On March 8, Zte Corporation(000063) ( Zte Corporation(000063) . SZ) announced that the 45th meeting of the eighth board of directors held on March 8, 2022 passed the proposal on submitting the proposal to the general meeting of shareholders for deliberation on the company’s authorization plan for repurchase of A-Shares in 2002, and agreed to submit the proposal to the first extraordinary general meeting of shareholders in 2002 for deliberation.
According to the proposal, the company plans to submit to the extraordinary general meeting of shareholders to authorize the board of directors of the company to make decisions and implement the company’s repurchase of A-Shares in accordance with the law. The authorization matters shall be subject to the resolution of the board meeting attended by more than two-thirds of the directors.
According to the announcement, Zte Corporation(000063) the types of repurchased shares are RMB common shares (A shares) issued by the company. The number of shares to be repurchased will be authorized by the extraordinary general meeting of shareholders. The board of directors will decide in accordance with relevant laws and regulations within the authorized amount of 2% of the issued A-share capital of the company on the date of deliberation and adoption of this proposal by the extraordinary general meeting of shareholders. The repurchased shares will be used in any of the following situations: (I) employee stock ownership plan or equity incentive; (II) convertible corporate bonds issued by the conversion company.
On the same day, Zte Corporation(000063) also released the 2021 annual report. The report showed that Zte Corporation(000063) operating revenue was 114522 billion yuan, a year-on-year increase of 12.88%; The net profit attributable to common shareholders of listed companies was 6.813 billion yuan, a year-on-year increase of 59.93%, a record high.
However, judging from the stock price performance in the past year, Zte Corporation(000063) performance was sluggish, with a decline of 14.5% in the past five days. A Zte Corporation(000063) investor told reporters, “I can’t understand that I have lost money after holding shares for four years.”
In terms of performance, the operating revenue of Zte Corporation(000063) 2021 achieved double-digit year-on-year growth, among which the operating revenue of China, international market and operator network, government and enterprises and consumers all achieved year-on-year growth. According to the statistics of delloro group, ZTE’s telecom infrastructure market share increased to about 11% in the third quarter of 2021, reaching an all-time high. The consumer business achieved an operating revenue of 25.73 billion yuan last year, a year-on-year increase of 59.2%. Among them, the operating income of household terminals increased by more than 80% year-on-year, and the operating income of mobile phone products increased by nearly 40% year-on-year.
Wanlian Securities believes that the gross profit margin of Zte Corporation(000063) is expected to continue to increase in the future with the gradual clarity of the market pattern of communication equipment and the continuous improvement of the company’s technology and supply chain. However, considering that the company accrued an asset impairment of 1.1 billion yuan in the fourth quarter, it is expected to have a certain negative impact on the company’s performance in the short term.
In addition, a recent hearing news also kept Zte Corporation(000063) share price under “pressure”.
Zte Corporation(000063) 3 announced on March 4 that on March 3 (US time), the company received the court order issued by the US court, which informed the company to participate in the hearing on the revocation of probation currently scheduled to be held on March 14, 2022 (US time). ZTE learned that the hearing was related to the indictment of Yu Jianjun, a former employee of ZTE (TX) Inc., a subsidiary of the company, on March 18, 2021, which involved collusion in visa fraud. Yu Jianjun has been accused of leaving the group for many years. As of the announcement date, the company has not been charged in the visa case.
However, from the disk view, Zte Corporation(000063) ( Zte Corporation(000063) . SZ) broke down in the trading day on the 7th, with an intraday drop of more than 8%.
For the future strategic development direction, Zte Corporation(000063) told reporters that it would continue to invest in core technologies such as chips, algorithms and network architecture, maintain the leading technology in key fields and improve the market share of value, and strive for progress while maintaining stability. At the same time, strengthen the business expansion of it, digital energy and smart home.
