On October 31, according to the official website of Shanghai clearing house, Huawei Investment Holding Co., Ltd. plans to issue 3 billion yuan three-year interim tickets from November 5 to 6, 2019. This is the second time Huawei has issued bonds in China since September, with the same scale and maturity as the first time.
According to the issuance documents, this bond is the second phase of medium-term notes issued by Huawei in 2019, with an issue amount of 3 billion yuan and a term of 3 years. It has no guarantee. The main rating and debt rating are AAA, and the main underwriter is China Construction Bank.
For the purpose of the raised funds, the prospectus shows that in 2016-2018 and the first half of 2019, the company's consolidated business income reached 518.068 billion yuan, 598.480 billion yuan, 715.192 billion yuan and 396.538 billion yuan, up 31.58%, 15.52%, 19.50% and 22.86% year-on-year respectively, with a compound growth rate of 17.49% in 2016-2018.
With the continuous expansion of the company's business scale, the operating cost and R & D expenditure also increased accordingly. In 2016-2018 and the first half of 2019, the company's consolidated cash expenditure for operating activities was RMB 554.279 billion, RMB 625.538 billion, RMB 778.238 billion and RMB 485.110 billion respectively, and the R & D expenditure was RMB 76.375 billion, RMB 89.666 billion, RMB 101.475 billion and RMB 56.597 billion respectively. It is expected that all businesses of the company will maintain a stable growth trend in the future, and capital expenditure will further increase. The company plans to issue 3 billion yuan of medium-term notes, which will be used to supplement the working capital of the company's headquarters and subsidiaries.