The funds raised will be invested in two aspects
The announcement shows that today, the China Securities Regulatory Commission issued an audit committee to review the application for non-public offering of A shares of ZTE Corporation. According to the audit results, the company's application for non-public issuance of A shares was approved.
It is reported that the total amount of funds raised in this stock does not exceed 13 billion yuan (including 13 billion yuan), and the raised funds will be invested in "technical research and product development projects for 5G network evolution" and "replenishment of working capital".
Among them, the construction content of “development project” includes: cellular mobile communication network technology research and product development, core network technology research and product development, transmission and bearer network technology research and product development, fixed network broadband technology research and product development, big data. And network intelligence technology research and product development.
R&D investment has reached its peak in recent years
In fact, ZTE’s “13 billion fixed-income fundraising plan” dates back to the beginning of last year.
On the evening of January 31, 2018, ZTE threw out a fixed-income fundraising plan, which stated in the announcement that the funds would be used for “technical research and product development projects for 5G network evolution” and “replenishment of working capital”. . At that time, the competition in the global 5G industry chain became increasingly hot, and the general direction of ZTE's fundraising was to develop blood for 5G.
After truly entering the 5G era, the R&D investment of various manufacturers is increasing. ZTE has said that 5G related investment has been carried out in the 3G era, and it has been 8 years. According to statistics, during the period from 2013 to 2018, ZTE's R&D investment was 65.22 billion yuan, accounting for about 12% of revenue, and the annual investment exceeded 10 billion yuan.
In the difficult period of 2018, ZTE's R&D investment accounted for more than 12% of revenue. From January to March 2019, R&D investment was 3.093 billion yuan, accounting for 13.9% of operating income, accounting for 4.1 percentage points higher than the 9.8% in the same period of last year, reaching the peak in recent years.
Said to strengthen the R&D investment of 5G chips
The industry believes that with the confirmation of 5G commercial time in various countries, the 5G race has already started in advance, and the market demand for 5G products will increase day by day. At this time, the “13 billion fixed-income fund-raising plan” was finalized, which helped ZTE to build products with core competitiveness and enhance the market share in the mainstream market. Not long ago, ZTE said that in the next six months to one year,Mobile phoneProduct planning will exceed 5 models.
More importantly, the technical iteration will bring the market to reshuffle. Only the ancestors can obtain the key technologies of each link in order to stabilize the upstream of the industrial chain and harvest the market dividend. At present, ZTE ranks third in the world in the 5G standard essential patents. This fixed-income collection will also allow it to continue its high-intensity R&D investment and maintain its existing advantages.
ZTE said that this issue will strengthen the company's advantages in the process of 5G network evolution, enhance the company's product competitiveness and global market position in the 5G network evolution process, and strengthen R&D investment in the 5G chip field. Enhance the company's core competitiveness in the 5G field. On the other hand, it can supplement the liquidity needs of the company's business development, and the company's capital structure will be further optimized, which will help strengthen the company's ability to withstand risks.