Photo: Reuters
Photo: Reuters

Ren Zhengfei, founder and president of Huawei, acted quickly to quash rumors that the company will move its headquarters, insisting it will always be based in Shenzhen, The Paper reported.

Ren also said that the company will not take the path of diversified development to enter the so-called new economy. Instead, they will simplify their business portfolio, recognizing the need to invest more in science research.

Though sales revenue may continue to decrease as a result of this simplification, society will eventually benefit from it, Ren added.

Huawei’s R&D investment, which accounts for about 15% of its sales revenue, will continue to focus on the basic and applied research of artificial intelligence, aiming for breakthroughs in this area, including algorithms, computing power and data.

As one of the leading Chinese networking and telecom equipment and service providers in the world, the company has been in the spotlight with an eye-catching performance report — global sales revenue hit 603.6 billion yuan (US$95.75 billion), a startling increase of 15.7% from a year earlier.