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Electronic Technology

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. It operates through the following segments: Carriers’ Network, Consumer Business, and Government and Corporate Business. The Carriers’ Network segment focuses on meeting carries’ requirements in network evolution with the provision of wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other innovative technologies and product solutions. The Consumer Business segment is involved in the production and sale of products such as smart phones, mobile data terminals, family terminals, innovative fusion terminals, related software application, and value-added services. The Government and Corporate Business segment offers informatization solutions for the government and corporations through the application of products such as communications networks, IOT, Big Data, and cloud computing. The company was founded by Wei Gui Hou on February 7, 1985 and is headquartered in Shenzhen, China.

Financial Highlights

Dec 2022 HKDUSD
Revenue141,875.38M18,118.33M
Gross Profit48,229.63M6,159.21M
Operating income10,336.89M1,320.08M
Income before tax10,068.12M1,285.75M
Net income9,396.39M1,199.97M
EBITDA15,397.03M1,966.29M
Diluted EPS1.980.25
Dividends Per Share0.450.05
Total Assets203,673.52M26,095.42M
Total liabilities136,821.97M17,530.15M
Total equity65,838.79M8,435.51M
Operating cash flow10,099.21M1,289.72M
Currency in HKDCurrency in USD

Historical Data

HKD | USD
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 100,531.02M 101,832.58M 113,230.14M 137,073.67M 141,875.38M
Gross Profit 30,378.64M 34,598.94M 32,287.39M 43,914.87M 48,229.63M
Operating income 1,144.13M 6,122.36M 5,028.05M 8,015.48M 10,336.89M
Income before tax -7,761.59M 8,886.82M 6,163.09M 10,163.80M 10,068.12M
Net income -8,271.82M 5,837.26M 4,786.65M 8,211.03M 9,396.39M
EBITDA 4,114.00M 10,189.54M 9,490.57M 13,455.70M 15,397.03M
Diluted EPS -1.97 1.38 1.03 1.76 1.98
Dividends Per Share 0 0.21 0.24 0.36 0.45
Total Assets 147,506.04M 157,948.05M 178,598.80M 207,729.26M 203,673.52M
Total liabilities 117,049.03M 122,486.42M 123,914.10M 142,544.30M 136,821.97M
Total equity 26,020.18M 32,245.60M 51,334.43M 62,976.27M 65,838.79M
Operating cash flow -8,717.95M 8,681.99M 11,806.03M 19,512.23M 10,099.21M
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 12,826.85M 12,996.81M 14,599.04M 17,634.96M 18,118.33M
Gross Profit 3,876.04M 4,415.83M 4,162.89M 5,649.78M 6,159.21M
Operating income 145.98M 781.39M 648.27M 1,031.21M 1,320.08M
Income before tax -990.30M 1,134.21M 794.62M 1,307.60M 1,285.75M
Net income -1,055.41M 745.00M 617.15M 1,056.37M 1,199.97M
EBITDA 524.91M 1,300.48M 1,223.64M 1,731.11M 1,966.29M
Diluted EPS -0.25 0.17 0.13 0.22 0.25
Dividends Per Share 0 0.02 0.03 0.04 0.05
Total Assets 18,840.14M 20,271.06M 23,033.56M 26,644.59M 26,095.42M
Total liabilities 14,950.03M 15,719.91M 15,980.97M 18,283.58M 17,530.15M
Total equity 3,323.41M 4,138.40M 6,620.50M 8,077.71M 8,435.51M
Operating cash flow -1,112.33M 1,108.07M 1,522.18M 2,510.30M 1,289.72M

Valuation Measures

Dec 2022
PER8.66
ROA4.56%
ROE14.58%
Operating margin7.28%
Profit margin6.62%

Management

  • President, CEO & Executive Director: Zi Yang Xu
  • Chief Operating Officer & Executive Vice President: Jun Shi Xie
  • Chief Financial Officer & Executive Vice President: Ying Li
  • EVP-Chief Technology Officer & CIO: Xi Yu Wang
  • Executive Vice President: Sheng Qing Pang

Shareholders

  • Capital Research & Management Co. (World Investors) (5.0%)
  • The Vanguard Group, Inc. (4.1%)
  • Da Cheng Fund Management Co., Ltd. (2.5%)
  • BlackRock Fund Advisors (2.1%)
  • Principal Global Investors (Hong Kong) Ltd. (1.7%)
  • Value Partners Ltd. (1.5%)
  • BlackRock Advisors (UK) Ltd. (1.5%)
  • China Southern Asset Management Co., Ltd. (1.0%)
  • APG Asset Management NV (0.7%)
  • Dimensional Fund Advisors LP (0.6%)

Contact Details

  • Website:http://www.zte.com.cn
  • Address: Hi-Tech Industrial Park, ZTE Building, Keji South Road, Shenzhen, 518057, China
  • Phone: +86.755.26770000

Related Companies

  • Zte Photonics Technology Co., Ltd.
  • ZTE (Wenzhou) Railway Communication Technology Ltd.
  • ZTE Gaoneng Technology Co., Ltd.
  • Caltta Technologies Co. Ltd.
  • Shenzhen Renxing Technology Co., Ltd.
  • ZTE Nigeria Ltd.
  • Shenzhen Zhongxing Telecom Technology & Service Co., Ltd.
  • Nanjing Zhongxing New Software Co., Ltd.
  • ZTE Kenya Ltd.
  • ZTE (Malaysia) Corp. Sdn. Bhd.
  • ZTE (Nanjing) Co., Ltd.
  • ZTE Zhongchuang Kongjian (Xi'an) Investment Mgmt Co., Ltd.
  • ZTE (Kunming) Smart City Industry Research Institute Co., Ltd.
  • Wuhan Zte Smart City Research Institution Co., Ltd.
  • ZTE Wangkun Infomation Technology (Shanghai) Co., Ltd.
  • ZTE Xi'an Co., Ltd.
  • Xi'An ZTE IOT Terminal Co., Ltd.
  • Zte Kela Technology (Suzhou) Co., Ltd.
  • Shenzhen ZTE Cloud Service Co., Ltd.
  • Zte Singapore Pte Ltd.
  • Xi'an ZTE Communication Terminal Technology Co., Ltd.
  • ZTE Deutschland GmbH
  • Shenzhen ZTE Software Corp.
  • ZTE Hungary Kft.
  • ZTE Corporation South Africa (Pty) Ltd.
  • ZTE Canada, Inc.
  • ZTE Agribusiness Co., Ltd.
  • ZTE Trunking Technology Corp.
  • ZTE (UK) Ltd.
  • Zhongxing Corp. SLU

Competitors

  • Nokia Oyj
  • ADTRAN Holdings, Inc.
  • ADTRAN Holdings, Inc.
  • DZS Inc.
  • UTStarcom Holdings Corp.
  • CommScope Holding Co., Inc.
  • Ekinops SA
  • Kinpo Electronics, Inc.
  • Opnet Technologies Co., Ltd.
  • Ciena Corporation
  • NETGEAR, Inc.
  • ClearOne, Inc.
  • Enghouse Systems Limited
  • Infinera Corporation
  • Adtran Networks SE
  • Inseego Corp.
  • AFCON Holdings Ltd
  • Inseego Corp.
  • Grupo Carso SAB de CV Class A1
  • Airspan Networks Holdings Inc
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • Ceragon Networks Ltd
  • KMW Inc
  • Focus Universal Inc
  • Jiangsu Cai Qin Technology Co. Ltd. Class A
  • Kuen Ling Machinery Refrigerating Co.,Ltd.

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Last Updated on 22 Sep, 2023

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