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Huawei’s dividend exceeds 50 billion!

Latest update time:2022-02-08 18:22
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Source: Content from Shanghai Securities News , thank you.


Huawei is serious about focusing on strivers!

On February 6, several Huawei insiders told the Shanghai Securities News that in 2021, although Huawei is still in a difficult period, the company will still set aside more than 50 billion yuan to distribute dividends to "strugglers."

Not only Huawei, equity incentives are being adopted by more and more listed companies as an important means for companies to attract and retain talent.

According to the 2021 A-share listed companies' equity incentive practice statistics and analysis report released by Rongzheng Consulting, in 2021, 808 A-share listed companies announced 826 equity incentive plans, a year-on-year increase of 82.74%. The report predicts that in 2022, the number of equity incentives in the A-share market will exceed 1,000.

Huawei Haopai over 50 billion yuan in red envelopes


In 2021, Huawei "survived".

According to Huawei's previous forecast, sales revenue for the whole year of 2021 will be approximately 634 billion yuan, a decrease of 29% compared to 2020.

Despite this, after verification by reporters from multiple sources, Huawei's 2021 stock dividend plan has been released: Although it is in a difficult period, Huawei will continue to implement stock dividends, which is expected to be 1.58 yuan per share.

According to Huawei's official website, Huawei Investment Holding Co., Ltd. is a private enterprise 100% owned by employees. Huawei implements an employee stock ownership plan through the trade union. As of December 31, 2020, the number of participants in the employee stock ownership plan was 121,269, all of whom were company employees.


Huawei's internal equity plan began in 1990, when founder Ren Zhengfei held company shares as a natural person shareholder. At the same time, Ren Zhengfei also participated 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.

It is understood that as of December 31, 2020, Huawei's total share capital was approximately 34.7575 billion shares. "The past year has been a year of large personnel turnover at Huawei. Many talents have joined Huawei, and many people have left Huawei. Huawei has issued many additional shares and repurchased many shares. Overall, the total share capital should not change much." A person close to Huawei told reporters.

Based on a dividend of 1.58 yuan per share, Huawei will allocate more than 50 billion yuan to give red envelopes to "strugglers" in 2021.

"Customer-centric, striver-oriented" is the core corporate culture of Huawei. In terms of profit distribution, Huawei has always emphasized "leaning towards workers". Huawei believes that all employees work hard and continuously create achievements, which is the main body of the company's value creation and deserves more rewards.

"The purpose of our struggle is subjectively for ourselves and objectively for the country and the people. But the unity of the subjective and objective is indeed achieved through serving customers," Ren Zhengfei once said at an internal meeting at Huawei.

Chen Lifang, director and senior vice president of Huawei, mentioned in a discussion with new employees that there is a saying within Huawei: Huawei is the poorest high-tech company in the world that is most willing to spend money. Among them, "investing in talent" is where Huawei is most willing to spend money, spending more than 160 billion yuan in this area every year, which is more than investing in product research and development.

808 A-share companies

Launching equity incentive plan in 2021


The employee stock ownership plan, a "golden handcuff", has attracted and retained a large number of talents for Huawei and is one of the main driving forces behind Huawei's rapid growth into a global leading company. Currently, Huawei has about 197,000 employees, with business in more than 170 countries and regions, serving more than 3 billion people worldwide.

In recent years, more and more technology-based, R&D-based, and service-oriented listed companies have also learned from Huawei and actively used equity incentives and employee stock ownership plans as tools to further unleash the vitality of their employees.

According to the 2021 A-share listed companies' equity incentive practice statistics and analysis report released by Rongzheng Consulting, in 2021, 808 A-share listed companies announced a total of 826 equity incentive plans, an increase of 82.74% from 452 in 2020. The number of equity incentives has reached the highest level in history. Among them, there are 436 first-phase incentive plans, an increase of 80.17% from 242 in 2020, and 390 multi-phase incentive plans, an increase of 85.71% from 210 in 2020.

In addition, the number of employee stock ownership plan announcements also hit a new high. The report shows that in 2021, the number of employee stock ownership plans in the market hit a new high since 2015, reaching 225, an increase of 36.36% from 2020.

The report pointed out that the substantial increase in announcements of multi-period equity incentive plans and employee stock ownership plans indicates to a certain extent that equity incentives in the A-share market have entered the "normalization" era and have become an effective means for listed companies to improve corporate governance and enhance governance capabilities.

Judging from the implementation results, equity incentives have effectively tapped the development potential of listed companies, and the incentive "empowerment" effect has become apparent.

Taking the Shenzhen Stock Exchange as an example, after excluding individual companies, the companies that implemented equity incentives in the Shenzhen Stock Exchange in 2020, the operating income in 2020 and the first three quarters of 2021 increased by 12.17% and 38.75% year-on-year respectively, and the net profit increased by 44.79% and 26.75% year-on-year respectively. The revenue scale and profitability are both higher than the Shenzhen Stock Exchange average.

The report predicts that in 2022, the number of equity incentives in the A-share market will exceed 1,000, and the number of equity incentives in state-owned enterprises is expected to exceed 100, further reflecting the development trend of "common prosperity, strict supervision, standardization, and normalization". China's listed companies will also be more competitive and responsible in establishing and improving medium- and long-term incentive mechanisms.


*Disclaimer: This article is originally written by the author. The content of the article is the author's personal opinion. Semiconductor Industry Observer reprints it only to convey a different point of view. It does not mean that Semiconductor Industry Observer agrees or supports this point of view. If you have any objections, please contact Semiconductor Industry Observer.


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