Key Financial Highlights
- Revenue: ZTE reported H1 2024 revenue of RMB 62.49 billion, reflecting a 2.9% year-on-year increase.
- Net Profit: The net profit for H1 2024 was RMB 5.73 billion, up 4.8% year-on-year.
- R&D Expenses: R&D expenses totaled RMB 12.73 billion, representing 20.4% of operating revenue.
Strategic Focus Areas
- AI and Connectivity: Embracing AI and deepening “connectivity + computing” to drive high-quality growth.
- Government-Enterprise and Consumer Businesses: These sectors returned to a fast growth trajectory, with revenues increasing by 56.1% and 14.3%, respectively.
Detailed Financial Performance
ZTE Corporation , announced a revenue of RMB 62.49 billion for the first half of 2024, marking a 2.9% year-on-year increase.
In H1 2024, the net profit attributable to holders of ordinary shares reached RMB 5.73 billion, up 4.8% year-on-year. The net profit after extraordinary items was RMB 4.96 billion, a 1.1% year-on-year rise. Basic earnings per share were RMB 1.20. Net cash flows from operating activities increased by 8.9% to RMB 7.00 billion.
Technological Advancements and Market Expansion
Despite a complex external environment, ZTE remained committed to technological innovation, contributing to stable overall performance with growth in both revenue and net profit. Emerging technologies and business models such as AIGC, 5G-A, and the low-altitude economy continued to develop.
- Operator Network Segment: Domestic growth faced pressure, but international markets saw breakthroughs with major countries and large telecom operators, maintaining double-digit growth.
- Government-Enterprise and Consumer Businesses: Revenues from these sectors increased by 56.1% and 14.3%, respectively.
Revenue Breakdown
- Domestic Revenue: RMB 43.06 billion (68.9% of total)
- International Revenue: RMB 19.43 billion (31.1% of total)
- Operator Network: RMB 37.30 billion (59.7% of total)
- Government-Enterprise: RMB 9.17 billion (14.7% of total)
- Consumer Businesses: RMB 16.02 billion (25.6% of total)
R&D and Patent Achievements
ZTE’s R&D expenses totaled RMB 12.73 billion, accounting for 20.4% of operating revenue. The company has filed over 90,000 global patent applications and holds 46,000 granted patents worldwide. In the AI field alone, ZTE has approximately 5,000 patent applications, with more than 2,000 patents granted.
Innovations in Connectivity and Computing
- Connectivity: Continuous innovation in 5G base stations, 5G core networks, and optical network products. ZTE’s 50G PON solutions have been tested by over 50 operators worldwide.
- Computing: Investment in computing power products and solutions, including general computing servers, AI training servers, and high-speed lossless switches.
AI-Driven Terminal Products
ZTE introduced the “AI for All” concept, focusing on five core consumer scenarios: sports & health, audio & video entertainment, business & travel, home & education, and smart driving. The company launched a range of AI-driven terminal products, including smartphones, tablets, laptops, and mobile internet devices.
Future Outlook
ZTE is dedicated to advancing core technological innovations and expanding into the “connectivity + computing + capability + intelligence” domain. The company aims to build a highly efficient and intelligent digital future through open collaboration and diverse partnerships.
FAQ
Q: What was ZTE’s revenue for H1 2024? A: ZTE reported a revenue of RMB 62.49 billion for the first half of 2024.
Q: How much did ZTE’s net profit increase year-on-year? A: ZTE’s net profit increased by 4.8% year-on-year, reaching RMB 5.73 billion.
Q: What are the key growth areas for ZTE? A: Key growth areas include AI, connectivity, government-enterprise, and consumer businesses.
Q: How much did ZTE spend on R&D in H1 2024? A: ZTE’s R&D expenses totaled RMB 12.73 billion, representing 20.4% of operating revenue.
Q: What are ZTE’s future plans? A: ZTE plans to advance core technological innovations and expand into the “connectivity + computing + capability + intelligence” domain, focusing on building a highly efficient and intelligent digital future.