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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
Revenue101,286.38M12,923.22M
Gross Profit34,093.70M4,350.04M
Operating income2,731.45M348.50M
Income before tax-7,761.59M-990.30M
Net income-8,271.82M-1,055.41M
EBITDA5,637.68M719.31M
Diluted EPS-1.97-0.25
Dividends Per Share00
Total Assets147,506.04M18,840.14M
Total liabilities116,260.35M14,849.29M
Total equity26,111.41M3,335.06M
Operating cash flow-12,065.58M-1,539.46M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 102,534.00M 123,577.97M 118,282.72M 125,473.46M 101,286.38M
Gross Profit 30,501.97M 37,521.18M 36,585.67M 38,463.52M 34,093.70M
Operating income 5,028.24M 4,167.00M 2,308.66M 4,740.14M 2,731.45M
Income before tax 4,519.71M 5,230.27M -949.82M 7,895.33M -7,761.59M
Net income 3,314.42M 3,956.86M -2,754.45M 5,267.49M -8,271.82M
EBITDA 7,297.05M 6,741.63M 5,153.11M 7,709.60M 5,637.68M
Diluted EPS 0.80 0.94 -0.66 1.24 -1.97
Dividends Per Share 0.21 0.29 0 0 0
Total Assets 137,815.59M 148,696.47M 157,760.82M 172,818.76M 147,506.04M
Total liabilities 104,950.60M 107,178.37M 121,665.37M 128,061.60M 116,260.35M
Total equity 31,097.61M 35,399.49M 29,454.21M 37,990.34M 26,111.41M
Operating cash flow 1,393.76M 6,989.28M 3,664.58M 5,217.39M -12,065.58M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 13,222.20M 15,940.25M 15,237.79M 16,101.16M 12,923.22M
Gross Profit 3,933.36M 4,839.83M 4,713.15M 4,935.76M 4,350.04M
Operating income 648.41M 537.50M 297.41M 608.27M 348.50M
Income before tax 582.83M 674.64M -122.36M 1,013.15M -990.30M
Net income 427.40M 510.39M -354.84M 675.94M -1,055.41M
EBITDA 940.98M 869.59M 663.85M 989.32M 719.31M
Diluted EPS 0.10 0.12 -0.08 0.16 -0.25
Dividends Per Share 0.02 0.03 0 0 0
Total Assets 17,771.53M 19,186.26M 20,347.96M 22,107.21M 18,840.14M
Total liabilities 13,533.54M 13,829.19M 15,692.37M 16,381.82M 14,849.29M
Total equity 4,010.08M 4,567.58M 3,799.00M 4,859.77M 3,335.06M
Operating cash flow 179.73M 901.54M 472.09M 669.51M -1,539.46M

Valuation Measures

Dec 2018
PER--
ROA-5.16%
ROE-25.80%
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%)
  • BlackRock Fund Advisors (2.0%)
  • Merian Global Investors (UK) Ltd. (1.8%)
  • Baillie Gifford & Co. (1.6%)
  • BlackRock Investment Management (UK) Ltd. (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • China Southern Asset Management Co., Ltd. (0.6%)
  • Value Partners 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.
  • Shanghai East-China Computer Co., Ltd. Class A
  • KMW Inc
  • Doosan Corporation
  • Ceragon Networks Ltd
Last Updated on 18 Nov, 2019

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