The shareholding employees of embattled Chinese telecoms giant Huawei Technologies will receive a smaller cash dividend for 2021, after the company projected a one-third loss in revenues due to US sanctions, reports the South China Morning Post.
The privately-held company, which is 99.25% owned by a trade union controlled by current employees, is expected to pay a RMB 1.58 ($0.25) per share dividend to each of its 121,269 shareholding employees, which would be about 15% less than the RMB 1.86 per share distributed in 2020. Huawei founder Ren Zhengfei holds a 0.75% stake in the company, according to corporate registry information on Tianyancha.
Huawei could end up paying out more than RMB 35 billion in total cash dividends, based upon the outstanding 22.2 billion shares as of December 2018. Ren would be entitled to RMB 260 million ($40 million) in cash dividends.