ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
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 2020 HKDUSD
Revenue113,999.44M14,698.23M
Gross Profit36,797.71M4,744.42M
Operating income6,031.93M777.71M
Income before tax6,163.09M794.62M
Net income4,786.65M617.15M
EBITDA8,702.11M1,121.98M
Diluted EPS0.910.11
Dividends Per Share0.240.03
Total Assets178,598.80M23,033.56M
Total liabilities123,914.10M15,980.97M
Total equity51,334.43M6,620.50M
Operating cash flow4,799.35M618.79M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 118,282.72M 125,473.46M 101,286.38M 102,887.70M 113,999.44M
Gross Profit 36,585.67M 38,463.52M 33,662.65M 38,087.68M 36,797.71M
Operating income 2,308.66M 4,740.14M 2,731.45M 7,836.41M 6,031.93M
Income before tax -949.82M 7,895.33M -7,761.59M 8,886.82M 6,163.09M
Net income -2,754.45M 5,267.49M -8,271.82M 5,837.26M 4,786.65M
EBITDA 5,153.11M 7,709.60M 4,578.43M 10,387.11M 8,702.11M
Diluted EPS -0.56 1.08 -1.97 1.21 0.91
Dividends Per Share 0 0 0 0.21 0.24
Total Assets 157,760.82M 172,818.76M 147,506.04M 157,948.05M 178,598.80M
Total liabilities 121,665.37M 128,061.60M 117,049.03M 122,486.42M 123,914.10M
Total equity 29,454.21M 37,990.34M 26,111.41M 32,245.60M 51,334.43M
Operating cash flow 3,664.58M 5,217.39M -12,065.58M 5,379.28M 4,799.35M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 15,237.79M 16,101.16M 12,923.22M 13,131.47M 14,698.23M
Gross Profit 4,713.15M 4,935.76M 4,295.05M 4,861.10M 4,744.42M
Operating income 297.41M 608.27M 348.50M 1,000.15M 777.71M
Income before tax -122.36M 1,013.15M -990.30M 1,134.21M 794.62M
Net income -354.84M 675.94M -1,055.41M 745.00M 617.15M
EBITDA 663.85M 989.32M 584.16M 1,325.69M 1,121.98M
Diluted EPS -0.07 0.13 -0.25 0.15 0.11
Dividends Per Share 0 0 0 0.02 0.03
Total Assets 20,347.96M 22,107.21M 18,840.14M 20,271.06M 23,033.56M
Total liabilities 15,692.37M 16,381.82M 14,950.03M 15,719.91M 15,980.97M
Total equity 3,799.00M 4,859.77M 3,335.06M 4,138.40M 6,620.50M
Operating cash flow 472.09M 669.51M -1,539.46M 686.55M 618.79M

Valuation Measures

Dec 2020
PER17.80
ROA2.84%
ROE11.45%
Operating margin5.29%
Profit margin4.19%

Key executives

  • President, CEO & Executive Director: Zi Yang 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

  • Capital Research & Management Co. (World Investors) (5.0%)
  • Schroder Investment Management (Hong Kong) Ltd. (4.5%)
  • The Vanguard Group, Inc. (3.2%)
  • BlackRock Fund Advisors (2.0%)
  • Credit Suisse Asset Management (Schweiz) AG (1.7%)
  • Fidelity Management & Research Co. LLC (1.0%)
  • BlackRock Advisors (UK) Ltd. (1.0%)
  • Dimensional Fund Advisors LP (1.0%)
  • Fullgoal Fund Management Co., Ltd. (0.7%)
  • First Trust Advisors LP (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 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.
  • 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

Competitors

  • Nokia Oyj
  • ADTRAN, Inc.
  • DZS Inc.
  • UTStarcom Holdings Corp.
  • Ekinops SA
  • Calix, Inc.
  • Technicolor SA
  • Ciena Corporation
  • NETGEAR, Inc.
  • Plantronics, Inc.
  • Kinpo Electronics, Inc.
  • 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.
  • Telrad Networks Ltd.
  • Ceragon Networks Ltd
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • KMW Inc
Last Updated on 27 Oct, 2021

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more