ZTE Corporation has reported a net profit of RMB 3.905 billion, a 36.58 percent surge for the first three quarters. Revenue of the first nine months increased 7.01 percent to RMB 76.580 billion. ZTE posted positive operating cash flow of RMB 1.036 billion in the third quarter.
ZTE’s R&D spending increased to RMB 9.197 billion in the first nine months, covering 12 percent of revenue. ZTE’s increasing investment in innovative fields such as 5G, IoT, and chips is leading the company to a number of technical breakthroughs: ZTE’s self-developed NB-IoT chips, the industry’s first T-grade 5G flagship bearer platform, the industry’s first ultra-large capacity cross-platform based on the optical transmission technology, and the foldable smartphone Axon M launched in the United States and Japan. ZTE also passed the lab trial of China Mobile’s 5G bearer SPN prototypes; and launched the industry’s first commercial cloud native Carrier DevOps Builder, winning the Oscar Award of SDN NFV Global Conference.
Bolstered by leading 5G technologies and on-going strong partnerships with mainstream European operators, the company recently announced an innovation partnership with Orange, and cooperation with Wind Tre and Open Fiber to build Europe’s first 5G precommercial network in the 3.6–3.8GHz band. Meanwhile, the company announced recently that it has teamed up with Telenet Belgium to complete the first FDD Massive MIMO field application in Europe, and successfully verified 1 Gbps peak data rate in Pre5G massive MIMO Test with SoftBank.
The company forecasts that the net profit attributable to holders of ordinary shares of the listed company is to reach RMB 4.3–4.8 billion for the entire year, bolstered by the growth of operations in carriers’ network and consumers business.
In next three years, as a 5G pioneer, ZTE will unswervingly strengthen its R&D investment, and focus on carrier markets and core businesses. The company will keep on building its core competitiveness in the main business, improving the market shares of mainstream markets and products, and enhancing customer satisfaction. In the meantime, the company will strengthen its compliance management, in-house control, and benefit of employees and shareholders. Furthermore, the company will keep tracking new technologies and exploring new modes to maintain and improve its leading status in the 5G era.