Asia300

ZTE Corp.

China

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Dec 14, 2017
Prev close: 29.15
Dec 14, 2017
Market cap:
Market cap(USD):
177,070.50M
22,685.78M
Shares: 4,190.01M

Currency in HKD

Company profile

Market(Ticker): HKG(763)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Full time employees: 81,468

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.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 117,268.29M
Gross profit 35,049.15M
Operating income 2,858.63M
Income before tax -949.82M
Net income -2,754.45M
EBITDA 5,740.54M
Diluted EPS -0.66
Dividends per share --
Total assets 158,025.19M
Total liabilities 122,811.35M
Total equity 29,364.96M
Operating cash flow 7,686.71M

Currency in HKD

Revenue 15,107.10M
Gross profit 4,515.21M
Operating income 368.26M
Income before tax -122.36M
Net income -354.84M
EBITDA 739.52M
Diluted EPS -0.08
Dividends per share --
Total assets 20,382.06M
Total liabilities 15,840.18M
Total equity 3,787.48M
Operating cash flow 990.24M

Currency in USD

Valuation measures

Dec 2016

PER --
ROA -1.79%
ROE -8.51%
Operating margin 2.43%
Profit margin -2.34%

Key executive

  • 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

Share holders

  • Capital Research & Management Co. (World Investors)(5.0%)
  • Baillie Gifford & Co.(4.9%)
  • Value Partners Ltd.(4.9%)
  • Government of China(4.4%)
  • The Vanguard Group, Inc.(3.5%)
  • BlackRock Fund Advisors(1.9%)
  • Cambiar Investors LLC(1.4%)
  • City National Rochdale LLC(0.8%)
  • BlackRock Investment Management (UK) Ltd.(0.8%)
  • APG Asset Management NV(0.8%)

Address

  • Website: http://www.zte.com.cn
  • Address: High-Tech Road South, No. 55, Shenzhen, 518057, China
  • Phone: +86.755.26770000

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