HUAWEI is set to reward employee shareholders with a 3-percent rise in cash dividends that are worth billions of dollars, according to company sources and media calculations — a move expected to boost morale as it battles a U.S.-led drive against its telecom gear.

The payout also appears to indicate profit growth as well as confidence the company can survive U.S. accusations, analysts said.

Known for its so-called “wolf culture” that demands high levels of dedication from employees in return for high pay, Huawei Technologies Ltd. boasts that some 80,000 of its workers own nearly all of the company’s shares — a scheme viewed as unique for a firm of its size.

The cash dividend per share for 2018 is expected to rise to 1.05 yuan per share from 1.02 yuan, six employee-shareholder sources said, citing internal notices handed down over the past month.

Total returns per share dropped 7 percent to 2.61 yuan (US$0.38), they added. That follows a stock split. There will also be a 1 to 1.56 stock split for 2018, the sources said.

“I am satisfied with the number given the macro environment,” said one of sources.

A spokesman for Huawei, the world’s largest telecommunications equipment maker and No. 2 manufacturer of smartphones, said the company does not publicly disclose its dividend policy.

The payout comes amid an unprecedented situation for Huawei as Washington calls on governments around the world to stop using its gear, particularly in 5G networks.

Huawei has repeatedly denied its equipment represents a security risk.

The Securities Times in February 2018 reported a figure for outstanding shares and a stock split, quoting a Huawei internal memo. That implies 20.3 billion shares currently outstanding, which would translate to a cash dividend of 21.3 billion yuan.

“The dividend shows business fundamentals are good,” said Zhou Zhanggui, an independent Huawei analyst, adding that profits for its smartphone business are likely to come in ahead of expectations.

Analysts said the calculations of total dividend payouts seemed accurate based on available information.

Huawei said in December it expects 2018 revenue to rise 21 percent to US$109 billion, its fastest pace in two years. The company, which made a net profit of 47.5 billion yuan in 2017, is due to announce figures for last year in late March.

According to the Securities Times report, its total dividend payout for 2017 was 16.8 billion yuan, equivalent to 35 percent of net profit.

The employee shareholder scheme is the big draw for many and enables Huawei to rank as the biggest employer of fresh graduates from China’s top two universities.

Huawei employs some 180,000 people globally and the shareholder scheme is not open to all, with staff usually only able to take part after three years of strong performance.(SD-Agencies)