ZTE’s profits for the period were up 12% year-on-year
Chinese vendor ZTE reported operating revenues of CNY 59.82 billion ($8.65 billion) in the first half of the year, up 12.7% compared to the same period last year.
In its earnings statement, the Chinese company said that its net profits amounted to CNY 4.57 billion, an increase of 12% year-on-year.
“In the first half of 2022, ZTE, despite the challenges of the pandemic and complex external environment, has ensured the security and stability of its own supply chain, realized continuous delivery to its global customers and continuously improved the company’s operational quality and efficiency,” ZTE said.
In the first half of 2022, the company’s R&D spending reached CNY 10.15 billion, accounting for 17.0% of its total operating revenue.
“From January to June of 2022, ZTE’s operating revenue in both domestic and international markets and its three major businesses -carriers networks, government and enterprise, and consumer business, all achieved double-digit increase year on year,” the vendor said.
For the domestic market, the operating revenue reached CNY 40.60 billion, a year-on-year increase of 12.9%, accounting for 67.9% of the total operating revenue, while for the international markets, ZTE’s operating revenue amounted to CNY 19.22 billion, a year-on-year increase of 12.3%, accounting for 32.1% of the total operating revenue.
In its carriers network business, ZTE achieved an operating revenue of CNY 38.72 billion, an increase of 10.5%, compared to the first half of 2021.
“To date, ZTE has entered into 5G cooperation with over 110 operators across the globe, covering major markets including Europe, Asia Pacific and the Middle East. Meanwhile, the company has actively seized the opportunity of domestic operators’ cloud-network transformation, and deeply integrated its own capabilities with their requirements while providing its products and solutions. ZTE has secured the domestic operators’ centralized procurements for multiple years,” the vendor added.
In its government and corporate business, ZTE’s operating revenue increased by 18.3% year on year to CNY 6.71 billion during the period. “ZTE’s core products and solutions such as server and storage, data center, enterprise network, video conference, cloud computer and distributed database were widely applied in the government and corporate markets, gradually forming a good cloud network ecosystem.”
In consumer business, ZTE reached revenue of CNY 14.39 billion, up 16.5% year-on-year.
“During the period, ZTE, while consolidating the businesses in the first curve represented by wireless and wired products, has been rapidly expanding its businesses in the second curve, including server and storage products, terminals, 5G industry applications, automotive electronics, and digital energy. In H1, the company has achieved around 40% increase year on year in terms of the operating revenue from its second curve business,” the vendor said.
