Huawei picture: VCG
Chinese tech giant Huawei on Wednesday issued 3 billion yuan ($471 million) in short-term financing bills, which will bring the company’s total amount of debt market financing so far this year to 17 billion yuan ($2.7 billion).
Huawei issued 3 billion yuan of its second phase of short-term financing bills in 2022 with a term of 180 days, according to a statement from the Shanghai Clearing House.
Huawei said the issuance of debt financing aims to support the development of various businesses and the implementation of key strategies. This final round of funding bills will be used to supplement working capital for the company’s headquarters and its subsidiaries.
This is not the first time that the company has had access to financing vehicles through the debt market to supplement its capital needs.
In January, Huawei issued a three-year note for a total amount of 4 billion yuan. With a AAA debt rating, the proceeds are used to support the development of its activities as well as the implementation of the company’s important development strategies.
Since the beginning of this year, Huawei has completed several rounds of debt financing, raising a total of 14 billion yuan, according to thepaper.cn media on Wednesday.
Regarding the financing of domestic bond issuance, Huawei said the domestic bond market is developing rapidly and the market capacity is currently the second largest in the world. Bond financing has become an important financing channel for Chinese companies.
The company has opened up the domestic bond market through the issuance of domestic bonds, which will further enrich financing channels and optimize the overall financial landscape, the company said.
Huawei’s 2021 annual report revealed that its operating cash flow reached 59.67 billion yuan, a 70% year-on-year increase. On April 2, the company announced a gross internal dividend of 61.4 billion yuan, with each of the company’s 130,000 employees pocketing nearly 470,000 yuan.
Huawei said its 2021 revenue reached 636.8 billion yuan, down 28.6 percent year on year, but its net profit rose 75.9 percent to 113.7 billion yuan. .