ZTE Posts RMB1.36 in Profits, Focuses on 4G Expansion for Future Revenue Growth

ZTE Posts RMB1.36 in Profits, Focuses on 4G Expansion for Future Revenue Growth

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ZTE Corporation’s financials rebounded this year, posting a net profit of RMB 1.36 billion, a sharp increase from the losses made in 2012, despite a 10.6% decline in its revenues. Boosted by the gain made on the sale of its subsidiary, the publicly-listed global provider of telecommunications equipment, network solutions and mobile devices is paying out 75.8% of its total net profit available for distribution, giving investors a dividend payout of RMB 0.3 (including taxation) for every 10 shares held.

47.4%(RMB35.63 billion) of ZTE’s overall operating revenue comes from China, on the back of rapid expansion of the 4G networks while the remaining RMB39.60 billion is contributed by multinational customers. The decline in revenue is attributed to the contraction in the revenue from terminal products, though the company is confident that high growth in its 4G contracts both in China and worldwide will see significant increases in its future revenues and has taken up a host of developmental intiatives which include research, development and planning of 5G and other next-generation technologies. According to ZTE, it has also expanded effort in technology innovation, leading the creation of intellectual property with patent applications totalling 50,000 of which 16,000 are already granted, securing No.1 rank in both 2011 and 2012 as world’s leading innovator, according to the World Intellectual Property Organization, it says. 

In addition, ZTE has identified some of the major areas which it will focus its efforts on, namely, intelligent next-generation products in the smart terminals segments, the Internet of Things, Cloud Computing, the Smart City and information security and is optimistic that these new areas present large opportunities for revenue growth for the company.  

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