How could Huawei buy a company with no core technology and sell core assets to keep it afloat?
1. Datang Telecom has also had a highlight moment, in the 2G and 3G era, it has been named as Huawei, ZTE and Julong Communication, collectively known as \"Great China\". At that time, Datang Telecom has a 3G standard with independent intellectual property rights - TD-SCDMA, which is one of the three mainstream technical standards of 3G. Today, Huawei and ZTE are still riding the waves in the 5G era, but the future of Datang Telecom is bleak. Since 2009, Datang Telecom has been losing non-net profit for more than 10 consecutive years. From its listing in 1998 to 2020, the cumulative net profit loss exceeded 5 billion yuan.
2. In 2018, 2019 and 2020, the total operating income of the company was 2.344 billion yuan, 1.431 billion yuan and 1.207 billion yuan respectively, and the net profit of the company was 564 million yuan, -899 million yuan and -1.364 billion yuan respectively.
3. *ST Datang has made other efforts to preserve the shell.
In order to reduce the asset-liability ratio, effectively improve the capital structure of enterprises and enhance future profitability, on the evening of June 8, *ST Datang disclosed the \"Datang Microelectronics Technology Co., Ltd. through a non-public agreement to increase capital and expand shares and major asset restructuring\" matters.
According to the plan, Datang Microelectronics intends to introduce a cash increase of the national new credit Fund, with a total amount of 400 million yuan, and the additional capital is used to repay bank loans and other interest-bearing financial liabilities, and implement market-oriented debt-to-equity swaps. After the completion of the capital increase, the National New credit Fund holds 24.44% of the shares of Datang Microelectronics. Before the capital increase, Datang Semiconductor, controlled by Datang Telecom (now \"*ST Datang\"), held 95% of the shares of Datang Microelectronics, and after the capital increase, Datang Semiconductor held 71.79% of the shares of Datang Microelectronics, the proportion decreased by 23.21 percentage points.
Founded in March 2001, Datang Microelectronics is a subsidiary of Datang Telecom (now \"*ST Datang\") focusing on integrated circuit design, and its business covers the direction of security chips. For customers in social security, finance, urban management, transportation and other industries, we provide second-generation ID card chips and modules, social security card chips and modules, financial payment chips, fingerprint sensors and fingerprint algorithm chips, card reader chips, terminal security chips, etc.
As the most important chip business plate of Datang Telecom, Datang microelectronics business condition is not optimistic. The net profit attributable to the shareholders of the parent company of Datang Microelectronics in 2019 and 2020 was 49.7542 million yuan and -15.2993 million yuan respectively. As of December 31, 2020, the total liabilities of Datang Microelectronics were 943 million yuan.
Huawei has the strength to acquire a listed company 600198 Datang Telecom, but it is impossible to say that the acquisition of such a thing.