ZTE Nine-Month Operating Revenue Rises 26.5 percent to RMB58.29 Billion
Terminal sales revenue increases 53 percent
27 October 2011, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, announced today that its operating revenue rose to RMB58.29 billion for the nine months ended September 30, 2011, an increase of 26.5 percent year-on-year.
Net profit attributable to parent company shareholders for the same period was RMB1.07 billion, a year-on-year decline of 21.5 percent. The decrease is mainly attributable to increased financial expenses. Basic earnings per share for the period were RMB0.31.
Revenue from terminal sales increased 53.4 percent year-on-year. Revenue attributed to telecommunications software systems, services and other products saw year-on-year growth of 28 percent as a result of an increase in fixed terminals and services sales. The company also reported year-on-year growth of 15 percent in carrier network revenue. This increase is attributed to increased sales of ZTE’s wireline products, optical communications systems, domestic sales of GSM/UMTS system equipment and international sales of its CDMA system equipment.
As TD-LTE becomes more popular around the world, ZTE continued to strengthen its position as an industry leader in this sector in the first three quarters of 2011. This is evident in the company’s initiatives in high-end markets, including new partnerships with Hutchison (Sweden), Softbank (Japan) and operators in India and Saudi Arabia. ZTE also has further developed its partnerships with multinational operators such as France Telecom and MTN Group in the GSM/UMTS arena.
ZTE secured a record-high market share of 12.5 percent for the period in the PTN field, maintaining its position as the global leader in optical product manufacturing.
ZTE also obtained a 16.3 percent share of the high-end data product market among China’s telecommunications operators, moving into the No. 3 spot domestically. This is attributed to an increase in sales of the company’s high-end data products such as the M6000/T8000.
In the first three quarters of 2011, ZTE’s terminal product sales continued to grow, and it is now ranked as the No. 5 handset manufacturer in the world. Its flagship products such as the Blade, Skate and other smartphones have enhanced the company brand. To date, more than five million ZTE Blade phones have been sold worldwide. Based on the Blade’s success, ZTE launched the Skate, a next-generation 4.3-inch, large-screen smartphone in September. The Skate is available in China, Hong Kong and selected European countries.
Looking ahead to 2012, ZTE will focus on projects that aim to expand or upgrade wireless networks globally. It also will seek opportunities in the ICT industry and related smart terminals market.
Further, the company will strive to completely understand customer requirements and will seek to maintain a positive balance between scale and profit with the fundamental aim of sustaining stable growth.
ZTE is a publicly-listed global provider of telecommunications equipment and network solutions with the most comprehensive product range covering virtually every sector of the wireline, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to meet the changing needs of their customers while achieving continued revenue growth. ZTE’s 2010 revenue led the industry with a 21% increase to USD10.609 billion. ZTE commits 10 percent of its revenue to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. A company with sound corporate social responsibility (CSR) initiatives, ZTE is a member of the UN Global Compact. ZTE is China’s only listed telecom manufacturer, publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.
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