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Huawei, which has difficulties in operation, took 50 billion yuan to dividends to employees

What is it like to receive a red envelope of more than 50 billion yuan just after going to work in 2022?

According to the internal forum of Huawei Voice of Hearts Community, Huawei will continue to implement stock dividends in 2021, which is expected to be 1.58 yuan per share.

As of December 31, 2020, Huawei's total share capital was approximately 34,757.5 million shares. Based on this calculation, Huawei's dividend amount is about 54.9 billion yuan, which can buy most of the haidilao.

Revenue down 28.9%

In the face of repeated suppression by the United States, it is not easy for Huawei to give such a high dividend.

From 2017 to 2020, Huawei ranked first in China's smartphone market shipments for four consecutive years, and even in 2020, when it was sanctioned, its market share was still nearly double that of the second-place vivo.

But in 2021, in the face of extreme pressure from the United States, Huawei cannot resist.

On January 26, Counterpoint released the latest data, after the "four consecutive champions" Huawei, the domestic market share has fallen from 38.4% in the previous year to 10%, a drop of up to 68%.

Huawei, which has difficulties in operation, took 50 billion yuan to dividends to employees

The former "5G pioneer" was forced to launch a bunch of 4G mobile phones in the current 5G era, which inevitably made people sigh.

The sharp decline in mobile phone market share has also affected Huawei's annual revenue.

On the morning of December 31, 2021, Guo Ping, Huawei's rotating chairman, delivered a 2022 New Year's speech and disclosed the overall revenue in 2021.

Huawei expects to achieve sales revenue of about 634 billion yuan in 2021, which will be down 28.9% from 2020.

In his speech, Guo Ping said that the company's overall operating situation is in line with expectations: "The To C business has been greatly affected, and the To B business has performed steadily. ”

The official annual financial report data will be released at the end of March or early April this year.

Dividend yield of more than 20%

In fact, February and April are the time when Huawei employees are envious of each year, the former is the time when Huawei's annual dividend plan is disclosed, and the latter is the time when the year-end bonus is issued.

According to Huawei's official website, there are currently 121269 people participating in the employee stock ownership plan, and the average person can share about 448,000.

In addition to dividends, Huawei employees are paid salaries and bonuses...

Compared to the dividend per share of $1.86 in 2020, it is down 15% in 2021. But in the case of a 28.9% decline in revenue, it is quite powerful.

Huawei, which has difficulties in operation, took 50 billion yuan to dividends to employees

At the same time, Huawei's stock price has been stable at 7.85 yuan in the past 3 years, with a dividend of 1.58 yuan per share, which is more than 20% dividend yield proportionally.

Among the shareholders and basic citizens in the past year, more than 90% of them can be.

In the Huawei Voice of Hearts Forum, some employees expressed some disappointment in this dividend, but he thought about it: "In such a harsh external environment, our company has still achieved such results, we have to give the company a thumbs up!" ”

Why pay a large dividend?

Huawei has grown from a small and micro company with a registered capital of only 20,000 yuan to a multinational enterprise with more than 190,000 employees, which has largely benefited from the employee shareholding system, which runs through and evolves throughout the development process.

On the one hand, it solves the early Huawei development funds; on the other hand, there is no need to go public, which avoids the dividends of Huawei's development to outsiders, thereby attracting and binding employees.

According to Tianyancha data, Ren Zhengfei's shareholding in Huawei has been gradually decreasing in recent years. In 2019, it was still 1.01%, in 2020 it was 0.9%, and now it is only 0.75%.

In other words, as the boss, he can get about 410 million yuan in this dividend, and the remaining 54.4 billion will be paid to employees.

Huawei, which has difficulties in operation, took 50 billion yuan to dividends to employees

The high dividends have made Huawei one of the top companies in the field of communications in terms of employee treatment, and even surpassed multinational giants such as Nokia, Ericsson, and Alcatel.

Ren Zhengfei once said: "Talk less about feelings and give more money, talking about money is the best respect for employees." Huawei's so-called "wolf culture" or strivers culture also stems from the sharing of wealth.

In difficult times, the dividends of real money and silver not only help to motivate employees, but also release a signal of overall business stability.

Where does the money for dividends come from?

It is expected that Finance and Economics said to the daily push of technology: Before (Huawei) there were many places to develop to spend money, so it was not much to pay dividends; now it is restricted, there is no place to spend money, just take dividends.

In addition, in 2020, Huawei sold some of its assets to "spend the winter", and the valuation of Glory alone was as high as $50 billion.

Huawei, which has difficulties in operation, took 50 billion yuan to dividends to employees

At the same time, although the sales and share of Huawei's mobile phone business have fallen sharply, its stock is still huge.

These existing users will bring Huawei a large amount of Internet advertising revenue, including browsers, application markets, and so on.

In Apple, for example, the App Store generated an operating profit of $12.3 billion in 2019, with a profit margin of nearly 80%.

Although Huawei is not as good as Apple in this regard, it will not be too far behind.

This money is not only the source of Huawei's dividend, but also the confidence to rise again in the future.

Judging from the release of the AITO Q&A M5, it is not far from Huawei's official announcement of car manufacturing, and perhaps, soon, the automobile business will replace the mobile phone business and become Huawei's next pillar.

epilogue

In the past, Huawei's long-term employee shareholding strategy has helped Huawei develop rapidly, but it has also raised expectations for Huawei's employee salaries.

When Huawei enters a downward period after many years of rapid development, whether this large dividend strategy can be continuously implemented is still a problem.

In the past, when the performance was good, all kinds of problems were covered up; but when the performance declined, this distribution contradiction would become a new problem.

END

Source丨 Technology daily push

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