Huawei is expected to pay out more than $35 billion in dividends last year, with employee share dividends down 15% from the previous year


Huawei is expected to pay a dividend of 1.58 yuan per share in 2021, down 15% from 1.86 yuan per share in 2020, according to thepaper.cn on February 7.Huawei does not go public, but uses a unique 100 per cent employee-owned model.Huawei Investment Holdings Co., Ltd. is a private enterprise 100% owned by its employees, Huawei said in its annual report.The shareholders are labor Union Committee of Huawei Investment Holding Co., Ltd. and Ren Zhengfei.According to huawei’s 2020 annual report, the number of employees involved in the esOP is 121,269, all of whom are company employees.Huawei said the plan ‘organically combines the long-term development of the company with the individual contribution and development of employees, forming a long-term joint effort and sharing mechanism.’Ren Zhengfei holds the company’s shares as a natural person’s shareholder, and at the same time, Ren zhengfei participates in the employee stock ownership plan.As of December 31, 2020, Ren’s total investment is equivalent to about 0.90% of the company’s total share capital.However, huawei’s employee shareholding is not without risks. Employees who participate in the investment can participate in the profit distribution every year. However, if the company suffers losses, the stock value will decrease, and the employees who hold shares will also bear the corresponding risk of impairment.Based on the rough calculation of the total 22.2 billion shares of Huawei in 2018, huawei’s dividend may exceed 35 billion yuan, and Ren Zhengfei’s dividend may exceed 200 million yuan based on the shareholding ratio.Huawei has seen its business decline in recent years amid a crackdown by the US.On the morning of December 31, 2021, Huawei disclosed its overall revenue in 2021 on its official website. It is expected to achieve sales revenue of about 634 billion YUAN in 2021, a decrease of 29% compared to 2020.(This article is from thepaper.cn. For more original news, please download thepaper.cn APP.)

Leave a Reply

Your email address will not be published.