ZTE reports revenue of RMB 30.58 billion, net profit of RMB 2.74 billion in Q1 2024

ZTE announced revenue of RMB 30.58 billion for the first quarter of 2024, representing an increase of 4.9% year-on-year.

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• ZTE reports revenue of RMB 30.58 billion and net profit of RMB 2.74 billion in Q1 2024, demonstrating stable growth amid challenging market conditions

• ZTE accelerates its transition to "connectivity + computing power," leveraging its ICT full-stack capabilities to provide innovative solutions in high-speed networks and industrial digital transformation

• ZTE integrates AI technology into its product ecosystem, driving innovation and enhancing user experiences 

ZTE Corporation (0763.HK / 000063.SZ), a global leading provider of information and communication technology solutions, today announced revenue of RMB 30.58 billion for the first quarter of 2024, representing an increase of 4.9% year-on-year.

According to ZTE’s results announcement today, in Q1 2024, the net profit attributable to holders of ordinary shares of the listed company reached RMB 2.74 billion, marking an increase of 3.7% year-on-year. The net profit after extraordinary items attributable to holders of ordinary shares of the listed company for the same period was RMB 2.65 billion, representing a year-on-year rise of 7.9%. 

Its net cash flows from operating activities increased by 28.3% to RMB 2.98 billion, compared to the same period last year. The overall performance maintained stable growth, with both operating revenue and net profit showing year-on-year growth.

In Q1 2024, the domestic growth of the operator network faced pressure due to the overall investment environment, prompting the company to accelerate its transition from full connectivity to "connectivity + computing power" to expand market space. 

Internationally, ZTE continued to achieve continuous breakthroughs with major telecom operators in key countries, sustaining its growth trend. Simultaneously, in terms of government-enterprise business and consumer business, the company intensified its expansion in these two sectors, with both segments returning to rapid growth paths.

ZTE, leveraging its long-term accumulation of ICT full-stack full-domain capabilities, fully seizes the strategic opportunities in digitization, intelligence and decarbonisation. Keeping pace with the wave of AI development, the company deepens its business layout of "connectivity + computing power," providing global customers in high-speed networks, computing infrastructure and industrial digital transformation with an open and innovative intelligent network foundation.

Simultaneously, the company is committed to deeply integrating AI technology with terminals to drive product innovation and intelligent upgrades, thus constructing a smart ecosystem.

In the first quarter of 2024, the company's research and development expenses amounted to RMB 6.38 billion, accounting for 20.9% of operating revenue, providing sustained strong impetus for business innovation and product competitiveness enhancement.

In the field of connectivity, ZTE has achieved industry-leading competitiveness in key technologies and products, and continues to evolve around next-generation ICT technologies such as 5G-A, all-optical networks and 6G.

In the computing power field, ZTE has comprehensively deployed new technologies such as general computing, intelligent computing and large models, possessing the ability to provide full-stack solutions, including hardware infrastructure, software platforms, large-scale model capabilities and industry AI application adaptation.

In the terminal field, ZTE has proposed the concept of "AI for All," launched an AI-driven all-scenario intelligent ecosystem 3.0, and released a variety of innovative products and technologies.

Moving forward, ZTE is committed to actively embracing the digital construction wave, accelerating its transition towards "connectivity + computing power," thereby driving the company's high-quality development. The company will continue collaborating with industry partners to establish highly-efficient, green and intelligent digital infrastructure, aiming to advance the development of the global ICT industry.