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This time, Huawei has issued 6 billion yuan of domestic debt, rated 3A and held 250 billion yuan of cash.

via:证券时报e公司官微     time:2019/9/12 13:43:11     readed:91



It is worth mentioning that with the first exposure of China's medium-term bill prospectus on the evening of September 11, the "family background" of the international telecommunications giant also made its debut. There are also all the issues of general concern from all walks of life, such as the layout of China 5G, the current situation and future plans of various business sectors, the stock ownership situation, the number of employees and the details of R&D investment. Make it public.

Holding 250 billion dollars in cash

The prospectus shows that in 2016-2018 and the first half of 2019, Huawei's business income was 518.06 billion yuan, 598.48 billion yuan, 715.192 billion yuan and 396.538 billion yuan, respectively, up 31.58%, 15.52%, 19.50% and 22.86% over the same period, with an average compound growth rate of 17.49% in 2016-2018, and net profits of 37.052 billion yuan and 47.455 billion yuan over the same period respectively. Yuan, 59.343 billion yuan and 34.904 billion yuan. By the end of the first half of 2019, Huawei's net assets and total assets were 245.487 billion yuan and 705.716 billion yuan, respectively.

Not only that, Huawei's cash position is also very good. By the end of the first half of 2019, Huawei had a monetary capital of 249.731 billion yuan and a bond balance of 30.782 billion yuan, indicating that Huawei had previously issued bonds overseas, including two RMB dim sum bonds and four US dollar bonds.

For the purpose of raising funds, Huawei said that with the expansion of the company's business scale, operating costs and R&D expenditure also increased accordingly. In 2016-2018 and the first half of 2019, the cash expenditure of the company's consolidated business activities was 55.4279 billion yuan, 62.5538 billion yuan, 77.8238 billion yuan and 485.11 billion yuan, respectively, and R&D expenditure was divided into five parts. They were 76.375 billion yuan, 89.666 billion yuan, 101.475 billion yuan and 56.597 billion yuan (in 2018, R&D investment accounted for 14.19% of the annual income). It is expected that the company's business will maintain a stable growth trend in the future, and the financial support will be further increased. The company intends to issue medium-term bills to supplement the operating funds of its headquarters and subsidiaries. Specifically, it will continue to focus on ICT infrastructure construction.

Huawei responded by saying optimize the financing layout

For this issue, Huawei responded that the funds needed for Huawei's operation mainly come from its own business accumulation and external financing, mainly from its own business accumulation (accounting for about 90% in the past five years), supplemented by external financing (accounting for about 10% in the past five years). Huawei has always insisted on optimizing its capital structure through rational financing layout to ensure its financial stability. The company will further enrich the financing channels and optimize the overall financing layout by opening up the domestic bond market through domestic bond issuance.

However, Huawei also stressed that the company operates steadily and has ample cash flow. In addition, through the joint credit evaluation by rating agencies, the long-term credit rating of Huawei as the main body is AAA, and the credit rating of medium-term bills in the current period is AAA, which indicates that the company has a strong ability to repay debts, is basically not affected by the economic environment, and the risk of default is very low.

It is understood that the main underwriters of Huawei's two-phase medium-term bills issuance are ICBC and CCB respectively, and the two-phase rating agencies are joint credit rating agencies. In the fund-raising statement, the joint credit believes that Huawei's core operators operate steadily, consumers and enterprises expand rapidly, and have strong overall profitability and cash. Capability of acquisition and reinvestment; the scale of assets and equity continues to grow, cash assets are abundant, and debt burden is relatively light.

Exposure of Five Huawei Insiders

It is worth mentioning that with Huawei's debut in the domestic bond market, the home of the company's internationally renowned telecommunications enterprises has also been exposed for the first time.

I. Huawei 7-member workers over 30 years old

According to the prospectus, by the end of 2018, the total number of employees in the company was about 180,000, coming from nearly 160 countries and regions around the world. Among them, about 80,000 people are engaged in research and development, accounting for 45% of the total number of companies.

It is worth mentioning that more than 70% of employees over 30 are in Huahua, of which about 69% are between 30 and 50 years old.

2. Half Employee Ownership

Huawei employee stock ownership has been highly praised and learned by many domestic technology enterprises. Nowadays, the specific situation of Huawei employee stock ownership is no longer a secret.

The prospectus shows that on December 28, 2018, Huawei's registered capital was 22.237 billion yuan, Huawei's trade union committee held 98.99% of the shares, and Ren Zhengfei, the founder and president, held 1.01% of the shares.

By the end of 2018, the total number of employees participating in the ESOP was 96 768. The average number of employees participating in the ESOP was 96 768. The contribution of any employee holding the ESOP was not more than 5% of the total equity of the company. Based on this, the proportion of employees participating in the ESOP was about 53%.

Huawei's trade union is the representative union of shareholders who perform the duties of shareholders and exercise the rights of shareholders. The representative Association of shareholders consists of 115 representatives of shareholders, including Ren Zhengfei, Sun Yafang, Liang Hua, Guoping, Xu Zhijun, Hu Houkun, Meng Wanzhou, Ding Yun and Yu Chengdong, who exercise relevant rights on behalf of all shareholders.

Third, Huawei Terminal's performance doubled in the first half of the year

Despite its semiannual performance meeting, Huawei disclosed its companyMobile phoneShipment status, but the company's terminal business revenue was not disclosed.

The prospectus shows that by the end of June 2019, Huawei Terminal (Shenzhen) Co., Ltd. had combined assets of 23.1291 billion yuan, total liabilities of 18.523 billion yuan and owner's equity of 50.768 billion yuan. In 2018, the company's combined business income was 329.141 billion yuan and its net profit was 11.411 billion yuan. From January to June 2019, Huawei's combined revenue was 211.057 billion yuan and its net profit was 11.235 billion yuan. In other words, Huawei's terminal net profit in the first half of this year was close to its net profit in the whole of last year.

The instructions also show that at present, Huawei's terminal mobile phone sales profit model is: some products are supplied to domestic and foreign open market channel partners and telecom operators, and are sold through retail partner stores, electrical appliances stores and operation stores. This part of sales accounts for about 80% of terminal business revenue, and the company earns terminal production. The profit margin between wholesale price and production cost; the other part is directly oriented to individual customers, mainly through self-operated e-commerce platforms and direct stores for sales, sales revenue accounts for about 20% of terminal business income, the company earns profit margin between retail price and production cost of terminal products.

4. Smartphone industry is facing shuffling period

The solicitation brochure for the first time exposed the overall sales of Huawei smartphones in the past three years. In the first half of this year, 118 million units were shipped, an increase of 24% over the same period last year. Huawei's consumer business mainly provides products such as mobile phones, personal computers and tablets, wearable devices, mobile broadband terminals, home terminals and consumer clouds. In the whole year of 2016-2018 and the first half of 2019, the business income of consumers was 180.219 billion yuan, 23.85 billion yuan, 346.098 billion yuan and 21844.64 billion yuan, respectively, which maintained high-speed growth.

Huawei predicts that the global smart phone market will enter a period of steady development after rapid development in the past few years. With the acceleration of Commerce in 5G industry and the resumption of growth in smart phone market in the following years, global sales will exceed $500 billion. Smartphones are still the most valuable consumer electronics products. From the competition point of view, the smartphone market has changed from incremental competition to post-smartphone era of stock competition, and entered the stage of intense shuffling. Top vendors can get better supply chain resources, have greater investment in innovation and R&D, and produce more competitive products. Therefore, the "strong will always be strong" and market share will be concentrated to Top vendors.

Fifth and fifth G investments exceed $4 billion

The prospectus shows that Huawei has invested more than 10 years in 5G technology research, with a total investment of more than $4 billion. It is the first to build a 5G scale commercial capability to achieve 5G minimal deployment, minimal site, extreme experience, and smarter maintenance.

By the end of June 2019, Huawei had signed 50 5G commercial contracts with leading operators in the world, and more than 150,000 5G base stations were sent to all parts of the world.

In addition, in the field of smart cities, Huawei's business helps more than 40 countries and regions around the world, and more than 200 cities carry out smart city construction.

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