ZTE achieved a net profit of 2.18 billion yuan in the first quarter, a year-on-year increase of 180%

On April 28, ZTE Corporation disclosed its first quarter report of 2021, achieving operating revenue of 26.242 billion yuan, a year-on-year increase of 22.14%; net profit attributable to ordinary shareholders of the listed company was 2.182 billion yuan, a year-on-year increase of 179.70%; net profit attributable to ordinary shareholders of the listed company after deducting non-recurring gains and losses was 790 million yuan, a year-on-year increase of 392.1%; basic earnings per share was 0.47 yuan.

In terms of the progress of major events, ZTE stated that as of January 29, 2021, the company's non-public issuance of A-shares raised funds for investment projects have been completed, and the remaining raised funds of RMB 138.1606 million (including interest income and deducting related expenses) will be used to permanently supplement working capital. The company's special account for raised funds was cancelled in February 2021, and the relevant tripartite supervision agreement for raised funds was also terminated.

Based on strategic development considerations, the company and Beijing Yitang Semiconductor Industry Investment Center (Limited Partnership) signed the "Equity Transfer Agreement" on January 11, 2021. According to the "Equity Transfer Agreement", ZTE transferred 90% of the company's equity in Gaoda Communications to Yitang Semiconductor for RMB 1.035 billion. As of the disclosure date of this report, the transaction has been completed and ZTE no longer holds the equity of Gaoda Communications.

In addition, in order to further broaden financing channels, optimize the company's debt structure, reasonably control financial costs, flexibly select financing tools, and meet funding needs in a timely manner, ZTE intends to apply to the China Interbank Bond Dealers Association for unified registration of multiple types of debt financing instruments, including ultra-short-term financing bonds, short-term financing bonds, medium-term notes, perpetual notes, asset-backed notes, etc. ZTE will issue them independently within the registration validity period.

Previously, the annual report showed that ZTE achieved operating revenue of RMB 101.451 billion in 2020, 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.

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