A fine of $1 million a day! Banned from sale globally! The A-share communication giant fell to a limit, which is related to this incident 7 years ago...

The official account of Beijing Business Daily

2024-04-08 20:04Published on the official account of Beijing Business Daily in Beijing

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The company announced that it had applied to a U.S. court to revoke the order.

On April 8, A-share communication giant Hytera opened with a falling limit. Hytera issued a statement saying that the U.S. court temporarily prohibited the company from selling two-way radio technology products worldwide and imposed a fine of $1 million per day on it until it fully complied with the anti-suit injunction.

According to Beijing Daily, the reporter saw that as of press time, in the official flagship stores of Hytera Tmall and JD.com, walkie-talkie products were off the shelves.

The company announced that it has applied to the U.S. court to revoke the above order, and the hearing is continuing in the U.S. court in the near future. Further countermeasures will be taken to revoke the above-mentioned order in the shortest possible time.

Founded in 1993, Hytera is a global private listed company headquartered in Shenzhen, China, and is the world's leading provider of private network equipment and solutions. In the industry, Hytera is known as the "King of Walkie-talkies in China" and "the Little Huawei of Private Network Communication".

A new generation of PDT professional digital explosion-proof walkie-talkie Image source: Hytera's official website

According to the data, Hytera's main business covers the R&D, production, sales and service of professional wireless communication equipment such as walkie-talkie terminals and trunking systems. The source of the company's U.S. ban came from a lawsuit filed by Motorola seven years ago. On March 15, 2017, Motorola and Motorola Malaysia filed a lawsuit against Hytera and its subsidiaries U.S. Inc. and U.S. West Inc. for alleged trade secret copyright infringement and patent infringement, and the U.S. Federal District Court for the Northern District Court accepted the case.

On March 5, 2020, the Illinois Court of the United States made a first-instance judgment, holding that Hytera and its subsidiaries U.S. Inc. and U.S. West Inc. infringed Motorola's trade secrets and U.S. copyrights, and should pay Motorola US$346 million in damages and US$419 million in punitive damages, totaling US$765 million, or about RMB 5.334 billion.

Hytera was dissatisfied with the first-instance judgment of the US court. In June 2022, Hytera filed a lawsuit with the Shenzhen Intermediate People's Court, claiming that its newly designed and developed H series products did not infringe Motorola's trade secrets and copyrights.

In 2023, the secretary of the board of directors of Hytera once stated on the investor relations platform: "The company does not recognize the amount of the first-instance judgment in the U.S. commercial secret copyright case, nor does it recognize the unfavorable judgment of the subsequent motion based on the first-instance judgment." The company will do its best to fight for the legitimate rights and interests of the company through legal channels, actively cooperate with the court hearing and provide relevant materials and evidence, and has filed an appeal with the U.S. Court of Appeals for the Seventh Circuit, and the case has now entered the appeal stage. ”

When the media logged in to Hytera's online flagship stores such as Tmall and JD.com on the 8th, they saw that all Hytera-related products had been removed from the shelves. The entrance of the Tmall flagship store displays an "emergency notice", indicating that there are no products to sell.

The ban on the sale of walkie-talkies is undoubtedly a blow to Hytera.

According to the company's financial report, in 2022, its professional wireless communication equipment manufacturing revenue will account for 83.31% of revenue, of which two-way radio technology-related products are the main components. According to the announcement released by Hytera, it is expected that the performance from January to December 2023 will be reduced, and the net profit attributable to shareholders of listed companies will be about 60 million yuan to 90 million yuan, a year-on-year decrease of 77.91% to 85.28%.

According to a report released by the research institute Hangzhou Zhongjing Zhisheng, although the mainland has become a big country in the production and manufacture of walkie-talkies, the number of large enterprises in this field is small, the share of brand machines is low, and there is still a large gap compared with major markets such as the United States. At present, the representative companies of this product include Motorola, Hytera, Yaesu, Kenwood, etc.

In addition, according to the statistics of IPACS Intelligence Market Research Center, in 2023, Motorola's walkie-talkies will account for 58.57% of the world's total, Hytera will account for 11.41%, ranking second, and Kenwood will account for 10.39%.

Or affected by the above news, Hytera's stock price fell intraday today, as of press time, at 4.24 yuan per share, with a total market value of 7.709 billion yuan.

Editor丨Wang Naixin Comprehensive Beijing Daily, Securities Times E Company, Jiemian News, Brokerage China

Picture丨Screenshot of Hytera's official website, screenshot of Taobao, screenshot of Hytera's announcement, screenshot of Oriental Fortune, Yitu.com, Visual China

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