ZTE Corporation has reported full-year operating revenue of RMB 122.95 billion in 2022, 7.4% higher than a year earlier.
According to ZTE’s released Annual Report 2022, the net profit attributable to holders of ordinary shares of the listed company reached RMB 8.08 billion, up 18.6% year-over-year. The net profit after extraordinary items attributable to holders of ordinary shares of the listed company for 2022 amounted to RMB 6.17 billion, representing a year-on-year rise of 86.5%.
ZTE – year of expansion
The year 2022 marked the start of the Company’s expansion phase. During the year, although confronted with great challenges from an uncertain, complex macro environment, the Company kept solidifying its position with innovative initiatives while maintaining steady operations. With the business philosophy of maintaining quality growth, ZTE seized the trend towards global digitalization and decarbonization development during the period, strengthened its DICT’s full-stack and full-domain R&D investment and innovation, and continuously improved the competitiveness of the Company’s key technologies and products. In 2022, the Company invested RMB 21.60 billion into R&D annually, covering 17.6% of the revenue. At the same time, ZTE continues to deepen the digital and intelligent transformation, improve organizational flexibility, elasticity and resilience, and ensure the orderly, efficient and healthy development for all businesses.
In 2022, operating revenue in both the domestic and international markets and operating revenue in the Company’s three major businesses, including carriers’ networks, government and enterprise business, and consumer business, all achieved a year-on-year growth. The operating revenue of the domestic market reached RMB 85.24 billion, 69.3% of its overall operating revenue, while the operating revenue from the international market hitting RMB 37.71 billion, covering 30.7% of its overall operating revenue.
For carriers’ networks, in 2022, the Company harvested an annual operating revenue of RMB 80.04 billion, a year-over-year rise of 5.7%. During the period, ZTE continued to increase the global market share of key products such as wireless networks and wired networks. According to the latest report, in 2022, the Company’s annual shipments of 5G base stations, 5G core networks and 200G coherent ports all ranked second in the world, and the revenue of POL OLT increased to second globally.
For government and corporate business, ZTE achieved operating revenue of RMB 14.63 billion, a year-on-year growth of 11.8%. ZTE’s core products, such as server and storage, GoldenDB distributed databases, and cloud computers, have achieved rapid growth in the number of top customers across industries, including finance and the Internet. In addition, ZTE, centering on the business needs of business resilience, systematic growth and cost reduction, and relying on efficient digital infrastructure and the “Digital Nebula” based on the cloud-native transaction architecture, has been deeply integrating ICT technologies with the industries to explore the digital transformation of finance, Internet, power, transportation, and large enterprises.
In terms of consumer business, ZTE generated operating revenue of RMB 28.28 billion, a year-on-year increase of 9.9% during the period. The Company has gradually integrated mobile phones, mobile Internet products, home information terminals, and ecological capabilities to provide individuals and families with a rich selection of smart products. In 2022, ZTE, Nubia, and Red Magic launched a variety of mobile phones to meet different market demands. Meanwhile, ZTE’s mobile Internet product 5G MBB & FWA remained the world’s first in terms of global shipment. During the period, the Company’s home information terminals witnessed a leapfrog growth. Its PON CPE and DSL CPE shipments ranked first globally, and its STB remained in the leading position in market share.
Moving forward, despite the complex external environment, ZTE will stay committed to implementing the positioning of a “Driver of Digital Economy” by maintaining its strategic determination and grasping the digitalisation and decarbonization development trend. With targeted and pragmatic efforts, the Company will further strengthen its operational resilience, with an aim to improve operational efficiency and achieve steady growth.