Huawei plans to distribute a dividend of 77.1 billion yuan: 150000 employees with an average of 510000 yuan per person

On April 2nd, Huawei Investment Holding Co., Ltd. issued an announcement regarding the distribution of dividends. According to the announcement, Huawei has decided to distribute a dividend of approximately 77.1 billion yuan to shareholders through an internal decision-making body. According to public information, Huawei Investment Holding Co., Ltd. is a private enterprise 100% owned by employees. The shareholders are the Trade Union Committee of Huawei Investment Holding Co., Ltd. and Ren Zhengfei. It is reported that Huawei’s employee compensation mainly includes wages, bonuses, and stock dividends, which are an important component of Huawei’s employee income. According to Huawei’s 2023 financial report, as of December 31, 2023, the number of participants in Huawei’s employee stock ownership plan was 151796, all of whom were Huawei’s current employees or retired retained personnel. This means that with a dividend of 77.1 billion yuan, Huawei’s 151700 workers can receive a dividend of approximately 510000 yuan. According to Huawei’s 2023 annual report, Huawei achieved a revenue of 704.2 billion yuan last year, a year-on-year increase of 9.63%, and a net profit of 87 billion yuan, a year-on-year increase of 144.38%. Huawei stated that its ICT infrastructure business has remained stable, its terminal business has performed as expected, its cloud computing and digital energy businesses have achieved good growth, and its intelligent automotive solutions business has begun to enter the stage of large-scale delivery. Specifically, in 2023, Huawei’s ICT infrastructure business achieved sales revenue of 362 billion yuan, a year-on-year increase of 2.3%; The terminal business achieved a sales revenue of 251.5 billion yuan, a year-on-year increase of 17.3%; The cloud computing business achieved a sales revenue of RMB 55.3 billion, a year-on-year increase of 21.9%; The digital energy business achieved a sales revenue of 52.6 billion yuan, a year-on-year increase of 3.5%; The intelligent car solution business achieved a sales revenue of 4.7 billion yuan, a year-on-year increase of 128.1%. According to Huawei’s previous annual report data, this is also the return of Huawei’s annual revenue to the range of 700 billion yuan since 2021. In addition, Huawei’s terminal business achieved a sales revenue of 251.5 billion yuan last year, a year-on-year increase of 17.3%. This is also after two years of decline, the terminal business has returned to the growth track. Behind the rapid increase in terminal business sales revenue is the strong return of Huawei Mate60 series. According to Counterpoint data, in the fourth quarter of 2023, China’s smartphone sales bottomed out and rebounded, with a year-on-year increase of 6.6%. Among them, Apple’s smartphone sales decreased by 9% year-on-year, while Huawei’s sales increased by 71.1% year-on-year. Counterpoint believes that Huawei’s Mate60 series, equipped with its independently developed Kirin 9000S chip, is a key driving factor for Huawei’s success. Overall, Huawei regained some of its lost ground in the high-end mobile phone market in 2023. According to the Counterpoint report, in the global market for high-end smartphones worth $600 or more (approximately RMB 4333) in 2023, Huawei achieved a high-end market share of 5%, an increase from 3% in the same period in 2022. But currently, Huawei still faces challenges brought by complex peripheral environments. From the normalization of sanctions to normal operations, from survival to development, how Huawei builds a more resilient supply chain capability, ensures high-quality business continuity and product competitiveness is the core of its future sustainable development.