27 April 2010, Hong Kong - ZTE Corporation ("ZTE" or the "Group") (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced its first quarterly results ended 31 March 2010.
The Group reported a net profit of RMB109.86 million（$16.09 million） in the three months ended 31 March 2010, up 39.68% from RMB78.66 million（$11.52 million） in the same period last year, according to PRC ASBEs. Revenue rose 13.59% to RMB13.26 billion （$1.94 billion）from RMB 11.67 billion （$1.71 billion）compared with the same period last year.
During the first quarter, investments in telecommunications equipment in the domestic market remained stable, with mobile network construction and optical communication equipment accounting for a major share of the capital expenditure of carriers. In the international market, the impact of the financial crisis was waning, and the Group was presented with more opportunities as some equipment manufacturers left the mainstream market.
In the review period, the Group maintained growth at a relatively stable pace. The market position in China has been enhanced by ZTE's deliveries in 3G mobile network construction, while there were outstanding results in the sales of terminals and relevant carriers' network products.
Internationally, ZTE was sustaining sound growth in various regional markets with the benefit of strong investments in equipment in emerging markets which were enjoying early economic recovery.
By product category, ZTE's business segment of carriers' networks reported 0.9% growth compared with the same period last year, driven mainly by revenue from the sales of optical communication products and wireline switch and access products. The terminal segment reported sales growth of 41.8% year-on-year, attributable mainly to the rapid growth in the sales of high-end products featuring mainly 3G handsets. Revenue from telecommunications software systems, services and other products also grew by 40.8%, reflecting mainly growth in revenue from enterprise network products and servicing products.
Looking ahead, the Group will continue to strengthen its implementation capabilities, paying close attention to the enhancement of management efficiency. ZTE will seek in-depth understanding of market and customer requirements to secure further opportunities in both the domestic and the international markets that would ensure stable development for the Group.
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About ZTE
ZTE is a leading global provider of telecommunications equipment and network solutions. It has the widest and most complete product range in the world - covering virtually every sector of the wireline, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to achieve continued revenue growth and to shape the future of the world's communications. ZTE's 2009 revenue was over USD 8,820.7 million, attaining the fastest growth in the industry with a 36.08% revenue increase. ZTE commits around 10% of its annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. A company with sound corporate social responsibility (CSR) initiatives, ZTE is a member of the UN Global Compact that strictly adheres to the Ten Principles of the Global Compact in developing and carrying out CSR programs. ZTE is China's only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.
Media Contacts:
Margrete Ma
ZTE Corporation
Tel: +86 755 26775207
Email: ma.gaili@zte.com.cn
Ada Ho / Andres Vejarano
Edelman PR
Tel: +852 2837 4747 / 2837 4735
Email: ada.ho@edelman.com /