ZTE posts 863 Million Yuan net profit in Q1

Chinese telecom gear maker ZTE has posted a Q1 net profit of 863 million Chinese Yuan (RMB), equivalent to $128 million. 

Besides, the company also offered a projection for its net profit for the first half of the year. ZTE estimated the net profit attributable to holders of ordinary shares of the listed company to be from RMB 1.2 billion to RMB 1.8 billion for the six months ended 30 June 2019.

According to the company, its first-quarter operating revenue was RMB 22.202 billion, and net profit attributable to holders of ordinary shares of the listed company amounted to RMB 0.863 billion.

During the first quarter of 2019, the company continuously strengthened its expense control and management, hence the decrease of selling and distribution costs compared to the same period last year.

During the first quarter, ZTE insisted on the innovation drive, intensifying the R&D investment in the 5G core areas. The R&D costs for the first three months amounted to RMB 3.093 billion, accounting for 13.9% of the operating revenue, with the percentage being increased by 4.1%, compared to 9.8% for the same period last year. 

ZTE has implemented the concentrated strategy while constantly focusing on the main channel of operators, with preparation for 5G end-to-end commercialization in full swing. In the Wireless Networks, ZTE has entered into 5G cooperation with 40 global operators, and takes the lead in the commercial practices of Massive MIMO, one of the 5G key technologies. To date, the company has deployed over 420 NFV commercial/PoC cases worldwide. Meanwhile, ZTE’s 5G end-to-end commercial products and solutions as well as full series of NR products have achieved all-band, all-scenario coverage. 

Its Common Core realizes 2/3/4/5G/fixed full access and full integration while supporting both SA and NSA networking so as to achieve the smooth evolution to the target network at the lowest cost. In addition, the company’s self-developed AI Engine is capable of supporting 5G intelligence in all scenarios. ZTE has signed more than 320 LTE/EPC commercial contracts worldwide, and ZTE's total 4G eNB shipments around the world have reached almost 20% of its global market.