Huawei’s launch event is held in Shenzhen, south China’s Guangdong Province, Dec. 23, 2021. Photo: Shen Weiduo/Global Times
Chinese telecom giant Huawei is handing out tens of billions of yuan in dividends to staff shareholders for 2021, with pre-tax per share set to be 1.58 yuan ($0.25), a move that should further inspire morale as the company struggles against irrational repression by the US government.
As of December 31, 2020, Huawei’s outstanding shares amounted to approximately 34.7575 billion, indicating that the amount of dividends to be paid for 2021 will exceed 50 billion yuan, according to the calculations of some media.
Considering that the Chinese tech giant is still in rather difficult times amid the US crackdown, the level of dividend – although down 15% from the previous year – proves the confidence of the management of Huawei in the company’s outlook, observers said.
Huawei is not a listed company. Instead, it adopts a single model in which employees own 100% of the shares. The company has repeatedly stated that it is a private company 100% owned by its employees. Dividend payments are an essential part of employees’ income, in addition to their salaries and bonuses.
Jiang Xisheng, chief secretary of Huawei’s board of directors, said employee share ownership helps maintain the independence of company decisions, noting that since Huawei’s revenue comes from each employee, staff will not allow no influence to harm their interests or the long life of the business. term development.
However, the development of the company is linked to the income of the employees, and if the company loses money, the value of the shares will also decrease, and the employees – as shareholders – will have to bear the corresponding risk of depreciation. , Jiang said.
A Huawei employee said in a post on the company’s Xinsheng online community that he was happy with the pre-tax dividend since the company faced extreme crackdown by some countries last year.
The dividend also comes after a decline in Huawei’s revenue in 2021. Huawei’s annual revenue in 2021 was around 634 billion yuan, down 28.9% year-on-year, meaning revenue fell at 2017 level.
A sharp drop in revenue from the mobile phone business was one of the main reasons.
Huawei Rotating Chairman Guo Ping said in his New Year speech that in the face of continued turmoil in the external environment and challenges such as the politicization of technology in the information and communication technology industry communication, the company should stick to its current strategy.
Huawei’s new efforts to boost business include expanding its cloud services business in the Asia-Pacific region, helping domestic enterprises reduce their carbon footprint, providing more 5G base stations and core network equipment to major Chinese telecom operators, as well as setting up partnerships for its HarmonyOS mobile platform.