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 Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (4) comments


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
Cablevision's New WiFi Try – Freewheeling Enough?
Mari Silbey, Independent Technology Editor, 1/26/2015
Overture Builds on NFV Foundation
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/27/2015
LightSpeed Looks to Plug the Gigabit Gap
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/23/2015
Parks Predicts HBO OTT Success
Mari Silbey, Independent Technology Editor, 1/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Weekly Executive Interview
Join us live for Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, Universal, Intel and Microsoft, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he has to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.