114 Huawei Investment & Holding Co., Ltd.
(c) Financial impact of the Entity List
event
On May 16, 2019 and August 19, 2019,
pursuant to part 744.11(b) of the United States
Export Administration Regulations (EAR), the
Bureau of Industry and Security (BIS) of the
United States added Huawei Technologies
Co.,Ltd. and certain non-US affiliates (the
Entities) to the Entity List. Upon the Entities
being added to Entity List, export, re-export
or in-country transfer of items subject to EAR
(including hardware, software and technology
etc.) to the Entities shall be subject to BIS
license requirement (the Event). As a result,
supplies of relevant items to the Group
and sales of certain products of the Group
have been affected. The Group has taken
active measures to mitigate the impact of
the Event. In preparing these consolidated
financial statements, management has
applied significant judgements to assess the
impacts arising from the Event. The Group
will continuously assess if any subsequent
adjustment to relevant estimates are required
based on the development of the Event.6 Possible impact of amendments,
new standards and interpretations
issued but not yet effective for
the year ended December 31, 2019
The International Accounting Standards Board
(IASB) has issued a number of new standards
and amendments which will affect the financial
statements in subsequent accounting periods. They
are not expected to have a significant impact on the
Group’s consolidated financial statements.7 Segment information
Operating segments are determined based on the
types of customers, products and services provided,
as well as the Group’s organisation structure,
management requirement and reporting system.
The Group divides its business into three operating
segments:Carrier Business
The Carrier Business provides a series of products,
services and business solutions encompassing wireless
and cloud core network, fixed network, cloud and
data centre, and service and software, for global
telecom carriers.Enterprise Business
The Enterprise Business builds a digital infrastructure
by using new ICT technologies such as artificial
intelligence, cloud, big data, Internet of Things, video
and data communication to provide products and
services that help industries (such as government,
public utilities, finance, energy, transport, motor
vehicle, etc) go digital.Consumer Business
The Consumer Business provides smartphones, tablets,
personal computer, wearable devices, converged home
devices, as well as the applications and services on
these devices for consumers and businesses.There are no inter-segment transactions. The financial
information of the different segments is regularly
reviewed by the Group’s most senior executive
management for the purpose of resource allocation
and performance assessment. During the year, the
classification for certain products among operating
businesses was changed. Comparative figures have
been adjusted to reflect the current year presentation.Revenue information in respect of business
segments
(CNY million) 2019 2018
Carrier 296,689 285,830
Enterprise 89,710 82,592
Consumer 4 67, 30 4 348,852
Unallocated items 5,130 3,928
Total 858,833 721,202Revenue information in respect of
geographical segments
(CNY million) 2019 2018
China 506,733 372,162
Europe, the Middle
East and Africa
(EMEA)206,007 204,536Asia Pacific 70,533 81,918
Americas 52,478 47, 8 85
Others 23,082 14,701
Total 858,833 721,202