ZTE said its net profits in H1 climbed 19.9% year-on-year
Chinese vendor ZTE announced total revenues of CNY 60.70 billion ($8.32 billion) for the first half of 2023, representing an increase of 1.5% compared to the year-ago period.
In its earnings statement, ZTE said its net profit amounted to CNY5.47 billion in the first half of the year, climbing 19.9% year-on-year.
The vendor also reported its basic earnings per share was CNY1.15, while the net cash flows from operating activities increased by 83.6% to CNY 6.43 billion, compared to the same period in 2022.
In the first half of 2023, the company’s R&D investment amounted to CNY12.79 billion, representing 21.1% of ZTE’s overall operating revenue.
In H1 2023, the company’s operating revenue in the Chinese market reached CNY 43.11 billion, accounting for 71% of its overall operating revenue. Additionally, the operating revenue from international market reached CNY 17.59 billion.
ZTE also said its three major business segments — operator networks, government and corporate services, and consumer services — recorded revenues of CNY 40.81 billion, CNY 5.87 billion, and CNY 14.02 billion, respectively.
“Moving forward, amidst a blend of opportunities and challenges, ZTE will embrace the currents of the digital economy, accelerate its expansion from CT to IT field, and transform from a full-connection company to a computing power company to drive its sustainable growth in collaboration with operators, industries, and ecological partners, leading to mutual success and a collective pursuit of new development within the digital economy,” the vendor said.
ZTE had reported operating revenues of CNY 122.95 billion in 2022, up 7.4% year-on-year, while its net profits 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.
The Chinese market represented 69.3% of ZTE’s overall operating revenue in 2022 while the operating revenue from international markets totaled 30.7% of its overall operating revenue.
