ZTE lifts revenues, profit in strong H1

After a lower first quarter, ZTE reported a strong first half, with operating revenues increasing 5.8 percent from the year before to CNY 47.20 billion and the net profit up 26.3 percent to CNY 1.86 billion. The net profit after extraordinary items jumped 47.4 percent to CNY 0.9 billion. The operating cash flow grew over 61 percent to CNY 2.04 billion while spending on research and development (R&D) advanced to CNY 6.64 billion, driven by investments into 5G and covering 14.1 percent of the company’s operating revenue. 

ZTE said that confronted with the coronavirus pandemic and its impact, it decided to push its R&D initiatives and to take advance of any synergy advantages brought on by its own ongoing digital transformation. The company also focused on customer service, helping to achieve a steady growth of business. 

In terms of technology, ZTE put its in-house new-generation core chipsets for access, bearer and fixed-networks into large-scale commercial deployments, further improving the performance, integration and energy efficiency ratio of its chipsets. The company is also focusing on strengthening its algorithm processes, new materials and new technologies in general, as it helps build 5G commercial networks and works towards becoming the “ultimate” cloud company.