ZTEs reduction of more than 20 million shares by major shareholders in block trading does not exclude further reduction

 ZTEs reduction of more than 20 million shares by major shareholders in block trading does not exclude further reduction

ZTE was once again reduced by major shareholders.

On the evening of June 22, ZTE (000063) announced that its controlling shareholder, ZTE New Communication Co., Ltd. (ZTE), had reduced 20.3668 million a shares of the company through block trading on June 22, with an average trading price of 39.44 yuan / share. After the reduction, ZTEs shares fell to 23.40%.

ZTE also said it does not rule out the possibility of increasing or reducing its stake in the company in the next 12 months.

In April this year, ZTE also cut its holdings. The announcement shows that ZTE new holds a total of 48913000 A shares of the company from April 2, 2020 to April 7, 2020 through block trading on the stock exchange. After the reduction, ZTE new holds a total of 1.099 billion shares of the company (including 1.097 billion a shares and 2.03 million H shares), accounting for about 23.85% of the total share capital of the company at that time.

On June 19, Xu Ziyang, President of ZTE, at the companys 2019 annual general meeting of shareholders, ZTE will officially enter the strategic development period since this year, with the goal of achieving quality growth.

On June 20, ZTE issued a clarification statement on the misreading of ZTEs chip business by some self media. ZTE said: the company noted that in recent years, a number of self media have misread the information introduced into ZTEs 7 nanometer chip scale mass production, and some reports are inconsistent with the facts, which has caused trouble and impact on the normal operation of the company. In the field of chip design, ZTE focuses on the design of communication chip and does not have the ability of chip production and manufacturing.

ZTE said that it has more than 20 years of experience in the design of special communication chips, and has the ability of whole process customized design from chip system architecture to back-end physical realization; in the production and manufacturing of chips, the company relies on global partners to carry out production division. The design and manufacturing of chips need the cooperation of the whole industry chain. The company has been keeping close cooperation with all parties in the industry chain to build the core cornerstone of the companys competitiveness and continuously create value for customers.

On June 22, ZTE closed down 1.59% at 42.19 yuan.

Source: surging news editor: Wang Fengzhi_ NT2541