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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. 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 2018 HKDUSD
Revenue85,513.15M10,910.70M
Gross Profit28,784.32M3,672.62M
Operating income2,306.08M294.23M
Income before tax-6,552.88M-836.08M
Net income-6,983.66M-891.05M
EBITDA4,759.73M607.29M
Diluted EPS-1.66-0.21
Dividends Per Share00
Total Assets129,350.74M16,521.26M
Total liabilities101,950.83M13,021.62M
Total equity22,897.57M2,924.58M
Operating cash flow-10,186.62M-1,299.72M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 81,471.27M 100,186.38M 101,233.18M 108,815.27M 85,513.15M
Gross Profit 24,236.19M 30,418.94M 31,312.13M 33,357.00M 28,784.32M
Operating income 3,995.33M 3,378.25M 1,975.89M 4,110.82M 2,306.08M
Income before tax 3,591.26M 4,240.25M -812.91M 6,847.12M -6,552.88M
Net income 2,633.57M 3,207.88M -2,357.41M 4,568.17M -6,983.66M
EBITDA 5,798.08M 5,465.53M 4,410.33M 6,686.05M 4,759.73M
Diluted EPS 0.63 0.76 -0.56 1.08 -1.66
Dividends Per Share 0.21 0.29 0 0 0
Total Assets 110,254.60M 124,587.96M 141,408.18M 143,962.21M 129,350.74M
Total liabilities 83,962.10M 89,801.29M 109,054.19M 106,678.41M 101,950.83M
Total equity 24,878.57M 29,660.09M 26,401.15M 31,646.87M 22,897.57M
Operating cash flow 1,107.45M 5,666.30M 3,136.36M 4,524.71M -10,186.62M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 10,506.07M 12,922.98M 13,041.38M 13,963.53M 10,910.70M
Gross Profit 3,125.36M 3,923.72M 4,033.79M 4,280.48M 3,672.62M
Operating income 515.21M 435.75M 254.54M 527.51M 294.23M
Income before tax 463.10M 546.94M -104.72M 878.64M -836.08M
Net income 339.61M 413.78M -303.69M 586.20M -891.05M
EBITDA 747.68M 704.99M 568.16M 857.97M 607.29M
Diluted EPS 0.08 0.09 -0.07 0.13 -0.21
Dividends Per Share 0.02 0.03 0 0 0
Total Assets 14,217.50M 16,075.55M 18,238.80M 18,415.84M 16,521.26M
Total liabilities 10,827.04M 11,587.03M 14,065.79M 13,646.45M 13,021.62M
Total equity 3,208.13M 3,827.03M 3,405.21M 4,048.31M 2,924.58M
Operating cash flow 142.81M 730.89M 404.04M 580.62M -1,299.72M

Valuation Measures

Dec 2018
PER--
ROA-5.11%
ROE-25.60%
Operating margin2.69%
Profit margin-8.16%

Key executives

  • President, CEO & 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
  • Executive Director & Executive Vice President: Jun Ying Gu

Shareholders

  • Jericho Capital Asset Management LP (3.7%)
  • The Vanguard Group, Inc. (3.5%)
  • UBS AG (Investment Management) (2.7%)
  • Baillie Gifford & Co. (2.1%)
  • BlackRock Fund Advisors (2.0%)
  • Merian Global Investors (UK) Ltd. (1.8%)
  • Zhong Ou Asset Management Co., Ltd (1.0%)
  • China Southern Asset Management Co., Ltd. (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)

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 (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.
  • Whale Cloud Singapore Pte Ltd.
  • Xi'an ZTE Communication Terminal Technology Co., Ltd.
  • ZTE Deutschland GmbH
  • Shenzhen ZTE Software Corp.
  • 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

Competitors

  • Nokia Oyj
  • Telefonaktiebolaget LM Ericsson Class B
  • ADTRAN, Inc.
  • NETGEAR, Inc.
  • DASAN Zhone Solutions Inc.
  • UTStarcom Holdings Corp.
  • CommScope Holding Co., Inc.
  • Technicolor SA
  • Ekinops SA
  • Plantronics, Inc.
  • Ciena Corporation
  • Infinera Corporation
  • Calix, Inc.
  • BlackBerry Limited
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • Heliocentris Energy Solutions AG
  • ClearOne, Inc.
  • Inseego Corp.
  • Avaya Holdings Corp.
  • AFCON Holdings Ltd
  • Telrad Networks Ltd.
  • Foxconn Industrial Internet Co., Ltd. Class A
  • Inseego Corp.
  • KMW Inc
  • Doosan Corporation
  • Ceragon Networks Ltd
Last Updated on 14 Oct, 2019

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