ZTE 2020 Annual Results Released: Revenue Returns to 100 Billion Yuan, Three Major Businesses Achieve Growth

Jiwei.com reported that this evening, ZTE released its 2020 annual report. The report showed that in 2020, ZTE achieved operating income of 101.451 billion yuan, a year-on-year increase of 11.81%. This is the second time that ZTE's annual revenue has exceeded 100 billion yuan after 2015 and 2016.

In the announcement, ZTE stated that in 2020, in the face of the challenges of the COVID-19 pandemic and the external environment, the group insisted on focusing on its core business, focusing on technological innovation, attaching importance to business quality, and actively promoting business expansion, achieving operating income of RMB 101.451 billion, a year-on-year increase of 11.81%. Both domestic and international market operating income achieved year-on-year growth, and the operating income of the three major businesses (operator network, government business, and consumer business) all achieved year-on-year growth. In 2020, the group's net profit attributable to ordinary shareholders of the listed company was RMB 4.26 billion, and basic earnings per share was RMB 0.92.

The announcement pointed out that from the perspective of business segments, the Group's operating income in 2020 increased compared with the same period of the previous year, mainly due to the increase in operating income of operator networks, government business and consumer business compared with the same period of the previous year. The Group's operator network operating income in 2020 increased by 11.16% year-on-year, mainly due to the increase in operating income of 5G wireless products, bearer products, core network products, etc. compared with the same period of the previous year; the Group's government business operating income in 2020 increased by 23.13% year-on-year, mainly due to the increase in operating income of bearer products, domestic servers, etc. compared with the same period of the previous year; the Group's consumer business operating income in 2020 increased by 7.75% year-on-year, mainly due to the increase in operating income of mobile phone products and international home terminals compared with the same period of the previous year.

The announcement shows that ZTE achieved operating income of RMB 68.051 billion in the domestic market in 2020, accounting for 67.08% of the group's overall operating income. In 2020, the group seized the development opportunities of 5G and new infrastructure to achieve a double increase in market structure and share; deeply participated in the construction of 5G commercialization, and worked with operators to deploy 5G networks in more than 240 cities across the country; relying on the ultimate 5G network, it carried out 5G application practices with more than 500 industry partners to enable digital transformation in all walks of life.

The announcement shows that ZTE's international market achieved operating income of RMB 33.40 billion in 2020, accounting for 32.92% of the group's overall operating income. In 2020, the Group adhered to its globalization strategy, insisted on healthy operations, cultivated value markets, and continuously improved profitability; the Group overcame difficulties and coped with various uncertainties, and reduced the impact of the overseas epidemic through ICT technology, employee localization and efficient coordination of the industrial chain, and the overall operation of the international market was stable.

In the announcement, ZTE made an outlook for this year's business development. ZTE said that it is expected that in the next five years, the global 5G business deployment will enter a stage of comprehensive acceleration, the industrial chain will mature rapidly, innovative applications will emerge vigorously, and the communications industry will enter a new round of prosperity and development. First, 5G will continue the mobile traffic dividend, further enhance personal consumption experience, and mobile data consumption will continue to grow; secondly, the infrastructure of intelligent interconnection of all things with 5G as the core will bring new business, new models and new growth space to the ICT industry, and promote the vigorous development of the global digital economy. 

In terms of operator networks, the Group adheres to its globalization strategy and steadily improves its domestic and international product landscape and market share. It increases investment in core technologies such as chips, algorithms and network architecture, maintains its technological advantages, and helps operators quickly build highly competitive 5G quality networks with end-to-end solutions. 

In terms of government business, the Group continues to focus on key markets such as energy, transportation, government affairs, finance, the Internet, and large enterprises, focusing on high-quality partners, cultivating channels, and improving customer satisfaction. It will further enhance the competitiveness and market share of wireless, transmission, access, server and other products, seize the opportunities of new infrastructure, accelerate the implementation of 5G industry, and help various industries to transform and upgrade digitally. 

In terms of consumer business, the Group will seize market development opportunities in 5G terminals and data products, maintain steady operations in overseas markets, strengthen brand investment in the domestic market, expand offline channels and seize opportunities to break through.