By Reuters | Updated: May 01, 2024
May 1 (Reuters) – China’s Huawei Technologies (HWT.UL) has moved the high-profile chief of its consumer business, Yu Chengdong, to a new role as chair of the unit, two people with knowledge of the matter said.
While Yu becomes chairman, He Gang, the consumer business group’s chief operating officer, will take over as the unit’s CEO, the people said. The change was announced internally last week when it took effect, one said.
Yu has headed Huawei’s consumer unit, which includes its smartphone business, since 2012, a period marked by rapid growth, a hit from U.S. sanctions to the company’s supply chain and more recently a rebound in sales.
Yu’s role as chairman of Huawei’s smart car solutions business, a unit the company has said it intends to spin off into a new company, is unchanged, the person said.
Huawei did not comment and Yu, also known as Richard Yu, could not be reached for comment.
No reason was provided in Huawei’s internal announcement for the change, a second person with knowledge of the matter told Reuters.
The people asked not to be named because they were not authorised to speak on the matter.
As CEO, Yu would be expected to take charge of business strategy, and as chairman, he would handle administrative matters, including personnel, the person said.
Yu is one of Huawei’s highest-profile executives. He has spoken at major industry events and appeared with Chinese bloggers to pitch products and Huawei’s innovation.
In September, Yu appeared at a Huawei product launch where supporters packed a stadium and chanted “far, far ahead,” a phrase that has gone viral in China to describe Huawei’s competitiveness.
Yu was also central to the launch of a Huawei-backed electric vehicle, the Aito M7 SUV, which is made in partnership with Seres Group (601127.SS).
From 2019, the U.S. government has restricted Huawei’s access to American technology, accusing the company of being a security risk, which Huawei denies.
But last year, Huawei saw its fastest growth in four years, in part due to a rebound in the consumer segment Yu had headed.
Meng Wangzhou, Huawei’s CFO and the daughter of the company’s founder, said last year that Huawei was no longer in the crisis mode it had entered with U.S. sanctions.
@ Thomson Reuters 2024
