Last week, the Chinese company Huawei summed up the results of 2021, and now it became known that it paid dividends to its shareholders. It should be noted right away that Huawei is a private company and only employees (current and retired) are the holders of its shares.
According to Reuters, citing the Shanghai Clearing House, last year Huawei paid dividends to its employees totaling 61.404 billion yuan, or about $9.65 billion at the current rate. The amount of remuneration in terms of one share is not specified. And this, according to the publication, is due to the fact that Huawei is still under heavy pressure from US sanctions.
Due to the ongoing conflict with the US government, the company’s revenue last year fell by 29% to 636.8 billion yuan. At the same time, the company’s net profit compared to 2020 increased by a record 76% to 113.7 billion yuan. However, experts say that this is not a reason to rejoice, since most of the company’s profits came from the sale of the server business and the division for the production of smartphones under the HONOR sub-brand. The Chinese manufacturer was forced to get rid of part of the business under the pressure of sanctions.
Due to trade restrictions imposed by the US authorities in 2019 and 2020, Huawei lost the ability to develop its own chips and purchase components from third-party suppliers, which negatively affected its mobile business. However, the company is not going to give up and is still hoping to find a solution to support its mobile division. Huawei Chairman of the Board said that the company is going to increase investment in research and development to make a breakthrough in the field of mobile chips.
Source: Trash Box
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