On July 15, ZTE officially launched the business reconstruction plan that had been prepared before, and began to fully resume its global business. It is reported that from the evening of July 13, ZTE employees have arrived in the workplace one after another. The first order came from ZTE Mexico. Terminal line of business.
In the "Partner Letter" sent to partners, suppliers, etc., ZTE said, "ZTE will mobilize all resources and pursue the progress" due to the cooperation activities that have been postponed due to the refusal order.
On July 14, the official website of the Chinese Ministry of Commerce showed that the United States has signed an agreement with ZTE to cancel the ban on US suppliers and ZTE from doing business for nearly three months. ZTE will be able to resume operations, and the ban will be in ZTE. After the US paid $400 million in deposit, it was lifted. On July 14, ZTE also released a microblog on the official Weibo 'Fulfilling with confidence!' to respond.
The $400 million bond is part of an agreement between the United States and ZTE last month. It also includes a huge fine of $1 billion and executive adjustments. At present, ZTE has completed the re-election of executives. According to the US Department of Commerce on June 8 To reach an agreement, ZTE needs to reorganize its board of directors within 30. The restructuring of ZTE’s board of directors is also very rapid. On June 29, ZTE issued a number of important announcements, and a new 8-member board of directors was elected through a general meeting of shareholders within one day. The board of directors quickly elected Li Zixue as chairman.
Earlier this month, the US Department of Commerce’s Industrial Security Administration (BIS), which is responsible for export control, issued a document stating that from July 2 to August 1, ZTE was allowed to resume some of its services, including providing network and equipment support services, allowing parties to The payment or collection of fees for the contract also allows ZTE to disclose information about the security vulnerabilities related to ZTE’s possession and control equipment.
The U.S. Department of Commerce said in a statement that ZTE’s actions are a matter of law enforcement and have nothing to do with broader trade policy discussions. U.S. sanctions against ZTE began three months ago. On April 16, the U.S. Department of Commerce officially announced The sanctions against ZTE prohibit US companies from carrying out any business with ZTE within seven years, including software, technology, chip and other parts sales are within the limits, on the grounds that ZTE violated the US restrictions on the sale of US technology to Iran.
It is understood that ZTE has been stagnant for several months since the encounter of the ban, and its share price has plummeted. According to the 2018 semi-annual report released by ZTE on July 13, the company made preliminary predictions based on the current situation and informed the investment. Pay attention to investment risks. The forecast said that the first half of this year was a loss of 7 billion yuan to 9 billion yuan, a profit of 2.293 billion yuan in the same period of the previous year, which turned from profit to loss. The company said that the reason for the loss was the operation caused by the company's main business activities. Loss, accrued losses and a $1 billion fine.
ZTE has announced that after the incident, it has indeed affected the company. However, for more than two months, the core competence of the company has remained, especially the ability of research and development has been maintained, and the core backbone team has been stable. Under the guidance of compliance, most of the research and development work has not been seriously affected. 'The company is confident that after the ban is lifted, R&D will quickly return to its previous state in a short period of time, and it is confident to recover the losses caused by more than two months. In terms of 5G commercial schedule, performance, scale, we are confident to maintain industry leadership. 'Zhongxing related person in charge.