On April 2, the announcement submitted by Huawei Investment Holdings Co., Ltd. to the Shanghai Clearing House showed that, after the resolution of the company’s internal competent bodies, it planned to distribute dividends of RMB 61403559073.76 to shareholders. Huawei is a private company 100% owned by its employees. The shareholders are the trade union committee of Huawei Investment Holdings Co., Ltd. and the company’s founder, Ren Zhengfei. As of December 31, 2021, Ren Zhengfei’s total investment is equivalent to approximately 0.84% of the company’s total share capital.
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According to Huawei’s disclosure, the company implements an employee stock ownership plan through the labor union. The number of employees in the employee stock ownership plan is 131,507 (as of December 31, 2021), and all the participants are the company’s current employees or retired employees. Based on this calculation, the average dividend of Huawei’s shareholding employees is about 467,000 yuan per person.
On March 28, Huawei just released its 2021 annual results. Due to multiple factors, Huawei’s sales revenue in 2021 was RMB 636.8 billion, a year-on-year decrease of 28.6%; however, the company’s net profit continued to grow, with a net profit of RMB 113.7 billion during the period, a year-on-year increase of 75.9%.
Previously, Huawei confirmed to the public that Huawei’s employee shareholding dividend in 2021 is expected to be 1.58 yuan per share, a 15% decrease from the 1.86 yuan per share dividend in 2020. Based on the dividend of 1.58 yuan per share, Huawei’s current total share capital is about 38.8 billion shares.
In the past three years, Huawei’s stock price has been stable at 7.85 yuan, and the dividend of 1.58 yuan has exceeded the 20% dividend yield proportionally.
Huawei will give a dividend ratio every year based on the actual situation of the company. The highest dividend was in 2010, with a dividend of 2.98 yuan per share, and the lowest dividend was in 2017, with a dividend of 1.02 yuan per share.
Huawei CFO Meng Wanzhou previously stated at the performance conference that Huawei may have passed through the “black barrier” and will continue to increase investment in talent and R&D in the future. Meng Wanzhou’s tone for Huawei’s 2021 performance is “financially stable, and the overall operating results are in line with expectations.” “We’ve become smaller, but our profitability and cash flow capture capabilities have increased, and the company’s ability to deal with uncertainty has continued to improve.”