ZTE said that revenue from computing-related businesses in the period grew by 180% year-on-year, accounting for 25% of total revenue
In sum – what to know:
Surging segments – Computing-related revenue jumped 180% year-on-year, making up 25% of total sales, while enterprise revenue grew 130%.
Domestic 5G slowdown offset by overseas growth – Carrier network sales faced pressure in China, but international markets expanded steadily.
Strong innovation investment – ZTE spent RMB 17.8 billion on R&D, equal to 18% of revenue, to advance AI, ICT, and data center integration.
Chinese vendor ZTE Corporation reported revenue of RMB 100.5 billion ($14.5 billion) for the first nine months of the year, representing a year-on-year growth of 11.6%, the company said in its earning statement.
The net profit attributable to holders of ordinary shares of the listed company reached RMB 5.32 billion in the period.
“In the first three quarters, ZTE’s carrier networks business experienced overall pressure as domestic telecom infrastructure investment softened, while international markets continued to show healthy expansion. The government-enterprise segment sustained strong momentum, with revenue up 130% year-on-year, while the consumer business maintained stable growth,” the vendor said.
Throughout the first nine months of the year, revenue from computing-related businesses grew by 180% year-on-year, accounting for 25% of total revenue. Within this segment, revenue from servers and storage increased by 250% year-on-year, while data center solutions revenue rose by 120% year-on-year, ZTE added.
The vendor did not break down full sales data for its business units in its latest earnings report.
“Amid the continued slowdown in domestic 5G investment, ZTE remains focused on advancing the deep convergence of AI and ICT foundational technologies, enhancing network competitiveness, expanding computing infrastructure to meet rising AI-driven demand, and accelerating the upgrade of AI-enabled edge devices, to build new, sustainable engines of growth,” the Chinese vendor added.
During the period, ZTE’s R&D expenses totaled RMB 17.81 billion, accounting for approximately 18% of operating revenue.
The company also noted its data center solutions continue to support key national hub projects in China while expanding reach across emerging markets such as Latin America, North Africa, and Central Asia.
“Looking ahead, as digital-intelligent technologies deepen their real-world impact across industries, ZTE will remain committed to foundational innovation, strengthening the intelligent infrastructure, expanding application boundaries, and driving deeper convergence of AI with industrial, home, and personal scenarios,” ZTE said.
ZTE Corporation had reported full-year revenue of CNY 121.30 billion for 2024.
