization in telecommunication network , internal IT and application platform these three channels, the company’s business moves forward to cloudized architecture. 

In the field of cloudization of internal IT, Huawei Fusion Resource Pooling Solution is serving for more than 60 operators to provide IT solutions and cloud services; in the field of cloudization of telecommunication network, Huawei FusionSphere NFVI solution
is chosen by Vodafone Group, HKT, America Movil, MTN China mobile, China Unicom and other leading global carriers, and it helped China Mobile Zhejiang achieve the world’ NFV cloudized commercial network which decoupled hardware layer, virtual layer and service layer.

Huawei adheres to build an open cloud platform with partners to provide cloudized solutions for the integration of customers of carriers. In November 2017, research report released to users in 69 countries by OpenStack community indicated tha Huawei’s open FusionSphere was selected as the most popular OpenStack open cloud platform.

Huawei IT continues the innovation from hardware, software and platform dimensions to help customers on  the digital transformation acceleration. In the field of storage, the self developed SSD chip and all-flash converged system archieved the highest performance and lowest latency. ESG, an authoritative testing organization, recently released a report on Huawei Dorado product, which indicated that the product is the first choice for critical core businesses. Huawei practices the “borderless computing” strategy for its server bussiness sector. Atlas, a new generation of intelligent hardware clould computing platform for AI and high performance computing scenarios, was released in 2017, which copes with the challenges from the complicated business processing in 5G era by key technologies such as heterogeneous computing and smart compiling.

In 2017, Huawei won 16 industry major awards such as Informa, TMF, Layer123, Telecoms, GTB, ISPI, etc in the fields of high-quality product network, customer experience management, NFV integration, DC integration, cloud open laboratory, digital operation and maintenance service and training service, in which the high-quality product network was awarded “Best Business Quality Elevation Award”.

The financial sector: Huawei has been serving more than 300 financial institutions worldwide, including six of the world’s top ten banks, to merge into local mainstream financial customer systems in Europe, Asia-Pacific, Russia and other regions; in China market, Huawei has become the main IT equipment supplier of the four main state-owned banks in China. Huawei has built IT support capabilities for financial institutes, which features flexible architecture, accurate analysis, innovative channel and safe management and control; the company helps its customers realize scenarization of product service and intelligentialization of customer management. By joining hands with Agriculture Bank of China, China Merchants Bank, China Pacific
Insurance(group) Co., Ltd., etc on innovation, Huawei conducted deep application in financial sector with its new technology such as financial cloud, financial big data, all-channel bank, etc; Huawei helped China Merchants Bank build cloudized big data  platform and developed abundant innovation businesses which brought prominent elevation in business accuracy and real-time and customer satisfaction; the company  
collaborated with China Pacific Insurance(group) Co., Ltd. to build basic big data application platform, which was widely used in anti-counterfeiting and claims, risk prevention, accurate marketing and other fields.

The energy sector: by proposing a motion of ’New ICT, Bit drives Watt’, Huawei strives  to become the best partner and one-stop ICT provider for smart grid construction. Huawei’s smart grid construction solution has been widely used in 73 countries and regions in the world and provided services for more than 190 electricity customers, which helped them improve their energy management efficiency and guarantee safe and reliable power grid operation. Huawei joints hands with partners to build electricity telecommunication network, electricity IoT and cloud electricity three major solutions to promote the construction of PLC-IoT standard ecosystem, of which the core is IEEE P1901.1; IEEE P1901.1 standard draft has been released, and Huawei OpenLab has became the official partner of IEEE PLC-IoT.  The oil and gas sector: Huawei joined hands with industry partners to build ICT solutions for oil and gas IoT, digital pipeline, HPC & operation management, smart delivery, etc, which covered the upper, middle and lower stream of the industry; digital production and safety management and control are organically combined to improve production efficiency. So far, Huawei’s oil and gas solution has been used in 45 countries and regions in the world, which provided 70% customers of Top 20 international oil and gas companies.

Transportation sector: Huawei upholds the concept of “people can go to anywhere with convenient transportation, and cargoes can be delivered to anywhere with unhindered logistics”; the company strives to provide innovative smart transportation solutions for customers, which promotes the improvement of transportation safety, efficiency and customer experience. By the end of 2017, Huawei has been serving the world’s 220,000 km of railways and highways, more than 60 urban railway and more than 50 airline customers. In 2017, Huawei released new smart airport solution which has been successfully applied in Dubai Internatioanl Airport, Thailand AOT, Sanya Phoenix International Airport, etc. Huawei and Shenzhen Airport Group set up a joint innovation laboratory to deepen the the construction of a smart airport with “the most experience”; the company develops urban railway solutions to help customers realize the operation transformation from route to route network; the company joined hands with China Association of Metros to build the urban railway laboratory, which leads the way for the establishment of urban railway standards and technological ecosystem; the light weight digital urban railway solution carried by one network, one cloud comprehensive from Huawei assisted the opening operation of “cloud railway” of BYD in Yinchuan; digtal railway solutions from Huawei helped the openning of the whole line of Mombasa–Nairobi railway in Kenya, which connected families, cities and dreams.

Manufacturing sector: Huawei joins hands with its global partners to build a more efficient and smarter innovative industrial digitalized solution for customers, which made the construction of the new operation mode and basic platform of “industry 4.0” possible. Huawei worked with GE digital group which is a leading industrial Internet software company and released industrial forecasting maintenance solution based on industry cloud so to help reduce maintenance cost of manufacturing industry; at the same time, to drive the innovation on product and service, the company have helped Schindler’s millions of elevators in the world integrate into its network and manage them; by expanding the global cooperation with KUKA to provide high efficiency, innovative and united solutions to the market with their respective leading technology and industry advantage; Huawei will start long-term cooperation wit the second largest automobile maker in Europe, French Peugeot Group, in the field of Internet of Vehicles to build CVMP(Connected vehicle Modular platform) platform based on Huawei OceanConnect IoT platform, which will provide new transportation service solution for customers.

Huawei’s business in consumer sector focuses on consumer, and the company actively explore the innovative development model for smart products revolving the concept of elevating the customer experience in the whole life circle of the product, and the company continues to make breakthroughs on the road of building world class high-end brand. In 2017, Huawei and the Honor formed double brand market which constructed a double  horn array of all level star product. The consumer business sales revenue reached 23.7249 billion yuan which increased 31.9%. The delivery quantity surpassed 0.153 billion with a six years of consecutive and stable increase.  

In terms of financial data, Huawei remained a annually successive steady growth. The company’s image brought from its brand  stays a leading position in the industry.

Firstly, changes in the underlying financial data leads to changes on financial assessment data and value of indicators as follows:

Note: in which the increase of tangible assets income leads to decrease of intangible assets income. The ratio of income brought by the brand factor to intangible asset income has reduced by 6%, thus, the brand income(BCF) has decreased by 3.68% compared to last year.

Secondly, the difference in historical brand income, such as the difference in 2017 and 2016 leads to the difference in the forecast brand income.

Thirdly, the industry's average return on assets Z, brand strength scores, brand strength coefficient, discount rates, etc., ultimately led to changes in brand value. Details are as follows:

Note: in which changes in the underlying financial data and brand strength, resulting in a slight increase in brand strength score; the overall average net asset income of the telecommunication industry decreased; the selected forecasting increasing rate of brand income are the minimum increase rate. This forecasting minimum value for two years is the average increase value of the net income in last three years, so the selected value is the same. Although this is different from other listed companies, but we uphold the principle of seeking truth of scientific caution, we decided to give the most authentic brand value assessment companies.

The predicted brand revenue is different, so when the discount rate and the income period are determined, the discounted value of the brand income is naturally different, that is, the brand value is different.

We can see that the financial data of the enterprise is different if we choose different time to conduct the valuation.The brand strength score also changes with time. The result of the calculation for brand valuation will be different if all the relevant data is different, such as differences on average industry return on assets, brand sharing rate, predicted future increase rate of brand income.

Note: China Brand Value Network(www.bvrcn.com) continues to keep a close eye on the brand building of the listed brands, and welcomes people from brand, business, consumer, and media sectors to pay attention to the brand of Chinese companies. We will continue to analyze any changes of the companies on the China Top 100 Brand Value Rankings List.In the meanwhile, We also welcome well-known domestic and oversea companies provide their brand information and data to gain acknowledgment from more consumers. China Brand Value Network(www.bvrcn.com) will use its own resources to promote brand value and share brand information from all angles and with every promotion channel.

Note: with the integration and association of pragmatic and professional brand planning companies, celebrities from brand valuation sector, China Brand Value Network(www.bvrcn.com) jointly released 2019 China top 100 brand value rankings with  project group of Peking University China Brand Valuation Standard Research Platform, experts and scholars.

On the basis of comprehensive, scientific, independent survey and in-depth research and reasoning to the development of brand value, the project group of Peking China Brand Valuation Standard Research Platform preliminarily established “Peking University China Brand Valuation Standard”.

Brand value evaluation standard is based on seven dimensions, 34 categories of elements and more than 80 indexes in brand leadership, product, quality of service, creativity, legal rights, brand building, social responsibility and financial performance. It established a relatively complete comprehensive index system, and truly focused on the regular pattern and condition of the brand system operation and future development trend. And then, it conducts prudent, exhaustive and comprehensive evaluation on the aspects of the formation, subsistence and development, brand benefit, etc.

Adhering to the principles of corporate sustainable operation, economic value, expected income, and financial stability, based on the public data from last four years and prior, combined with field research and consumer research data, market data, the project group conducted detailed data collection research in seven dimensional systems.

According to the international common practice on brand valuation, the relationship between brand strength and brand revenue risk is established. The discount rate applicable to future brand income is converted from the brand strength score, with which the stable and reliable brand earnings brought in later by the brand is forecasted. The brand value is calculated using the present value of excess income method.

In the process of valuation, hundreds of professional experts and scholars, senior company management are invited to appraise and select the candidate brands which published their financial information. The procedure of the valuation is scientific and prudent. The acquisition of some indicators cannot completely adopt an objective method, and it is necessary to rely on expert research methods such as expert ratings or consumer surveys with certain subjective components. Therefore, although the brand valuation strives to be objective, we still need to treat the evaluation results with a relative and dynamic thinking. Generally speaking, this is a set of brand valuation methods that are continuously being checked and repeatedly reasoned and strive for objective, fair and scientific.