For the first time ZTE’s annual revenue has exceeded RMB 100 billion.
The company has also announced 43.5 percent growth in net profit. Net profit for 2015 is RMB 3.78 billion i.e. 574 million compared to RMB 2.63 billion a year earlier, according to preliminary unaudited results published by ZTE.
ZTE recorded higher sales of 4G LTE network solutions internationally, in addition to China, reflecting the strength of the company’s innovations in telecom networks. The company also posted increased sales of optical network solutions due to increase in broadband networks globally.
ZTE’s 2015 Preliminary Financial Results
Parameter – 2015 (in Bn RMB) – 2014 (in Bn RMB)
Operating Revenue – 100.83 – 81.47
Net Profit – 3.78 – 2.63
Basic Earnings Per Share – 0.92 – 0.64
Source: ZTE, TeleAnalysis
The growth in annual revenue was also driven by increased sales of high-end routers in overseas markets. ZTE also posted higher revenue from sales of enterprise ICT solutions including smart city and data center solutions to corporates and government departments. In addition, ZTE also boosted sales of 4G smartphones outside China, as well as terminal products for homes.
The company strengthened cash flow management, with cash received for the sales of goods and rendering of services exceeding RMB 105 billion, achieving substantial growth in cash inflows from operating activities and net cash flows from operating activities.