Hytera, a leading company in China's walkie-talkie industry, ushered in major good news today. Hytera announced this morning that on April 4, 2024, U.S. time, the company appealed to the U.S. Court of Appeals for the Seventh Circuit (the "Court of Appeals") against the product ban and other orders, requesting to revoke the original relevant judgment of the Federal District Court of Illinois (hereinafter referred to as the court of first instance).
In the early morning of April 17, the Court of Appeal issued an order suspending the implementation of the product ban and fine issued by the court of first instance against the company, which took effect immediately. The company will work closely with its global partners to immediately resume normal business activities and start sales of related products.
Hytera stressed that the case is still in the appeal stage, and the company will take further countermeasures to revoke the relevant judgment. The company will strictly comply with the requirements of securities laws and regulations and fulfill its information disclosure obligations in a timely manner. At the same time, the company is also actively evaluating the issue of security payments related to the English courts to avoid potential asset enforcement risks.
Just today, Hytera's Tmall flagship store, Jingdong's self-operated flagship store and other sales channels have all resumed sales.
Hytera's successful resumption of sales has undoubtedly brought a positive signal to the company and its investors and partners, and greatly boosted market confidence. This good news has aroused a warm response in the capital market, and Hytera's share price is quoted at a high price of 3.71 yuan per share today, fully demonstrating the market's recognition and expectation for the company's future development potential.
During the more than 20-day lockdown, Hytera had to urgently remove its products from the shelves and endure fines of up to $1 million per day. The lifting of the sales ban has undoubtedly brought a turnaround for the company, which not only reduces economic losses, but also allows it to continue to operate normally and maintain a stable revenue stream. What's more, this shift significantly reduces the potential impact of the embargo on global customers and partnerships, helping to solidify and expand business collaborations. Regarding the impact of the embargo on the company's performance in the second quarter, the staff of Hytera's securities department said in response: "It will not have a significant impact. "Although Hytera has ushered in an important opportunity to resume sales, the company still needs to be wary of the potential risks posed by the IP litigation with Motorola. This means that Hytera needs to remain highly vigilant in the legal and compliance areas and continue to invest resources to meet the challenges that may arise. It is worth mentioning that according to the data of the 2023 semi-annual report, Hytera's overseas sales amounted to 1.041 billion yuan, accounting for 46.10% of the company's total revenue, which fully demonstrates the importance of overseas markets to the company's business development. In addition, Hytera's business layout in countries along the "Belt and Road" highlights the company's deep attention and active investment in overseas markets. By setting up subsidiaries and offices in more than 60 countries in ASEAN, South Asia, Central Asia, West Asia, the Middle East, Latin America and other regions, Hytera has successfully expanded its business tentacles to a global scale, which is also an important support for it to gain a place in the international market.
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Author: Yan Dan
Editor: Xu Jiayuan
Producer: Wang Junji
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