ZTE posts 7.8% YOY revenue growth in Q1 2025, driven by AI innovation

• Revenue up 7.8% year on year in Q1 2025, driven by growth in intelligent computing, AI terminals and strong momentum in government and enterprise business.
• Second-curve businesses contributed over 35% of total revenue; government and enterprise revenue doubled year on year, accounting for over 20%.
• ZTE to deepen AI investment and collaborate globally to accelerate digital and intelligent transformation across industries.

ZTE Q1 2025 Key Financial Metrics.

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ZTE Corporation (0763.HK / 000063.SZ), which positions itself as a global leading provider of ICT solutions, today announced its financial results for the first quarter of 2025. The company reported revenue of RMB 32.97 billion for the period, representing a year-on-year increase of 7.8%.

According to the announcement, in Q1 2025, ZTE recorded a net profit attributable to holders of ordinary shares of the listed company amounting to RMB 2.45 billion. Net profit after extraordinary items attributable to holders of ordinary shares reached RMB 1.96 billion. Net cashflow from operating activities totalled RMB 1.85 billion.

During the period, ZTE actively seized AI-driven opportunities across communications infrastructure, computing infrastructure, AI terminals and industry applications. While consolidating its core network business, the company significantly expanded its second-curve businesses – such as intelligent computing and AI terminals – bringing overall revenue back onto a growth trajectory.

Revenue from second-curve businesses accounted for over 35% of total revenue, while revenue from the government and enterprise segment doubled year on year, contributing over 20%. ZTE's strategic shift in recent years – from full connectivity to "connectivity + computing power" – has begun to yield results.

In the connectivity segment, ZTE maintained its leading market position in core wireless and wired products through continuous technological innovation. While consolidating its presence in the domestic operator market, the company continued to expand its market share among international operators.

In the computing power segment, ZTE seized the opportunity presented by increased investments in computing infrastructure from leading internet companies, operators and industry players in China. The company deepened market expansion and scaled up partnerships. In the first quarter, revenue from servers and storage achieved rapid growth.

In the terminal segment, ZTE actively promoted on-device AI applications, strengthening its presence in both AI smartphones and AI home scenarios. For individual users, the company launched the next-generation foldable smartphone nubia Flip 2 and took the lead in introducing the "AI Together" concept. It also unveiled the gaming smartphone nubia Neo 3 series and multiple new products for overseas markets. For households, ZTE offered four key AI-powered solutions – AI home network, AI home computing, AI smart screen and AI home robot – to drive smart home upgrades. In the first quarter, the company's smartphone business maintained its growth momentum.

Moving forward, ZTE will continue to deepen its investment in the AI domain. With "connectivity + computing power" as the cornerstone, the company will work with global partners to develop practical AI solutions, foster an open and collaborative AI ecosystem and jointly drive the digital and intelligent transformation across all industries.