Chinese ops accounted for 53% of ZTE overall revenue
ZTE generated RMB 100.19 billion ($15.45 billion) in full-year 2015 operating revenues, climbing 23% year-over-year. In the Chinese market, ZTE reported operating revenue of RMB 53.11 billion, accounting for 53% of the company’s overall operating revenue last year. ZTE also reported RMB3.21 billion in net profit for 2015.
The Chinese company attributed growth to the performance of “4G” products, smart city and emerging ICT technologies.
“The growth in revenue reflected increased sales from 4G system products and optical access products in the domestic and international markets and optical transmission products in the domestic market. High-end routers and handset products in the international market and family terminals in the domestic and international markets also saw significant growth,” the company said in its earnings statement.
The Asian firm also highlighted the rapid growth of the group’s smart city projects as well as its data center and ICT businesses.
“In 2015, domestic carriers expanded the scale of construction of planned 4G networks and their ancillary facilities following the issuance of FDD-LTE permits. Carriers were increasingly concerned with and increased their investments in cloud computing, ‘Internet of Things,’ big data, smart city and high-end routers,” the statement said.
For the international market, the group reported RMB 47.08 billion in operating revenue, accounting for 47% of the group’s total operating revenue. “The group continued to implement its strategy of focusing on populous nations and mainstream carriers and deepen partnerships with mainstream carriers in the global market to help these carriers add value through Internet applications,” company officials said.
ZTE reported RMB 57.22 billion in operating revenue for its carrier networks business. Operating revenue for government and corporate business amounted to RMB 10.50 billion. Operating revenue for the consumer business totaled RMB 32.47 billion.
Smartphone shipments totaled more than 56 million units, an increase of 16% year-on-year, with overseas shipments exceeding 70% growth.
However, the U.S. Commerce Department recently announced it will be temporarily reversing a previous decision to deny export licenses to American companies that sell products to ZTE. The Chinese firm confirmed it obtained “interim relief” from the sanctions and it expects permanent relief as it continues to work with the U.S. government.
