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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 2021 HKDUSD
Revenue137,073.67M17,634.96M
Gross Profit43,914.87M5,649.78M
Operating income8,015.48M1,031.21M
Income before tax10,163.80M1,307.60M
Net income8,211.03M1,056.37M
EBITDA13,455.70M1,731.11M
Diluted EPS1.760.22
Dividends Per Share0.360.04
Total Assets207,729.26M26,644.59M
Total liabilities142,544.30M18,283.58M
Total equity62,976.27M8,077.71M
Operating cash flow19,512.23M2,510.30M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 124,387.12M 100,531.02M 101,832.58M 113,230.14M 137,073.67M
Gross Profit 37,590.02M 30,378.64M 34,598.94M 32,287.39M 43,914.87M
Operating income 2,696.42M 1,144.13M 6,122.36M 5,028.05M 8,015.48M
Income before tax 7,895.33M -7,761.59M 8,886.82M 6,163.09M 10,163.80M
Net income 5,267.49M -8,271.82M 5,837.26M 4,786.65M 8,211.03M
EBITDA 5,698.17M 4,114.00M 10,189.54M 9,490.57M 13,455.70M
Diluted EPS 1.24 -1.97 1.38 1.03 1.76
Dividends Per Share 0 0 0.21 0.24 0.36
Total Assets 173,053.33M 147,506.04M 157,948.05M 178,598.80M 207,729.26M
Total liabilities 129,766.69M 117,049.03M 122,486.42M 123,914.10M 142,544.30M
Total equity 37,894.30M 26,020.18M 32,245.60M 51,334.43M 62,976.27M
Operating cash flow 8,119.99M -8,717.95M 8,681.99M 11,806.03M 19,512.23M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 15,961.76M 12,826.85M 12,996.81M 14,599.04M 17,634.96M
Gross Profit 4,823.67M 3,876.04M 4,415.83M 4,162.89M 5,649.78M
Operating income 346.01M 145.98M 781.39M 648.27M 1,031.21M
Income before tax 1,013.15M -990.30M 1,134.21M 794.62M 1,307.60M
Net income 675.94M -1,055.41M 745.00M 617.15M 1,056.37M
EBITDA 731.20M 524.91M 1,300.48M 1,223.64M 1,731.11M
Diluted EPS 0.15 -0.25 0.17 0.13 0.22
Dividends Per Share 0 0 0.02 0.03 0.04
Total Assets 22,137.22M 18,840.14M 20,271.06M 23,033.56M 26,644.59M
Total liabilities 16,599.93M 14,950.03M 15,719.91M 15,980.97M 18,283.58M
Total equity 4,847.49M 3,323.41M 4,138.40M 6,620.50M 8,077.71M
Operating cash flow 1,041.98M -1,112.33M 1,108.07M 1,522.18M 2,510.30M

Valuation Measures

Dec 2021
PER12.06
ROA4.25%
ROE14.36%
Operating margin5.84%
Profit margin5.99%

Key executives

  • President, CEO & Executive Director: Zi Yang Xu
  • Chief Operating Officer & Executive Vice President: Junshi Xie
  • Chief Financial Officer & Executive Vice President: Li Ying
  • Executive Vice President: Sheng Qing Pang
  • Executive Director & Executive Vice President: Jun Ying Gu

Shareholders

  • Capital Research & Management Co. (World Investors) (5.0%)
  • The Vanguard Group, Inc. (3.3%)
  • BlackRock Fund Advisors (2.1%)
  • Credit Suisse Asset Management (Schweiz) AG (1.7%)
  • BlackRock Advisors (UK) Ltd. (1.5%)
  • China Asset Management Co., Ltd. (1.3%)
  • Dimensional Fund Advisors LP (1.0%)
  • BlackRock Investment Management (UK) Ltd. (1.0%)
  • Fidelity Management & Research (Hong Kong) Ltd. (0.6%)
  • Fullgoal Fund Management Co., Ltd. (0.6%)

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 Photonics Technology Co., Ltd.
  • ZTE (Wenzhou) Railway Communication Technology Ltd.
  • ZTE Gaoneng Technology Co., Ltd.
  • Caltta Technologies Co. Ltd.
  • Shenzhen ZTE NetView Technology 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.

Competitors

  • Nokia Oyj
  • ADTRAN, Inc.
  • DZS Inc.
  • UTStarcom Holdings Corp.
  • Ekinops SA
  • Technicolor SA
  • Calix, Inc.
  • Ciena Corporation
  • NETGEAR, Inc.
  • Plantronics, Inc.
  • Kinpo Electronics, Inc.
  • Enghouse Systems Limited
  • Infinera Corporation
  • ADVA AG Optical Networking
  • ClearOne, Inc.
  • Inseego Corp.
  • Avaya Holdings Corp.
  • Sichuan Tianyi Comheart Telecom Co., Ltd. Class A
  • AFCON Holdings Ltd
  • Inseego Corp.
  • Ceragon Networks Ltd
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • KMW Inc
Last Updated on 26 May, 2022

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