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
Financial Highlights
Dec 2022 | HKD | USD |
Revenue | 141,875.38M | 18,118.33M |
Gross Profit | 48,229.63M | 6,159.21M |
Operating income | 10,336.89M | 1,320.08M |
Income before tax | 10,068.12M | 1,285.75M |
Net income | 9,396.39M | 1,199.97M |
EBITDA | 15,397.03M | 1,966.29M |
Diluted EPS | 1.98 | 0.25 |
Dividends Per Share | 0.45 | 0.05 |
Total Assets | 203,673.52M | 26,095.42M |
Total liabilities | 136,821.97M | 17,530.15M |
Total equity | 65,838.79M | 8,435.51M |
Operating cash flow | 10,099.21M | 1,289.72M |
Currency in HKD | Currency in USD |
Historical Data
Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 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 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 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 | |
PER | 8.66 |
ROA | 4.56% |
ROE | 14.58% |
Operating margin | 7.28% |
Profit margin | 6.62% |
Key executives
- 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. (3.2%)
- Aegon-Industrial Fund Management Co., Ltd. (2.4%)
- BlackRock Fund Advisors (2.2%)
- Value Partners Ltd. (2.1%)
- BlackRock Advisors (UK) Ltd. (1.6%)
- Dimensional Fund Advisors LP (1.2%)
- BlackRock Investment Management (UK) Ltd. (1.0%)
- Da Cheng Fund Management Co., Ltd. (1.0%)
- Fullgoal Fund Management Co., Ltd. (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.
- Vantiva SA
- CommScope Holding Co., Inc.
- Ekinops SA
- Kinpo Electronics, Inc.
- Accton Technology Corp.
- Ciena Corporation
- NETGEAR, Inc.
- ClearOne, Inc.
- Enghouse Systems Limited
- Infinera Corporation
- ADVA AG Optical Networking
- Inseego Corp.
- Avaya Holdings Corp.
- AFCON Holdings Ltd
- CICT Mobile Communication Technology Co. Ltd. Class A
- Inseego Corp.
- Grupo Carso SAB de CV Class A1
- Airspan Networks Holdings Inc
- China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
- Opnet Technologies Co., Ltd.
- Ceragon Networks Ltd
- KMW Inc
- Jiangsu Cai Qin Technology Co. Ltd. Class A
- Shijiazhuang Shangtai Technology Co., Ltd. Class A
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