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ZTE Reports Net Profit of RMB9.33B in 2023, up 15.4% YoY

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ZTE Corporation (0763.HK/000063.SZ), a global leading provider of information and communication technology solutions, reported a full-year operating revenue of RMB124.25 billion in 2023 with gross profit margin at 41.5 percent.

The net profit attributable to holders of ordinary shares of the listed company reached RMB9.33 billion, up 15.4 percent YoY. The net profit after extraordinary items attributable to holders of ordinary shares of the listed company for 2023 amounted to RMB7.40 billion, representing a 20 percent YoY rise.

In 2023, the company’s net cash flows from operating activities reached RMB17.41 billion, a YoY increase of 129.7 percent, with total cash dividends proposed to be distributed accounting for 35 percent of the net profit attributable to the holders of ordinary shares of the listed company.

In 2023, amid a challenging external landscape, ZTE demonstrated precision and pragmatism, maintaining steady operations. With a strengthened focus on research and development investment, the company fortified its core capabilities, elevating product competitiveness through a fusion of foundational technological innovation and advanced manufacturing processes. With an investment of RMB25.29 billion in R&D in 2023, covering 20.4 percent of the operating revenue, ZTE drove its business innovation initiatives, paving the way for sustainable growth.

In addition, ZTE sustained its efforts in strengthening risk prevention capabilities, emphasizing digital transformation to enhance operational resilience. Capitalizing on opportunities in industry digitization, intelligent computing and green low-carbon initiatives, the company pursued a diversified strategy across multiple product lines and sectors, achieving robust expansion of new business initiatives alongside overall operational stability.

In 2023, the company’s domestic market realized an operating revenue of RMB86.48 billion, representing 69.6 percent of the total. Meanwhile, the international market achieved an operating revenue of RMB 37.77billion, accounting for 30.4 percent of the total.

The company’s operator network, government and enterprise business, and consumer business achieved operating revenues of RMB82.76 billion, RMB13.58 billion and RMB 27.91 billion, accounting for 66.6 percent, 10.9 percent and 22.5 percent, respectively.

In 2023, with its first curve services centered on “connectivity,” ZTE maintained its leading position in both wireless and wired domains. The company’s shipments of 5G base stations and 5G core networks consistently ranked second globally for four consecutive years. Its RAN and 5G core network products were recognized as industry leaders while its optical access product, 10G PON, held the second-largest global market share.

Simultaneously, ZTE continuously evolved innovative technologies and solutions such as 5G-A, all-optical networks, and 5G new applications. Collaborating with operators, ZTE conducted commercial deployments and verifications in various scenarios, including 10Gbps experiences, industrial field networks, communication-sensing-computing integration and RedCap.

In the second curve services represented by “computing power,” the company actively embraced new opportunities and challenges arising from breakthroughs in artificial intelligence technology. Leveraging its extensive experience in both hardware and software development in the telecommunication field, the company intensified its investments in computing infrastructure, software platforms, large-scale models and applications. With a comprehensive approach, it launched products like servers and storage, data center switches, data centers and the Nebula series of large-scale models. These endeavors accelerated the company’s strategic shift from connectivity toward a stronger focus on computing power.

In the terminal field, ZTE is dedicated to constructing the Full-Scenario Intelligent Ecosystem 3.0 and continuously introducing pioneering products and solutions across various sectors such as mobile terminals, smart homes, cloud computers and automotive electronics. The industry-first cutting-edge product lineup includes innovations like 5G+AI eyewear-free 3D tablet nubia Pad 3D II, all-around photography flagship nubia Z60 Ultra, AI 5G FWA products, Wi-Fi 7 and FTTR series products and 5G cloud laptops.

ZTE has achieved global leadership in the 5G FWA&MBB market, boasting the world’s highest market share. The shipment volumes for PON CPE, DSL CPE and IP set-top boxes have secured the top position globally. Maintaining its stronghold, the company has led the top position in the global gaming smartphone market share with stable sales of the RedMagic. Concurrently, ZTE has also forged extensive collaborations with major automotive companies.

Moving forward, amid the dynamic and evolving external landscape and the rapid advancements in digital technologies, ZTE is poised to actively embrace the momentum of digital transformation. Upholding principles of openness and collaboration, the company remains steadfast in its commitment to shape a sustainable future that is efficient, green and intelligent and in close partnership with stakeholders worldwide.

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