Samsung's Shenzhen factory abolished as a whole: China's orders won't be received in 5 years of transformation

According to the “Daily Economic News” report, on May 2, the reporter once again came to Shenzhen Samsung Electronics Communications Co., Ltd. This company, located in Songping Street, Gaoxin North District, Shenzhen, broke the past due to the overall abolition of the factory. Calmness.

After several twists and turns, the reporter was able to enter this tightly guarded factory and received an exclusive reply from the factory. The person in charge of the factory told reporters that 'the company’s 297 employees have all signed an economic compensation agreement to terminate labor relations. The compensation involved involved more than 44 million yuan. In addition, we also organized several job fairs to help employees find employment. At present, some employees have left their jobs, and about 100 people are still involved in the closing work.

5 years of transition fail to achieve the desired goal 5 years of transition not meeting expectations The reason for the overall abolition of the factory, the above-mentioned person in charge stated that 'the company began to shift to the production of communication base station equipment in 2013. But after nearly five years of hard work, it has not been achieved. At that time, the target was expected. Looking backwards, it seems that entering the Chinese market is also a very difficult thing, so it was decided to cancel the processing plant.

According to informed sources, the factory has already produced very little output since the beginning of this year. On March 30th, the factory announced an overall abolishment, and started the work of diverting and resettling employees on April 1. In Nanshan District Human Resources Bureau, the labor inspection brigade intervened. Next, as of the afternoon of April 19, all employees of the company signed an economic compensation agreement to negotiate the dissolution of labor relations.

According to public information, Shenzhen Samsung Electronics Communications Co., Ltd. was established on February 26, 2002. It is a Sino-foreign joint venture limited liability company with a registered capital of US$20 million. “Daily Economic News” reporter noted that this is also the Samsung Electronics Group. The first communications equipment manufacturing company established overseas is the only one in Shenzhen. South Korea’s Samsung Electronics Co., Ltd. is the controlling shareholder of Shenzhen Samsung Electronics Communications Co., Ltd., holding 95% of shares, and Shanghai United Investment Co., Ltd. holds 5% of the stock.

Information on the property rights project disclosed on the Shanghai United Assets and Equity Exchange on May 2 showed that Shanghai United Investment Co., Ltd. entrusted a third party company to apply for the transfer of its 5% equity held by Shenzhen Samsung Electronics Communications Co., Ltd. The base price of the transfer was RMB 6.3229 million. , The transaction payment method is a one-time payment.

Data show that in 2016, Shenzhen Samsung Electronics Communications Co., Ltd.’s operating revenue was 1.808 billion yuan and 2.343 billion yuan, and net profit was 65.974 million yuan and 90.566 million yuan. The corporate financial report shows that as of February 28, 2018 The company's operating income was 39,224,600 yuan and its net profit loss was 294 million yuan.

Cost competition is not an advantage

An insider of a Samsung factory in Shenzhen told the reporter that 'the factory is only responsible for manufacturing, and R&D and sales are handled by other companies. In fact, Samsung did not sell a network communication device in China four to five years after the factory's transition. The factory is to accept orders from South Korea headquarters. '

The above-mentioned person in charge also agrees with this statement. 'Last year, Samsung headquarters had predicted that it would be difficult to enter the Chinese communications equipment market. Cost competitiveness is still at a disadvantage compared with Huawei and ZTE. The development of the network base station market is a systematic project. , There are many comprehensive factors, Samsung has so far failed to open up the Chinese market. Even if the 5G market is coming, judging from the current situation, the opportunity for Samsung to enter the Chinese market is also relatively small.

Research firm IHS Markit reports that Huawei beat Ericsson (7.73, 0.21, 2.79%) last year to become the world’s largest manufacturer of communications equipment. The mobile infrastructure business’s market share last year was 28%, compared to 25% in 2016. An increase of 3 percentage points; Ericsson fell to 27%, ranking second; Nokia (6.1, 0.21, 3.57%) dropped to 23%, ranking third; ZTE occupying 13% of global market share ranked fourth; Samsung occupying 3 % of market share ranked fifth.

Liu Jie, a communications industry observer, told the reporter that 'Samsung has a small portion of communications equipment. The company has not seen Samsung from the centralized procurement data of operators in recent years. The current global communications equipment vendors are mainly Huawei, ZTE. , Nokia, Ericsson-based. 'Samsung China Investment Co., Ltd. related to reporters, said, 'In order to strengthen the business competitiveness of Samsung network business strategic considerations, Samsung decided to revoke Shenzhen SSET corporation.' It also said that China is still Very important market.

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