Electronic Technology
ZTE Corp.
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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 2019 | HKD | USD |
| Revenue | 102,887.70M | 13,131.47M |
| Gross Profit | 38,087.68M | 4,861.10M |
| Operating income | 7,836.41M | 1,000.15M |
| Income before tax | 8,886.82M | 1,134.21M |
| Net income | 5,837.26M | 745.00M |
| EBITDA | 10,387.11M | 1,325.69M |
| Diluted EPS | 1.38 | 0.17 |
| Dividends Per Share | 0.21 | 0.02 |
| Total Assets | 157,948.05M | 20,271.06M |
| Total liabilities | 122,486.42M | 15,719.91M |
| Total equity | 32,245.60M | 4,138.40M |
| Operating cash flow | 5,379.28M | 686.55M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 123,577.97M | 118,282.72M | 125,473.46M | 101,286.38M | 102,887.70M |
| Gross Profit | 37,521.18M | 36,585.67M | 38,463.52M | 33,662.65M | 38,087.68M |
| Operating income | 4,167.00M | 2,308.66M | 4,740.14M | 2,731.45M | 7,836.41M |
| Income before tax | 5,230.27M | -949.82M | 7,895.33M | -7,761.59M | 8,886.82M |
| Net income | 3,956.86M | -2,754.45M | 5,267.49M | -8,271.82M | 5,837.26M |
| EBITDA | 6,741.63M | 5,153.11M | 7,709.60M | 4,578.43M | 10,387.11M |
| Diluted EPS | 0.94 | -0.66 | 1.24 | -1.97 | 1.38 |
| Dividends Per Share | 0.29 | 0 | 0 | 0 | 0.21 |
| Total Assets | 148,696.47M | 157,760.82M | 172,818.76M | 147,506.04M | 157,948.05M |
| Total liabilities | 107,178.37M | 121,665.37M | 128,061.60M | 117,049.03M | 122,486.42M |
| Total equity | 35,399.49M | 29,454.21M | 37,990.34M | 26,111.41M | 32,245.60M |
| Operating cash flow | 6,989.28M | 3,664.58M | 5,217.39M | -12,065.58M | 5,379.28M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 15,940.25M | 15,237.79M | 16,101.16M | 12,923.22M | 13,131.47M |
| Gross Profit | 4,839.83M | 4,713.15M | 4,935.76M | 4,295.05M | 4,861.10M |
| Operating income | 537.50M | 297.41M | 608.27M | 348.50M | 1,000.15M |
| Income before tax | 674.64M | -122.36M | 1,013.15M | -990.30M | 1,134.21M |
| Net income | 510.39M | -354.84M | 675.94M | -1,055.41M | 745.00M |
| EBITDA | 869.59M | 663.85M | 989.32M | 584.16M | 1,325.69M |
| Diluted EPS | 0.12 | -0.08 | 0.16 | -0.25 | 0.17 |
| Dividends Per Share | 0.03 | 0 | 0 | 0 | 0.02 |
| Total Assets | 19,186.26M | 20,347.96M | 22,107.21M | 18,840.14M | 20,271.06M |
| Total liabilities | 13,829.19M | 15,692.37M | 16,381.82M | 14,950.03M | 15,719.91M |
| Total equity | 4,567.58M | 3,799.00M | 4,859.77M | 3,335.06M | 4,138.40M |
| Operating cash flow | 901.54M | 472.09M | 669.51M | -1,539.46M | 686.55M |
Valuation Measures
| Dec 2019 | |
| PER | 15.36 |
| ROA | 3.82% |
| ROE | 20.00% |
| Operating margin | 7.61% |
| Profit margin | 5.67% |
Key executives
- President, CEO & Executive Director: Ziyang Xu
- Chief Financial Officer & Executive Vice President: Li Ying
- Executive Vice President: Sheng Qing Pang
- Executive Director & Executive Vice President: Jun Ying Gu
- President-Mobile Devices: Fei Ni
Shareholders
- Schroder Investment Management (Hong Kong) Ltd. (4.5%)
- The Vanguard Group, Inc. (3.7%)
- Jericho Capital Asset Management LP (3.7%)
- BlackRock Fund Advisors (2.3%)
- Merian Global Investors (UK) Ltd. (1.8%)
- BlackRock Investment Management (UK) Ltd. (0.8%)
- BlackRock Advisors (UK) Ltd. (0.8%)
- Zhong Ou Asset Management Co., Ltd (0.7%)
- Dimensional Fund Advisors LP (0.4%)
- Geode Capital Management LLC (0.3%)
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
- 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.
- Whale Cloud 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
- ZTE Austria GmbH
- ZTE Energy (Tianjin) Co., Ltd.
- ZTE Utility Co., Ltd.
- GCI Science & Technology (M) Sdh. Bhd.
- Zhuhai Guangtong Automobile Co., Ltd.
Competitors
- Nokia Oyj
- ADTRAN, Inc.
- DASAN Zhone Solutions Inc.
- UTStarcom Holdings Corp.
- Ekinops SA
- Calix, Inc.
- Technicolor SA
- CommScope Holding Co., Inc.
- Ciena Corporation
- NETGEAR, Inc.
- Plantronics, Inc.
- Infinera Corporation
- Avaya Holdings Corp.
- Skyworth Group Limited
- AFCON Holdings Ltd
- ClearOne, Inc.
- Inseego Corp.
- Kinpo Electronics, Inc.
- Telrad Networks Ltd.
- Inseego Corp.
- Ceragon Networks Ltd
- China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
- KMW Inc
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Last Updated on 10 Aug, 2020