ZTE Corporation (0763.HK / 000063.SZ), a global leader in integrated information and communication technology solutions, has reported revenue of RMB 62.49 billion for the first half of 2024, marking a 2.9% year-on-year growth.
The company’s H1 2024 results reveal a net profit attributable to ordinary shareholders of RMB 5.73 billion, an increase of 4.8% compared to the previous year. Net profit after extraordinary items for the same period was RMB 4.96 billion, reflecting a year-on-year rise of 1.1%. Basic earnings per share were RMB 1.20, and net cash flows from operating activities grew by 8.9% to RMB 7.00 billion.
Despite challenges in the external environment during the first half of 2024, advancements in artificial intelligence drove a new wave of technological and industrial transformation. Emerging technologies and business models, such as AIGC, 5G-A, and the low-altitude economy, continued to evolve. ZTE focused on technological innovation and the integration of “connectivity + computing,” contributing to stable performance with growth in both revenue and net profit.
In the operator network segment, domestic growth was pressured by the overall investment environment. However, ZTE achieved significant international breakthroughs with major countries and large telecom operators, maintaining double-digit growth. The company also expanded its government-enterprise and consumer businesses, with revenues in these sectors growing by 56.1% and 14.3%, respectively.
During the first half of 2024, ZTE’s domestic revenue reached RMB 43.06 billion, accounting for 68.9% of total revenue, while international revenue was RMB 19.43 billion, making up 31.1%. Revenue from the operator network, government-enterprise, and consumer businesses was RMB 37.30 billion, RMB 9.17 billion, and RMB 16.02 billion, respectively, representing 59.7%, 14.7%, and 25.6% of the total.
ZTE’s R&D expenses during this period totaled RMB 12.73 billion, or 20.4% of operating revenue. The company has filed over 90,000 global patent applications and holds 46,000 granted patents worldwide. In the AI field alone, ZTE has approximately 5,000 patent applications, with over 2,000 patents granted, enhancing the company’s competitiveness in the digital intelligence era.
In the connectivity sector, ZTE continued to innovate, focusing on next-generation ICT technologies such as 5G-A and all-optical networks. The company’s 5G base station and core network shipments rank second globally, with its RAN and 5G core network products consistently rated as industry leaders. ZTE’s optical network products achieved the highest quarter-on-quarter growth in global market share, and its 50G PON solutions have been tested by over 50 operators worldwide. Additionally, ZTE successfully completed the first large-scale commercial deployment of a 400G all-optical inter-provincial backbone network.
In computing, ZTE leveraged its extensive experience in communication software, hardware development, and industrialization to enhance its computing power products and solutions. The company introduced a comprehensive suite of intelligent computing solutions, including general computing servers, high-performance AI training servers, liquid-cooled servers, distributed storage systems, and high-speed lossless switches.
In the terminal sector, ZTE launched the “AI for All” strategy, focusing on five core consumer scenarios: sports & health, audio & video entertainment, business & travel, home & education, and smart driving. The company introduced a range of AI-driven terminal products, including smartphones, tablets, laptops, and mobile internet devices, as part of its Full-Scenario Intelligent Ecosystem 3.0. This ecosystem integrates AI across mobile devices, smart home products, cloud computing, and automotive electronics. ZTE maintains the No. 1 position in the global 5G FWA & MBB market, with RedMagic leading the global gaming smartphone market.
Looking ahead, ZTE is committed to advancing core technological innovations and expanding its presence in the “connectivity + computing + capability + intelligence” domain. The company aims to strengthen its digital and intelligent infrastructure through strategic initiatives, open collaboration, and diverse partnerships, building a highly efficient and intelligent digital future with industry partners.
