Huawei plans to issue bonds for the first time in China to raise 6 billion yuan to supplement workin

So, why does Huawei, which has such a deep pocket, still raise funds?

Regarding the first fundraising in the domestic bond market, Huawei responded on the evening of the 11th: ".Huawei has been committed to ensuring the company's financial stability through a reasonable financing layout and continuous optimization of its capital structure. The domestic bond market is developing rapidly, and is currently the second largest market in the world, and bond financing has become one of the important financing channels.

The company will open up the domestic bond market through domestic bond issuance, which will further enrich financing channels and optimize the overall financing layout.

Huawei's operational needs mainly come from its own operational accumulation and external financing, with its own operational accumulation (accounting for about 90% in the past five years) supplemented by external financing (accounting for about 10% in the past five years). The company operates steadily and has abundant cash flow. The proceeds from the bond issuance will be used to continue to focus on ICT infrastructure construction and provide customers with better product solutions and services.

As the rating company, United Credit has assessed the credit rating of Huawei's two medium-term notes as AAA, and the long-term credit rating of the entity is also AAA.

According to the assessment report, Huawei is a leading global information and communications technology (ICT) infrastructure and smart terminal provider with 100% employee-owned ownership. It also lists Huawei's advantages: it has a complete end-to-end product line and convergence solutions in the communications industry, and has built significant competitive barriers and scale advantages in basic research, patent scale, underlying technical support, 5G technology and standard formulation, and significant advantages in economies of scale and customer resources.

Support Huawei.

This is complemented by external financing (about 10% in the last five years). The company operates steadily and has abundant cash flow. The proceeds from the bond issuance will be used to continue to focus on ICT infrastructure.

I think it's because now he's being suppressed by the United States, and there's a problem with his own funds.

I think this has a lot to do with some aspects of the company.

Because Huawei has not only always adhered to its own philosophy, but also kept innovating.

According to the prospectus, Huawei has only issued four US dollar bonds and two dim sum bonds overseas, and has no experience in domestic bond issuance, and this will be Huawei's first time raising funds in the domestic bond market.

The issuance of bonds is still beneficial to Huawei, and Huawei has a good mind anyway.

Huawei's financial situation has always been very good, judging from the data that has been released, Huawei's monetary funds are as high as 100 million yuan, and Huawei's revenue in the first half of 2019 is also as high as 100 million yuan. In fact, the issuance of bonds is the beginning of a company's consideration of risk protection, and the low-cost financing rate is lower than going to the bank to borrow, so why not? Judging from Huawei's current development situation, there will be no shortage of people who issue bonds to buy them.

In fact, from another perspective, Huawei has demonstrated its strength by issuing bonds. Abundant capital reserves and strong profitability are fully reflected in the bond prospectus, so that the outside world can get a glimpse of Huawei's whole picture from this corner, which is much more clever than the marketing propaganda of ordinary enterprises。Moreover, in addition to investors, the issuance of bonds has also enabled some Chinese people who support Huawei to use a truly supportive way to pay their part by buying bonds.

The issuance of bonds is also an important way for companies to expand and develop, and many well-known technology companiesFor example, Apple and Samsung have financed in this way, and from this point of view, Huawei, which has not been developing for a long time, has gradually gained the confidence to compete with large enterprises. The issuance of bonds is a testament to the company's financial strength, and the courage to package 5G technology at once is Huawei's technical confidence.

Many people will feel incredible when they see Ren Zhengfei making this decision, after all, the current 5G technology, Huawei can be called the world's first, and it is not good to grasp the technology into its own hands, but the decision is really surprising。But from Ren Zhengfei's interview, it can be seen that Huawei's current pattern is really much bigger than that of Samsung and the current Apple in the hands of Cook. In the interview, he made it clear that we hope that the West will shorten the platform path forward, so we will allow other companies to get our technology in its entirety.

Because Huawei wants to broaden the market, and then reward the international popularity, this is just a way of publicity.

Because Huawei wants the world to experience 5G technology, although Huawei does not lack R&D funds, it still wants to get the patent money for 5G technology.

Huawei's innovation and upgrades, etc., require a lot of money and technical personnel, so it will be so.

Maybe it's to increase investment, in order to better let Huawei develop.

Huawei's purpose is to make 5G more prosperous and make the company more and more active.

Huawei is trying to expand its influence and promote its business more conveniently.

Because Huawei wants to make the company develop better, it needs a certain amount of money.

In fact, Mr. Ren is a very old fox, if the world countries buy Huawei's 5G technology, then the invisible Chinese behavior will become the standard in the industry.

I think the main thing is to share with the world and improve Huawei's competitiveness, after all, there is pressure to progress.