25 April 2009

ZTE Tallies Impressive 35% Sales Growth in Q1 2009

24 04 2009, Shenzhen, China - 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 2009.

During the review period, the Group managed to sustain growth for its businesses, at its great efforts, despite the impact of the global financial crisis. According to the PRC ASBEs, for the three months ended 31 March 2009, the Group recorded a revenue amounting to RMB 11.67 billion, representing an increase of 35.00% compared with the same period last year. Net profit was RMB 78.66 million, representing an increase of 29.17% compared with the same period last year. Basic earnings per share were RMB 0.06.

In terms of product category, ZTE posted a 46.9% growth in system devices, while revenues from 3G and GSM network construction maintain robust growth. Revenue from mobile handset products grows by 22.2% against the same period, representing remarkable rise in product sales. Also, telecom software systems, services and other products grew by 3.6% as compared to the same period last year.

The Group won a number of tenders for 3G network projects and terminal products from carriers in China, thanks to its efforts to match 3G related requirement and the specific standards of the different carriers. In the 3G tender bids offered by China’s three largest telecom operators, the Group has achieved a leading position in WCDMA network projects by successful deployments in more than half of developed municipalities in China, including Guangdong, Fujian, Shandong and Tianjin. Meanwhile, the Group secured solid presence in the previous TD and CDMA tenders and performed well in the previous 3G terminal biddings. Earlier this month, the Group launched its newest 40 types of 3G terminal products in China.

The Group is committed to aggressively expanding to international markets, as well as strengthening close partnerships with global mainstream telecom operators including 50 companies out of the world’s top100 telecom carriers. ZTE has been putting efforts in sustaining partnerships with mainstream operators in the emerging markets, so as to realize company’s long-term business growth. On the other hand, the Group is aggressively expanding to target markets in Europe and the U.S. by setting up an independent business unit targeting high-end telecom markets. Furthermore, ZTE is reaching out to multinational telecom operators by recently forging with CSL Limited in Hong Kong to build the world’s first SDR-based HSPA+ commercial network, and has entered partnerships with Deutsche Telekom and British Telecom in the field of terminals and telecoms equipment separately.

Looking ahead, the Group will seek to consolidate the achievements it has made in the 3G market and will continue to focus on investing in relevant network and terminal products. Greater effort will also be made to secure businesses from multi-national carriers operating in Europe, the US and emerging markets to ensure continuous growth of the Group’s business in spite of the current global crisis.

Source: ZTE

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