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Electronic Technology
ZTE Corp.
- 0.00 HKD
- 0.00
- 0.00%
China
Apr 26, 2018Ticker
HKG(763)Prev. close
--Market cap (HKD)
152,953.81MMarket cap (USD)
19,491.76MShares
4,192.67M
In the news
- Huawei probe risks bigger shock to smartphone industry Apr 27, 2018
- Hong Kong stocks extend losses on trade, yield worries Apr 26, 2018
- Trade frictions and rising US yields drag Hong Kong shares lower Apr 26, 2018
- China softens trade stance as ZTE ban bites Apr 26, 2018
- Jack Ma calls for 'inclusive chips' amid US ban on ZTE Apr 25, 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 telecommunication equipment and network solutions. It operates through the following segments: Carriers' Networks Business; Consumer Business; and Government and Corporate Network Business. The Carriers' Network Business segment includes wireless networks, wire line networks, core networks, telecommunication software systems and services, and other technologies and product solutions. The Consumer Business segment focuses in smart devices to customers while also catering to the requirements of industry and corporate clients through the development, production and sales of products such as smart phones, mobile broadband, family terminals, fusion terminals, wearable devices, as well as the provision of related software application and value-added services. The Government and Corporate Network Business segment provides telecommunications software systems such as operation support systems and also provides fee-based services. The company was founded in 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
- President & Executive Director: Xian Ming Zhao
- CFO, Non-Executive Director & EVP: Zai Sheng Wei
- Chief Technology Officer & Executive VP: Hui Jun Xu
- Chief Compliance Officer: Gang Cheng
- Executive Vice President: Jian Zhou Chen
Shareholders
- Capital Research & Management Co. (World Investors) (5.0%)
- Baillie Gifford & Co. (4.9%)
- Government of China (4.4%)
- The Vanguard Group, Inc. (3.3%)
- BlackRock Fund Advisors (2.9%)
- City National Rochdale LLC (0.8%)
- FIAM LLC (0.7%)
- BlackRock Advisors (UK) Ltd. (0.6%)
- Candriam Belgium SA (0.5%)
- Matthews International Capital Management LLC (0.5%)
Contact Details
- Website:http://www.zte.com.cn
- Address: High-Tech Road South, No. 55, Shenzhen, 518057, China
- Phone: +86.755.26770000
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
- LM Ericsson Telefon AB Class B
- ADTRAN, Inc.
- NETGEAR, Inc.
- DASAN Zhone Solutions Inc
- UTStarcom Holdings Corp.
- D-Link Corporation
- CalAmp Corp.
- Technicolor SA
- Mitel Networks Corporation
- CommScope Holding Co., Inc.
- Ribbon Communications Inc.
- Calix, Inc.
- Ciena Corporation
- ClearOne, Inc.
- Archos SA
- ARRIS International Plc
- BlackBerry Limited
- China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
- Infinera Corporation
- Inseego Corp.
- ITI Limited
- Amdocs Limited
- RadiSys Corporation
- Heliocentris Energy Solutions AG
- KMW Inc
- Baran Group Ltd.
- Ceragon Networks Ltd
- Display Tech Co., Ltd.
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