HUAWEIs US survey suppliers share price plummeted 20%

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 HUAWEIs US survey suppliers share price plummeted 20%


In April 25th, the Wall Street Journal quoted people familiar with the matter as saying that the US Department of justice was investigating whether HUAWEI violated the US sanctions against Iran. At present, it is not clear to what extent the US Department of justices investigation is progressing, and federal agents specific accusations against HUAWEI. According to the first financial report, a person close to the Chinese negotiators confirmed the news in April 25th, but he said the matter was not related to the escalation of the previous trade disputes between China and the United States, and it was still a case. Picture source: visual China Subsequently, HUAWEIs responsible person commented on first finance, which had little impact. A HUAWEI employee further explained, no evidence, little impact. The extent to which this matter develops and how much impact it has on HUAWEI is unknown, but HUAWEIs suppliers are really scared. In the morning, China Software International announced that after a reasonable query, the company managed to judge the companys stock price volatility on Thursday (April 26th) with the media rumours that the U. S. Department of justice survey companys main customer HUAWEI technology limited. After the management of the company, it is considered not to have a significant impact on the companys business. The company will pay close attention to the development of the situation and will disclose the progress to the investors in time. The company also reminds the investors of the investment risk in the business of trading the companys shares. In 2017, Chinas software international achieved a turnover of about 9 billion 244 million yuan, an increase of 36.3% over the same period, of which 8 billion 808 million yuan in service income, an increase of 34% over the same period last year. In addition, since China Software International has been listed in 2003, income and service income have maintained high growth. From 2003 to 2017, the annual average annual growth rate of income reached 33.3%, and the annual average growth rate of service income reached 43.2%. In fact, after the news of HUAWEIs investigation last night, shares of well-known chip manufacturers such as NVIDIA, AMD, Qualcomm fell all the way. In the A share market, HUAWEIs small partners are also numerous. In the early morning, HUAWEIs stock market showed a general fall. As of the noon break, creative information plunged and 6.46%, the HKUST lost more than 3.60%, and Hikvision fell more than 2.91%. In fact, the U. S. investigation of HUAWEI has a long history, but has been suffering from no evidence, only pressure domestic companies refusing to cooperate with HUAWEI, forcing HUAWEI to withdraw from the US market. According to Xue Yunkui, Professor of Changjiang business school, HUAWEIs global sales revenue increased by 4.82 times in ten years, with an average compound growth rate of 19.09%. In 2017, HUAWEIs global sales revenue was 603 billion 600 million yuan, an increase of 15.73% compared with 521 billion 500 million in 2016. In 2017, HUAWEI achieved a net profit of 47 billion 455 million after tax, up 28.08% from 37 billion 52 million in 2016. Compared with 7 billion 848 million in 2008, it increased by 6.05 times, with an average compound growth rate of 22.13%. While HUAWEI was expanding rapidly in the world, the US government also stepped up its efforts to suppress HUAWEI. According to research firm Dell OroGroup, in 2017, HUAWEI led the global telecom equipment market by 27%, while ZTE ranked 10% in fourth. However, the two companies share a market share of less than 1% in the United States, which is much worse than their share in the global market, which is due to the US governments restrictions on HUAWEI and ZTE. Picture source: visual China The daily economic news reporter noted that HUAWEIs accusations were more serious than the previous sanctions imposed by ZTE. In terms of institutional nature, the U. S. Department of justices investigation of HUAWEI is a criminal investigation, which means that HUAWEI may face additional criminal penalties; and the sanctions imposed by ZTE before the US Department of commerce are administrative penalties. In addition to a survey of HUAWEI, recently, there are media reports that the US government is assessing the possibility of starting the emergency rights act against Chinas investment, and then implementing new restrictions on Chinas investment to curb Chinas acquisition of sensitive technology. We have taken note of the comments of the United States. I want to emphasize that China firmly opposes any form of unilateralism and protectionism. Over the years, Chinese investment in the US has made important contributions to increasing employment in the United States and promoting the economic development of the United States. The summit said that, due to the uncertainty of the investment environment, some companies slowed down the pace of investment in the United States, even abolished the US investment plan and abandoned the US market. The summit of the Ministry of Commerce news spokesman also said that the US side hopes to do more things that conform to the law of economic development and conform to the trend of the world economic development, which is really conducive to the long-term and stable development of its own and the global economy. For the US sides remarks, China will listen to its words and watch its actions. We have acted in line with the bottom line thinking, ready to deal with any possible preparation. It is noteworthy that HUAWEI said at the latest annual analyst summit that the US market is no longer part of its global strategy and is no longer interested in the US market. Source: Daily Economic News Editor: Huang Zhecheng _B9302 We have taken note of the comments of the United States. I want to emphasize that China firmly opposes any form of unilateralism and protectionism. Over the years, Chinese investment in the US has made important contributions to increasing employment in the United States and promoting the economic development of the United States. The summit of the Ministry of Commerce news spokesman also said: It is hoped that the US side will do more in line with the law of economic development and conform to the trend of world economic development, so as to truly benefit the long-term and stable development of itself and the global economy. For the US sides remarks, China will listen to its words and watch its actions. We have acted in line with the bottom line thinking, ready to deal with any possible preparation. It is noteworthy that HUAWEI said at the latest annual analyst summit that the US market is no longer part of its global strategy and is no longer interested in the US market.