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Chuanwei Creative Power withholds Huawei's material due for 100 million yuan or closes Huawei Business Department

via:第一财经     time:2019/8/7 13:44:20     readed:114

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Original title: Weichuangli insiders claim detentionHUAWEIMaterial due for 100 million yuan, or closure of Huawei Business Department

Qian Tongxin

According to media sources quoting people familiar with the matter, Huawei said in a lawyer's letter that in May this year, the US policy imposed a "ban" on Huawei, and in the next "nearly two months", Weichuanli China Company "ignored Chinese law" and refused to return Huawei's production equipment, raw materials and equipment worth about 400 million yuan in Weichuanli Zhuhai factory. Partially Prepared Products.

In this regard, the Flextronics official has not yet made a public statement. However, after the first financial journalist learned about the situation to the insiders of Flextronics, a senior manager of a factory in China responded to the first financial journalist by saying, "We actually restored the supply to them after three days because of the fact thatcellphoneThe product is not affected by the "entity list". Only the base station products are complex, involving more parts and high-tech. It needs to judge whether they are within the scope of the "ban". Therefore, it takes a little more time, and it takes another week.

He also explained: "Some of the equipment was withheld because he owed us more than $100 million in accounts payable, but now all the products have been restored to supply. In short, how can our company be so foolish as to illegally detain customers'equipment and materials?

In response to the Flextronic Zhuhai factory involved in the incident, media visited the Zhuhai factory on the spot and said that the door could be closed. In response, the Flextronic executive said: "the Zhuhai plant will not be closed, but the division of Huawei's business may be closed."

Flextronics is the world's second largest manufacturer of electronic manufacturing services after Foxconn. Its business covers cell phone circuit board design, communications engineering and automotive industry.partsManufacturing and logistics, etc., with factories located in 30 countries on 5 continents around the world. According to public data, Flextronics entered the Chinese market in 1997 and set up factories in Zhuhai, Changsha, Dongguan and Suzhou. It is reported that Huawei contributes up to US$2.5 billion in orders to Flextronics every year.

Flextronics last month released its latest earnings report, which showed revenue of $6.176 billion and net profit of $44.872 million in the first quarter, down sharply from last year. In the first quarter of 2018, Flextronics realized revenue and net profit of $6.399 billion and $116 million, respectively.

Revathi Advaithi, CEO of Flextronics, said at the performance briefing: "In the first quarter, significant geopolitical uncertainties affected our customer Huawei. These actions went beyond our control and reduced the product business we assembled for Huawei in China, so we will reduce our business cooperation with Huawei in China. "

He also said that Flextronics had established a long-term successful partnership with Huawei and had worked with Huawei to find a mutually acceptable solution, but the results were still unsatisfactory. Nevertheless, Advaithi said that China will remain a very important production center and market for Flextronics. "We have a large production base in China and tens of thousands of employees. We will always give our best to our customers and employees in China." He said.

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