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ZTE’s revenue returned to 90 billion!Fly against the wind, clear the clouds and see the sun

ZTE’s revenue returned to 90 billion!Fly against the wind, clear the clouds and see the sun

ZTE released its 2019 annual financial report on Friday (March 27). According to the report, ZTE achieved business revenue of 90.737 billion yuan in 2019, a year-on-year increase of 6.11%, and the net profit attributable to ordinary shareholders of the listed company was 5.148 billion yuan, a year-on-year increase of 173.71%. Gradually get rid of the shadow of 85.51 billion yuan in 2018, and see the sun.

ZTE said that the main reason for the increase in operating income in 2019 compared with the same period of the previous year was the increase in the operating income of the operator’s network compared with the same period of the previous year. In 2019, ZTE’s operator network operating income increased by 16.66% year-on-year, and the revenue from domestic and foreign FDD system equipment and domestic and foreign 5G system equipment business increased year-on-year.

ZTE’s revenue returned to 90 billion!Fly against the wind, clear the clouds and see the sun

Specifically, in the domestic market, ZTE achieved business revenue of 58.217 billion yuan, an increase of 6.93% over the same period of the previous year, accounting for 64.16% of the group’s overall operating income.

In the international market, ZTE achieved business revenue of 32.52 billion yuan, an increase of 4.67% over the same period last year. , accounting for 35.84% of the group’s overall operating income.

In addition, ZTE’s three major business segments are: in terms of operator networks, ZTE has achieved business revenue of 66.585 billion yuan; in government and enterprise business, it has achieved business revenue of 9.155 billion yuan; in consumer business Realized business revenue of 14.997 billion yuan.

ZTE’s revenue returned to 90 billion!Fly against the wind, clear the clouds and see the sun

On 5G, ZTE released a new generation of 5G wireless system chips and bearer switching network chips in 2019; 7nm chips are mass-produced and deployed on a global scale in 5G; the next-generation chips continue to innovate and make breakthroughs and iterate rapidly.

At present, there are 46 5G commercial contracts, and 70+ operators around the world have launched 5G in-depth cooperation to build the world’s largest multi-mode and multi-frequency network and the largest shared co-construction network, and super-gigabit 5G continuous coverage experience. In addition, 5G commercial networks are being built in countries such as Spain, Austria and Italy.

In 5G technology research and standard formulation, ZTE has achieved the following achievements:

●2561 family ETSI 5G standard essential patents, ranking among the top three in the world

●Submit 7000+ 5GNR/5GC proposals to global standards organizations

●74,000 global patent applications and 34,000 authorized patents

●More than 5,000 5G patents

●4000+ chip patent applications, covering Europe, America, Japan, Korea and other countries and regions

The continuous investment in 5G core technology is the reason why ZTE has to talk about its success. The report shows that in 2019, ZTE invested 12.55 billion yuan in R&D investment, accounting for 13.8% of its revenue. The average annual investment is 12.14 billion yuan.

ZTE’s revenue returned to 90 billion!Fly against the wind, clear the clouds and see the sun

In terms of fighting the epidemic, ZTE has implemented:

● Actively fulfilling social responsibilities, the ZTE Public Welfare Foundation, relying on its global business network, actively responded to the actual needs of the hospital, donating masks, alcohol, nucleic acid testing equipment and other materials to support the frontline of the fight against the epidemic.

●ZTE fully supports operators to do a good job in communication construction and security during critical periods. In 26 provinces and 82 cities across the country, ZTE has cooperated with operators to build 4/5G networks for more than 210 hospitals.

●Complete the construction of the 5G telemedicine joint consultation system in nearly 20 makeshift hospitals in Wuhan within 24 hours.

●Further strengthen the application of 5G in sub-scenarios, deploy innovative applications in 5G industries such as new media, secure office, telemedicine, distance education, and three-dimensional security into the anti-epidemic work to rapidly enhance the competitiveness of product solutions.

●Strengthen its own health and safety “defense line”, pay attention to the health of employees, and conduct close communication with global customers and partners.

●From the aspects of prevention and control mechanism, employee inspection, facilities and materials, internal management, etc., to comprehensively carry out epidemic response work and promote the resumption of work and production in an orderly manner.

The competition in the 5G main equipment market is extremely fierce. In the domestic market, the three major operators have started the centralized procurement of 5G SA main equipment. According to rumors, Huawei may take 50% of the centralized procurement share, and the remaining half will be purchased by ZTE and Ericsson. Divide up the three companies with Nokia; in the international market, the competitiveness of Ericsson and Nokia should not be underestimated, and Huawei’s sphere of influence is also expanding. For ZTE, 2020 will be a more competitive year.

However, although 2020 is full of challenges, in Li Zixue’s view, this is a new opportunity. He said that in 2020, ZTE will continue to promote technological innovation and market breakthroughs, further layout the 5G market at home and abroad, while providing a full range of products and solutions that simplify the complexity, while quickly meeting the industry’s differentiated business customization needs, leading business Innovation.

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