Huawei is planning billions in dividends for employees, East Asia News & Top Stories

HONG KONG • Huawei in China is set to reward employee shareholders with a 3 percent increase in cash dividends worth billions of dollars, according to company sources and Reuters calculations, a move that is expected to increase staff morale as it strikes a US leader drive towards the telecommunications equipment.

The payout also seems to indicate profit growth, as well as the confidence that the company can survive US allegations that the telecom network equipment can spy on the Chinese government, analysts said.

Known for its so-called "wolf culture" which requires high employee engagement as opposed to high wages, Huawei Technologies boasts that about 80,000 of its workers own almost all of the company's shares, a scheme that is considered unique to a company of its own. size.

Cash dividend per share for 201[ads1]8 is expected to rise to 1.05 yuan (21 Singapore cents) per share from 1.02 yuan, said six employee shareholder sources, citing internal reports delivered over the past month.

Total return per share fell 7 percent to 2.61 yuan, they added. It follows a share split. There will also be a 1.56 share split for 2018, the sources said.

"I'm happy with the number given the macro environment," one of the sources said, asking not to be identified.

A spokesman for Huawei, the world's largest manufacturer of telecommunications equipment and number 2 smartphone manufacturer, said the company did not disclose its dividend policy.

Cash dividend per share for 2018 is expected to rise to 1.05 yuan (21 Singapore cents) per share from 1.02 yuan, said six employee shareholder sources, referring to internal messages handed over during the last month.

The payoff comes in the midst of an unprecedented crisis for Huawei when Washington urges governments around the world to stop using Chinese firm equipment, especially in 5G networks.

REUTERS