ZTE achieves 35 Million handsets milestone in first half of 2011
ZTE Corporation, a publicly listed global provider of telecommunications equipment and network solutions, today announced a 21.6 per cent increase in operating revenue to RMB 37.35 billion in the six months to June 30, 2011.
In the first half of 2011, the company‘s net profit was RMB 768.52 million, a decrease of 12.4 per cent compared with the same period last year. The fall in profit is due to ZTE’s market share expansion strategy, a change in product structure and pending software VAT refund subsidies.
ZTE’s revenue from international markets increased by 36.4 per cent year-on-year to RMB 20.81 billion, accounting for 55.7 per cent of the company’s operating revenue.
ZTE’s wireless products contract revenue increased substantially in the interim period. The company also achieved a leading position in key wireline product fields such as PTN, FTTX, MASN and DSLAM.
ZTE adopted an aggressive approach as part of a critical stage of gaining access to the key smart terminal market. The company shipped 60 million terminal products, including 5 million smart terminals in the first six months of the year. This is a 400 per cent increase year-on-year in smart terminal sales. Consequently, operating revenue for the company’s handset products as a percentage of total operating revenue increased to 30.0 per cent from 25.4 per cent in the same period last year. Overall gross profit margin for handset products declined to 19.6 per cent from 22.7 per cent previously. In addition, the company also has invested strategically in telecommunications services, cloud computing, the Internet of Things and other areas of investment. It also set up an internal venture capital fund to seek market growth opportunities.
Looking ahead, ZTE will leverage the opportunity brought by domestic investment, global broadband network construction and wireless network upgrades, and will seek to maintain a positive balance between scale and profit. This will be accomplished with the fundamental aim of sustaining stable growth in business scale. The company will also improve its operating efficiency and strive to contain costs.
ZTE Corporation is a global leader in telecommunications and information technology. Founded in 1985 and listed on both the Hong Kong and Shenzhen Stock Exchanges, the company has been committed to providing integrated end-to-end innovations to deliver excellence and value to consumers, carriers, businesses and public sector customers from over 160 countries around the world to enable increased connectivity and productivity.