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Electronic Technology
ZTE Corp.
- 14.92 HKD
- -0.80
- -5.09%
China
Nov 21, 2018Ticker
HKG(763)Prev. close
15.72Market cap (HKD)
92,563.12MMarket cap (USD)
11,819.28MShares
4,192.67M
In the news
- Chinese chipmakers brace for next US crackdown Nov 2, 2018
- China's dream of chip self-sufficiency dented by US ban Oct 31, 2018
- US threatens Chinese chipmaker with ban on buying American tech Oct 30, 2018
- Trump's trade flip-flop puts China on edge Jun 4, 2018
- Trump tariffs put China trade deal further out of reach May 31, 2018 See more articles on ZTE Corp.
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.
Business Summary
ZTE Corp. engages in the design, development, manufacture, and sale of information and telecommunication technology products. The company has the most complete telecommunications product line, covering every vertical sector of wireless networks, core networks, access & bearer networks, services and terminals markets. Its business segments include Carrier Network, Government, Corporate and Consumer Businesses. Its Carrier Network division offers wireless and wired access, bearer networks, core networks, and telecommunication software systems and services. Its Government and Corporate division provides information solutions such as communication networks, internet of things, large data, and cloud computing products. Its Consumer division develops, produces, and sells smart phones, mobile data terminals, and home information terminals. ZTE was founded by Wei Gui Hou on February 7, 1985 and is headquartered in Shenzhen, China.
Financial Highlights
| Dec 2017 | HKD | USD |
| Revenue | 124,387.12M | 15,961.76M |
| Gross Profit | 37,590.02M | 4,823.67M |
| Operating income | 2,696.42M | 346.01M |
| Income before tax | 7,895.33M | 1,013.15M |
| Net income | 5,267.49M | 675.94M |
| EBITDA | 5,698.17M | 731.20M |
| Diluted EPS | 1.24 | 0.15 |
| Dividends Per Share | 0.40 | 0.05 |
| Total Assets | 173,053.33M | 22,137.22M |
| Total liabilities | 129,766.69M | 16,599.93M |
| Total equity | 37,894.30M | 4,847.49M |
| Operating cash flow | 8,119.99M | 1,041.98M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | |
| Revenue | 94,202.90M | 101,648.37M | 122,701.88M | 117,268.29M | 124,387.12M |
| Gross Profit | 26,826.90M | 31,112.07M | 37,105.96M | 35,049.15M | 37,590.02M |
| Operating income | -178.61M | 2,367.68M | 4,672.34M | 2,858.63M | 2,696.42M |
| Income before tax | 2,262.73M | 4,519.71M | 5,230.27M | -949.82M | 7,895.33M |
| Net income | 1,712.98M | 3,314.42M | 3,956.86M | -2,754.45M | 5,267.49M |
| EBITDA | 2,023.35M | 4,665.50M | 7,279.63M | 5,740.54M | 5,698.17M |
| Diluted EPS | 0.41 | 0.80 | 0.94 | -0.66 | 1.24 |
| Dividends Per Share | 0.03 | 0.21 | 0.29 | 0 | 0.40 |
| Total Assets | 131,256.20M | 137,815.59M | 148,696.47M | 158,025.19M | 173,053.33M |
| Total liabilities | 100,996.75M | 104,950.60M | 108,084.71M | 122,811.35M | 129,766.69M |
| Total equity | 28,757.03M | 30,997.61M | 35,304.01M | 29,364.96M | 37,894.30M |
| Operating cash flow | 3,479.40M | 3,358.10M | 9,941.02M | 7,686.71M | 8,119.99M |
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | |
| Revenue | 12,144.80M | 13,107.99M | 15,827.24M | 15,107.10M | 15,961.76M |
| Gross Profit | 3,458.57M | 4,012.03M | 4,786.27M | 4,515.21M | 4,823.67M |
| Operating income | -23.02M | 305.32M | 602.68M | 368.26M | 346.01M |
| Income before tax | 291.71M | 582.83M | 674.64M | -122.36M | 1,013.15M |
| Net income | 220.84M | 427.40M | 510.39M | -354.84M | 675.94M |
| EBITDA | 260.85M | 601.63M | 938.99M | 739.52M | 731.20M |
| Diluted EPS | 0.05 | 0.10 | 0.12 | -0.08 | 0.15 |
| Dividends Per Share | 0.00 | 0.02 | 0.03 | 0 | 0.05 |
| Total Assets | 16,928.09M | 17,771.53M | 19,186.26M | 20,382.06M | 22,137.22M |
| Total liabilities | 13,025.53M | 13,533.54M | 13,946.14M | 15,840.18M | 16,599.93M |
| Total equity | 3,708.79M | 3,997.19M | 4,555.26M | 3,787.48M | 4,847.49M |
| Operating cash flow | 448.57M | 433.04M | 1,282.28M | 990.24M | 1,041.98M |
Valuation Measures
| Dec 2017 | |
| PER | 23.35 |
| ROA | 3.18% |
| ROE | 15.66% |
| Operating margin | 2.16% |
| Profit margin | 4.23% |
Key executives
- Chief Executive Officer & Executive Director: Ziyang Xu
- Chief Financial Officer & Executive Vice President: Li Ying
- Chief Technology Officer & Executive VP: Hui Jun Xu
- Executive Vice President: Sheng Qing Pang
- Member-Supervisory Board: Xiao Yue Xia
Shareholders
- Capital Research & Management Co. (World Investors) (5.0%)
- The Vanguard Group, Inc. (3.2%)
- UBS AG (Investment Management) (2.7%)
- BlackRock Fund Advisors (2.1%)
- Baillie Gifford & Co. (1.8%)
- Invesco Hong Kong Ltd. (0.8%)
- BlackRock Advisors (UK) Ltd. (0.6%)
- BlackRock Investment Management (UK) Ltd. (0.5%)
- Invesco Capital Management LLC (0.3%)
- Baring Asset Management (Asia) Ltd. (0.3%)
Contact Details
- Website:http://www.zte.com.cn
- Address: No. 55 Siciene & Tech South Road, Nanshan District, Shenzhen, 518057, China
- Phone: +86.755.26770282
Related Companies
- ZTE Canada, Inc.
- ZTE Agribusiness Co., Ltd.
- ZTE Trunking Technology Corp.
- ZTE (UK) Ltd.
- Zhongxing Corp. SLU
- ZTE Austria GmbH
- ZTE Energy (Tianjin) Co., Ltd.
- ZTE Utility Co., Ltd.
- GCI Science & Technology (M) Sdh. Bhd.
- Zhuhai Guangtong Automobile Co., Ltd.
- ZTE Corp. (Hong Kong)
- ZTE Corp. (United Arab Emirates)
- ZTE Software Technology (Nanchang) Co., Ltd.
- ZTE ITS Ltd.
- ZTE Norway AS
- ZTE Intelligent IOT Technology Co. Ltd.
- ZTE Parsian
- Jiaxing Xinghe Capital Management Co. Ltd.
- ZTEV Corp.
- Nubia Technology Co., Ltd.
- ZTE Microelectronics Technology Co., Ltd.
- ZTE Venture Capital (Tianjin) Investment Management Co. Ltd.
- ZTE (Australia) Pty Ltd.
- Newinfo Holdings Ltd.
- Kaznurtel Ltd. Liability Co.
- Shanghai Zhongxing Software Co. Ltd.
- ZTE Services Deutschland GmbH
- ZTE Portugal
- Guangdong New Pivot Technology & Service Co. Ltd.
- ZTE Capital Management Co. Ltd.
Competitors
- Nokia Oyj
- Telefonaktiebolaget LM Ericsson Class B
- ADTRAN, Inc.
- DASAN Zhone Solutions Inc
- NETGEAR, Inc.
- D-Link Corporation
- UTStarcom Holdings Corp.
- CalAmp Corp.
- CommScope Holding Co., Inc.
- Technicolor SA
- Ciena Corporation
- Mitel Networks Corporation
- Ribbon Communications Inc.
- Calix, Inc.
- Skyworth Digital Holdings Limited
- BlackBerry Limited
- China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
- Heliocentris Energy Solutions AG
- ClearOne, Inc.
- ITI Limited
- Archos SA
- ARRIS International Plc
- Infinera Corporation
- Inseego Corp.
- Amdocs Limited
- RadiSys Corporation
- KMW Inc
- Ceragon Networks Ltd
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