ZTE Posts 94% Jump in Full-Year Net Profit as 4G Sales Surge

Innovative 4G solutions including Cloud Radio, QCell and UBR made ZTE the fastest-growing provider of 4G solutions in the world in 2014

SHENZHEN, China - Thursday, March 26th 2015 [ME NewsWire]

(BUSINESS WIRE) ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced a 94% rise in full-year net profit, as higher sales of 4G network equipment and smartphones lifted the company’s profit margins.

Net profit attributable to shareholders of the listed company increased to RMB 2.63 billion (US$423.5 million) in 2014, according to the annual results announcement posted by ZTE today. Basic earnings per share climbed to RMB 0.77, while revenue rose 8.3% to RMB 81.47 billion.

ZTE proposed a cash dividend of RMB 2.0 (including tax) for every 10 shares held, in addition to the issue of 2 bonus shares for every 10 shares by way of capitalization of capital reserve.

ZTE was the fastest-growing provider of 4G solutions globally in 2014, as the introduction of innovative network solutions including Cloud Radio, QCell, UBR and Magic Radio helped the company win business internationally, and consolidated its leadership in China’s 4G market. ZTE is leveraging its strong position in 4G to take the lead in research of 5G technology, becoming the first company in the industry to offer pre5G base stations.

In 2014, ZTE unveiled its new M-ICT strategy to put the company in a better position to harness its capabilities in telecommunications, enterprise ICT and consumer devices to offer customers converged solutions and technology innovations in the era of mobile broadband and Internet of Things.

In cloud computing and IT products, ZTE achieved increased penetration of the financial services market, helped by the company’s industry-leading large data processing platforms and distributed database technologies. ZTE also posted growth in its data center products business.

In ZTE’s Mobile Devices division, the company posted growth in sales of 4G smartphones and 3G mobile phones internationally. ZTE streamlined its product lines in smartphones, and benefited from improved branding, channel distribution and services.

In wireline and optical communications products, ZTE achieved increased market share in the optical transport networks market, maintained industry leadership in PTN, EPON products, and posted growth in access terminals and GPON products.

ZTE posted revenue of RMB 40.89 billion from international operations, accounting for 50.2% of revenue. Operations in China contributed revenue of RMB 40.58 billion.

Looking ahead to 2015, growth in the traditional telecom market is facing a bottleneck, but due to the high growth data services, carriers are also transitioning to Internet services. At the same time all the mobile Internet era will become the main theme of the development of the telecommunications industry, from traditional interpersonal communication, gradually expand to the communication of persons and objects.

In Carriers’ Networks, operators are demanding network optimization solutions to increase capacity, maximize performance and depth of coverage. ZTE is in a strong position to help customers deploy networks with enhanced intelligence and flexibility, through the multidimensional data management and large-enabled platforms. ZTE is committed to helping operators transition to next-generation business models to generate increased business value.

In enterprise ICT, converged solutions combining telecommunications and ICT technologies, cloud computing, big data and high-power wireless charging and other emerging technologies are bringing transformative changes to industries and workplaces. ZTE will pursue opportunities in RCS, cloud services, smart city to help enterprise customers navigate the "Industry 4.0" or "Industrial Internet" transformation.

In connection with mobile terminals, the next generation of intelligent machines will be more intelligent, flexible, fusion, new generation of voice control technology, artificial intelligence and mobile security will become the Group's new strategic focus. At the same time, ZTE’s CGO innovation laboratory will be the focus of incubation of emerging technologies including smart voice, artificial intelligence, wireless charging, and distributed power generation, large data platforms and applications, Internet banking, and mobile payments.

About ZTE

ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE’s M-ICT strategy, the company is committed to provide customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE’s products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visit www.zte.com.cn.

Contacts

ZTE Corporation

Margrete Ma, +86 755 26775207

ma.gaili@zte.com.cn



Edelman PR

Mark Lee, +852 2837 4756

mark.lee@edelman.com

Annie Yeung, +852 2837 4753

annie.yeung@edelman.com







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