500,000 per capita! Huawei pays 77 billion yuan in dividends

On April 2, according to the latest news, Huawei Investment Holdings Co., Ltd. issued an announcement on the distribution of dividends, planning to distribute a dividend of RMB 77.095 billion to shareholders!

Huawei Investment Holdings Co., Ltd. also stated that the above-mentioned dividend distribution is the company’s normal profit distribution and will have no adverse impact on the company’s production operations, financial status, and debt solvency.

Huawei's 2023 annual report shows that Huawei Investment Holdings Co., Ltd. is a private enterprise 100% owned by employees. The shareholders are the Trade Union Committee of Huawei Investment Holding Co., Ltd. and Ren Zhengfei.

The company implements an employee stock ownership plan (i.e. virtual restricted stock plan) through the labor union. The number of participants in the employee stock ownership plan is 151,796 (as of December 31, 2023), and the participants are all current employees or retired personnel of the company. The employee stock ownership plan organically combines the company's long-term development with the employees' personal contributions and development, forming a long-term mechanism for common struggle and sharing.

Ren Zhengfei holds the company's shares as a natural person shareholder. At the same time, Ren Zhengfei also participates in the employee stock ownership plan. As of December 31, 2023, Ren Zhengfei's total investment is equivalent to approximately 0.73% of the company's total share capital.

Based on this rough calculation, the total amount of Huawei's dividends this time is 77,094,500,197.50 yuan. 151,796 shareholders participated in the dividends, with an average dividend of 507,900 yuan per person.

The annual report shows that Huawei's global sales revenue reached 704.2 billion yuan in 2023, and its net profit reached 87 billion yuan, a significant increase from the previous year.

As of the end of 2023, Huawei has approximately 207,000 employees worldwide, coming from 162 countries and regions around the world. In the past ten years, Huawei has invested more than 1.11 trillion yuan in R&D expenses. As of December 31, 2023, there were approximately 114,000 R&D employees, accounting for 55% of the total number of employees. In 2023, Huawei's R&D expenses will be RMB 164.7 billion, accounting for 23.4% of annual revenue.

An internal Huawei employee once told reporters that judging from the company's current business strategy, the 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-main business 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.”