The content of this article is written with authoritative information combined with personal opinions, and the source and screenshots of the literature have been marked in the article and at the end of the article, please be aware.
-< > foreword-
At the end of the last century, Datang Telecom brought more vitality to China's communications market after its establishment, not only helping China break the monopoly of foreign SIM cards, but also providing services to more than 1.7 billion users around the world.
However, Datang Telecom, which was once brilliant, was later difficult to make a profit due to some mistakes, and even on the verge of delisting.
So, what made this technology company, which was once comparable to Huawei, finally end up in this fate?
Information sources:
Shangguan News "Backed by central enterprises, the fate of the giant that was once as famous as Huawei hangs by a thread: the main business has lost for 10 consecutive years, and the market value of 41.7 billion yuan has come to naught"2021-01-28
-< the glorious Datang Telecom >-
When it comes to communications or technology companies, China Unicom, Mobile, Telecom, Huawei, ZTE, and so on may come to mind.
Many young people may have never heard of this Datang Telecom, but back to more than 20 years ago, Datang Telecom is a very powerful existence.
At that time, it had a very domineering name with Huawei, ZTE, and Julong, that is, it was called "Giant China", and the four major Chinese communications companies had their own capabilities.
At that time, Datang Telecom was better than these companies, but we should understand one thing, that is, the domestic telecom market was booming in the mid-to-late 90s.
Many companies have sprung up at this time, including Huawei, ZTE, etc., all of which started with program-controlled switches.
Datang Telecom is no exception, but why can it gain a firm foothold with a broken bamboo, we have to mention its predecessor, the Institute of Telecommunications Science and Technology.
This is the main body of the original Research Institute of Posts and Telecommunications of the Ministry of Posts and Telecommunications, which was established as early as 1957, not only has a strong technical background, but also has a lot of talents.
Later, after approval, the Telecom Institute was restructured and cooperated with Xi'an Datang, and in 1998, Datang Telecom was established under the joint efforts of these companies, and began to deepen the integrated circuit design and software application.
In the era of 2G, Datang Telecom has done a great thing, first developing the first IC phone card chip with completely independent intellectual property rights in China, and then developing the first SIM card chip for mobile phones.
Information sources:
Veken Electronic Engineering Network "Once as famous as Huawei ZTE, but now on the verge of delisting, can Datang Telecom be rescued?" 》2018-04-24
You must know that these two fields have been monopolized by foreign countries for many years, and Datang's move has helped China break the foreign monopoly and solve the problem of people's difficulty in making phone calls to a certain extent.
With these two things and continuous subsidies from the state, Datang Telecom has achieved considerable revenue and shouldered various missions in the three years since its listing.
For a time, Datang Telecom was also in the limelight in the world, and even served more than 1.7 billion 4G end users around the world with the patented technology of "TD-LTE 4G frame structure data transmission".
However, more than 20 years later, the former giants are facing a dangerous situation where their lives are hanging by a thread......
-< former giants who "hang by a thread>-
What kind of dilemma does Datang Telecom face behind the scenes?
It can be seen from the relevant financial reports that Datang Telecom has fallen into a state of loss since 2003, and it will still maintain losses in the next five years.
Although it turned a profit in 2008, this situation lasted for a short time, and in less than a year, Datang Telecom returned to a sluggish state.
Information sources:
Ask the wealth management network "The former communication leader: 18 years of insolvency loss of 11 billion yuan and become a "loser" of central enterprises? 》2021-05-13
This situation continued until 2020, and it was negative for 12 consecutive years.
In the past 18 years, Datang Telecom's main business has been losing money for 17 years, and the loss amount has exceeded 11 billion yuan.
Although 2004 and 2005 were difficult times for the global communications market as a whole, Datang Telecom did not seem to be out of that quagmire.
In order to stabilize its foothold, Datang Telecom also chose to sell its assets in 2009, and even did not let go of real estate, after all, it has reached a critical moment of survival, if you don't want to be swept away by the torrent of the times, you can do anything.
From the transfer of all the shares of Derun Electronics to the indirect transfer and sale of real estate to shareholders, the final result was not as Datang Telecom wished.
In the past ten years, in 2019, Datang Telecom has tried to deepen business transformation and adjustment, but it still faces difficulties in profitability and sluggish business growth.
Even now, Datang Telecom's situation has not improved, and the net loss in the first quarter of this year exceeded 70 million yuan.
These losses seem to have been taken for granted, but a few years ago, Datang Telecom was on the verge of collapse on the verge of collapse on the risk of delisting several times.
So, what is it that has brought the once glamorous tech giants to where they are today?
-< Datang Telecom's Lost >-
There is an old saying that one wrong step is the wrong step, and the same is true for Datang Telecom, because of strategic mistakes, resulting in the loss of the glory of the past.
In the early years, Datang Telecom proposed the TD-SCDMA technical standard, which was not only established by the International Telecommunication Union as one of the 3G international standards, but also broke the monopoly pattern of mobile communication technology standards dominated by Europe and the United States.
However, in order to fully develop related products, Datang Telecom almost gambled all its fate.
Although it succeeded in the end and became one of the three major 3G international standards, TD-SCDMA was not commercialized smoothly until 09, which was five years later than that of European and American countries.
However, it has not been used for long, and in the past five years, 4G communication has become a trend again.
What does this mean? Generally speaking, the commercial time of the first generation of communication can reach 10 years at most, but Datang Telecom's 3G only lasts for 5 years.
This shows that Datang Telecom's output is much less than the input, and Datang, which was desperate at that time, could only face such a tragic ending in the end.
At this time, Huawei and ZTE had already surpassed Datang to take the lead, and at this time, Datang wanted to gain a firm foothold and also won Shanghai Yousi to launch a mobile phone, but in the end, it was gone, and even later in order to reverse the loss, this Yousi was sold.
Not only that, Datang Telecom also has a game subsidiary, and these game businesses have also impaired Datang Telecom's goodwill, and since 2017, the company's performance has declined sharply, which has also led to a sudden increase in Datang Telecom's losses.
In any case, Datang Telecom seems to have not been able to change the situation, let alone restore its former glory.
Next, Datang Telecom should consider how to maintain its status as a listed company, how to change its sluggish state, and whether it can regain its former glory.
It's a very serious challenge and a long road, so let's hope it persists!
Information sources:
Sina Securities Comprehensive "How did Datang Telecom get mixed up and face delisting? 》2018-03-05