510,000 per capita! Huawei’s latest dividend is released

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Source: Content comes from China Business News , author: Li Na, thank you.

On April 2, according to the official website of the Beijing Financial Assets Exchange, Huawei Investment Holdings Co., Ltd. issued an announcement on the distribution of dividends.

According to the announcement, following the resolution of the competent authority within the company (Huawei), it plans to distribute dividends of approximately 77.095 billion yuan to shareholders. The above dividend distribution is the company's normal profit distribution and will have no adverse impact on the company's production and operation, financial status and debt solvency.

Shareholding dividends are an important part of Huawei employees' income. Currently, Huawei employee compensation mainly includes three parts: salary, bonuses and dividends. According to the latest annual report released by Huawei, as of December 31, 2023, the number of participants in Huawei’s employee stock ownership plan was 151,700.

Jiang Xisheng, chief secretary of Huawei's board of directors, previously stated in an interview with China Business News that Huawei's equity distribution plan is not a profit-sharing plan, but an equity plan. Huawei's employee stock ownership helps maintain the independence of Huawei's decision-making.

In the previously released annual report, Huawei founder Ren Zhengfei held a shareholding ratio of approximately 0.73%, and the shareholding ratio remained unchanged compared to previous years.

Before the dividend data was disclosed, Huawei had released last year's financial report data.

"The overall operating conditions of the group in 2023 are in line with expectations. In the past few years, Huawei has experienced many tests and has continued to grow amidst challenges." On March 29, Hu Houkun, Huawei's rotating chairman, made the latest statement on Huawei's current situation.

On the same day, Huawei released its overall performance in 2023 on its official website. Data shows that for the whole year of 2023, Huawei achieved global sales revenue of 704.2 billion yuan, a year-on-year increase of 9.64%, and net profit of 87 billion yuan, a year-on-year increase of 145%.

According to calculations based on Huawei's past annual report data, this is also the year since 2021 when Huawei's annual revenue has returned to the 700 billion yuan range. In addition, Huawei's terminal business achieved sales revenue of 251.5 billion yuan last year, a year-on-year increase of 17.3%. This also marks the return of the terminal business to a growth track after two years of decline.

However, Huawei is still facing challenges brought by the complex peripheral environment. From the normalization of sanctions to normal operations, from survival to development, how Huawei builds more resilient supply chain capabilities and ensures high-quality business continuity and product competitiveness is the core of its future sustainable development.

In his New Year's speech at the end of 2022, Hu Houkun said that the challenges are still severe, and the continued impact of the external environment is profoundly reshaping the global industrial chain structure and business rules. The reporter noticed that from the data released by Huawei this time, 67% of its business revenue came from China, 21% came from Europe, the Middle East, and Africa, and the revenue contributions from Asia Pacific and the Americas were 6% and 5% respectively, indicating the recovery of overseas markets. Still ongoing.

It is worth noting that Huawei will invest 164.7 billion in R&D in 2023, accounting for 23.4% of sales revenue. The cumulative R&D expenses invested in the past ten years have exceeded 1.11 trillion. Although there is still a large demand for funds in research and development and operations, the amount of dividends announced this time has not changed much compared with previous years.

According to Huawei's latest financial report for 2023, the current number of participants in Huawei's employee stock ownership plan is 151,796, all of whom are Huawei's current employees or retired personnel. Based on this calculation, the average dividend for Huawei’s shareholding employees is about 507,000 yuan per person. This amount has not changed much from previous years.

Judging from the business structure adjustment chart disclosed by Huawei, the six major modules of ICT infrastructure business, terminal business, Huawei cloud computing, digital energy, smart car solution business, and HiSilicon have become the key to supporting Huawei's overall business.

The financial report shows that last year, Huawei's ICT infrastructure business achieved sales revenue of 362 billion yuan, a year-on-year increase of 2.3%; terminal business sales revenue was 251.5 billion yuan, a year-on-year increase of 17.3%; cloud computing business sales revenue was 55.3 billion yuan, a year-on-year increase of 21.9 %; digital energy business sales revenue was 52.6 billion yuan, a year-on-year increase of 3.5%; smart car solution business sales revenue was 4.7 billion yuan, a year-on-year increase of 128.1%. HiSilicon's data has not been disclosed.

An internal Huawei employee previously told reporters that judging from the company's current business strategy, incentives for businesses and employees that can "make food" have not decreased, but are increasing. Everyone is encouraged to compete for profits, but for non-mainstream businesses, employees are encouraged to compete for profits. The track business has clearly shown signs of shrinking, and the company is returning to its main business and profitable business as a whole.

Previously, Ren Zhengfei mentioned in an internal speech, "In the past two years, although the external environment has been changing, we (Huawei) must understand that building ICT (information and communications technology) infrastructure is Huawei's historical mission. The harder the time, the less we can waver.”