ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, announced that first-half net profit rose 43.2% as the company increased sales of 4G LTE network equipment to carriers.
Net profit attributable to shareholders of the listed company jumped to RMB 1.62 billion (US$252 million) in the first six months, according to the results announcement posted by ZTE today. Basic earnings per share climbed to RMB 0.47, while revenue increased 21.8% to RMB 45.9 billion.
ZTE’s industry-leading 4G network solutions including Cloud Radio and Magic Radio helped the company win increased customer orders in the 4G LTE equipment market internationally. ZTE’s innovations in FDD-LTE and TD-LTE technologies are enabling the company to strengthen partnerships with leading carriers around the world, including Telefonica, MTN Group and Bharti Airtel. In China, ZTE strengthened its leading market position in 4G LTE network solutions market.
ZTE’s strong position in the 4G market is providing a platform for the company to lead the industry in the transition to next-generation 5G technologies. ZTE is committing increased investment into the research of 5G technology, and is working with numerous carriers around the world to accelerate the deployment of the company’s proprietary pre5G solutions, delivering immediate improvements to network performance and a better mobile broadband experience to end-users before 5G is standardized in the industry.
In addition to Wireless products, ZTE also posted growth in its Wireline division, helped by strong orders for optical transport networks and broadband systems.
Revenue in the Carrier Networks division rose by more than 30% to RMB 28.51 billion. Revenue in the Telecommunications Software Systems, services and other products rose 36.11% to RMB 7.43 billion, as the company increased sales of video systems and network terminal products.
ZTE is growing its Telecommunications Services business in markets including Germany, Belgium, Luxemberg, Spain and Colombia.
ZTE’s Enterprise and Government Solutions business posted strong year-on-year growth in the first half, as the company increased sales to customers in key verticals such as Smart City, transportation and energy. ZTE is also strengthening its position as a provider of data center, cloud solutions and broadband networks to Internet operators.
ZTE posted revenue of RMB 9.96 billion in the Mobile Devices division in the first half, as the company focused on its operations in key markets including the United States and China. The company posted strong growth in key markets including Asia Pacific, Latin America, Europe, Middle East and Africa, and ZTE consolidated its position as the most successful Chinese company in the U.S. smartphone market.In the second half, ZTE will launch new products in its flagship AXON family of smartphones, as the company aims to establish its presence in the high-end segment of the market. In September, ZTE will launch AXON Mini, the world’s first smartphone with Force Touch technology.
Under ZTE’s M-ICT strategy, the company will continue to focus on its three main operations of Carrier Networks, Enterprise Business and Mobile Devices. In Carriers’ Networks, ZTE will be committed to develop solutions for smarter networks to support carriers in their transformation into information-based operations. ZTE’s IP RAN solution, based on SDN (Software Defined Network) technology, is helping carriers build high-performance core networks with increased flexibility as their operations and businesses evolve.
In Enterprise Business, ZTE will actively support the adoption of “Industry 4.0” or “Industrial Internet” by enterprises and industry verticals, delivering increased operational efficiency and productivity to customers. ZTE will focus on strengthening innovations in key technologies including Cloud Computing, Internet of Things, Big Data, and Smart Cities. In the Mobile Devices business, ZTE will actively pursue opportunities in Smart devices technologies and new ways to enhance human-machine interaction for users.
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