2023-08-24 09:31Revenue Analysis - In the first half of 2023, the company's revenue reached CNY 60.7 billion, showing a year-on-year growth of 1.5% [2] - Revenue from the operator network segment increased by 5.4% year-on-year, while the domestic market saw nearly 10% growth [2] - International market revenue declined, primarily due to a decrease in the Asian market, while operator network revenue in Africa, Europe, and Oceania achieved double-digit growth [2] Business Segment Performance - Government and enterprise business revenue decreased by 12.4%, accounting for only 9.7% of total revenue, making it more susceptible to fluctuations [2] - The company has focused on major countries and mainstream operators in the international market, leading to a strategic decline in international government and enterprise business revenue [6] R&D Investment - R&D expenses reached CNY 12.79 billion in the first half of 2023, a year-on-year increase of 26.0% [4] - The company is concentrating R&D investments in network, computing power, and the integration of computing and networking [4] - The company has developed a full-process design capability for chips, enhancing its competitiveness in the market [4] Market Challenges and Strategies - The international market revenue decreased by 8.5% year-on-year, with the Asian market experiencing a 22.3% decline [6] - The company aims to enhance its overseas mobile phone sales in Europe and South America to achieve growth in international market revenue [6] - The company is focusing on digitalization, intelligence, and low-carbon trends to expand its domestic government and enterprise market [8] Profitability and Margin - The company's gross margin reached 43.2% in the first half of 2023, an increase of 6.2 percentage points year-on-year, driven by an 8.9 percentage point increase in the operator network gross margin to 54.2% [7] - The company is committed to maintaining stable gross margins while optimizing costs and enhancing product competitiveness [7] Inventory and Asset Management - As of June 2023, the company's inventory value was CNY 50.62 billion, showing stability compared to CNY 49.9 billion at the end of December 2022 [10] - The company anticipates a slowdown in inventory growth due to improved supply-side uncertainties and strategic procurement adjustments [10]