ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the mobile internet, today announced its preliminary financial results for the year 2021.
In 2021, ZTE harvested a high-quality growth. The company’s gross profit margin got recovered and improved, compared with a year earlier, while its profitability and profit quality were promoted as well.
According to ZTE, its net profit attributable to holders of ordinary shares of the listed company in 2021 was RMB 6.5 billion to RMB 7.2 billion, an increase of 52.6% to 69.0% year on year, and its net profit after extraordinary items attributable to holders of ordinary shares of the listed company for 2021 amounted to RMB 3.0 billion to RMB 3.5 billion, representing a year-on-year rise of 189.7% to 238.0%. Both of them were the highest in the history of the company. Basic earnings per share was RMB 1.40 to RMB 1.55.
The year 2021 was crucial for ZTE’s growth phase. During the year, the company, confronted with complex external environment, continued to solidify its position with innovative initiatives while maintaining steady operations and optimizing its market structure. The company achieved double-digit year-on-year growth in operating revenue, with both domestic and international markets and all its three major businesses (operator networks, government and enterprise services and consumer services) seeing year-on-year growth in terms of operating revenue.
During the operation period, ZTE has deeply engaged in 5G network constructions in China, and kept optimizing its products and market structure overseas, with an aim to maintain robust growth with its operator business.
In domestic market, ZTE’s key products of 5G, core network, transport network, and server&storage products have witnessed continued growth in terms of market share. Dedicated to transforming itself from a mainstream supplier to a core supplier, ZTE has been continuously improving its capabilities in leading technologies, product innovation, R&D agility and delivery efficiency. The company, in partnership with major operators, has fully carried out R&D innovation and digital industry expansion, embracing the opportunities and challenges in the digital era.
In overseas market, the company, cherishing the market opportunities like 4G modernization reconstructions, 5G infrastructure constructions, fiber-based transformation of fixed networks, transport network upgrades and home broadband product upgrades, has continued to optimize the competitive landscape of its products and markets. Backed up with innovations in its technologies, products and solutions, ZTE has been providing operators diversified digital services for the ToC (To Customer), ToB (To Business) and ToH (To Home) markets.
While solidifying its position in the traditional CT business, ZTE has been exerting continued efforts to expand such fields as IT business, digital energy and terminal business for its second growth curve, so as to achieve self-transcendence, go beyond the industry life cycle, and realize sustainable development in its expansion phase.
In the IT field, ZTE has been consolidating the underlying competitiveness of IT products such as server and storage products, operating system and database, with the operating revenue of these IT products reaching RMB10 billion. The company has established two special groups, specifically dedicated to mining and metallurgy, in hope to achieve deep expansion of the 5G application market. Meanwhile, the company, bolstered with its comprehensive ICT technology software and hardware advantages, has expanded its businesses into the field of automotive electronics, and established an automotive electronic product line to boost the development of intelligent, connected and electric vehicle fields.
In terms of digital energy, the company has established a digital energy group at the beginning of 2022, to officially enter into the new energy market.
In the terminal field, the company aims to improve user experiences of mobile phones, and enhance brand channel constructions while establishing a new smart home product line. By leveraging the advantages of home broadband network products, the company has been vigorously expanding consumer-oriented smart home products.
The year 2022 marks the start of the company’s expansion phase. While further strengthening its strategic positioning as “a driver of digital economy”, ZTE will keep promoting the innovations of its underlying technologies and solidifying the foundation.
Moving forward, the company will be committed to the development of the imagination space and application scenarios of the digital economy by means of continuous innovation investment and digital transformation, expecting to make contributions to upgrades of digital industrialization and industrial digitalization.