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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 2019 HKDUSD
Revenue102,887.70M13,131.47M
Gross Profit38,087.68M4,861.10M
Operating income7,836.41M1,000.15M
Income before tax8,886.82M1,134.21M
Net income5,837.26M745.00M
EBITDA10,387.11M1,325.69M
Diluted EPS1.380.17
Dividends Per Share0.210.02
Total Assets157,948.05M20,271.06M
Total liabilities122,486.42M15,719.91M
Total equity32,245.60M4,138.40M
Operating cash flow5,379.28M686.55M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 2015Dec 2016Dec 2017Dec 2018Dec 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
PER15.36
ROA3.82%
ROE20.00%
Operating margin7.61%
Profit margin5.67%

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 Japan Co., Ltd. (0.8%)
  • BlackRock Advisors (UK) Ltd. (0.8%)
  • Zhong Ou Asset Management Co., Ltd (0.7%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)
  • Dimensional Fund Advisors LP (0.4%)

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

  • 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.
  • ZTE Corp. (Hong Kong)

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
Last Updated on 10 Jul, 2020

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