Huawei Photo: VCG

Chinese technology giant Huawei on Wednesday issued 3 billion yuan ($471 million) of 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 published by the Shanghai Clearing House. 

Huawei said that the issuance of debt financing is aimed at supporting the development of various businesses and the implementation of key strategies. This most recent round of financing bills will be used to supplement the working capital of the company's headquarters and its subsidiaries.

It is not the first time the company has accessed financing vehicles through the debt market to supplement capital needs.

In January, Huawei issued a three-year note totaling 4 billion yuan. With a debt rating of AAA, the proceeds are used to support the development of its businesses as well as the implementation of the company's important development strategies. 

Since the beginning of this year, Huawei has carried out several rounds of debt financing, raising a combined 14 billion yuan, according to news outlet thepaper.cn on Wednesday. 

Regarding domestic bond issuance financing, Huawei said that the domestic bond market is developing rapidly, and that market capacity is currently the second largest in the world. Bond financing has become an important financing channel for Chinese firms. 

The company opened the domestic bond market through domestic bond issuance, which will further enrich financing channels and optimize the overall financing landscape, the company said. 

Huawei's 2021 annual report revealed that its operating cash flow is as high as 59.67 billion yuan, a year-on-year increase of 70 percent. 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 reported its 2021 revenue reached 636.8 billion yuan, down 28.6 percent year-on-year, however net profit rose 75.9 percent, hitting 113.7 billion yuan.

Global Times