ZTE said its net profits amounted to CNY 2.64 billion in the quarter, climbing 19.2% year-on-year
Chinese vendor ZTE recorded revenues of CNY 29.14 billion ($4.23 billion) in the first quarter of this year, an increase of 4.3% year-on-year.
In a release, the vendor said that net profits in the period amounted to CNY 2.64 billion, climbing 19.2% year-on-year. Its net cash flows from operating activities increased by 95.9% to CNY 2.33 billion, the company said.
“As the external environment remains complex and volatile in 2023, it poses great challenges to corporate business operations. To cope with this, ZTE has adopted the business strategy of “precision and pragmatism for steady growth,” the company said in a release, adding that it “aims to enhance its foresight, resilience and adaptability to uncertainties by positioning its business precisely, allocating resources efficiently, and optimizing processes continuously.”
“With its long-term expertise in ICT full-stack core capabilities, the company delivers a comprehensive and efficient digital foundation across network, cloud network, and computing power to customers worldwide. It also capitalizes on the opportunities arising from China’s digital transformation and artificial intelligence applications. The overall performance in the first quarter of 2023 secured steady growth,” ZTE added.
ZTE had reported operating revenues of CNY 122.95 billion in 2022, up 7.4% year-on-year. Its net profits for full 2022 had amounted to CNY 8.08 billion, an increase of 18.6% year-on-year.
In 2022, ZTE invested CNY 21.60 billion in R&D, which accounted for 17.6% of the total annual revenue.
ZTE noted that the operating revenue of domestic market reached CNY 85.24 billion last year, accounting for 69.3% of its overall operating revenue while the operating revenue from international market amounted to CNY 37.71 billion, totaling 30.7% of its overall operating revenue.
In its carrier network business, ZTE achieved an operating revenue of CNY 80.04 billion last year, an increase of 5.7%, compared to 2021. “During the period, ZTE continued to increase the global market share of key products such as wireless networks and wired networks,” the company said.
In its government and corporate business, ZTE’s operating revenue increased by 11.8% year-on-year to CNY 14.63 billion during 2022.
