The Financial Situation Analysis And Countermeasures Research Of ZTE Under The Background Of Trade Friction

Since 2018,as the world’s two most politically and influential economies,China and the United States have been playing games in fields ranging from international trade to science and technology to military affairs,attracting wide attention.The increasing trade friction between China and the United States not only worsens the economic and trade environment between China and the United States,but also has a serious impact on related industries and enterprises.ZTE,a leading manufacturer of telecommunications equipment,has been hit hard by the trade friction.Therefore,this thesis attempts to take the Sino-US trade friction as the research background,through in-depth analysis and industrial comparison of the relevant indicators of ZTE’s financial performance before and after the Sino-US trade friction,to clarify the main financial problems and causes of ZTE after the Sino-US trade friction,and put forward targeted countermeasures.In order to provide some reference for the healthy and rapid development of domestic enterprises.First of all,based on the literature analysis method,while clarifying the Sino-US trade friction events,this thesis reviews the relevant analysis of the causes of Sino-US trade friction by current scholars,and further summarizes the impact of Sino-US trade friction on the operation and finance of Chinese enterprises on the basis of trade protection and trade friction.Secondly,based on the financial statements of ZTE from 2013 to 2021,this thesis selects some financial indicators to calculate and analyze ZTE’s profitability,operating capacity,debt paying capacity,development capacity and cash flow in the past nine years,and focuses on comparing the differences between the financial indicators before and after the Sino-US trade friction.After the trade friction and communication equipment manufacturing industry leading enterprises--Apple,Samsung,Huawei,Xiaomi corresponding indicators compared to find out the specific impact of Sino-US trade friction on ZTE.Then,from the comparative results of financial indicators,this thesis finds that there are some problems in ZTE’s finance,such as insufficient profitability caused by declining operating revenue and rising operating costs,low efficiency in the use of funds caused by overstock and low efficiency in the turnover of accounts receivable,increased debt repayment risk caused by insufficient operating cash flow,and slow cash flow rate caused by low efficiency in the management of accounts receivable.After further analysis of the reasons for the above problems,this thesis believes that ZTE’s weak core technology,insufficient R&D input and output,excessive dependence on the United States for high-end chip import,limited product competitiveness and poor sales effect are the key factors leading to the above problems in its financial system,which need ZTE to focus on.Finally,in order to further promote the healthy and rapid development of ZTE and other communication equipment manufacturing industry,this thesis puts forward countermeasures from the national,industrial and enterprise levels.At the national level,efforts should be made to build and enforce the intellectual property legal system,and dialogue should be actively carried out to improve the existing bilateral exchange mechanism,so as to enhance the level of industrial modernization and help smooth the double cycle.From the industry level,we should attach importance to the construction of intellectual property rights,strengthen risk control and take appropriate strategic measures.At the enterprise level,measures such as strengthening long-term strategic planning,increasing R&D input and output,expanding upstream channels to reduce costs,emphasizing the optimization of talent introduction and training system,exploring domestic and foreign markets and demands,standardizing technical standards and export order,establishing and optimizing financial early warning mechanism can be considered.This thesis will provide guidance for the future development layout of ZTE to optimize the financial status quo,and also provide reference for the long-term healthy operation of other Chinese communication equipment manufacturers.