Deliberation of the Representatives of Huawei 3GPP Participants on Lenovo Voting Events

1. Transmit iTel brand Bangladesh sales exceeded Samsung Huawei, has launched backdoor A shares; 2. Huawei 3GPP participants issued a statement: also said Lenovo NR FEC voting events; 3. Yang Yuanqing's '5G standard voting' voice: patriotic 咱 咱Can stand the test; 4. Huawei for the first time in the overseas push 80 dollars cheap machine; 5. Foxconn led the IPO late night: No mention of fund-raising funds

1. Transcend iTel brand Bangladesh outsold Samsung Huawei, has launched a backdoor A-share listing;

Micronet Report May 12

According to the latest report from Counterpoint, an internationally renowned research organization, in the first quarter of this year, iTel, the brand of Chinese Transmitting handsets, surpassed Samsung and Huawei in Bangladesh, ranking third in Bangladesh.

According to the report, iTel is the fastest growing smart phone manufacturer in the first quarter, an increase of 564% compared to the same period of last year, and its share has soared from 1% to 10%. The progress rate is alarming. Counterpoint stated that iTel’s aggressive promotional plans and low cost The entry-level smartphone is the key reason for its success. Among them, iTel's S11 is its best-selling mobile phone model in the first quarter.

It is reported that the current mobile phone brands include TECNO, itel, Infinix, etc. Some industry sources said that the previous transmission was called 'African Mobile Phone King', but in fact it is not only in Africa. They are currently selling in India, Southeast Asia and other countries. Not bad.

As a "China Mobile Phone Manufacturers' Overseas Invisible Champions", the development of audio handsets has been rapid in recent years. The data shows that in 2012, the volume of mobile handsets shipped by Acoustic Communications exceeded 120 million units, of which approximately 90 million were function machines and more than 35 million were smart machines. The tone is No.1 in Africa.

In terms of rankings, total shipments ranked fourth in the world, functional machines ranked first in the world, and smart machines ranked the tenth in the world. The global sales network was spread over more than 50 countries and had a total of more than 1,000 service outlets. The transmission stated that it will From focusing on Africa to looking at new markets, and establishing a sound ecosystem, including smart terminals, pipeline services, and mobile Internet.

The performance continued to increase. At the same time, Chuanyin also launched the listing work. On March 1, the New Territories Pump Industry, which was suspended trading, announced a major restructuring, saying that the company intends to acquire Shenzhen Chuanyin Holdings Co., Ltd. by means of asset replacement and the issuance of shares to purchase assets. The company's control.

Prior to the suspension of trading, the market value of the New Territories pump industry was less than 3.2 billion yuan, and its business was relatively simple. Its performance was poor. According to analysis, if this major restructuring is successfully implemented, the traditional main business is expected to be replaced by the cell phone business of the company. Transmission and Control Holdings will also constitute a backdoor.

At present, New Territories Pumps and Transmission and Control have signed a Letter of Intent for Restructuring and reached preliminary opinions on trading methods, transaction prices and other matters. This transaction plan consists of three parts: asset replacement, asset issuance, share purchase, and share transfer. In the above, Zhai Zhaojiang will promote the shareholders of the transmission company to make a commitment to the performance of the transmission company for 2018 to 2020.

Industrial and commercial information shows that in June 2017, Transmitting Holdings introduced new investors, including a capital party with a large national fund and Ziguang Group's shareholding. The company's 56.73% shareholding is the largest shareholder. , The Yuanke (Pingtan) Equity Investment Fund Partnership, Qi Zhaojiang's participation in the equity, Chuanli Equity Investment Management Co., Ltd., the inherited venture partnership, the sound transmission venture partnership, and the transmission force venture partnership, each holding 14.40% , 8.43%, 4.55%, 4.54%, 4.54%.

2.Huawei 3GPP participants issued a paper: Also said Lenovo NR FEC voting events;

Also said Lenovo NR FEC voting event

Author: Wind Fan

In the past two days, after knowing that some bottle of water was not satisfied and half a bottle of water sloshing on the posts, Weibo and other media fretted about Lenovo's vote on Qualcomm when determining the NR FEC program. "Conscience" seems to have become a national sinner accused of being accused of being forced to publicly respond to such questions. This kind of magical realism is really ridiculous. I'll bluntly open a map gun first: All this time In time, people who accuse Lenovo, I sincerely remind you to be careful about fraud and MLM in the future life, because you are easily vulnerable and you are obviously a victim of high-risk groups.

As one of Huawei's 3GPP participants, who was greeted by Lenovo in this incident, I am more qualified than 99% of people on the Internet. It is also necessary to express my views on this matter in order to clarify the basic facts: The members of the 3GPP are companies/organizations, not countries. Companies are fighting for the interests of the company rather than fighting for the interests of the country. So the camps in 3GPP are mainly based on the types of vendors, because they have more Common interests. For example, MTK, Intel, and Qualcomm mainly consider the implementation of mobile phone chips. Many times it is easy to reach a consensus. DOCOMO and CMCC are both operators. The main concern is the operation of the network. They often work together. Rather than saying that the manufacturers of the same country should stand together. In fact, the conflict of interests between them may be very sharp. The contradiction between the network-side and UE-side vendors is much more than that between the countries. For example, MTK and The CMCC is completely opposed to the CSI-RS RRM measurement problem. After grasping this basic fact, I believe that the reader will naturally be able to understand that Lenovo betrayed the so-called 'China'. The camp's to accuse Lenovo of something ridiculous.

Since there is no national camp at all, companies are fighting for their own interests. Is it not normal for a company to oppose another company in its own interest? Is there any good accusation? It was the 'big boss' Huawei who took part in the 'cutting knife' incident. This kind of thing did not do much. Huawei and the ZTE people's heads are not the same. It was either a traitor for Huawei or a renegade for ZTE.

I give a recent example. At the beginning of this year, RAN4 discussed the cooperation between NR and 2/3G. Both ZTE and Qualcomm did not want to support heterogeneous system measurements for CDMA2K and HRPD under the EN-DC scenario. Therefore, ZTE and Qualcomm jointly opposed Huawei. The LS drafted for the RAN plenary session, according to some people's logic, does ZTE have a foreign exchange? This kind of decision must put the normal decisions based on commercial interests on the line, and use the pan-political perspective to look at it. The understanding itself is unreasonable. Now we will go back to the question of the choice of the FEC program. I provide a few points for readers to better understand:

1. Arikan, the author of the polar code, was a Turk. He first discovered the phenomenon of channel polarization in 07 and 08. The ten-year paper on TIT took the year's best paper award of IEEE Information Theory Society. The night was closed. Gallager, the founder of LDPC, was a student of the communication ancestor Lord Shannon. The Americans. Whether they are LDPC codes or polar codes, they are not Huawei's first mentioned technology. Therefore, which technology solution is finally chosen is proud of the country or people. Nothing to do, this is still purely a matter of interest. It cannot be said that Huawei’s plan is for other Chinese companies to support it. When Huawei seeks them to collect royalties, is it because they are still your spectators?

2. What are the specific interests? Patent. The reason why Huawei pushed the polarization code was because Huawei had already started laying out a patent on the polarization code very early. As far as I know, at least as early as 11 years later, some researchers started tracking. This technology. So wait until the beginning of the NR SI project, Huawei began to promote the polar code as the NR FEC scheme. And Qualcomm pushed LDPC because they laid out a long time on the LDPC. By the way, why did you use the turbo code from LTE? 5G was ruled out because turbo is European push, and Huawei Qualcomm and Wuwei joined together. In the same way, which coding schemes other companies support also depends on which technology they have accumulated, and they have the opportunity to use their own technology. Put in. Or to see how much benefit can be gained from it. No manufacturer will think that Huawei is a Chinese company so it should support Huawei. No company can't make trouble with money, repeat, no company and money can't go.

3, Why do so many Chinese manufacturers support Huawei? I'm not a representative of RAN1, so at that time, the battle to 3 or 4 in the morning didn't witness. But when we talked afterwards, we learned that the gossip was Huawei did its work before the meeting, and exchanged the fee for the condition of reducing royalties in return for their support at the meeting. If I don’t understand people, I’ll explain what I’d like to do: I’ll go over the chairman’s notes of previous RAN1 meetings and look at the companies that support Huawei before In RAN1, I wrote several proposals and participated in the meeting to discuss the degree of activity. Why do companies that normally do not write proposals and do not participate in the discussion will suddenly come forward to join the WF? Let's make it clear: Look at Xiaomi, Xinwei and Putian. #86 also supports Qualcomm, and #86bis is going to support Huawei. Why do you think this is the reason? I can only say that there is no profit.

4. Finally, what I want to say is, Do you think that supporting LDPC is to support Qualcomm's opposition to Huawei? Don't be naive! The big companies are all betting on both sides. Huawei pushes the polarizing code just because of the relative LDPC patent reserves. For a bit more, Huawei also has reserves for LDPC. For example, LDPC Huawei can't eat it. For example, after LDPC defined the encoding matrix, there is a Huawei small-matrix solution. Everyone is noisy, one person. It is impossible to eat a single meal. That other company must have picked up a group to oppose you. Therefore, Lenovo’s business is a normal business activity. There is nothing to criticize. Although China and the United States may now break out of the trade war, It is easy for Huawei Qualcomm and the Chinese company to show off their emotions. However, we still hope that everyone will remain rational. Professionals are left to professionals. Don't go online, so no one is good for anyone. Say it ugly. We did not think that the suffering of the Lord is behind the Lenovo. What are you playing with?

3. Yang Yuanqing voiced his voice on the '5G standard voting': Patriotic yoke can definitely stand the test;

Abstract: For the recent 'vote storm', Lenovo Group Chairman Yang Yuanqing said in a circle of friends this morning, 'This is a vote on technical standards, and it can really be a patriotic topic two years later. Well, patriotic, er, it definitely can stand the test! But the question is, if you really put a patriotic label on the technical standard, it can also be unimpeded in the international market?'

For the recent 'vote storm', Lenovo's chairman Yang Yuanqing responded that 'patriotism absolutely can stand the test'.

Yang Yuanqing, chairman of Lenovo Group, issued a statement on the “5G Standard Voting” in a friend’s circle this morning: “This is a vote on technical standards that could be hard to speculate on a patriotic topic in two years. Okay, patriotic, It is definitely a test that can stand it up! But the question is, if it really puts a patriotic label on the technical standard, can it still be unobstructed in the international market?'

The article forwarded by Yang Yuanqing in a circle of friends entitled “Detailed Secret: The '5G Voting' two years ago. What did Lenovo actually do?” expresses the dominant ideology of 'technology without borders.' eLife' also quoted related parties from Lenovo as responding and saying that 'I hope the industry will not evaluate innovative technologies on this narrow level'.

The article detailed the process of discussion and voting of major technology companies at the conference two years ago:

The first meeting in August 2016: Three kinds of standards were proposed, and the technical debate is fierce

Regarding the three standards for 5G mobile broadband channel coding, the source of the controversy came from the 3GPP 86th meeting in August 2016. At this conference, LDPC, Polar and Turbo coding schemes were formally proposed.

From the official meeting minutes, we can see that the supporters of the three camps at this time are not the same as those later circulated. To make everyone see more clearly, we have a little statistics:

LDPC Solutions (First Session): Qualcomm led supporters including Samsung, Nokia, ZTE, MediaTek, Intel, Sharp, Vivo, OPPO, Xiaomi, and major telecom operators in the US, Japan and South Korea.

Polar Solutions (1st Session): Huawei takes the lead with supporters including Huawei Hass, China Mobile, China Unicom, Spreadtrum, and a few European and U.S. telecommunications operators.

Turbo Project (first meeting): LG takes the lead, supporters include Ericsson, NEC, French Orange Telecommunications (this product makes two bets on Turbo and Polar), etc.

It is worth mentioning that many people believe that 3G and 4G eras are where Qualcomm dominates the world. It is not true that 3G and 4G eras used the Turbo Coding Scheme in the 5G era, and the LDPC was still in a period of perfection. Polar is still in the theoretical stage...

At this first meeting that was overlooked by many media, the parties did not vote. However, there has been a very heated technical discussion.

Interestingly, judging from the 3GPP meeting minutes, Qualcomm, Samsung, Huawei, ZTE, and LG are not all sticking to their positions, but are also involved in technical assessment and discussion of multiple projects. The reason behind this is that in addition to the strong technical atmosphere of 3GPP itself, it is actually because in the era of 5G, everyone is basically 'combining bets' on technology and patents.

For example, Qualcomm has both partial patents for LDPC and some patents for Polar. Conversely, Huawei's lead to Polar has also participated in the construction of LDAC. 'You have me. I have you in it', and it does not exist like 3G, 4G era. Clear patent wall or exclusive situation.

The second meeting in October 2016: The voting began. Lenovo played?

At this meeting, the technical controversies of the last three proposed 5G coding schemes continued, but compared with the first meeting, a large number of 'changes' occurred at the second meeting.

First, the proponents of the three schemes began to attack each other. From simply showing off the advanced nature of their technology, they became the technical shortcomings that accused other programs. In the process, LDPC did indeed occupy the upper hand on the technical level.

Second, there have been major changes in the supporters’ camps of the three programmes themselves, specifically as follows:

LDPC Solutions (2nd Session): Huawei, Qualcomm, NTT, Samsung, Ericsson, LG, NEC, Sony

Polar Solution (2nd Session): Huawei is the only one, Huawei Hass

Turbo program (second meeting): Already no supporters

After all the arguments have been made by the parties, the agenda of the conference has undergone a critical change: From the end, what kind of 5G data encoding scheme is required has become a matter of how many people need several 5G data encoding schemes. This time, it is also correct. It was a god's 'first vote' that was spread online.

At this time, a strange split occurred again in the camps of all parties:

1. Requires only LDPC: Ericsson, Sony, Sharp, Nokia, Samsung, Intel, Qualcomm, Lenovo, Fujitsu, Motorola Mobile, plus several Japanese and Korean-based telecom operators

2. Only need Polar: Huawei

3. Require LDPC, but also take into account the Turbo code: LG, IMT, NEC, Fujitsu, French Orange Telecommunications

4. Requires LDPC, but also Polar code: ZTE, MediaTek, Nubia, Xiaomi, OPPO, Spreadtrum, plus several others.

Since only the Huawei's 'Polar School' only reached the actual voting stage, Huawei took the initiative to abstain from voting. At this time, the camp 1 and the camp 4 are almost equal. The final result is that the two sides will make one step at a time: Initially decide on the 'long code' of 5G data transmission. Part of the use of LDPC, while leaving part of the 'short code' space to be determined. At this point, LDPC can be said to be a small victory.

In this round of voting, does Lenovo's position support LDPC? Obviously there are, but from the perspective of the entire camp branch, does this position have a decisive influence on the voting results? It should be said that there is no. As to why the author is sure No, as long as everyone knows that the 3GPP voting is not a 'one person, one vote', but a concept of heavy weight, it should be clear.

Third meeting in November 2016: Dust settled, united victory

In the last meeting, it was decided that part of the data transmission part of 5G mobile broadband adopts the LDPC scheme, leaving two things to be decided. One is the scheme used in the “left part” of the data channel, and the other is that Is in addition to data transmission, the network control channel used by what program.

Since LDPC had won most of the 5G mobile broadband data channel in the previous meeting, the competition became extremely fierce in the remaining 'short code' part. This time, except for the lack of sense of presence. In addition to the Turbo code camp, the LDPC and Polar code camps have all brought a lot of 'allies':

LDPC Solutions (3rd Conference): Samsung, Alcatel-Lucent, Bell Shanghai, Ericsson, Intel, Mitsubishi Electronics, Motorola Solutions, NEC, Nokia, KDDI, Qualcomm, Sharp, SK Telecom, NTT Docomo, T-Mobile, Verizon ...a total of about 33

Polar Solutions (3rd Session): Huawei, Huawei Hass, Acer, ADI, Bell Mobile, Broadcom, China Mobile, China Telecom, China Unicom, Lenovo, Marvell, MediaTek, Motorola Mobile, Nubian, OPPO, Toshiba, Vivo, Xiaomi, ZTE... A total of 59 companies

It can be seen that the Huawei-led Polar program is obviously well-prepared, and Lenovo did indeed vote for Huawei in this round. However, due to Polar’s ​​supporters, the voting weight is not high enough. Therefore, the final result is still the LDPC code to get the full share of the 5G mobile broadband data channel.

As a result, the only hope of the Polar code is that only 5G mobile broadband control channels will remain. In the final expression and voting, Chinese enterprises (including Lenovo and other global allies) demonstrated true unity.

In fact, technically speaking, the 5G data channel pursues the transmission rate, mainly large-scale packets. The performance of this LDPC does have obvious advantages (this is why the first round of voting, LDPC extremely smoothly took down the long-code part of the data channel. s reason) .

For the 5G control channel, the amount of data transmitted by itself is small, and reliability is more important than speed, and it is exactly the Polar part.

In the end, Polar code was successfully established as an international coding standard for 5G mobile broadband control channels with its own technical advantages and collective support from Chinese manufacturers.

This is the complete process of the 3GPP three meetings in 2016.

★★★

The key question has come. What kind of role does Lenovo play?

In the simplest sentence, Lenovo played basically no role in the entire three sessions. It did not publish technical results alone. It did not stand alone for a certain standard platform.

From the results of the three rounds of voting, Lenovo participated in all three rounds of voting and voted for LDPC during the first round of voting (one or more encoding systems), followed by two rounds of voting (data channel short code system). (Channels of control channels) were all cast for Polar.

To sum up: Lenovo chose Qualcomm and Huawei to support LDPC when everyone was not optimistic about Polar. When Chinese companies united to support Polar, they also followed Huawei.

This result, in fact, it can be seen that some of the arguments on the Internet are actually very different.

Just in the morning, Lenovo officials issued an official response, mainly indicating two things:

1 Lenovo and its Motorola Mobility vote in favor of the relevant votes;

2 Lenovo has always supported the development of China's 5G technology, and has fully promoted the research and development of 5G technology and related products.

Perhaps, this conclusion is more real and objective than the simple diss association or revisiting the old thing. It is undoubtedly more interesting.

4. For the first time, Huawei is pushing 80 dollars cheaper overseas;

Tencent Technology News In early 2018, Huawei’s chief executive Ren Zhengfei issued an order to the mobile phone business, stating that it cannot ignore the low-end mobile phone business. Perhaps it is related to such a strategic arrangement. According to the latest foreign media news, Huawei recently joined the ultra-cheap mobile phone. The team, launched a $80 ultra-cheap machine in Africa.

In the past few years, the Huawei brand has gradually moved toward high-end positioning overseas. Huawei has focused on marketing high-end flagship models, which has affected the competitiveness of low-end and mid-range sectors. Market research company report shows that in the fourth quarter of last year, Huawei’s mobile phone sales volume declined. Apple Samsung has widened the gap.

According to foreign technology media reports, Huawei recently released an ultra-cheap mobile phone called Huawei Y3 in Africa, which has been sold in South Africa, Ghana and other countries.

The phone is relatively low-end, with a screen resolution of 854X480, a 5-inch screen, a quad-core MediaTek processor, 1GB of internal memory, 8GB of flash memory, an 8-megapixel main camera, 2MP self-timer, and a battery capacity of 2280 mAh.

This Huawei mobile phone uses Google's lightweight operating system, 'Android GO', which is specially launched in Asia, Africa, and Latin America. It is worth mentioning that many companies including ZTE, Nokia and other companies have also launched ultra-cheap mobile phones equipped with Android GO. Pricing gradually unified to 80 US dollars.

It should be noted that the past high-end positioning of the Huawei brand has adversely affected mobile phone sales and market share in the Asia-Africa region. In some countries, Huawei’s share is inconsistent with the third position of the global smartphone.

In the smart phone market in India, Huawei has not established a sense of presence for a long time and has not entered the top 5. Statistics for the first quarter of this year show that Samsung Electronics and Xiaomi each gained nearly 30% of their shares, monopolizing 60% of the market. The advantage has been further expanded. .

In the first quarter, Huawei primarily established a sense of presence in India through gloriously branded, cost-effective mobile phones. It entered the top five with a share of around 3%.

In the African mobile phone market, the two companies, Shenzhen Voice Co., Ltd. and Samsung, have monopolized the share of 60%. There is a large gap between Huawei and Xiaomi.

It is worth mentioning that Huawei has two mobile phone brands, namely Huawei and Glory, and adopts a completely independent operation mode. The ultra-cheap mobile phones in Africa still use the Huawei brand.

According to reports, the Glory brand is also expanding its internationalization strategy. Glory is very likely to have been the 'stimulus' of Xiaomi's huge success overseas. With glory mobile phones gaining more sales overseas, this will also increase Huawei’s mid- to low-level growth. The competitiveness of the end zone further enhances the company's global share.

It is reported that the global high-end mobile phone market has been monopolized by Samsung and Apple. It is not easy for Huawei to snatch users and share. Some voices believe that Huawei's next major means of expanding global share is still learning the practice of millet in Asia, Africa and Latin America. More cost-effective low-end mobile phones, especially 'star machine'.

5. Foxconn received IPO approval late at night: No mention of fundraising amount

Foxconn finally received the approval! March 8 passed the hearing, but on May 11, only to see the approval.

On the night of May 11, the Securities Regulatory Commission released this week’s new share approval. Only Foxconn obtained the IPO 'Admission Ticket.' Even more surprising was that the fundraising quota was not released in accordance with the usual practice. At this time, friends who brushed the information were aware of it. Time, yes, it is 23: 48.

The China Securities Regulatory Commission stated that on May 11th, the China Securities Regulatory Commission approved the initial application of Foxconn Industrial Internet Co., Ltd. in accordance with legal procedures. Foxconn and its underwriters will negotiate with the Shanghai Stock Exchange to determine the issuance schedule and publish a prospectus document.

Late night approval

According to the usual practice, the SFC will issue new share approval documents every Friday. The time is mostly concentrated between 8:00 and 9:00 pm. However, yesterday's approval was even more unexpected.

23: 48. The long-awaited approval document finally came to an end. The name Foxconn was exposed on the surface. Surprisingly, the CSRC's information did not mention Foxconn's fundraising amount. This was the reason since the IPO was restarted. There are no more cases than they are.

According to the Foxconn prospectus, the IPO will be used to raise funds of 27.253 billion yuan. Some brokerages expect Foxconn to issue 1.96353 billion IPOs this time. The estimated issuance price is around 13.84 yuan, and the corresponding issuance price-earnings ratio is 17.18 times. Based on this estimate, Foxconn estimates. The value is 273.1 billion yuan.

Why will the rush be 'late?'

February 1 reported the prospectus submission.

February 9 The prospectus report and feedback were disclosed at the same time.

February 22 prospectus disclosure update.

March 8 passed the trial.

The pre-disclosure of the prospectus only updated the link. Companies that had queued up for the listing took half a year. Foxconn took two weeks to finish, and on March 8th, it passed the censorship. It took only 36 days from the filing date. , broke the record of the previous meeting, this speed is really waiting innumerable queuing companies waiting outside the big A silent company.

However, after receiving the approval, Foxconn did not continue the myth of 'lightning distribution'. The “late” approval rhythm allowed Foxconn to report and receive approvals from the new stock for 100 days. Before that, he wanted to create medicines for 'Alibaba'. Mingkang (41.390, 3.76, 9.99%) took the lead in obtaining the IPO approval, and the time of listing was earlier than the two unicorns of Foxconn and Ningde in the past.

Many market participants speculated that the reason why Foxconn has been unable to obtain approvals is related to its amount of 27.253 billion yuan in the amount of funds to be raised. Excessively raised valuations have been considered by the industry as an important reason for the difficulty of rapid issuance. The reason why Kant took the lead in obtaining the IPO approval was to a large extent the listing of its 'discount', that is, the scale of the raised funds has shrunk dramatically.

On April 16, the “Preliminary Inquiries and Promotions for Initial Public Offerings” disclosed by WuXi PharmaTech on the website of the Shanghai Stock Exchange showed that the number of IPOs issued was no more than 104 million shares, and the estimated amount of funds used was 2.13 billion yuan, which was higher than the company’s previous The pre-disclosed 5.741 billion yuan was reduced by 63%, and the planned investment projects were also reduced from 10 to 4.

The size of the fund is expected to shrink

After the release of WuXi PharmaTech's 'Shrinking', Foxconn has not received any approval, and the approval does not specify the amount of funds raised... All indications indicate that the scale of Foxconn fund-raising will be a high-probability event. Regulators will be in the new economic IPO and market. To seek the maximum balance between stability, it is impossible to allow a large number of 'Big Mac' Airborne A-shares.

From 2018 to the present, the average size of a single new share fund raising was approximately 1.09 billion yuan. On February 5 of this year, the company invested 4.967 billion yuan in Huaxi Securities (12.550, -0.29, -2.26%), becoming a new stock-raising since 2017. The highest point of the amount of money. It can be seen, the regulator is very cautious about the size of the new stock fundraising. It is very difficult to get a green light on the listing of Big Mac when the market is unstable.

According to the issuance review process, after the issuance of the review committee meeting, it is necessary to perform certain post-meeting matters to obtain the approval. Foxconn wants a smooth listing and it is more feasible to reduce the amount of funds raised, and to issue additional bonds or issue bonds later. Fatty, I'm afraid it's harder to solve the raised funds in one step.

However, everything is undecided. In the end, the amount of fundraising needs to wait for Foxconn to officially publish the IPO documents. Generally speaking, under the current market conditions, issuers are more willing to issue the approval documents as soon as possible, most of them are getting The second week after the approval, the opportunity to publish the prospectus file, next week is the time window, the market may wish to hold their breath.

Foxconn 'General'

According to information released by Foxconn before, Foxconn’s overall revenue in 2017 was 353.08 billion yuan, of which, communications network equipment revenue was 214.5 billion yuan, accounting for 60.75%, and cloud service equipment (including traditional servers) was 120.39 billion yuan. , accounting for 34.10%, precision tools and robots (19.800, -0.56, -2.75%) revenue 966 million yuan, accounting for 0.34%.

The annual revenue of more than RMB 350 billion is indeed huge. In the current China, only two companies, Huawei and Foxconn, have exceeded this scale. Lenovo, Baidu, Ali and Tencent have not exceeded 300 billion in annual revenue.

Foxconn’s major shareholder, Hon Hai Precision, is the world's largest foundry company. Moreover, Foxconn is already a major player in China’s domestic foreign trade. In 2016, Foxconn’s import and export volume in Henan was as high as 317.2 billion yuan, accounting for the whole of Henan Province. Over 70% of the import and export volume. In 2016, Foxconn’s total import and export accounted for 3.6% of China’s total import and export volume. Foxconn’s influence on China’s foreign trade is relatively large.

Foxconn's main customers include Amazon, Apple, ARRIS, Cisco, Dell, HPE, Huawei, Lenovo, NetApp, Nokia, nVidia, etc., all of which are well-known electronics industry brand companies. Most of these companies are currently booming, and the market value of Apple is close to 9,000. Billion dollars, Amazon's market value exceeds 700 billion US dollars.

Although the absolute amount of profit is huge, the net profit rate is not high. Taking 2017 as an example, the net profit of 15.87 billion yuan is the sales revenue of 354.5 billion yuan, and the net profit rate is less than 5%. The foundry industry has always been small profits. The combined gross profit margin of Foxconn Industrial Internet in 2015, 2016 and 2017 was 10.50%, 10.65% and 10.14%, respectively, which was comparable to that of comparable companies in the same industry.

In addition, as of the end of 2017, Foxconn Industrial Internet’s total assets were RMB 148.6 billion, total liabilities were RMB 120.4 billion, and the debt ratio was about 81%, which was nearly double compared to 43% as of the end of 2016. The increase in Foxconn's liabilities was mainly due to the fact that Increase in accounts, According to the prospectus, at the end of 2017, the book value of accounts payable of the company increased by 33.796 billion yuan compared to the end of 2016.

According to the manuscript prospectus, Foxconn plans to invest a total of 27.253 billion yuan in major investment in eight sectors, including industrial internet platform construction, cloud computing and high-performance computing platform, efficient computing data center, communications network and cloud service equipment, 5G and the Internet of things. Interconnect solutions, R&D and application of new intelligent manufacturing technologies, smart manufacturing industry upgrades, smart manufacturing capacity expansion, etc.

Among them, smart manufacturing industry upgrades, smart manufacturing new technology research and development applications, communications networks and cloud service equipment, etc., rank the top of the list, with investments of 8.662 billion yuan, 5.108 billion yuan and 4.968 billion yuan respectively.

Large differences in valuation

Some brokerages expect that Foxconn will issue 1.96353 billion IPOs this time. It is expected that the issue price will be around 13.84 yuan, and the corresponding P/E is 17.18 times. Based on this estimate, Foxconn's valuation is 273.1 billion yuan. The valuation of Foxconn is very different among major securities companies. Large, as low as 15 times P/E, as high as 40 times, with a drop of 300 billion yuan.

According to the industry division of the China Securities Regulatory Commission, Foxconn should be a manufacturer of computers, communications and other electronic equipment. Currently, the company with the largest market value in this sector is Hikvision (39.980, -0.47, -1.16%) with a market value of nearly 400 billion yuan, 42 times earnings ratio. The weighted average price-earnings ratio for the sector given by the reference to the China Securities Index is 43.07. Based on this calculation, the market value of Foxconn could reach 680 billion yuan.

Obviously this statement may be overly optimistic and unlikely. Many brokerage analysts generally believe that it is reasonable between 20x and 25x, and the reasonable market value is between RMB320 billion and RMB400 billion.

A brokerage TMT industry analyst said, 'Attracting eyeballs does not equal to obtaining a high valuation. Foxconn’s parent company Hon Hai Precision’s current P/E ratio is only 10 times. The recent share price has not been affected by Foxconn's A-share listing, indicating that overseas investors Still more cautious. According to its distributed valuation of each business, 22 times to 25 times more secure. 'At the same time, the analyst believes that affected by the performance of important customers such as Apple's market performance, it is expected that Foxconn's stock performance in 2018 will have a higher probability of flat year-on-year Brokerage China

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