ME Newswire / Business Wire
Strong
improvement in gross margin in carrier network operations as ZTE
focuses on innovation to capitalize on acceleration in global 4G
deployments
SHENZHEN, China. - Thursday, March 27th 2014
ZTE
Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code:
000063.SZ), a publicly-listed global provider of telecommunications
equipment, network solutions and mobile devices, reported a full-year
profit in 2013 as the company sharpened its focus on key operations such
as 4G, while strengthening operational management to generate cost
savings and efficiencies.
Net profit attributable to shareholders
of the listed company was RMB 1.36 billion in 2013, or RMB 0.39 per
share, compared with a loss a year earlier. The company declared a cash
dividend of RMB 0.3 (including taxation) for every 10 shares held,
representing 75.8% of total net profit of the year available for
distribution. Revenue fell 10.6% to RMB75.2 billion.
Please
download infographic for pictorial representation of ZTE’s business
performance in 2013:
http://wwwen.zte.com.cn/en/products/bearer/201403/P020140326691257063470.png
Fastest-growing 4G solutions provider in 2013
In
2013, ZTE prioritized on strategically important operations in populous
countries, and the development of business with major international
operators. The company exercised stringent control over contracts with
lower margins, resulting in improved gross margin for international
projects. In China, ZTE secured market-leading positions in 4G network
tenders, as the company benefited from the development of proprietary
technology solutions such as Cloud Radio. Internationally, the company’s
4G business accelerated.
ZTE was the world’s fastest-growing provider of 4G solutions in 2013, according to research company IHS.
ZTE
reported operating revenue of RMB35.63 billion from the mainland China
market, accounting for 47.4% of the company’s overall operating revenue.
Apart from the rapid development of the 4G business, ZTE also targeted
strategically important opportunities such as “Smart City” metropolitan
information systems, cloud computing and the Internet of Things.
The
company reported operating revenue of RMB39.60 billion from
international operations, accounting for 52.6% of overall operating
revenue. As a result of efforts to focus on major countries and
mainstream operator partners, ZTE strengthened its relationships with
key multinational customers.
Aside from the acceleration in the
company’s 4G business, ZTE’s wireless products division continues to
target opportunities in network expansion and upgrade in 2G and 3G
networks. The company is also actively engaged in the research,
development and planning of 5G and other next-generation technologies.
In
connection with wireline and optical communications products, the
company reported relatively fast growth in operating revenue from
wireline switch and access products on the back of ongoing investment in
research and development and outstanding product competitiveness, while
such growth was also being driven by the rapid development of the
broadband market and the construction of supporting facilities for the
Mobile Internet.
In terms of the service products, the company
achieved new breakthroughs in IPTV and video conference products with
Tier-1 international operators, resulting in enhanced global market
share for the company.
In 2013, operating revenue from terminal
products decreased as a result of lower demand for feature phones and
data cards. Smartphones and other smart terminal products now contribute
a bigger percentage of total revenue, driven by the rapid development
of the Mobile Internet. The company will be committed to enhancing the
competitiveness of its terminal products, adopting a more
consumer-centric approach together with online-based business model.
While maintaining and enhancing ZTE’s competitive edge in hardware, the
company will also be focused on developing software and services to
provide improved user experience to consumers through innovation.
Leading the next phase of ICT development
Looking
ahead to 2014, opportunities as well as challenges will abound in the
telecommunications industry amid the full-fledged application of 4G
technologies, the amalgamation of ICT industries and continued
informatisation. In connection with carriers’ networks, the full-scale
roll-out of 4G network deployment over the world, especially the
large-scale construction of 4G networks in China, is set to usher in
surging new developments for the telecommunications industry, although
3G/4G/WLAN technologies will continue to coexist. Broadband
infrastructure plans by national governments, users’ demand and
technology upgrades will drive the construction of global broadband
networks, while the building of transmission networks that support
wireless or wireline broadband will also continue.
This month,
ZTE retained its top-2 ranking in the World Intellectual Property
Organization’s latest annual table of patent applicants, strengthening
the company’s position as one of the world’s leading technology
innovators. ZTE ranked No. 1 in both 2011 and 2012, according to WIPO.
ZTE has filed applications for more than 50,000 patents globally, with
more than 16,000 granted, and is a global leader with more than 800 ETSI
essential patents on the standardization 4G LTE. ZTE is committing
large resources to the development of 5G technologies, leveraging the
company’s position of strength in 4G.
Regarding smart terminals,
next generation products will feature higher levels of intelligence
affording greater flexibility to users. Wearable device will present a
new direction of development, as the fulfillment of consumers’ needs
becomes a crucial determining factor. In the government and enterprise
service sectors, areas of keen market interest, such as industry
informatisation, the Internet of Things, Cloud Computing, the Smart City
and information security, etc, are set to present business
opportunities to the Group.
In 2014, ZTE will continue to channel
resources to accelerate business development in areas representing the
highest strategic importance and greatest opportunity for the company.
ZTE will combine technology innovation with strong strategic and
business execution as the company continues to satisfy customers’ needs
and pursue strong returns for shareholders.
About ZTE
ZTE
is a publicly-listed global provider of telecommunications equipment and
network solutions with the most comprehensive product range covering
virtually every telecommunications sector, including wireless, access
& bearer, VAS, terminals and professional services. The company
delivers innovative, custom-made products and services to over 500
operators in more than 160 countries, helping them to meet the changing
needs of their customers while growing revenue. ZTE commits 10 per cent
of its annual revenue to research and development and has leadership
roles in several international bodies devoted to developing
telecommunications industry standards. ZTE is committed to corporate
social responsibility and is a member of the UN Global Compact. The
company is China’s only listed telecom manufacturer that is publicly
traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock
code: 0763.HK / A share stock code: 000063.SZ). For more information,
please visit www.zte.com.cn.
Contacts
ZTE Corporation
Margrete Ma, +86 755 26775207
ma.gaili@zte.com.cn
Edelman PR
Mark Lee / Andres Vejarano
Tel: +852 2837 4756 / 2837 4735
mark.lee@edelman.com
andres.vejarano@edelman.com
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