Asia300

ZTE Corp.

China

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Jun 27, 2017
Prev close: 19.1
Jun 27, 2017
Market cap:
Market cap(USD):
108,598.66M
13,922.16M
Shares: 4,185.89M

Currency in HKD

Company profile

Market(Ticker): HKG(763)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Full time employees: 81,468

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 system. 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 telecommunication software system 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 2016

  • Local currency
  • US Dollar
Revenue 117,268.29M
Gross profit 35,049.15M
Operating income 2,858.63M
Income before tax -949.82M
Net income -2,754.45M
EBITDA 5,740.54M
Diluted EPS -0.66
Dividends per share --
Total assets 158,025.19M
Total liabilities 122,811.35M
Total equity 29,364.96M
Operating cash flow 7,686.71M

Currency in HKD

Revenue 15,107.10M
Gross profit 4,515.21M
Operating income 368.26M
Income before tax -122.36M
Net income -354.84M
EBITDA 739.52M
Diluted EPS -0.08
Dividends per share --
Total assets 20,382.06M
Total liabilities 15,840.18M
Total equity 3,787.48M
Operating cash flow 990.24M

Currency in USD

Valuation measures

Dec 2016

PER --
ROA -1.79%
ROE -8.51%
Operating margin 2.43%
Profit margin -2.34%

Key executive

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

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.(3.3%)
  • BlackRock Fund Advisors(1.5%)
  • City National Rochdale LLC(1.2%)
  • China Asset Management Co., Ltd.(0.9%)
  • APG Asset Management NV(0.8%)

Address

  • Website: http://www.zte.com.cn
  • Address: ZTE Building, Keji South Road, High-Tech Ind Park, Shenzhen, 518057, China
  • Phone: +86.755.226770282

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