Why Huawei was able to pay a dividend of 77 billion

Huawei announced that it will pay a dividend of 77 billion yuan, benefiting 140,000 employees, or about 540,000 yuan per person.

Seeing these news, some people are envious, and some people are red-eyed. The captain will first tell you a few key statistics. At the end of last year, Huawei's total number of employees was about 200,000, and 140,000 participated in dividends, so the penetration rate was 70%. For every 10 Huawei employees, 7 are eligible for dividends. This penetration rate is still very high.

So, who can't get it? Mainly some employees who have just joined Huawei for a short time. Huawei participates in the employee stock ownership plan through the labor union in order to receive share awards. But this stake is not the same as the stake of a listed company. The shares of listed companies can be cashed out in the stock market, basically one set, and they will be financially free.

However, Huawei's shares are fictitious shares, not real private wealth, and cannot be circulated externally. When you leave your job, the virtual shares will be repurchased by Huawei. Under this distribution mechanism, employees can share in the performance of Huawei Group through hard work.

In contrast, Huawei's distribution is more equitable to the average employee. The price is that Huawei will never go public, and it will never be able to get rich overnight. Everyone has to accumulate wealth year after year, but this accumulation is much faster than the average person, and a large middle class is rapidly formed. For many ordinary people, graduating from university, stepping into Huawei, and working steadily for a few years can make a big difference in their lives.

The per capita dividend of 540,000 does not represent the majority, but as long as it is included in the dividend plan, this money will not be too small. However, Huawei's dividends in 2023 will not be more, but less. It's just that in this year when it's not easy to make money, everyone thinks why does Huawei send so much? How can it send so much?

According to the No. 1 document of the board secretary issued by Huawei, the dividend will be 1.5 yuan per share in 2023, compared with 1.61 yuan per share in 2022 and 1.58 yuan per share in 2021. 2023 is the year in which Huawei's dividend per share is the lowest in five years.

Huawei's main revenue is divided into three major segments: one is communications, the second is mobile phones, and the third is HUAWEI CLOUD. Among them, the mobile phone business has picked up, but it is still far from 2019. After all, the Honor phone was stripped and Huawei lost a thigh. The communications business is relatively stable, with HUAWEI CLOUD growing rapidly, which has become the third largest cloud in China, rapidly approaching Tencent Cloud.

On the public opinion side, Huawei's hot automotive business is actually not profitable, but profitable. In China's new energy vehicle market, there are only two new power brands that make money, one is Li Auto, the other is Aion, and the other new forces are not profitable, and Leapmotor barely achieved breakeven. The auto market is still too volatile, and the R&D investment is too large, so Huawei has to do it at a loss.

You can find that in this year when it is not easy to make money, the leading enterprises have acted as the backbone of China's economy. Profits remain high for companies such as Huawei, Tencent, and Alibaba, which also feed a large middle class. The contribution of platform companies to China's economy cannot be ignored, and they are inseparable from them to play a leading role in high-intensity international competition.