ZTE reported full-year 2018 operating revenue of RMB 85.51 billion, with net profit attributable to holders of ordinary shares of the listed company amounted to RMB -6.98 billion, which was within the estimated range disclosed in the preliminary announcement of 2018 annual results.
The loss was mainly attributable to the US$1 billion penalty paid to the U.S. government. Net cash flows from operating activities amounted to RMB 1.01 billion for the three months ended 31 December 2018.
R&D spending in 2018 amounted to RMB 10.91 billion, accounted for 12.8% of the operating revenue.
ZTE said it returned to profitability in the first quarter of 2019, estimating net profit attributable to holders of ordinary shares of the listed company to be from RMB 0.8 billion to RMB 1.2 billion.
Some highlights:
- In the Wireless Networks, ZTE announced collaborations with 30 global operators in 5G, with the shipment of Massive MIMO base stations reaching 10,000 and more than 400 NFV commercial and PoC cases worldwide.
- In the Wireline Networks, ZTE see opportunities such as 5G transport, big video, next-generation PON, SDN/NFV.
- In terms of devices, ZTE has concentrated on 5G devices, industrial applications and key markets. In the first half of 2019, ZTE’s 5G smartphones will be ready for commercial use. Its 5G flagship smartphone Axon 10 Pro 5G, debuted at MWC 2019, is expected to be first available in Europe and China. Moreover, the company has been committed to promoting serialized 5G products, such as 5G tablets, 5G indoor and outdoor CPEs, 5G mobile hotspots, 5G data devices, 5G vertical industry modules, so as to constantly satisfy consumers’ requirements for 5G intelligent application scenarios.
- ZTE has cumulatively filed over 73,000 patents globally, with more than 35,000 granted.
