ZTE will raise 11.5 billion yuan for 5G research and supplement liquidity

On January 16, ZTE Corporation (000063) announced in the morning that the company signed a subscription agreement with the subscribers of the non-public issuance of A-shares on January 15. The total number of shares that issued A shares was 381 million. The issue price was 30.21 yuan/share, with total raised funds of 11.513 billion yuan. The net amount of funds raised after deducting issuance expenses was 11.459 billion yuan.

ZTE said that the evolution of communication network technology has continuously put forward higher requirements for technology research and development. This non-public issue of A-shares is used for 5G network evolution-oriented technology research and product development projects, including cellular mobile communication networks, core networks, The research and product development of transmission and bearer networks, fixed-line broadband, big data, and network intelligence technologies will help ZTE continues to maintain high R & D investment, adhere to technological leadership, and strengthen the company’s advantages in the process of 5G-oriented network evolution.

Create core products and businesses with core competitiveness, increase the market share of mainstream markets and mainstream products, and continuously improve customer satisfaction, thereby improving the company’s profitability. In addition, the non-public issuance of A-shares can supplement the company’s liquidity needs for business development, and the company’s capital structure will be further optimized, which will help strengthen the company’s ability to resist risks.

ZTE claims that the company already has the ability to provide complete 5G end-to-end solutions and rich network construction experience, and has launched extensive cooperation with global operators and industry customers in the 5G field. ZTE has won 35 5G commercial contracts around the world and has launched in-depth 5G cooperation with more than 60 operators worldwide. ZTE has fully participated in the first phase of the 5G network construction of the three major domestic operators, taking the lead in completing the arrival and opening of equipment, and working with global partners to carry out a large number of 5G industry application explorations.

ZTE disclosed that in the first three quarters of 2019, R & D investment accounted for 14.6%. From 2013 to 2018, R & D investment was 65.22 billion yuan, with an average annual investment exceeding 10 billion yuan. As of now, ZTE has authorized 36,000 patents worldwide and 4100 patents for 5G strategic layout. It has disclosed to the European Telecommunication Standardization Association the 2,204 families of essential patents for 5G standards. Main participants and contributors.

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