ZTE intends to apply for a 20 billion yuan and 4 billion U.S. dollar bank comprehensive credit facility.
On June 2, ZTE Corporation (000063) announced that the company will hold the 2019 Annual General Meeting of Shareholders at 9 am on June 19th. The content includes consideration of the proposal to register for the issuance of medium-term notes and the proposal to apply for a comprehensive credit line.
Among them, the “Proposal to Apply for a Comprehensive Credit Line in 2020 (Subject to Voting)” shows that the company is approved to apply to Bank of China Co., Ltd. for RMB 20 billion The comprehensive credit limit of RMB. (The main contents of the comprehensive credit line include loans, acceptance bills, discounts, guarantees, letters of credit, factoring, trade financing, etc. The comprehensive credit line is subject to the approval of the aforementioned credit institution.
In addition, the “Proposal for the Company to Apply to the Shenzhen Branch of the China Development Bank for the Comprehensive Credit Line of US$4 billion” mentioned in its proposal to approve the company to apply for the Comprehensive Credit Line of the US$4 billion for the Shenzhen Branch of the National Development Bank. The comprehensive credit limit is subject to the approval of the aforementioned credit financial institutions.
ZTE also plans to use the US$3.8 billion quota for investment in hedging derivatives, which will also be submitted to this shareholder The meeting considered.
On the evening of April 24, ZTE Corporation released its first quarter results for 2020, with operating income of 21.484 billion yuan, a year-on-year decrease of 3.2%; The net profit of ordinary shareholders of listed companies was 780 million yuan, a year-on-year decrease of 9.6%; the net profit attributable to common shareholders of listed companies after deduction of non-recurring gains and losses was 160 million yuan, an increase of 20.5% year-on-year. In the first quarter, ZTE’s R&D investment reached 3.241 billion yuan, accounting for 15.1% of operating income, an increase of 1.2 percentage points from the same period last year.