Huawei Technologies‘ parent entity has announced a substantial dividend payout amounting to 77.095 billion yuan ($10.65 billion), specifically directed at its current and retired employees.
This disclosure was made in a recent filing with the Shanghai Clearing House.
This move by Huawei Investment and Holding Co, which is reported to have around 51.3 billion shares in circulation, translates to a cash dividend of 1.5 yuan per share.
According to Reuters’ calculations and a review of Huawei’s past dividend strategies, this rate is the lowest the company has offered since the year 2019.
The dividend payout is a significant component of Huawei’s remuneration to its staff, incorporating both current and past employees who are part of its unique shareholder scheme.
As of the end of December 2023, this inclusive shareholder arrangement boasted participation from 151,796 individuals, as revealed in the company’s annual report for the year.
It’s important to note that Huawei maintains a private ownership model, distinctly characterized by employee ownership.
Despite the detailed financial announcement, the filing made on Tuesday left out specific details regarding the distribution mechanics of the dividend.
Furthermore, it did not clarify the exact timeframe the dividend pertains to.
Normally, such dividends would be reflective of the company’s financial performance in the preceding year, suggesting this recent announcement relates to the company’s 2023 fiscal achievements.
This strategy underscores Huawei’s approach to sharing its financial success with its vast body of employees and retirees, aligning with its employee-centered ownership structure.