This article is original, please do not plagiarize and move, violators will be investigated
Huawei's consumer business composed of smartphones was originally the largest source of revenue, but after multiple rounds of restrictions in the United States, the smartphone market share has fallen out of the top five in the market, and 4G mobile phones are not in line with the trend of the times. Fortunately, Huawei also has a backhand, and has a joint venture with Nokia to build a smart mobile phone brand.
TD Tech Communications sells on Huawei's official channels as a third-party manufacturer, effectively avoiding US sanctions. However, Nokia wanted to sell TD Tech's shares, and the company it inherited could not meet Huawei's cooperation requirements, and was rejected by Huawei, and the result was that TD Communications may fall.
In order to continue the development of the mobile phone business, Huawei changed the course and licensed the appearance design and technology of the mobile phone to a third-party brand, namely TD Tech.
There are many models on the market with the same appearance as Huawei mobile phones, except for the differences in configuration, the rest of the 5G network, flagship chips are available. TD Communication mobile phone is a solution for Huawei to solve the problem of mobile phone sales, let TD Communication connect to the industrial chain, and then put the created products in Huawei's official channels for sale.
TD Tech Communications received exposure traffic, and Huawei shared sales, achieving a win-win situation. Of course, there is a reason why Huawei licenses technology to TD Communications, because TD Communications is a joint venture between Huawei and Nokia.
Huawei owns 49% of the shares, and the remaining 51% is in the hands of Nokia, so TD Technial Communications is nominally owned by Nokia. Because of this, Huawei can use Nokia's name to circumvent sanctions, and if Huawei controls TD Tech, US rules will also cover Huawei subsidiaries.
However, Nokia does not plan to continue to hold TD Bridge Communications shares, insisting on selling the shares and taking over the company called Oriental Materials.
According to the announcement issued by Oriental Materials, it plans to raise no more than 2 billion yuan to acquire 51% of the shares of TD Tech Communications from Nokia, and the transaction consideration is 2.122 billion yuan.
Oriental Materials played a first-hand capital operation, and 2 billion yuan of the purchase price was raised, and it only contributed 122 million yuan. With this money alone, Oriental Materials wants to cooperate with Huawei, which is clearly to rub Huawei's concept stocks. A company that makes materials, but wants to acquire communication technology enterprises, if not to engage in capital operation, cutting leeks, it is estimated that there is no better explanation.
For such a company, Huawei will definitely not cooperate, according to a statement released by Huawei, there is no willingness and possibility to operate TD Technics in a joint venture with Oriental Materials. In addition, Huawei emphasized that it recognizes Nokia's sale of shares, but the purchasers must have the same strategic capabilities to continue the cooperation.
If Oriental Materials forcibly acquires TD Tech's shares, Huawei will either use the pre-emptive right or sell all the shares to exit.
Huawei has made it clear that even if it does not want TD Communication, it will not cooperate with Oriental Materials.
Oriental Materials has the opportunity to acquire a stake in TD Communications, mainly because Nokia wants to sell. TD Tech's revenue situation is not optimistic, with a net profit loss of HK $157 million in 2022, and it does not make much sense for Nokia to continue to hold the equity of TD Tech, so it plans to abandon it.
It doesn't matter to Nokia who buys the stake in TD Communications, as long as it can be sold. And Oriental Materials wants to engage in cross-border acquisitions, which is undoubtedly looking at Huawei's concept stocks.
In recent years, many car companies have cooperated with Huawei, all of which have benefited from Huawei's concept stocks. Oriental Materials wants to take a shortcut, I am afraid that it has miscalculated, Huawei will not give Oriental Materials any chance, if Oriental Materials forcibly acquires the shares of TD Communication, and Huawei also withdraws, eventually TD Communications may fall and become a shell company.
TD Tech's ability to come to this point is due to Huawei's technical support, and all business products have been licensed by Huawei. Coupled with Nokia's own fame, TD Tech's development path is quite stable.
But once Nokia and Huawei withdrew from their shareholding, the result can be imagined. Can a materials company run a good communications business? Can Oriental Materials find new partners?
The mobile phone market structure is limited, there are so many second- and third-tier giants, and no one will do mobile phone business with a material company. Huawei is dedicated to scientific research, invests hundreds of billions of dollars in R&D expenses every year, and has never had the idea of going public for more than 30 years, but does not want scientific research and capital operation to be too involved.
Otherwise, Huawei needs to take into account the interests of investors and shareholders, and it will not be able to delve into it. Oriental Materials clearly wants to engage in capital operation and catch the express train of Huawei's concept stocks, and Huawei cannot let Oriental Materials succeed.
Now I only hope that there are manufacturers with outstanding strength and outstanding capabilities to operate TD Communication with Huawei, after all, TD Communication has not been easy to develop to this step, and if it really falls, it will not be beneficial to Huawei.
If you agree, please like, welcome to forward, leave a message and share.