Tuesday, January 19, 2016

ZTE Posts Record Revenue & Profit

ZTE reported full-year 2015 revenue of RMB 100.8 billion (approx US$15.33 billion), 23.8% higher than in 2014, and the first time annual revenue has exceeded RMB 100 billion.

Net profit attributable to shareholders of the listed company will be RMB 3.78 billion (US$574 million) in 2015, compared with RMB 2.63 billion a year earlier, according to preliminary unaudited results published by ZTE today, based on accounting standards of the People’s Republic of China. This represents an annual increase of 43.5%.

The company attributed its growth to higher sales of 4G LTE network solutions internationally, in addition to China. The company also posted increased sales of optical network solutions as demand for broadband networks strengthens.

The growth in annual revenue was also driven by increased sales of high-end routers in overseas markets, while ZTE posted higher revenue from sales of Enterprise ICT solutions including Smart City and Data Center solutions to companies and government departments. In addition, ZTE also boosted sales of 4G smartphones outside China, as well as terminal products for homes.

At the end of 2015, ZTE’s gearing ratio improved to 63.9%, compared to 75.25% a year earlier, reflecting the stronger profitability of the company’s operations and better capital management. The company strengthened cash flow management, with cash received for the sales of goods and rendering of services exceeding RMB 105 billion, achieving substantial growth in cash inflows from operating activities and net cash flows from operating activities.


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