ZTE reports sustained growth in both profit and revenue in H1 2020 despite global pandemic
Via ZTE Press Center
Aug 28, 2020
28 August 2020, Shenzhen, China -- ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today has posted its financial results for the first half of 2020.
According to the results, for the six months ended 30 June 2020, ZTE reported operating revenue of RMB47.20 billion , 5.8% higher than a year earlier. Net profit attributable to holders of ordinary shares of the listed company reached RMB1.86 billion, an increase of 26.3%, and net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted to RMB0.9 billion, representing a year-on-year increase of 47.4%. Basic earnings per share was RMB0.4.
In the first half of 2020, the company strengthened its cash flow and sales revenue collection management. Its net cash flow from operating activities for H1 2020 is approximately RMB2.04 billion, about 61.1% year-on-year growth. With great commitment to 5G R&D investment, the company’s R&D spending increased to RMB6.64 billion in H1 2020, covering 14.1% of operating revenue.
During the period, the company, confronted with complex challenges, such as the global outbreak of COVID-19, continued to intensify its R&D initiatives, fully leveraging the efficient synergy advantages brought by digital transformation. All ZTE employees made great efforts to better serve customers, and continuously improve customer satisfaction, thereby achieving a steady growth of business.
Meanwhile, ZTE made full use of 5G-based innovative information technologies and products, so as to comprehensively help the fight against COVID-19, facilitate the rapid production resumption, and fulfill social responsibilities around the world.
ZTE continued to strengthen its technological advantages in key areas. The company put its in-house new-generation core chipsets for access, bearer, and fixed-network into large-scale commercial deployments, further improving the performance, integration and energy efficiency ratio of the chipsets.
Moreover, the company has been continuously strengthening algorithm accumulation and optimization, and actively introducing industry-leading new architectures, new materials and new technologies, thereby fully supporting product competitiveness and helping customers build 5G commercial networks with high-quality performance. Meanwhile, the company continued to improve its own digital and intelligent transformation for its R&D and operational efficiency.
In terms of operator network business, ZTE, underpinned by the rapid 5G rollouts in China, achieved revenue of RMB34.97 billion, a year-on-year growth of 7.7%. In H1 2020, the company continuously strengthened the landscape of global network infrastructure.
Proactively taking advantages of new infrastructure construction and new services, ZTE further explored market growth opportunities, with the revenue of ZTE’s government and enterprise business reaching RMB4.82 billion , a year-on-year growth of 2.5%. The company further explored high-value overseas markets while promoting healthy operations during the period.
In the field of consumer business, ZTE has continuously strengthened the 5G terminal cooperation with over 30 operators around the world, with focus on China’s open market.
Moving forward, ZTE will continuously strengthen the research and development, operate steadily and proactively address the risks and challenges in the global markets, thereby achieving the quality growth. Meanwhile, the company will seize the opportunities of new infrastructure and network technology innovations to expand its market shares, accelerate the digital transformation, and improve the organizational efficiency, so as to become an ultimate cloud company.
Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.