ZTE posts 94 percent rise in full-year net profit as 4G sales surge
Innovative 4G solutions including Cloud Radio, QCell and UBR made ZTE the fastest-growing provider of 4G solutions in the world in 2014
ZTE Corporation , a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, announced a 94 percent rise in full year net profit, as higher sales of 4G network equipment and smartphones lifted the company’s profit margins.
Net profit attributable to shareholders of the listed company increased to RMB 2.63 billion (US $423.5 million) in 2014, according to the annual results announcement posted by ZTE today. Basic earnings per share climbed to RMB 0.77, while revenue rose 8.3 percent to RMB 81.47 billion.
ZTE proposed a cash dividend of RMB 2.0 (including tax) for every 10 shares held, in addition to the issue of two bonus shares for every 10 shares by way of capitalisation of capital reserve.
ZTE was the fastest-growing provider of 4G solutions globally in 2014, as the introduction of innovative network solutions including Cloud Radio, QCell, UBR and Magic Radio helped the company win business internationally, and consolidated its leadership in China’s 4G market. ZTE is leveraging its strong position to take the lead in research of 5G technology, becoming the first company in the industry to offer pre 5G base stations.
In 2014, ZTE unveiled its new M-ICT strategy, putting the company in a better position to harness its capabilities in telecommunications, enterprise ICT and consumer devices, to offer customers converged solutions and technology innovations in the era of mobile broadband and the Internet of Things (IoT).
In cloud computing and IT products, ZTE achieved increased penetration of the financial services market, helped by the company’s industry-leading data processing platforms and distributed database technologies. ZTE also posted growth in its data centre products business.
In ZTE’s Mobile Devices Division, the company posted growth in sales of 4G smartphones and 3G mobile phones internationally. ZTE streamlined its smartphone product lines, benefitting from improved branding, channel distribution and services.
In wireline and optical communications products, ZTE achieved increased market share in the optical transport networks market, maintained industry leadership in packet transport networks (PTN), ethernet passive optical network (EPON) products, and posted growth in access terminals and gigabit passive optical network (GPON) products.
ZTE posted revenue of RMB 40.89 billion from international operations, accounting for 50.2 percent of revenue. Operations in China contributed revenue of RMB 40.58 billion.
Looking ahead to 2015, growth in the traditional telecom market is facing a bottleneck, but due to the high growth of data services, carriers are also transitioning to Internet services. The mobile Internet era is set to become the main theme of the development of the telecommunications industry, from traditional interpersonal communication, gradually expanding to the communication of people and machines/devices.
In Carriers’ Networks, operators are demanding network optimisation solutions to increase capacity, maximise performance and depth of coverage. ZTE is in a strong position to help customers deploy networks with enhanced intelligence and flexibility, through multi-dimensional data management and large-enabled platforms. ZTE is committed to helping operators transition to next generation business models to generate increased business value.
In enterprise ICT, converged solutions combining telecommunications and ICT technologies, cloud computing, big data, high-power wireless charging and other emerging technologies are bringing transformative changes to industries and workplaces. ZTE will pursue opportunities in rich communication suites (RCS), cloud services, and Smart City to help enterprise customers navigate the “Industry 4.0” or “Industrial Internet” transformation. ZTE’s innovation laboratory will be the focus for innovation around emerging technologies including smart voice, artificial intelligence, wireless charging, distributed power generation, large data platforms and applications, Internet banking, and mobile payments.
ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE’s M-ICT strategy, the company is committed to provide customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE’s products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visit www.zte.com.cn.