ZTE quarterly screenshot
According to ZTE, it is currently impossible to predict the financial status and operating results from the beginning of 2018 to the end of the next reporting period. After the company has fully and accurately estimated the impact of the refusal order on the company's first quarterly report in 2018, the company will rewrite the first quarterly report for 2018 and disclose it.
The U.S. Department of Commerce announced on April 16th that it would ban U.S. companies from selling components, goods, software and technology to ZTE for seven years until March 13, 2025.
The U.S. Department of Commerce, in response to ZTE’s failure to award timely bonuses and disciplinary letters to certain employees involved in historical export control violations, submitted two copies to the U.S. government on November 30, 2016 and July 20, 2017. The letter made a false statement on the ground that it had made a decision to activate the refusal order and imposed the most stringent sanctions on ZTE.
However, worse, before ZTE released the earnings report, Bloomberg reported that the Taiwan authorities demanded that Mediatek stop selling chips to ZTE. Faced with ZTE’s ban on the United States, Cai Lixing, the chief executive of this compatriot’s company, said that he must comply with the regulations. ZTE has not given a response yet.
In fact, regarding the sanctions imposed by the US Department of Commerce, ZTE responded quickly and expressed its firm opposition to the decision made by the U.S. Department of Commerce, resolutely opposed unfair and unreasonable penalties, and even opposed the politicization of trade issues. Great influence.
ZTE also stressed that it will continue to uphold openness, transparency, and integrity, continue to communicate, solve problems in a legal and compliance manner, and do its utmost to reduce the adverse impact of the matter.
In this regard, ZTE held a press conference on April 20, Chairman Yin Yimin said that the US ban may cause the company to immediately enter a state of shock, causing direct damage to the interests of all employees, operators worldwide, end consumers and shareholders. . ZTE believes that the sanctions are extremely unfair and unacceptable.
ZTE currently has 30,000 R&D personnel. According to the public information released by the World Intellectual Property Organization, in 2017, ZTE Corporation took 2965 PCT international patent applications to occupy the second position of PCT international patent applicants, and applied for 8 consecutive years of international patent applications. Ranked among the top three in the world, it is the only company in China that has won this honor for eight consecutive years.
"Of course, we also need to increase our investment in technology to make our capabilities stronger." Yin Yimin said that ZTE has always insisted on independent innovation of core technologies and strengthened R&D investment. In 2017, R&D investment was 12.96 billion yuan, accounting for 11.9 of revenue. %. Among them, the Group continued to increase investment in 5G R&D and related fields. Currently, it has established a 5G wireless R&D team with more than 4,500 employees and invests 3 billion yuan each year for 5G wireless R&D.
As of December 31, 2017, ZTE has a total of more than 69,000 pieces of global patent assets and more than 30,000 authorized patent assets. Among them, there are more than 1700 patents worldwide for 5G strategic layout.