1. How does Hou Weigui not be able to turn the tide? The US refuses to negotiate, and ZTE may enter the state of shock;
In response to the US Department of Commerce’s activation refusal order, ZTE Corporation held a press conference at Shenzhen headquarters at 3 o'clock in the afternoon to respond to the United States’ implementation of an export ban. ZTE Chairman Yin Yimin said in a speech that such a Sanctions allow the company to immediately enter a state of shock.
Regarding the US Department of Commerce’s refusal to activate, ZTE Corporation has issued a “Statement of ZTE’s US Department of Commerce’s Refusal of Refusal on Activation” on the official website this morning, saying that the US Department of Commerce’s Bureau of Industry and Security insists on applying to the company until the relevant investigation has been concluded. The most stringent sanctions are extremely unfair to ZTE and ZTE cannot accept it. Yin Yimin stated that this will directly damage the interests of all employees of the company, operator customers, terminal consumers and shareholders around the world. We firmly oppose it.
He expressed opposition to the politicization of trade. In addition, the company is seriously contemplating from top to bottom. The family will increase investment in R&D, ask people for self-improvement, and oppose unilateralism in certain countries to undermine the global industrial chain.
According to Yin Yimin, the core components of each major product of the company use a large number of dedicated chips developed and designed by ourselves. However, we still have a large number of external devices that are inevitable to be purchased. We must also increase technical investment and further increase the information industry is global. In the industries with the highest degree of openness, countries all over the world have developed technologies in their fields, leading to a very fragmented globalization of the procurement chain. No country can independently complete all industrial chains. Although the United States is in a leading position, US companies also inevitably need global industries. Chain, because for our sanctions, leading to the disruption of our industry chain does not mean that we do not have core capabilities.
U.S. Department of Commerce: There is no negotiation space for ZTE's ban
On the evening of the 18th, ZTE founder Hou Weigui emerged as the sanctions began to run around. However, the efforts of the founder of the 37-year-old ZTE Corporation did not appear to be effective. Following this morning, ZTE officially issued a 'statement'. After the protest against the U.S. Department of Commerce, the U.S. Department of Commerce reported that the U.S. Department of Commerce’s press officer stated that there is no room for reversal or negotiation of the ZTE ban and that it is only after seven years that it can resume negotiations.
U.S. Department of Commerce officials said in an interview with Xinhua News that the punishment or reduction of bonuses for 35 employees is indeed one of the agreements signed by ZTE. Because of ZTE’s breach of contract, the ban against ZTE has become effective immediately (16th), and currently There is no room for negotiation in the next seven years. The official said that in the next 7 years, ZTE may not “involve any transactions involving import and export of goods, software, and technology from the United States” in any way. It involves software that includes the Android system. Google may not violate this regulation and Has agreed to terminate the service.
Up to now, it has been clearly stated that the termination of U.S. manufacturers providing services for ZTE includes Broadcom, Intel, Google, and Cadence.
Yin Yimin's second internal letter: learn lessons and work hard to reduce adverse effects
After issuing the 'Statement' this morning, Yin Yimin sent a second internal letter to announce the entire process for the first time. Xinzhong Yin stressed that the company had established a crisis response working group at the first time to fully evaluate the incident and the company and its staff. The impact of the visit, maintaining active communication with all parties, and maximizing the efforts to promote the resolution of the incident. 'We are in a complex international situation with opportunities and challenges. In the past year or so, we have taken compliance as One of the cornerstones of the company's strategy is to abide by the principle that 'export control compliance is the most important thing'. 'He said, 'In the progress of compliance construction, we learn lessons from the past, correct them in a timely manner, and we will never commit past management. The cadres had made mistakes. '
The letter also emphasizes that ZTE promises to truthfully disclose the final findings to all employees with the consent of the lawyers. The company upholds an open, transparent and honest attitude, continuously communicates, solves problems in a legal and compliance manner, and makes every effort to do its utmost. Reduce the adverse effects of this matter.
According to informed sources, ZTE has already announced its employees internally and immediately stopped all businesses related to the US export ban. In addition, Reuters reported that more than a month before the United States imposed sanctions against ZTE this week, the company’s chief compliance Official and chief legal officer Cheng Gang was dismissed.
2. The United States has activated the embargo! ZTE Statement: U.S. sanctions are extremely unfair We do not accept;
On the morning of April 20th, ZTE Corporation released an announcement, disclosed the progress of major issues, and announced that it would continue to suspend trading.
According to an announcement, according to an order issued by the U.S. Department of Commerce’s Bureau of Industry and Security, a seven-year refusal order suspended from the settlement was activated from April 15, 2018 (U.S. time) until March 13, 2025 ( US time) Stop.
Afterwards, ZTE again published on the official website the "ZTE Statement on the US Department of Commerce's Activation Decline Order."
ZTE stated that before the relevant investigation has been completed, the US Department of Commerce’s Bureau of Industry and Security insists on imposing the most stringent sanctions on the company, which is extremely unfair to ZTE and cannot be accepted!'
The following is the original statement:
ZTE Statement on U.S. Department of Commerce's Activation of Refusal Order
Since April 2016, ZTE has learned from its past experience in export control and compliance, and has attached great importance to the work of export control compliance. It regards compliance as the cornerstone of the company's strategy and the premise and the bottom line of its operations.
ZTE has established a compliance management committee directly under the leadership of the President; established a global team of senior export control compliance experts; introduced a number of world-class consultants to provide professional guidance, and built and optimized ZTE’s export control compliance management framework. Institutions and processes; Introduction and implementation of SAP's Trade Compliance Management Tools (GTS); Compliance training for organizations covering more than 65,000 employees; Full compliance with US-appointed independent compliance ombudsman on ZTE's implementation of relevant agreements with U.S. government And the construction of export control compliance is real-time and transparent. It provides over 132,000 pages of documents. In 2017 alone, ZTE Corporation invested more than US$50 million in export control compliance projects, and plans to invest more resources in 2018.
However, on April 16, 2018, the US Department of Commerce’s Bureau of Industry and Security (BIS) used ZTE’s employees to revoke bonuses and issue disciplinary letters in a timely manner on certain employees involved in historical export control violations, and on November 30, 2016. In two letters submitted to the U.S. government on July 20, 2017 and on the basis of false statements, the decision was made to activate the refusal of ZTE and ZTE Kangxun.
BIS ignored ZTE's arduous efforts in complying with export control compliance in the past two years, making huge investments and making great progress; disregarding the problems in the above two letters was the company's self-inspection and discovery and prompt and proactive notification; disregarding the company’s handling of the first time This may have negligent owners, and promptly correct the problem, and hire an independent US law firm to investigate independently. Until the relevant investigation is concluded, BIS insists on imposing the most stringent sanctions on the company. It is extremely unfair to ZTE and we cannot accept it. !
Refusal orders will not only seriously endanger the survival of ZTE, but also hurt the interests of all ZTE's partners, including a large number of US companies.
ZTE will not give up its efforts to resolve problems through communication and dialogue, and it is determined to safeguard its legitimate rights and interests through all legally permitted means, and to protect the legitimate rights and interests of all its employees and shareholders, and to fulfill global customers, consumer users, partners and suppliers. Responsibility!
As a global company that has grown up in China, ZTE will unite all employees, strengthen their confidence, unite and work together to tide over the difficulties!
3. The Ministry of Foreign Affairs: Even if China's mobile phone is sold in the United States, the US is so vulnerable;
Ministry of Foreign Affairs: Even if China's mobile phone sales in the United States threaten the United States to be so vulnerable?
Q: According to reports, the U.S. Department of the Treasury is considering adopting an emergency power law and conducting security review reforms to limit China’s sensitive investment in the United States and company acquisitions. How does China respond to this?
A: The United States recently took many actions. It accused China of forcing US companies to transfer technology for a while, and later exclaimed that the development of China's high-tech fields threatened Americans’ security. After all, it revealed that the United States only allowed me to have hegemony if only I could. Mentality.
It must be pointed out that the U.S. side frequently sets limits on Sino-U.S. trade and investment activities in the high-tech field on the grounds of national security. It is obviously in the name of national security that it does trade protectionism. In China, Apple's mobile phones and other products are everywhere, we don’t think It is a threat. However, if someone buys a Huawei mobile phone in the United States, it seems to some Americans that it has become a serious situation that threatens the security of Americans. The United States, as the world’s number one power and technological power, is already so fragile to such a degree. ?
On the one hand, the U.S. demands China to open up more markets, and on the other hand, it frequently limits China’s normal trade and investment activities on the grounds of national security. It does not conform to market rules, does not comply with international rules, and does not comply with the US The principles of fairness, justice and reciprocity are very clear to everyone. The reason why the United States used Chinese national security as a measure to suppress the development and progress of Chinese science and technology is in fact a very irrational act of economic and scientific hegemony. The United States should be clear that scientific and technological progress should serve all The welfare of mankind should not be used as a tool for a country to advance hegemony.
Last year, the contribution rate of scientific and technological progress in China reached 57.5%, and its contribution to world economic growth exceeded 30%. China is vigorously implementing innovation-driven development strategies. The pace of China's scientific and technological innovation will not be stagnant due to certain noise and interference.
4. Ericsson’s first quarter net loss of 99 million US dollars narrowed 92% year-on-year;
Fenghuang Wang Technology News Beijing time April 20 news, Ericsson Corporation (NASDAQ: ERIC) today announced the first quarter of fiscal year 2018 as of March 31 financial statements. Financial reports show that in accordance with International Financial Reporting Standards (IFRS), Ericsson Sales in the first quarter were SEK 43,411 million (approximately US$5,158 million), a decrease of 9% from SEK 47,903 million for the same period of the previous year; Net loss attributable to shareholders of Ericsson's parent company was SEK 837 million (approximately US$ 99 million) ), a net loss of SEK 10,068 million in the same period last year narrowed 92%.
Stock performance:
Ericsson stock price
Ericsson’s opening price on the Nasdaq exchange was $6.50 on Thursday. As of Thursday's close, Ericsson's shares rose $0.27 to close at $6.64, or 4.24%. For the past 52 weeks, Ericsson's stock has been trading at a maximum of $7.47. The minimum is $5.52.
First quarter performance highlights:
- Revenue was SEK 43,411 million (approximately US$ 5,158 million), which was a decrease of 9% from the SEK 47,803 million for the same period of last year;
——The number of layoffs exceeded 3,000 during the quarter, bringing the number of CEOs since the start of the layoffs program in July last year to nearly 18,000; So far, the annualized reduction in costs is SEK 8.5 billion (about US$ 1.011 billion). The goal is this year. The mid-year reduction costs 10 billion Swedish kronor (about 1.2 billion U.S. dollars);
- Gross profit margin was 34.2%, an increase of 18.5 percentage points from 15.7% in the same period of last year. Excluding restructuring expenses, gross profit margin was 35.9%, an increase of 17.2 percentage points from 18.7% in the same period of last year;
- Operating expenses were 15.257 billion Swedish kronor (about 1.813 billion U.S. dollars), a decrease of 19% from 18.929 billion Swedish kronor in the same period of last year;
- Operating loss of SEK 312 million (approximately US$37 million), which was 97% lower than the operating loss of SEK 11.276 billion in the same period of last year. The operating profit rate was -0.7%, which was -23.6% in the same period of last year;
—— Excluding reorganization expenditure, operating profit was SEK 900 million (approximately US$ 107 million), operating loss of SEK 9.5 billion in the same period of last year; operating profit margin was 2.0%, which was -19.9% in the same period of last year;
- The net loss attributable to shareholders of Ericsson's parent company was 837 million Swedish kronor (about 99 million U.S. dollars), which was 92% lower than the net loss of 10.768 billion U.S. dollars in the same period last year;
- Diluted loss per share of 0.25 SEK (approximately 0.03 US$), a 92% decrease from a diluted loss of 3.08 SEK per share for the same period last year; Diluted earnings per share of 0.11 per non-IFRS (non-IFRS) Swedish Krona (approximately US$0.01), a diluted loss of SEK 2.19 per share for the same period last year;
- Cash flow from operating activities was 1.6 billion Swedish kronor (about 190 million U.S. dollars), and cash flow for operating activities during the same period last year was 1.5 billion Swedish kronor; free cash flow was 300 million Swedish kronor (about 36 million) (United States dollar), the same period last year was -3.2 billion Swedish kronor; As of the end of the first quarter, net cash was 35.6 billion Swedish kronor (about 4.230 billion U.S. dollars), an increase of 26% from 28.3 billion Swedish kronor in the same period last year. / 箫 rain)
5. Morgan Stanley lowered Apple's second-quarter earnings expectations The stock price sank 3.6%;
Sina Technology News Beijing time on April 20 evening news, due to two Wall Street analysts before Apple (hereinafter referred to as 'Apple') released new quarterly earnings report, released two relatively cautious research report, resulting in Apple's stock price in early trading today The transaction fell 3.6% for a time.
Apple will release its financial report for the second quarter of fiscal year 2018 on May 1. Morgan Stanley analyst Katy Huberty released research report today to reduce Apple’s second-quarter iPhone sales forecast to The 34 million units were lower than the average of 43 million analysts expected by Wall Street analysts. In addition, they also lowered their revenue forecast to 46 billion U.S. dollars, which is lower than the average expected figure of Wall Street analysts of 61 billion U.S. dollars.
Huberty predicts that Apple’s diluted earnings per share for the second quarter will be in line with Wall Street expectations, but will reduce its forecast for diluted earnings per share for fiscal year 2018 from US$11.60 to US$11, and dilutive earnings per share for fiscal year 2019. Expected to be lowered from $14 to $13.80.
Nonetheless, Huberty believes that Apple will increase its shareholder return plan by 150 billion U.S. dollars when it releases its financial statements. To this end, Huberty continues to maintain Apple's 'Buy' rating, but will adjust its target price from 203 U.S. dollars. As low as 200 dollars.
At the same time, Michael Walkley, an analyst at Canaccord Genuity, a Canadian investment bank and financial services company, also released a research report today. Based on consumer surveys, iPhone sales are currently slowing, and some users have begun to wait. 9 New products released in the month.
As for the iPhone X, due to the price of up to 1,000 US dollars, it has become a resistance to the mass market. In addition, its screen size is not big enough to attract Chinese consumers. Walkley continues to maintain Apple's 'buy' rating, target price is 200 US dollars. (Li Ming)
6. Pass iPhone X may be discontinued this year
Set micro-network news, CNBC reported that Mirabaud Securities analyst Camplin believes that one of his most worried about is the problem of excess supply of chips. Mirabaud Securities has tracked TSMC's inventory data for more than a decade.
Kamplin said that the current situation has caused investors to worry about the situation of AMS, a key supplier of iPhone X 3D sensing technology. He said that TSMC’s record inventory level is because Apple does not buy any components for the future iPhone X, suggesting that This phone may be discontinued this year.
He said: "With the decline in iPhone X orders and TSMC's inventory record, it basically reflects the need to sell inventory first. What are the reasons? Because the iPhone X is over. He said that the iPhone X problem is simply too expensive."
U.S. Mizuho also issued a report stating that the data showed that the demand for iPhone X was weak and the orders for iPhone 8 and iPhone 8 Plus steadily declined.
El Seargel, an analyst at Elazar Consulting, said: "The demand for mobile terminals will be weak before the new iPhone will begin to drive the supply chain this fall."