Chinese vendor ZTE reported operating revenue of CNY53.07 billion ($8.19 billion) in the first half of the year, an increase of 12.4% compared to the same period the previous year, the company said in its earnings release.
During the period, net profit attributable to holders of ordinary shares of the listed company reached CNY4.08 billion, an increase of 119.6% year-on-year.
ZTE said that the operating revenue in the Chinese market was CNY35.95 billion, a year-on-year increase of 13.2%, accounting for 67.7% of the total operating revenue. ZTE’s operating revenue in international market climbed 10.8% to CNY17.12 billion, representing 32.3% of the total operating revenue.
The vendor also reported operating revenue from the carriers’ networks division of CNY5.05 billion, almost flat compared to the first half of last year.
In the government and corporate business, ZTE’s revenues increased by 17.7% year-on-year to CNY5.67 billion, with sever and storage products services doubling on a year-on-year basis in domestic market. In the consumer services segment, ZTE recorded revenues of CNY12.35 billion, a year-on-year increase of 66.6%, with revenue of its residential terminal services and mobile devices services rising over 90% and 40% respectively.
“ZTE, committed to building stronger core competitiveness, has been continuously enhancing its investment in its core technologies, including chipsets, algorithms and network construction. In the first half of 2021, the company’s R&D spending amounted to CNY8.86 billion, which was 16.7% as a percentage of operating revenue,” the vendor said.
To date, ZTE has filed over 80,000 global patent applications, and accumulated more than 40,000 granted patents globally, including 4,400 chip patent applications and about 1,950 granted patents.
“In terms of carriers’ networks, ZTE has proactively participated in the global 5G constructions, helping operators build integrated basic networks with excellent performance and efficiency for sustainable development. In the government and corporate business, ZTE has achieved significant growth with a focus on major industries like energy, transportation, government affairs, finance and the Internet. Relying on its precision cloud networks and empowerment platforms, ZTE has been committed to new infrastructure deployments, 5G industrial applications, and digital transformation upgrade,” the Chinese firm said.
ZTE highlighted that it has assisted local carriers China Mobile, China Telecom and China Unicom to deploy 5G technology in over 240 cities across China.
Earlier this month, Chinese vendor Huawei reported a decline in earnings in the first half of the year, largely due to the impact of trade restrictions imposed by the U.S. government.
Huawei’s revenues declined by 29.4% year-on-year to CNY320.4 billion, while its net profit margin rose to 9.8% from 9.2% in H1 2020.
Revenues from Huawei’s Carrier Network Business Group (CNBG) declined by 14.2% to CNY136.9 billion, mainly due to the fact that local operator China Mobile delayed its 700 MHz 5G tender to mid-July. Huawei had secured 60% of the contract.
The vendor’s Consumer Business Group sales reached CNY135.7 billion, down 46% year-on-year. Enterprise business revenue grew 18.2% to CNY42.9 billion.