ZTE confirmed it returned to the black in 2013, which it said came as it sharpened its focus on key areas such as 4G, and strengthened its operational management to generate cost savings and efficiencies.
The company said that during the year, it prioritised “strategically important operations in populous countries”, and the development of business with “major international operators”. It also said it “exercised stringent controls” over lower-margin contracts, resulting in improved gross margin for international projects.
In addition to its 4G activities, ZTE said its mobile division continues to target “opportunities in network expansion and upgrade in 2G and 3G networks”, also noting that it is “actively engaged in the research, development and planning of 5G and other next-generation technologies”.
However, it noted that revenue from its terminal unit decreased due to “lower demand for feature phones and data cards”. It said it is committing to “enhancing the competitiveness of its terminal products, adopting a more consumer-centric approach together with an online-based business model”.
For the year, the company reported a net profit attributed to shareholders of CNY1.36 billion ($219 million), compared with a prior-year loss of CNY2.84 billion, which resulted from delayed projects at home and overseas, and the impact of lower-profit deals.
Operating revenue of CNY75.23 billion was down from CNY84.22 billion.
The company said that, looking forward, it will “continue to channel resources to accelerate business development in areas representing the highest strategic importance and greatest opportunity for the company”.