ZTE chairman Li Zixue detailed plans to increase investment in core technologies including algorithm and network architecture to help grab a share of a 5G market he tipped for mainstream success over the next five years.
In the Chinese vendor’s 2020 earnings statement, the chairman said 5G would drive “a new boom for the communications industry”. ZTE will invest to maintain its edge and provide end-to-end services enabling operators “to build highly competitive premium 5G networks”.
Net profit fell 17.3 per cent year-on-year to CNY4.26 billion ($655.2 million), attributed to a one-off gain booked in 2019. Revenue was 11.8 per cent higher at CNY101.5 billion, with deployment of standalone (SA) 5G networks in more than 240 cities in China driving a 39.3 per cent rise in domestic sales to CNY68.1 billion.
Revenue in Asia (excluding China) rose 11.6 per cent to CN4.82 billion; declined 9.3 per cent to CNY4.82 billion in Africa; and was CNY13.8 billion in Europe, Americas and Oceania, 1.3 per cent lower.
Its carriers’ network unit grew 11.2 per cent to CNY74 billion; the consumer business rose 23.1 per cent to CNY16.2 billion; and its government and corporate business increased 7.8 per cent to CNY11.3 billion.
The company forecast net profit in the current quarter to more than double to between CNY1.8 billion and CNY2.4 billion.Subscribe to our daily newsletter Back