First, ZTE's increase last year was relatively high, overdrawing this year's increase. Before the trade war, ZTE's share price had been climbing slowly, rising above 40 yuan, and once fell to 1 1 yuan after being sanctioned by the United States. However, a thin camel is bigger than a horse. With the advent of the 5G era, ZTE has returned to the right track, and its share price has not only returned to the pre-trade war, but also set a new high in 56 yuan. For a company that suffers bad news in a short period of time but benefits from the high prosperity of the industry, its share price will overdraw its future increase in advance. As long as the company's financial situation is not as good as the market expectation, its share price will fall first to show respect and give up the previous overdraft increase.

Second, the application of 5G is less than expected, which has a certain impact on the company's performance. We all know that 20 19 is called the first year of 5G. This year, the Ministry of Industry and Information Technology issued a 5G commercial license, one year ahead of industry expectations. I thought that the commercialization process of 5G would come ahead of time, and all walks of life would blossom, but the fact is that the issuance of 5G commercial licenses did not accelerate the commercialization process of 5G, but the process of 5G was slower than expected. This slowness is not only reflected in the construction of base stations, but also the penetration rate of 5G mobile phones is far lower than expected. Although 5G users still maintain a high growth rate, they can be subject to the price of 5G mobile phones. Many individual users changed their 5G mobile phones and did not change their 5G packages, which led to the application of 5G being less than expected, which led to ZTE's performance being less than expected, and its share price would naturally not rise.

Third, the domestic substitution process is slow, and technology enterprises are struggling. Since the trade war, the United States has continuously suppressed China's science and technology enterprises, led by Huawei and ZTE, with the aim of preventing China's high-tech enterprises from occupying the commanding heights in the field of science and technology. In the field of science and technology, we have made some achievements, and 5G has even led the world. However, in the subdivision fields such as chips, semiconductors and integrated circuits, we are still subject to people. Many high-tech parts need to be imported, and key technologies are easy to get stuck. Although we have a vast consumer market, some core technologies have not been mastered, and there is a generation gap between many technologies and foreign technology enterprises. As an influential technology enterprise in the world, ZTE has a supply chain all over the world. As long as it is suppressed by the outside world, its market position and share are easily squeezed, which is also a potential hidden danger of ZTE.