ZTE reports revenue of RMB 90.04bn, net profit of RMB 7.91bn in first three quarters of 2024

• The international market continued to make breakthroughs with major countries and key operators, maintaining double-digit growth.
• Both the company's consumer and government-enterprise businesses achieved rapid growth.
• R&D expenses totalled RMB 18.64 billion, accounting for 20.7% of operating revenue, driving continuous innovation in technologies like 5G-A, full-stack intelligent computing and all-optical networks.

ZTE Q3 Key Financial Metrics.

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ZTE Corporation (0763.HK/000063.SZ), which positions itself as a global leading provider of integrated ICT solutions, today announced a revenue of RMB 90.04 billion for the first three quarters of 2024, an increase of 0.7% year-on-year.

According to ZTE's results announcement today, during the period, the net profit attributable to holders of ordinary shares of the listed company amounted to RMB 7.91 billion, representing an increase of 0.8% year on year, while the net profit after extraordinary items attributable to holders of ordinary shares reached RMB 6.90 billion. Net cashflows from operating activities totalled RMB 8.05 billion.

In the first nine months of 2024, despite a complex and challenging external environment, ZTE maintained precise and pragmatic operations, ensuring stable management. The company actively capitalised on the development trends of the ICT industry, accelerating technological and market-driven innovation, while significantly enhancing its operational efficiency and management capabilities.

During the period, ZTE's overall operations remained stable. While the domestic operator network business faced pressure due to the investment environment, the international market continued to achieve breakthroughs with major countries and key telecoms operators, maintaining double-digit growth. Meanwhile, both the company's consumer and government-enterprise businesses achieved rapid growth during the first nine months.

Throughout the first three quarters, the company's R&D expenses totalled RMB 18.64 billion, accounting for 20.7% of operating revenue, continuously driving innovations in technologies such as 5G-A, all-optical networks and full-stack intelligent computing, accelerating deep integration and application across various industries.

In the connectivity domain, ZTE continues to maintain a leading position in key products across both wireless and wired markets. According to the latest data from telecommunications consulting agencies, the company ranks second globally in cumulative shipments of 5G base stations and 5G core networks, as well as in market share for fixed network products. Its RAN products, 5G core networks and 5G optical transport solutions consistently receive industry leader ratings. Additionally, the company's optical access products have gained international recognition, receiving three awards at the Network X 2024 event. Furthermore, ZTE has launched an 800G OTN pluggable solution capable of achieving a transmission distance of 2 000km, and it has introduced a new generation of intelligent optical access products based on 50G PON technology, providing users with a 10G access experience and supporting the industry's transition to the era of 10G optical networks.

In the field of computing power, ZTE has identified intelligent computing as its long-term strategic priority. The company has fully initiated the expansion of its intelligent computing business, focusing on areas such as infrastructure and platform technologies, large models and applications, and application ecosystems. ZTE offers a comprehensive suite of full-stack, full-scenario intelligent computing products, including AI servers, high-performance storage, RoCE switches, intelligent computing platforms, large models and applications, covering AI scenarios across terminals, edges and data centres.

In the terminal sector, ZTE remains committed to its "AI for All" product strategy, actively driving intelligent transformation and striving to make cutting-edge AI-powered products accessible to global consumers. In the third quarter, the company launched the fully upgraded AI-powered flagship smartphones, including the nubia Z60 Ultra Leading Version and nubia Z60S Pro satellite smartphone, as well as the affordable 5G smartphone, the ZTE Yuanhang 40s. The nubia brand continues to advance its global expansion strategy, successfully entering markets such as Argentina, Ethiopia, Germany and more markets with its distinctive products like nubia Neo 2, nubia Music and nubia Focus series.

Moving forward, as the application of digital intelligence technologies deepens and becomes more practical across industries, ZTE is committed to foundational innovation, solidifying its digital intelligence infrastructure and expanding application boundaries. The company seeks to collaborate closely with clients, industry players and ecosystem partners to foster mutual benefits, drive digital transformation across various sectors and contribute to the high-quality development of industries.