4G drives increase in ZTE results

Nieuws Algemeen China 25 MAR 2015
4G drives increase in ZTE results
Growing sales of 4G network equipment and handsets led the increase in ZTE's results in 2014, according to the Chinese equipment maker's annual report. The group reported sales of carrier network equipment up 15 percent to CNY 46.77 billion, led by 4G sales in China and abroad, as well as demand for optical equipment in its home market. ZTE's handset and end-user device sales rose 6.5 percent last year to CNY 23.12 billion, which the company also attributed to demand for 4G equipment. Its software and services business was the only area not to grow in 2014, with revenues down 9.7 percent to CNY 11.59 billion due to weaker demand abroad. 

In total, ZTE grew sales 8.3 percent in 2014 to CNY 81.47 billion, of which 49.8 percent came from China. Net profit jumped 94 percent to CNY 2.63 billion, helped by higher gross margins on 4G equipment, tighter control of administrative costs and lower charges for bad debt, financing and forex effects. The company more than doubled operating cash flow to CNY 1.10 billion, and ZTE proposed a cash dividend of CNY 2.0 for every 10 shares held, plus two bonus shares for every 10 shares. ZTE also increased R&D spending 22 percent in 2014 to CNY 9.01 billion in 2014, focusing on 4G, 5G, high-end routers and semiconductors. 

For 2015, ZTE announced plans to expand its focus in the terminals market and develop new types of end-user devices. This will focus on integrating the new generation of voice control technology, artificial intelligence and mobile security. ZTE's CGO innovation laboratory will look at emerging technologies including smart voice, artificial intelligence, wireless charging, distributed power generation, large data platforms and applications such as internet banking and mobile payments. For the carrier market, the company sees operator spending restrained. Its own focus will be on providing systems to optimise networks and enhance coverage. 

Categories:

Algemeen

Companies:

ZTE Belgium

Regions:

Wereld

Countries:

China

Tags:

Enterprise equipment, Financial figures, Consumer devices, Network equipment, Handsets

Related Articles

WERELD 21 JUL 2015

ZTE net profit increases 43% in H1

ZTE said it expects to report a 43 percent increase in net profit for the first half of 2015 to CNY 1.61 billion (USD 260 million), thanks to strong sales of LTE network systems. The preliminary results show operating revenue up 21.9 percent year-on-year to CNY 45.94 billion, and the operating result moved to a profit of CNY 66.28 million from a loss of CNY 210.05 million a year ago. ZTE said it saw higher sales in the first half from FDD LTE equipment, as well as wireline switch and access systems, mainly

WERELD 23 APR 2015

ZTE profit jumps 42% in Q1

ZTE said net profit rose 41.9 percent year-on-year in the first quarter to CNY 883 million, boosted by the company's M-ICT strategy, which generated new growth avenues. Basic earnings per share climbed to RMB 0.24, while revenue lifted 10.2 percent to CNY 21 billion. Operating revenue from telecommunications software systems, services and other products increased by 23.4 percent, pulled up by strong growth from video and network terminal products, in addition to services. Revenue from carrier networks incre

WERELD 15 APR 2015

ZTE triples overload capacity of wireless access in 5G tests

ZTE has announced that recent tests have revealed that its new Multi-User Shared Access (MUSA) technology is able to more than triple overload capacity of wireless access networks. The company said its MUSA algorithm delivered an improvement of over 200 percent in the overload radio, a level of performance that would help to transition networks towards the IoT era. MUSA is one of ZTE's ongoing research projects into the Pre5G concept, which will use some key 5G technologies on existing 4G user equipment. ZT

WERELD 27 JAN 2015

ZTE raises CNY 6 bln in bond issue

ZTE has raised CNY 6 billion in the issue of medium-term notes. The perpetual notes carry interest of 5.81 percent per year for the first five years, after which the rate will be rest every five years. ZTE said it will use the proceeds from the issue to repay bank loans and for working capital. This is the first tranche in the company's medium-term note programme approved last year, under which it can raise up to CNY 9 billion.

WERELD 19 JAN 2015

ZTE confirms near doubling in FY net profit

ZTE reported preliminary results for 2014 showing its annual net profit nearly doubled, from CNY 1.36 billion in 2013 to CNY 2.64 billion in 2014. This is in line with the company's outlook of CNY 2.5-2.8 billion. Revenues were up 8 percent to CNY 81.24 billion, and the operating result turned to a profit of CNY 105 million from a loss of CNY 1.49 billion in 2013. ZTE said it benefited from sales of LTE network equipment in its home market China and its growing smartphone business abroad, as well as an incr

WERELD 30 DEC 2014

ZTE takes on the future with new logo, M-ICT strategy

ZTE has unveiled a redesigned logo, presenting a new corporate identity that is aligned with its strategy to focus on transformative value-added M-ICT innovations for consumers, carriers, enterprises and organisations. Under the new M-ICT strategy, ZTE wants to drive innovations, as mobile connectivity and cloud-based technologies reshape the digital landscape. In the M-ICT world envisioned by ZTE, the growth of mobility will equip a growing number of new devices and objects with the capability to connect a

WERELD 23 OCT 2014

ZTE sales growth accelerates to 24% in Q3

ZTE reported third-quarter net profit up 191 percent from a year earlier to CNY 703 million. Revenue growth accelerated to 24 percent in Q3, from just 0.5 percent in H1, led by over 40 percent growth in handset sales. ZTE also posted growth in revenue from carrier network equipment, including 4G systems, and telecommunications software systems. Total sales reached CNY 21.1 billion. Net profit in the fist nine months of the year rose 232 percent from a year earlier to CNY 1.83 billion, in line with the compa

WERELD 20 AUG 2014

ZTE triples H1 profit on demand for 4G

ZTE confirmed a more than tripling in its first-half net profit, to CNY 1.13 billion from CNY 310 million a year earlier. While revenues were only up 0.5 percent to CNY 37.70 billion, the Chinese equipment maker managed to reduce operating costs and improve gross margins, driven by the growing number of 4G network deployments and a focus on more profitable contracts. It expects continued investment in new 4G networks in its home market to drive further growth in the second half. The company forecast net pro

CHINA 14 JUL 2014

ZTE sees better-than-expected H1 profits

ZTE has raised its estimate for first-half profit, citing better margins and growing 4G orders in its home market China. The equipment maker now expects to report a net profit of CNY 1.00-1.15 billion for the first six months of 2014, versus an estimate at its Q1 report of CNY 0.80-1.00 billion. Both figures are up significantly from the year-earlier period when it reported CNY 0.31 billion in net profit. ZTE said the better result was due to its continued focus on tighter control of contract profitability,

WERELD 17 APR 2014

ZTE Q1 profit triples, revenue rises 5.5%

ZTE reported first-quarter profit more than tripled, as the company posted increased revenue amid growth in the global 4G market. Net profit was CNY 622 million, up 203.5 percent from the prior year. Basic earnings per share were CNY 0.18, at the top end of the forecast issued by the company. Revenue rose 5.5 percent to CNY 19.05 billion. 

CHINA 26 MAR 2014

ZTE reports net profit of CNY 1.36 billion for 2013

Chinese telecoms equipment provider ZTE has reported net profit attributable to shareholders of CNY 1.36 billion for 2013, or CNY 0.39 per share. Revenue fell 10.6 percent to CNY 75.2 billion. The company declared a cash dividend of CNY 0.3 (including taxation) for every 10 shares held, representing 75.8 percent of total net profit of the year available for distribution. Operating revenue for the mainland China market was CNY 35.63 billion, or 47.4 percent of total operating revenue. Operating revenue from

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.