Light Reading
Strong improvement in gross margin in carrier network operations as ZTE focuses on innovation to capitalize on acceleration in global 4G deployments.

ZTE Posts 2013 Profit of RMB 1.36B

Light Reading
News Wire Feed
Light Reading
3/26/2014
50%
50%

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, network solutions and mobile devices, reported a full-year profit in 2013 as the company sharpened its focus on key operations such as 4G, while strengthening operational management to generate cost savings and efficiencies.

Net profit attributable to shareholders of the listed company was RMB 1.36 billion in 2013, or RMB 0.39 per share, compared with a loss a year earlier. The company declared a cash dividend of RMB 0.3 (including taxation) for every 10 shares held, representing 75.8% of total net profit of the year available for distribution. Revenue fell 10.6% to RMB75.2 billion.

In 2013, ZTE prioritized on strategically important operations in populous countries, and the development of business with major international operators. The company exercised stringent control over contracts with lower margins, resulting in improved gross margin for international projects. In China, ZTE secured market-leading positions in 4G network tenders, as the company benefited from the development of proprietary technology solutions such as Cloud Radio. Internationally, the company’s 4G business accelerated.

ZTE was the world’s fastest-growing provider of 4G solutions in 2013, according to research company IHS.

ZTE reported operating revenue of RMB35.63 billion from the mainland China market, accounting for 47.4% of the company’s overall operating revenue. Apart from the rapid development of the 4G business, ZTE also targeted strategically important opportunities such as “Smart City” metropolitan information systems, cloud computing and the Internet of Things.

The company reported operating revenue of RMB39.60 billion from international operations, accounting for 52.6% of overall operating revenue. As a result of efforts to focus on major countries and mainstream operator partners, ZTE strengthened its relationships with key multinational customers.

Aside from the acceleration in the company’s 4G business, ZTE’s wireless products division continues to target opportunities in network expansion and upgrade in 2G and 3G networks. The company is also actively engaged in the research, development and planning of 5G and other next-generation technologies.

In connection with wireline and optical communications products, the company reported relatively fast growth in operating revenue from wireline switch and access products on the back of ongoing investment in research and development and outstanding product competitiveness, while such growth was also being driven by the rapid development of the broadband market and the construction of supporting facilities for the Mobile Internet.

In terms of the service products, the company achieved new breakthroughs in IPTV and video conference products with Tier-1 international operators, resulting in enhanced global market share for the company.

In 2013, operating revenue from terminal products decreased as a result of lower demand for feature phones and data cards. Smartphones and other smart terminal products now contribute a bigger percentage of total revenue, driven by the rapid development of the Mobile Internet. The company will be committed to enhancing the competitiveness of its terminal products, adopting a more consumer-centric approach together with online-based business model. While maintaining and enhancing ZTE’s competitive edge in hardware, the company will also be focused on developing software and services to provide improved user experience to consumers through innovation.

Looking ahead to 2014, opportunities as well as challenges will abound in the telecommunications industry amid the full-fledged application of 4G technologies, the amalgamation of ICT industries and continued informatisation. In connection with carriers’ networks, the full-scale roll-out of 4G network deployment over the world, especially the large-scale construction of 4G networks in China, is set to usher in surging new developments for the telecommunications industry, although 3G/4G/WLAN technologies will continue to coexist. Broadband infrastructure plans by national governments, users’ demand and technology upgrades will drive the construction of global broadband networks, while the building of transmission networks that support wireless or wireline broadband will also continue.

This month, ZTE retained its top-2 ranking in the World Intellectual Property Organization’s latest annual table of patent applicants, strengthening the company’s position as one of the world’s leading technology innovators. ZTE ranked No. 1 in both 2011 and 2012, according to WIPO.

ZTE has filed applications for more than 50,000 patents globally, with more than 16,000 granted, and is a global leader with more than 800 ETSI essential patents on the standardization 4G LTE. ZTE is committing large resources to the development of 5G technologies, leveraging the company’s position of strength in 4G.

Regarding smart terminals, next generation products will feature higher levels of intelligence affording greater flexibility to users. Wearable device will present a new direction of development, as the fulfillment of consumers’ needs becomes a crucial determining factor. In the government and enterprise service sectors, areas of keen market interest, such as industry informatisation, the Internet of Things, Cloud Computing, the Smart City and information security, etc, are set to present business opportunities to the Group.

In 2014, ZTE will continue to channel resources to accelerate business development in areas representing the highest strategic importance and greatest opportunity for the company. ZTE will combine technology innovation with strong strategic and business execution as the company continues to satisfy customers’ needs and pursue strong returns for shareholders.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
Eurobites: Net Neutrality Battle Looms
Paul Rainford, Assistant Editor, Europe, 11/27/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Like Us on Facebook
Twitter Feed