After deducting the various taxes, the transfer will give the company 458 million gain. Why would a technology company sell its research building and what has been the dilemma of Datang Telecom over the past few years?
What is more noteworthy is how the company is in the industry-integrated circuits (chips), and what is the status quo.
Huge government subsidies still do not help, Datang Telecom has been on the market since the huge loss of nearly 5 billion Datang Telecom's main business includes integrated circuit design, production and so on. 1998, the company listed in Shanghai. Since the listing, the company through the allotment, the increase of equity financing over 4 billion, the specific amount of 4.042 billion.
However, the huge equity financing, but did not bring the return to the company shareholder. According to earnings reports, the first quarter of this year, Datang Telecom's total revenue of 565 million, the year-on-year slump of 63.56%; Net profit is a loss of 153 million. If the net profit is deducted, it will lose more. 2018 years ago three months, Datang Telecom deducted the loss of net profit of 211 million.
The following figure is based on earnings of Datang Telecom's total revenue and net profit in the past years: Not just the first quarter of 2018; In recent years, Datang Telecom is mired in losses. 2017, the company net profit is loss 2.649 billion, 2016 year loss 1.776 billion.
In fact, since its 1998 IPO, Datang Telecom has lost 4.955 billion of its total net profit. In addition, Datang Telecom's losses could be even greater without huge government subsidies.
In only 2011-2017 years, the amount of government grants received was as high as 1.148 billion. Datang Telecom in explanation of its 2017 huge losses, said 2017, the company's major industry competition is still fierce, in the chip area, terminal chip upgrade accelerated, more intense competition, education, Water Conservancy, Intelligent City, highways and other industries in the field of information technology competition intensified;
In this context, the company abandoned some of the low gross margin of products, resulting in a sharp decline in corporate performance.
Continuous loss faced with Shell pressure: Datang Telecom selling buildings to survive? As a result of two consecutive years of losses in 2016 and 2017, the Shanghai SSE has implemented the risk warning for Datang Telecom.
Its stock is shortened from Datang Telecom to *st Datang (6.17-1.28%, Diagnosis Unit).
In the first quarter of this year, Datang Telecom again plunged into a loss, as we all know, if the listed companies for three consecutive years of losses, will face a suspension of the listing situation, which means that Datang Telecom this year is facing pressure shell. And the company intends to transfer the scientific research building, perhaps is the company to protect the shell of one of the means.
Datang Telecom announced that the company intends to Beijing Hai Guo Yongfeng technology transfer of the building, at present, the transaction has been approved by the company board of directors, still need shareholders general meeting and the relevant departments of Beijing for approval. It is noteworthy that the building's huge appreciation. The company announced that the Beijing Research Center building began construction in July 2014, completed in June 2017, and in May 2018 to obtain "fixed title", as at the end of this year, the project cost total 497.42 million, accounting for depreciation 24.34 million, net book 473.08 million.
According to the company, it is estimated that the value of the building is 1.35 billion, and the value added rate is as high as 183.37%. Datang Telecom's sale of this House is amazing, because the building just obtained title certificate, it immediately sold at high prices, can be called real estate business.
In fact, Datang Telecom is cutting research spending sharply, and in 2017 the company spent 634 million on research and development, down 29.07% per cent year-on-year.
Chip imports hit record high in the first half: chip imports burst 35% However, when Datang Telecom cut research and development costs and sold research buildings;
China's chip imports have hit record highs. China's chip imports amounted to $146.705 billion trillion in the first half of the year, up 35.2% from 108.507 billion dollars a year earlier, according to the General administration of customs.
The following figure is the trend of China's chip imports in the first half of the year based on data from the General Administration of customs: In fact, not only in the first half of this year, in recent years, China's integrated circuit imports are very high, 2017 imports of integrated circuits up to 260.115 billion U.S. dollars; In 2016, imports of integrated circuits were even twice times the amount of crude oil imported.
According to statistics, in the last decade (2008-the first half of 2018), China's integrated circuit imports of up to 2.08 trillion U.S. dollars, equivalent to 14 trillion yuan. China has already become the world's largest consumer of chips because of its huge electronics manufacturing and mass consumer market, according to IHS. The report estimated that 2017 shipments to China were worth about $189 billion trillion in semiconductors, accounting for about 44.1% of global semiconductor value.