Recently, Zte Corporation(000063) ( Zte Corporation(000063) ) held the 2021 annual general meeting of shareholders and performance presentation meeting. Relevant executives of the company exchanged with investors on market concerns such as the company’s strategic planning, company operation, business development and technological innovation.
Zte Corporation(000063) said that after more than three years of recovery and development, all aspects of the company’s operation have been adjusted to a relatively healthy state, which has created favorable conditions for the company to challenge the first goal of “entering the global top 500 in two to three years”. To achieve this goal, the company not only needs to further consolidate the first curve business represented by traditional wireless and wired products. At the same time, the company needs to quickly promote the second curve business represented by servers and storage, terminals, digital energy, automotive electronics, etc.
Zte Corporation(000063) said that for the first curve, the company’s strategy is to make progress while maintaining stability. The company pursues higher market share and better market layout Zte Corporation(000063) hope that in the future, the main products in the Chinese market will reach more than 40% of the market share, and the overseas market will focus on stability, efficiency improvement and compliance operation.
Zte Corporation(000063) said that with the gradual expansion of 5g in the world and the further improvement of the core competitiveness of the company’s products, the first curve business is expected to maintain a stable growth of more than 10% and contribute to the scale profit in the future. Meanwhile, for some non main channel businesses and long-term non-profit subsidiaries, we will continue to focus on improving efficiency and reducing the negative impact on the company’s operation.
For the second curve, Zte Corporation(000063) said that the company’s strategy is to accelerate innovation. In terms of business selection, Zte Corporation(000063) puts forward four basic principles: the company can build a competitive advantage if it has market attraction, is in an appropriate entry time window and is consistent with the company’s existing capabilities. Based on the above four basic principles, Zte Corporation(000063) chose the track based on the company’s original CT business, such as server and storage, terminal (including smart home terminal), 5g industry application, automotive electronics, digital energy and so on, as the breakthrough to carry out strategic expansion along the advantageous areas of the market or customers.
In terms of R & D investment, Zte Corporation(000063) said that the company’s core view has always been to continuously strengthen end-to-end global R & D investment and innovation. On the one hand, continue to plough deeply in the field of certainty, including further improving the efficiency of spectrum and spectrum; Accelerate network commercial performance optimization and independent evolution; Continue Moore’s dividend with domain customization, packaging and architecture innovation; Continue to deepen the software and hardware collaborative optimization of chips, algorithms and architectures. On the other hand, in uncertain areas such as industrial digital expansion, we should strengthen the component and service-oriented R & D capability, and focus on scenarios and key businesses, rapid iteration and continuous innovation.
For the specific investment direction of the company’s R & D, Zte Corporation(000063) said it would pay attention to it from three levels. At the point level, the company’s investment is the key technology Zte Corporation(000063) believes that only when the key technologies are recognized by customers in the current products or new generation products, solve the pain points of customers and form a positive and benign sustainable cycle, can the company obtain better gross profit margin. At the depth level, Zte Corporation(000063) will focus more on a thorough grasp of the underlying and basic capabilities Zte Corporation(000063) believes that the emphasis on “thoroughness” is because the thoroughness of basic and underlying capabilities determines the height of the company’s competitiveness. At present, Zte Corporation(000063) has made intensive investment in operating system, database, middle platform, algorithm, architecture, key materials, etc. In the aspect of breadth, Zte Corporation(000063) the investment includes the wired and wireless of the first curve and the terminal business, server business, storage business, digital transformation application and other technologies of the second curve. At present, in these fields, companies can meet the needs of the market through building block transformation of architecture.
