ZTE to Report 43.5% Jump in Full-Year Profit
ZTE projected to report record-breaking revenue exceeding RMB 100 billion, with higher sales for 4G LTE networks, optical networks, Smart City, Enterprise ICT solutions and routers
SHENZHEN, CHINA--(Business Wire/Korea Newswire) January 20, 2016 -- ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, issued guidance for full-year profit to increase 43.5%, with projected record-breaking revenue.
Net profit attributable to shareholders of the listed company will be RMB 3.78 billion (USD 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. Full-year revenue is forecast to be RMB 100.8 billion, 23.8% higher than in 2014. This represented the first time the company’s annual revenue is poised to exceed RMB 100 billion.
ZTE recorded higher sales of 4G LTE network solutions internationally, in addition to China, reflecting the strength of the company’s innovations in telecommunications networks. 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.
Table 1: Preliminary financial results for the year ended 31 December 2015 (unaudited, based on accounting standards of the People’s Republic of China)
(To view the table, please visit http://goo.gl/pB3MK6)
ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE’s M-ICT strategy, the company is committed to provide customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE’s products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visit www.zte.com.cn.
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