R & D investment, business composition, future growth engine, organizational structure, four corners for you to decode mysterious Huawei.
Editor’s note: This article is from WeChat public account “Cheetah Global Think Tank” (ID: CheetahGlobalLab), author Xiao Haiyan.
“National” enterprise Huawei issued bonds for the first time in China!
On September 11, the information of the China Association of Interbank Market Dealers showed that Huawei will issue the first two bonds in China, raising a total of 6 billion yuan. Although Huawei has issued US dollar bonds overseas, the recruitment is still a bit “inconceivable”. After all, a super “cash cow” with nearly 250 billion monetary funds on the account, Is there any reason to raise funds in the market?
Cheetah Global Think Tank Consultant Bond Industry Analysis, There may be a difference between the interest rate of corporate wealth management funds and the bond borrowing rate, which gives Huawei the incentive to issue bonds in China.
At the same time, this prospectus has made Huawei’s operations no longer mysterious. Next, the Cheetah global think tank will be from R&D investment, business composition, future growth engine, organizational structure, etc. In terms of Huawei’s analysis, and through the horizontal evaluation with Microsoft, Amazon, Tencent, Ali and other Chinese and American companies, the market provides some reference for Huawei.
Why do you want to borrow money from the rich man? Or because of the interest rate differenceHuawei raised funds because of “poor”?
Obviously not. In fact, Huawei is a very “rich” company. According to Huawei’s financial statements, in the first half of this year, Huawei had 249.731 billion yuan of monetary funds. This data is obviously more than “foreign” compared with Twenty-two billion yuan and Ali’s 122.8 billion yuan of monetary funds.
So, why not raise money if you don’t have money?
Huawei’s official explanation is that the company has consistently maintained a reasonable financing structure and continued to optimize its capital structure to ensure the company’s financial stability. The funds obtained from this bond issue will be used to continuously focus on ICT infrastructure construction and provide customers with Better product solutions and services.
In this regard, Cheetah Global Think Tank consulted two bond industry experts , a person from the China Merchants Bank a bond department said that Huawei’s annual research investment is hundreds of billions, if you want to accelerate development, it is necessary to use capital The leverage of the market.
Another bond underwriter in the securities industry said that there is a difference between the interest rate of corporate wealth management funds and the borrowing rate of bonds. This may be a sign that companies are willing to issue bonds with sufficient funds. . The data shows that in the first half of this year, Huawei used 96.9 billion yuan in cash for other financial assets such as investment funds, and the cash obtained from investment income was 1 billion yuan.
For the follow-up of these two bonds, the two analysts said that the bond of Huawei’s texture may be robbed in a very short period of time, and it can be rushed. It should be the own funds of some large banks.
The data shows that Huawei has planned to register 20 billion yuan of medium-term notes. At present, it has applied for two issues, each with a period of 3 billion yuan and a term of 3 years. There is no guarantee. The lead underwriters and bookkeeping managers are respectively ICBC. And the construction bank, at the same time jointly credited the credit rating of this bond to AAA / AAA.
Huawei R&D investment ranks 480 billion in research and development in the world for the fifth decadeIn the current global tight trade situation, Huawei’s R&D investment has caused world-class attention.