ZTE reported full-year financial results for the period ended December 31, 2016 as follows:
1. Operating revenue of RMB 101.23 billion (approximately $14.70 billion), up 1.0% compared with RMB 100.19 billion in 2015.
2. Gross profit of RMB 29.62 billion, up 1.8% compared with RMB 29.09 billion in 2015.
3. R&D expenditure of RMB 12.76 billion, up 4.6% versus RMB 12.20 billion in 2015.
4. SG&A expenditure of RMB 15.35 billion, up 6.2% compared with RMB 14.45 billion in 2015.
5. Net loss attributable to shareholders of RMB 2.36 billion (approximately $343 million), compared with net profit of RMB 3.21 billion in 2015.
6. Net cash flow from operating activities of RMB 5.26 billion, down 28.9% compared with RMB 7.40 billion in 2015.
7. Cash as of December 31, 2016 of RMB 32.35 billion, compared with RMB 28.02 billion as at December 31, 2015.
Additional results and notes
ZTE noted that the 2016 net loss attributable to holders of ordinary shares of RMB 2.36 billion ($343 million) included a provision of approximately $892 million related to the settlement of its case in the U.S excluding the provision, net profit would have been RMB 3.83 billion (approximately $557 million), up 19.2% versus 2015.
Revenue for the Carrier Networks division increased to RMB 58.9 billion in 2016 versus RMB 57.22 billion in 2015, Consumer Business revenue rose to RMB 33.5 billion from RMB 32.47 billion in 2015, and Government and Corporate Business generated revenue of RMB 8.90 billion, versus RMB 10.50 billion in 2015.
On a geographic basis for 2016, ZTE reported revenue as follows: China – RMB 58.55 billion, versus RMB 53.11 billion in 2015, Asia (excl. China) – RMB 14.56 billion, versus RMB 14.82 billion in the prior year; Africa – RMB 5.75 billion, versus RMB 6.98 billion a year earlier; and Europe, Americas and Oceania – RMB 22.37 billion, versus RMB 25.28 billion in 2015.
