Asia300

ZTE Corp.

China

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Mar 24, 2017
Prev close: 15.2
Mar 24, 2017
Market cap:
Market cap(USD):
80,094.33M
10,311.80M
Shares: 4,154.26M

Currency in HKD

Company profile

Market(Ticker): HKG(763)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Full time employees: 84,622

Business summary

ZTE Corp. engages in the design, development, manufacture, and sale of telecommunication equipment and network solutions. It operates through the following segments: Networks; Handset Terminals; and Telecommunications Software Systems, Services and Other Products. The Networks segment includes wireless communications, wire line switch and access, and optical and data communications. The Handset Terminals segment produces and sells mobile phone handsets and data card products. The Software Systems, Services and Other Products segment provides telecommunications software systems such as operation support systems and also provides fee-based services. The company was founded in 1985 and is headquartered in Shenzhen, China.

Company background

ZTE is a major Chinese telecommunications equipment maker based in Shenzhen, Guangdong Province. It is often compared with its larger rival, Huawei Technologies. The company's three core businesses are telecommunications equipment, smartphones and other mobile terminals, as well as system services, similar to Huawei's. It has also tapped into foreign markets, with overseas sales accounting for about 50% of the company's total.

Founded in 1985, ZTE was originally a state-owned company, under the Shenzhen municipal government. It listed on the Shenzhen Stock Exchange in 1997 and on the Hong Kong Exchanges and Clearing in 2004. As of the end of March 2015, Zhongxingxin, a state-owned entity, is the company's largest shareholder, owning some 30% of the company.

Founder and Chairman Hou Weigui handed over control of ZTE to Executive Director, Shi Lirong who has been President since 2010. The spread of 4G, or fourth-generation, mobile phone services has boosted large-scale investment for telecommunications facilities, providing a tailwind for the company. Meanwhile, ZTE's presence has declined in the smartphone market because of fierce competition.

In the news

Financial highlights

Dec 2015

  • Local currency
  • US Dollar
Revenue 122,701.88M
Gross profit 37,105.96M
Operating income 4,672.34M
Income before tax 5,230.27M
Net income 3,956.86M
EBITDA 7,279.63M
Diluted EPS 0.94
Dividends per share 0.29
Total assets 148,696.47M
Total liabilities 108,084.71M
Total equity 35,304.01M
Operating cash flow 9,941.02M

Currency in HKD

Revenue 15,827.24M
Gross profit 4,786.27M
Operating income 602.68M
Income before tax 674.64M
Net income 510.39M
EBITDA 938.99M
Diluted EPS 0.12
Dividends per share 0.03
Total assets 19,186.26M
Total liabilities 13,946.14M
Total equity 4,555.26M
Operating cash flow 1,282.28M

Currency in USD

Valuation measures

Dec 2015

PER 18.37
ROA 2.76%
ROE 11.93%
Operating margin 3.80%
Profit margin 3.22%

Key executive

  • President & Chief Executive Officer: Xian Ming Zhao
  • Chief Financial Officer & Executive Vice President: Zai Sheng Wei
  • Chief Compliance Officer: Gang Cheng
  • Executive Vice President: Jian Zhou Chen
  • Executive Vice President: Xue Zhong Zeng

Share holders

  • Capital Research & Management Co. (World Investors)(5.0%)
  • Baillie Gifford & Co.(4.9%)
  • Value Partners Ltd.(4.9%)
  • PineBridge Investments Asia Ltd.(4.4%)
  • Government of China(4.4%)
  • The Vanguard Group, Inc.(3.1%)
  • BlackRock Fund Advisors(1.4%)
  • City National Rochdale LLC(1.2%)
  • BlackRock Advisors (UK) Ltd.(0.9%)
  • BC Investment Management Corp.(0.7%)

Address

  • Website: http://www.zte.com.cn
  • Address: 55, Hi-Tech Road South, Shenzhen, 518057, China
  • Phone: +86.755.2677.0000

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