Huawei has become a hot spot in the market this week, first of all, the company's CFO Meng Wanzhou made his debut in the past six months of returning to China to interpret the company's 2021 financial report; then it was rumored that Meng Wanzhou will become the company's rotating chairman; and then it is continued to implement a large dividend plan.
First, look at Huawei's performance. Due to the impact of multiple factors, Huawei achieved sales revenue of 636.8 billion yuan in 2021, down 28.6% year-on-year; but the company's net profit still maintained growth, with a net profit of 113.7 billion yuan during the period, an increase of 75.9% year-on-year.
In the difficult 2021 to achieve more than 100 billion yuan in profits, Huawei is more profitable than the vast majority of A-share companies. As of April 3, the A-share companies that have released financial reports, the four major banks plus China Merchants Bank and China Mobile have a net profit that exceeds Huawei, and even financial giants such as Ping An of China, which had a net profit of 101.6 billion yuan last year, did not catch up with Huawei. Huawei has also left PetroChina, Sinopec, etc. behind; pressing China Mobile, the latter's net profit is 115.9 billion yuan
Of course, the main factor in profit growth is still mentioned by Huawei CFO Meng Wanzhou, who has brought a lot of benefits from the disposal of assets. Net profit in 2022 will not continue to remain high. However, Huawei's net profit margin is still higher than in 2020, and the company has adjusted its product sales structure, of which sales management expenses have dropped by nearly 10 billion.
In Meng Wanzhou's words, although Huawei's scale has become smaller, its profitability and cash flow acquisition capabilities are increasing, so the company's ability to cope with uncertainty is constantly improving.
By business, Huawei's carrier business, terminal business, and enterprise business achieved revenue of 281.5 billion yuan, 234.3 billion yuan, and 102.4 billion yuan respectively in 2021, an increase of -6.98%, -49.6%, and 2.1% respectively.
Huawei's most affected is the Huawei terminal business, which has almost been cut off by the waist, both because of the stripping of the honor mobile phone to the outside of the body, and the "lack of core" of Huawei mobile phones and other factors.
In 2021, Huawei shipped about 35 million smartphones, down 81.6% from 190 million units in 2020. According to Counterpoint data, Huawei's market share in the high-end mobile phone market has dropped from 13% in 2020 to 6%, and Apple's market share has increased from 55% to 60% in the same period.
At the same time, Xiaomi increased from 3% to 5%, OPPO from 2% to 4%, and VIVO from 2% to 3%. The growth rate is very high, but in the global high-end mobile phone market pattern, it is still Apple and Samsung, accounting for 60% and 17% respectively, and the four major domestic mobile phone manufacturers occupy 18% of the share, slightly more than Samsung.
Huawei's personnel has recently undergone a change, with changes in the board of directors and the members of the supervisory board. The outside world is more concerned about Meng Wanzhou becoming one of Huawei's rotating chairmen. The term of office of the rotating chairman is generally half a year. Huawei's corporate governance is relatively special, the chairman represents Huawei externally, and the company's founder Ren Zhengfei has become the president, and has rarely appeared in recent years.
Although revenue fell sharply last year, Huawei's dividends are still not soft. The latest news is that Huawei intends to distribute dividends of 61.4 billion yuan to shareholders. This means that almost half of the profits earned last year have been taken out to pay dividends to the shareholding employees. Huawei has no external investment, and the shareholders are the Trade Union Committee of Huawei Investment Holding Co., Ltd. and Ren Zhengfei.
According to statistics, the total number of employees held by Huawei is about 131,500, with an average dividend of 467,000 yuan. Of course, the specific number of shares also depends on the number of shares held. The enterprise investigation shows that Ren Zheng's non-shareholding ratio is 0.75% (it should be the highest shareholding individual). According to the total size of the dividend, he will receive about 460 million yuan (including tax) in cash dividends.