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ZTE's ankles are heavy and difficult to dance 5G single rider is difficult to save the Lord

via:博客园     time:2018/9/10 10:32:13     readed:213

It is now the 2018 semi-annual report. Among the 3,539 listed companies in the Shanghai and Shenzhen Stock Exchanges, 363 listed companies suffered losses in net profit, accounting for nearly 10%.

In terms of the amount of losses, 88 listed companies have a loss of more than 100 million yuan, of which 8 listed companies have lost more than 1 billion yuan. Affected by the Sino-US trade war related to the "ban" and the US $1 billion fine, ZTE could not operate normally for more than two months, and its net profit fell sharply. The loss in the first half was 7.824 billion yuan, becoming the first half of the A-share market. “Loss King”.

It is understood that in the first half of the year, in order to focus on the 5G main business, ZTE has shrunk a large number of subsidiaries' assets that are not related to the 5G main channel. The company also said that it will continue to increase 5G investment in the second half of the year, including 5G mobile phone R&D investment.

In the case of serious losses, how will ZTE develop its 5G business? What kind of industrial chain layout? In addition, how will we deal with the fierce competition in the 5G era? On such issues, the "Investor News" reporter contacted ZTE related people, as of the press release did not receive any reply.

Into A shares “ loss king & rdquo;

ZTE submitted the semi-annual report of 2018 after “hijacking”. In addition, many of its core data are underperforming. In addition, ZTE expects to continue to lose money in the third quarter.

ZTE’s loss was expected, but its loss was unexpected. According to the semi-annual report, ZTE's operating income was 39.434 billion yuan, down 26.99% year-on-year, net profit loss was 7.824 billion yuan, down 441.24% year-on-year, and net profit was 2.293 billion yuan in the same period last year. ZTE said that the decline in performance was mainly due to the US$1 billion fine imposed on the United States and the operational losses and accrued losses caused by the inability of the Company's main business activities as described in the Announcement on Major Events announced on May 9, 2018. Caused by.

Gross profit margin is an important indicator for observing the profitability of a company's main business. In the first half of this year, ZTE's gross profit margin was 30.24%, a decrease of 2.28 percentage points from the same period of the previous year. Its three main businesses —— international operator network, domestic and foreign business affairs and domestic and foreign consumer business gross margins are declining, the latter two contributed 29.44% and 29.15% of operating income respectively to ZTE, However, gross profit margin decreased by 6.45 and 6.84 percentage points respectively.

According to the business division, the operating costs of ZTE's carrier network and consumer business are lower than the same period of the previous year, but the operating cost of government business has increased by 29.44%. It is followed that this part of the operating income is the same as last year. Achieved 17.74% growth.

It is worth noting that even if the loss is nearly 8 billion yuan, ZTE's R&D investment has not been significantly relaxed. The company's R&D investment in the first half of 2018 was 5.0606 billion yuan, a decrease of 24.2% from the 6.767 billion yuan in the same period of last year, but the R&D investment. The proportion of operating income was 12.8%, up 0.47 percentage points from 12.4% in the same period of last year.

Worried overseas business

The US sanctions incident is the biggest and most direct business for ZTE, which is overseas business.

Data show that in the first half of 2018, ZTE's international market revenue decreased by 37% year-on-year, and its share in overall revenue dropped to less than 35% from 40% in the same period last year. From different regions, the Asian market revenue fell by a maximum of 47% year-on-year, the European, American and Oceania markets fell by 32%, and the African market fell by 21%.

In addition to the decline in income, the decline in profitability has also received much attention. Overseas Markets The average gross profit margin in the first half of 2018 fell from 12% in the same period of 2017 to 12%, which is 27 percentage points lower than the 39.87% in the Chinese market. ZTE basically relies on domestically earned money to subsidize overseas markets. In particular, the gross profit margin of the US, Europe and Oceania markets, which account for nearly 60% of ZTE's overseas revenues, is only 0.01%. If the cost factor is considered, the business in this region has actually experienced operating losses. Market research firm Dell & lsquo; Oro Group data show that in the second quarter of this year, ZTE ranked fifth in the mobile network equipment market, while the top three Huawei, Ericsson and Nokia in the second quarter market share have been increase.

Can 5G save ZTE?

At the second extraordinary shareholders meeting of ZTE, Xu Zongyang, president of ZTE, said. “The company has made resource adjustments around ‘focus on the main business & rsquo;, some of the previous capital operations are mainly to shrink the business outside the 5G main channel. In the second half of 2018, the company will focus on 5G core competitiveness and increase R&D investment in 5G systems, 5G mobile phones and 5G chips to continue to maintain its 5G first camp.

In fact, ZTE is indeed accumulating for 5G. In order to focus on 5G's main business, in the first half of this year, a large number of subsidiaries' assets that were not related to the 5G main channel were contracted, and 43.66% of the subsidiary ZTEsoft was transferred. The holding subsidiaries Dalian Zhongwang Real Estate Co., Ltd. and Changchun Zhongxingxin were cancelled. Energy Automobile Sales Co., Ltd., Henan Zhongxing Photovoltaic Technology Co., Ltd.

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It is worth noting that ZTE expects net profit attributable to shareholders of listed companies from January to September 2018 to be 6.8 billion yuan to 7.8 billion yuan, down 274.15% to 299.76% year-on-year, and the loss is narrower than the semi-annual report.

However, all of this must be carried out under the eyes of the “supervisor”.

According to an agreement with the US Department of Commerce, in the next 10 years, ZTE will be stationed in an official inspection team sent by the United States. The inspection team, formed by BIS (Industry and Security Bureau of the US Department of Commerce), will have at least seven ZTE employees who are responsible for BIS and whose task is to monitor ZTE's export compliance behavior in real time. The inspection team implements double leadership, and wages and other expenses are borne by ZTE. Previously, ZTE had already ushered in the first "Supervisor" & mdash; & mdash; former US Attorney General Roscoe Howard.

Under such circumstances, ZTE's vigorous development of 5G business is to hope for thirst or to save straw? When will the company return to profitability? Still need to wait and see.

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