Huawei will still allocate tens of billions of funds to distribute dividends

Huawei logo

Huawei recently announced its dividend data and will continue to implement stock dividends in 2021. According to reports, it will have an estimated 1.58 yuan per share. No doubt, Huawei is still struggling with the numerous bans from the U.S. However, the company will still spend tens of billions of funds to distribute dividends to employees. The shareholding dividends are an important part of Huawei’s employees’ income.

Huawei logo

At present, Huawei’s employee compensation mainly includes three parts: wages, bonuses, and dividends. According to Huawei’s previously released 2020 annual report, Huawei Investment Holdings Co., Ltd. is a 100% employee-owned private enterprise. Huawei implements an employee stock ownership plan through the labor union. The number of participants in the employee stock ownership plan is 121,269 (as of December 31, 2020), and all participants are company employees.

The financial report shows that Ren Zhengfei holds the company’s shares as a natural person shareholder. Furthermore, Ren Zhengfei also participates in the employee stock ownership plan. As of December 31, 2020, Ren Zhengfei’s total investment was equivalent to approximately 0.90% of the company’s total share capital. In 2020, Huawei’s share price is 7.85 yuan per share, of which 1.86 yuan per share will be distributed. At the same time, the company’s expenditure on wages, salaries, and other benefits in 2020 will reach 139.095 billion yuan ($21.8). Based on 194,000 employees, the per capita salary of its employees will reach 700,000 yuan ($110,000). Furthermore, its total number of shares exceeds 20 billion shares, which means that the dividend will exceed 30 billion in 2020.

Huawei’s sales revenue to increase

On December 31, 2021, Huawei released its 2022 New Year’s speech on its official website and disclosed its overall revenue in 2021. Huawei expects to achieve sales revenue of about 634 billion yuan ($99.6 billion) in 2021, a figure that will drop by 29% year-on-year in 2020. The official annual financial report data will be official in late March or early April this year.

This year, the Chinese manufacturer will focus on infrastructure for data exchange in information systems and smart devices. The latter will develop in the ecosystem of the HarmonyOS operating platform. The company will also offer the EulerOS operating system for the digital infrastructure. Huawei will seek and attract valuable talent at events, through competitive selection around the world.

Huawei also claims that the demand for equipment for communication networks over the past few years is stable. In fact, in this area, the company is recording an increase in revenue. Also, the company no longer relies on its smartphone business as it did in the past. Thankfully, the company has other businesses that it is now focusing on.

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