Even if the net loss in the third quarter reached 637 million US dollars (about 4.51 billion yuan), Sweden Ericsson (NASDAQ: ERIC) still has confidence in its business including 5G. The company also pointed out that “China is the largest market for 5G infrastructure and is expected to be deployed by 2020.”

On October 17, local time, Ericsson released the third quarter financial report for the 2019 fiscal year.

Among them, the company’s third quarter revenue was 57.1 billion Swedish kronor (about 41.39 billion yuan), an increase of 6%; net loss of 6.9 billion Swedish kronor (about 5 billion yuan), a year-on-year loss; The net loss of shareholders of Ericsson’s parent company was SEK 6.229 billion (approximately RMB 4.51 billion), a year-on-year loss.

However, Bao Yikang, President and CEO of Ericsson, is optimistic about the company’s current economic situation. In the earnings report, he said, “In the North American and Northeast Asian regions, 5G early users, our organic sales increased by 3% this quarter.” Bao Yikang wrote, “Our operating income is 6.5 billion Swedish kronor (about Including RMB 4.7 billion, the corresponding profit margin is 11.4%.”

He also said, “Based on the investment strategy of leading technology businesses including 5G, our company’s business prospects remain strong.”

Speaking of the 5G market, Bao Yikang said that China is the “biggest 5G infrastructure market”. “We have invested to increase market share, but it is still too early to assess the possible quantity and price levels. Based on historical experience, we expect the initial stage. Profit margins will face challenges, but there will be positive profits during the contract period.”

In August this year, Chen Zhaoxiong, deputy minister of China’s Ministry of Industry and Information Technology, met with EU Ambassador to China Yu Bai in Beijing. The two sides exchanged views on the 5G issue.

At the time, Chen Zhaoxiong pointed out that since the signing of the 5G cooperation document between China and the EU in 2015, the cooperation between the two sides has achieved positive results. Enterprises such as Nokia and Ericsson have participated in the formulation of China’s 5G standards, technology research and development, and testing and testing.

In October this year, Ericsson announced the acquisition of Kathrein’s antenna and filter business in Germany, expanding its wireless system portfolio and enhancing its overall competitiveness in the 5G equipment market.

Bao Yikang said, “5G is growing faster than we expected, and we believe that the initial construction of 5G in metropolitan areas has increased our position in the market.”

Reuters said on the 17th that although the quarterly financial turnaround, Ericsson still maintains its 2020 operating profit margin target of more than 10%, citing the short-term pressure brought by some contracts and the initial high cost of 5G new products.

Bao Yikang also said that Ericsson will focus on the long-term, “We launched a key strategy in 2017, aiming to look at the long-term and build a stronger Ericsson. We will focus on carrier customers to increase investment in technology research and development and cost leadership.  Based on the continuous expansion of the market footprint.”

According to ZDNet analysis of IT information website, another reason that caused Ericsson to turn losses in the third quarter was the entanglement with the US authorities.

According to Observer’s previous report, Ericsson said in September that the company’s third-quarter results will be hit by 12 billion Swedish kronor (about 8.69 billion yuan). This reserve will be used to respond to the US Foreign Corrupt Practices Survey.

Ericsson’s opening price on the NASDAQ exchange on Wednesday (16th) was $8.58. As of Wednesday’s close, Ericsson shares rose 0.15 US dollars to close at 8.61 US dollars, an increase of 1.77%. In the past 52 weeks, Ericsson’s lowest share price was $7.58, and the highest share price was $10.46.