Source 丨21st Century Business Review
Author 丨Qin Yi
Editor 丨 鄢子為
Figure Source 丨 Figure Worm
On the eve of the start of the Year of the Tiger, Huawei sent 50 billion red envelopes.
On February 6, Xinhua News Agency reported that Huawei will issue dividends in 2021, which is expected to be 1.58 yuan per share. According to the 2020 annual report, Huawei's total share capital is about 34 billion shares, according to which Huawei will pay dividends to employees more than 50 billion yuan.
Huawei is 100% owned by employees. The number of participants in the company's employee stock ownership plan is 120,000, and the average share is more than 400,000 yuan.
Gao Yan, director of Investment at Lighting Capital, believes that "Huawei's future depends on the struggle of employees, and it is its value distribution principle that the company's employees receive reasonable returns." ”
Porridge more monks more
The premise for the "strivers" to participate in dividends is to buy Huawei shares.
The biggest gainers were huawei veterans, who bought a lot of company stock at a very low price in the early 90s.
At that time, Huawei's funds were tight, it could not borrow money from the bank, and the salary could not be paid, so Ren Zhengfei had to pay the company's shares as wages to employees. Huawei has also pledged to pay a dividend of 15 percent of its after-tax profits each year.
These old employees with stocks in their hands have raised the average, and most of Huawei's new employees can only secretly envy.
There are more monks in porridge, and only the best of the new employees can get the purchase qualification.
"Each share is 7.85 yuan, and the purchase amount is generally from 400,000 yuan." ESOP (Employee Stock Ownership) is based on performance appraisals, and only employees with outstanding performance after two years of employment are eligible. Huawei internal employees introduced 21CBR.
The lucky ones who got the "admission ticket" still made a considerable profit. Roughly calculated, 400,000 yuan can buy more than 50,000 shares, according to 2021 data, if a share can be divided into 1.58 yuan, the 6th year can be doubled.
Referring to the dividend situation in previous years, even if the dividend in 2018 is as low as 1.05 yuan, the yield is more than 10%, which is better than the vast majority of wealth management products on the market.
In the past two years, Huawei has been suppressed and many people have left. In order to retain talent, at the end of 2019, it introduced a supplementary rule that ordinary employees can also buy shares in the company, internally known as "ESOP1".
"Employees who have been employed for 5 years can buy ESOP1 and participate in dividends every year, the amount is relatively small, and some can only take more than 20,000."
There is a difference between ESOP and ESOP1, the former is at least 40,000-50,000 shares, and the latter is generally allocated 10,000-20,000 shares, the Huawei person further explained.
According to the 2020 financial report, the reporter calculated that the average salary of Huawei employees was 700,000 yuan, plus dividends, and a small number of employees were paid more than one million.
Huawei's revenue in 2021 will fall by 30%, and it is not easy to insist on paying dividends to employees.
Find new growth points
Huawei's dividend system is the key to stabilizing the team's morale. Retaining talents can stabilize the foundation, and in the new year, Huawei is eager to find new breakthroughs.
At the end of 2021, Guo Ping, Huawei's rotating chairman, said: "Huawei is still facing a series of challenges in 2022, and in the new year, Huawei should produce more grain, strengthen its foundation, and continue to invest in the future. ”
The automotive business, folding screen mobile phones, and Internet business are all likely to bring a second growth curve to Huawei.
At the end of January 2022, Yu Chengdong, managing director of Huawei, CEO of the consumer business, and CEO of the intelligent vehicle solution business unit, told the media that Huawei's goal is to sell 300,000 vehicles in 2022, and the annual sales of cooperative car companies will reach 100 billion yuan.
Gao Yan believes that in the new year, Huawei will find a way to restore the mobile phone business, but the chip problem is difficult to solve.
It is worth noting that Huawei has outstanding advantages in folding screen mobile phones. Industry insiders revealed to "21CBR" that Huawei's net profit of folding screen mobile phones in 2021 will exceed 1 billion US dollars, and it is expected to innovate in the future and increase revenue generation.
Ming Shuliang, founder of Zhiwu Technology Review, believes that advertising and games are the key to supporting Huawei through the trough, and this kind of business is supported by Huawei's 300 million stock mobile phone users, with high profits and can achieve income generation as soon as possible.
"This part of the stock of users is crucial, well done, can contribute tens of billions of profits every year." Ming Shuliang told 21CBR.
After surviving the difficult 2021, Huawei founder Ren Zhengfei once wrote to his alma mater Duyunyi Middle School, "Although it is winter now, spring will soon come." ”
This issue is edited by Si Chen, Intern Zhang Ke