Time slowly entered mid-October, and it was three months away from ZTE (000063-CN) to release the 'seal'. ZTE has released a series of business developments to the outside world, but it has not caused a big wave, stock price Since the interception of the waist, there is no big change. After the crisis was lifted, in addition to focusing on 5G business, ZTE was forced to reluctantly give up other business strength points. This is like a self-defeating hand, it is distressing, and it is a pity for ZTE. I would like to ask, will ZTE, which once had a global outlook, be better?
ZTE past events
ZTE's internationalization is very good. For its R&D center in Shanghai, it is the first high-tech enterprise to settle in Zhangjiang. In the past, all kinds of skin colors and manufacturers who speak various languages came in and out, you come to me. Towards, the atmosphere of internationalization is quite rich. The atmosphere of the deafness can make people instantly impressed by the high-tech charm of ZTE. ZTE’s door-to-door market once crushed the surrounding foreign enterprises and became a gold-plated signboard of Zhangjiang Hi-Tech.
ZTE is among the top four operators in the world. According to statistics, as of the end of 2017, ZTE has 69,000 global asset patents; for the eighth consecutive year, global PCT patent applications ranked in the top three, and ranked first in the world for three consecutive years; Currently has 5G communication core patent 2000+ pieces.
However, these are all going on with the smoke. In April of this year, the article 'A war without smoke' was spread throughout the circle of friends. The crisis of ZTE is also well known. The thin figure in the article is the legend of ZTE. When he started his business in 1985, he happened to be at the same age as Huawei. He was 43 years old. The heroes cherished each other. It is said that two people from the same city have gathered together to discuss the rise of national communication. To know the age, China The communications market is monopolized by foreign giants Lucent, Ericsson, Alcatel, etc., and communication equipment is expensive.
In 1997, ZTE completed the mixed reform and changed its name to “Zhongxing Communication Co., Ltd.” and listed on the Shenzhen Stock Exchange in the same year. In 2004, Hong Kong went public, and its operating income reached 21.2 billion in the same year. ZTE’s first loss occurred in 2012, about 2.5 billion yuan. ZTE attributed it to a strategic mistake, and its performance growth slowed down. In 2016, ZTE suffered a second loss in the past 20 years, with a net loss of 2.36 billion yuan, a decrease of 173.49% from the same period last year.
In 2016, ZTE was again sanctioned by the US government for violating export control regulations. Although it struggled, it eventually paid a fine of 892 million US dollars. There is even more deadly. The 2018 'banned' storm is even more straightforward. Let ZTE have no power to fight.
Under the mediation of all parties, the US Department of Commerce lifted ZTE's 'ban' on July 13th, and on the 15th, ZTE officially launched a business reconstruction plan. Fortunately, after experiencing the Trump administration for 89 days. During the 'ban' period, ZTE's connection experienced business lockouts, huge fines, high-level exchanges and other heavy blows, but did not end up as bankruptcy.
The 'Zhongxing's Difficulties' is also a must for the globalization of Chinese enterprises. Especially in today's unpredictable political situation, the difficulty of ZTE has become a forerunner of major companies.
Rivers and lakes emergency
Affected by the 'ban', the stock was suspended for two months, and ZTE's share price went down. The stock price was as low as 11.85 yuan per share, which was more than 60% lower than the stock price before the suspension.
Without a trip, there is hope. The domestic market partners have extended their help to ZTE. After the US Department of Commerce lifted the ban, ZTE quickly invested in 5G related key internal and external field tests. In terms of orders, the three major domestic operators announced one The list of candidates for the batch of communication equipment has been involved in ZTE, and the total number of orders has exceeded 500 million yuan.
In addition to the partner's rivers and lakes, ZTE is also self-help. In the first half of the year, ZTE divested its under-utilized subsidiary assets, transferred its subsidiary ZTESoft's 43.66% stake, and cancelled its holding subsidiary Dalian Zhongwang Real Estate Co., Ltd., Changchun Zhongxingxin. Energy Automobile Sales Co., Ltd., Henan Zhongxing Photovoltaic Technology Co., Ltd.
In addition, there are still many industries under ZTE's name, including ZTE Development (real estate and hotels are in it, including ZTE and Thai hotels, etc.), ZTE Microelectronics (IC, Semiconductors, Chips, etc.), ZTE.com, ZTE, etc.
After suffering a fatal blow, ZTE can regroup and return quickly. This efficiency cannot be achieved by ordinary enterprises. Its efficient return also allows the world to see the potential of the Chinese domestic market and the determination of economic stability.
Clean up the old mountain river
The money is gone, the people are still there, the strong man is coming back, and the heart is full of enthusiasm.
After 33 years of squatting, ZTE has contributed a lot to the rise of China's communications industry. We must pay tribute. It is because of independent research and development that we have the domestic wireless industry that is booming, even every call we dial out. Nearly half of each WeChat is ZTE's equipment support and technical solutions. Now ZTE, who was born again after the robbery, is afraid to wait for it, clean up the old mountains and rivers, and smash the sky.
After the ban is lifted, the company will quickly invest in the 5G business to be completed. This may lead to a new industrial revolution in the future, which will affect the nerves of the world's major telecom operators. ZTE has been running for 20 years, at '5G' The field is also a ride, now all in 5G strategy is also focused on the focus, focus on strength.
According to ZTE’s announcement today, its 5G test not only catches up with national testing requirements, but also cooperates with China Telecom to realize the first 5G outbound end-to-end full-service communication in Xiong’an New District. According to Garnet’s forecast, in 2020, ZTE will be global. The market share of wireless communication equipment will reach 22.8%.
However, for ZTE, the 5G before 2020 is a real money-burning competition. Before the output, compared with the competitors, it is the cost input. As far as the current family is concerned, ZTE can support it. ?
The Spring River Plumbing Duck Prophet, no matter what difficulties it faces, ZTE must catch up with the upcoming 5G Spring.