Chinese vendor ZTE reported operating revenue of CNY83.83 billion ($13.13 billion) in the first nine months of the year, an increase of 13.1% 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 CNY5.85 billion, an increase of 115.8% year-on-year.
ZTE’s operating revenue for Q3 reached CNY30.75 billion, the highest single quarter in the past three years, representing a 14.2% year-on-year growth and a 14.6% quarter-on-quarter growth respectively.
For the first nine months of 2021, the company’s R&D expense reached CNY14.17 billion, representing 16.9% of total revenue in the period, ZTE said.
“To seize the opportunities of digital transformation, the company has been deeply involved in the large-scale constructions of 5G networks in China, while continuously optimizing its mainstream products for overseas markets and its major market landscapes. Meanwhile, ZTE has been focusing on innovations to continuously expand its government and enterprise business, consumer business, and the new businesses such as automobile electronics as well,” the vendor said in a release.
“With market opportunities like 4G modernization reconstruction, 5G infrastructure construction, fiber-based transformation of fixed networks, transport network upgrade, and upgrading of home broadband products, the company continued to optimize the landscape of its competitive products for healthy operation in overseas markets,” ZTE added.
Earlier this month, ZTE and fellow Chinese vendor Huawei Technologies secured contracts to deploy the converged 5G and 4G core network for China Mobile.
Both ZTE and Huawei will each get about 50% of a contract to provide equipment and services worth CNY14.9 billion in 31 provinces across China.
According to previous press reports, Huawei had obtained a deal for CNY6.4 billion worth of equipment and CNY1.08 billion in services, while ZTE will contribute CNY6.57 billion in equipment and CNY891 million in services.
Earlier this year, Huawei and ZTE had secured the bulk of three contracts to provide 700 MHz base stations for China Mobile and China Broadcasting Network.
Through these three contracts, China Mobile aims to purchase approximately 480,000 5G base stations to expand its 5G footprint.
Huawei previously reported that its 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.
