Thursday, August 25, 2016

ZTE Posts 1H16 Revenue Rises 4% YoY

ZTE reported revenue of RMB47.76 billion (US$7.12 billion) for the first six months of 2016, up 4.05% compared to the first half of 2015.

Domestic operating revenue amounted to RMB27.8 billion, accounting for just over 58% of overall operating revenue. International operating revenue is RMB19.95 billion, accounting for almost 42% of the group’s overall operating revenue. Net profit attributable to holders of ordinary shares of the listed company rose to RMB1.77 billion for the six months ending 30 June 2016. Basic earnings per share amounted to RMB0.43.

Some highlights:

  • The reported operating revenue for carriers’ networks business in H1 was RMB28.74 billion. 
  • Operating revenue for government and enterprise business amounted to RMB4.61 billion. 
  • Operating revenue for the consumer business amounted to RMB14.42 billion. 
  • In H1 2016, ZTE invested close to 15%, or RMB7.06 billion, of their total revenue in R&D, the largest such investment the company has made to date. 
  • ZTE said it now ranks 1st in 4G global shipments to mobile network operators (as it has for three consecutive years) and has successfully increased its market share in both wireless and wired markets. 
  • In Q2 2016, ZTE rose to join the ranks of the Top 6 global smartphone manufacturers. ZTE Mobile Devices market share is ranked 2nd in Russia; 4th in North America, Sweden, Spain and South Africa; and 5th in Mexico and Australia.
  • In the enterprise business, Smart City remains a key engine of ZTE’s growth. ZTE rapidly expanded this business in the first half of 2016 and new orders have increased 40% YoY.

Huawei's First Half Sales Hit CNY245.5 billion, up 40% YoY

Huawei reported sales revenue for the first half of 2016 of CNY245.5 billion (US$36.75 billion), an increase of 40% comparing with the same period last year. The company's operating margin was 12%. "We achieved steady growth across all three of our business groups, thanks to a well-balanced global presence and an unwavering focus on our pipe strategy," said Sabrina Meng, Huawei's Chief Financial Officer. "We are confident that Huawei will maintain...