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    Blocked by US, Huawei Share a Bonus of US $ 3.2 billion to Employees

    Saturday, March 2, 2019, March 02, 2019 EDT Last Updated 2019-03-02T10:13:51Z
    Huawei Technologies will give prizes to employees holding company shares in the form of an additional 3% cash cash dividend worth billions, Reuters sources said, as quoted on Saturday (03/02/2019).
    Photo: Huawei (REUTERS)

    This method is expected to lift the morale of employees who are disrupted because the company is facing surveillance from western countries because of alleged espionage filed by the US.

    Huawei is known as a "wolf culture" that demands high dedication from employees with high returns, Huawei Technologies Ltd said about 80,000 workers own company shares, a scheme that is considered unique for a company of its size.

    Cash per share dividends for 2018 are expected to rise to 1.05 yuan per share from 1.02 yuan, six sources of employee-shareholders told Reuters, citing an internal notification released over the past month.

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    "I am satisfied with the numbers given by the company," said one source from Reuters. Like other employee shareholders, the source is not authorized to speak to the media and asks not to be identified.

    A spokesman for Huawei said the company did not openly disclose the company's dividend policy. Huawei does open an open company. But in February 2018 it was reported that there were 20.3 billion shares of the company in circulation. The meaning will be there cash dividend of 21.3 billion yuan or US $ 3.2 billion.

    Most of Huawei's shares are held by employees. At present the company founder Ren Zhengfei owns 1.14% of the company's shares. "Dividends show good business fundamentals," Zhou Zhanggui, an independent analyst at Huawei, added that profits from the smartphone business are likely to be above expectations.

    Analysts say the calculation of total dividend payments looks accurate based on available information.

    Huawei said in December that it predicted 2018 revenues rose 21 percent to US $ 109 billion, the fastest pace in two years. The company, which generated a net profit of 47.5 billion yuan in 2017, will announce figures for last year at the end of March.

    According to the Securities Times report, total dividend payments for 2017 are 16.8 billion yuan, equivalent to 35 percent of net income.

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