002583, ordered to pay 343 million yuan to the U.S. government

Reporter**|Wang Jing**

Editor|Cheng Peng, Liao Dan, Du Hengfeng, Proofreader|Chen Kemin

Hytera Communications (SZ002583, stock price 10.97 yuan, market value 20 billion yuan) has made the latest progress in a major lawsuit case.

On March 12, Hytera announced that in January this year, the company reached an agreement with the U.S. Department of Justice (hereinafter referred to as DOJ, referred to as the DOJ case) which was approved by the U.S. District Court in Illinois. According to the agreement, the company is required to pay the U.S. Department of Justice between $0 and $60 million, and pay certain compensation to MOTOROLA SOLUTIONS INC. and Motorola Malaysia (hereinafter collectively referred to as Motorola).

Recently, the U.S. District Court in Illinois issued a ruling, ordering the company to pay $50 million (approximately 343 million RMB) to the U.S. government, and to pay $0 in compensation to Motorola. The relevant judgment amount is to be paid after the civil judgment in the trade secret copyright case is fully executed and no later than the end of 2029.

Regarding the impact of this lawsuit, Hytera stated that the company has accounted for an estimated liability of $60 million in its 2024 annual report based on the upper limit of the previously agreed amount with DOJ. After this judgment, the company will handle the accounting in accordance with enterprise accounting standards. This judgment will not lead to any adjustments in the company’s performance forecast for 2025.

At the same time, the company said it will continue to take necessary legal measures to protect its legitimate rights and interests to the greatest extent. Currently, the company’s production and operations are normal, and this judgment will not have a significant impact on the company’s current business and normal operations.

Currently, the compensation amount involved in this case is a first-instance judgment, and the final outcome of the case remains uncertain. Hytera stated that it will continue to monitor the progress of the lawsuit and fulfill its information disclosure obligations in a timely manner through interim or periodic reports.

Public information shows that Hytera is a leading global provider of specialized communication equipment and solutions, capable of providing broadband trunking, public-private integration, emergency communication, satellite communication, and other specialized communication devices and multimodal fusion communication capabilities. It is also known in the industry as the “Little Huawei” in the private network communication field. For a long time, the company has been involved in a series of patent infringement, trade secret, and copyright infringement lawsuits with its main competitor Motorola in the U.S., Germany, Australia, and other regions.

In terms of performance, at the end of January this year, Hytera released its 2025 performance forecast, estimating that the company will achieve operating revenue of 5.8 billion to 6.2 billion yuan in 2025, compared to 6.142 billion yuan in the same period last year; net profit attributable to the parent is expected to loss between 190 million and 290 million yuan, compared to a loss of 3.485 billion yuan last year; net profit excluding non-recurring gains and losses is expected to be between 250 million and 350 million yuan, a year-on-year increase of 27.13% to 77.98%.

Regarding the main reason for the growth in net profit excluding non-recurring gains and losses but a loss in net profit attributable to the parent, Hytera explained that the company has accrued an estimated liability of about $110 million based on the first-instance judgment result for licensing fees of the H-series DMR products. Excluding this factor, the company’s net profit has achieved significant growth. “The company does not agree with the first-instance judgment of the U.S. court regarding the licensing fees for the H-series DMR products and has filed an appeal. Meanwhile, the company continues to increase R&D investment to promote the development and implementation of new generation proprietary communication technology standards and products for private networks.”

(Disclaimer: The content and data of this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.)

| Daily Economic News nbdnews Original Article |

Reproduction, excerpting, copying, and mirroring are prohibited without permission.

【Editor: Zhao Yanping HF094】

【Disclaimer】This article only represents the author’s personal views and is not related to Hexun.com. Hexun.com maintains neutrality regarding the statements and opinions in the article and does not provide any explicit or implied guarantees regarding the accuracy, reliability, or completeness of the content. Readers should only use it as a reference and bear all responsibilities themselves. Email: news_center@staff.hexun.com