Chinese vendor ZTE reported that its net profit attributable to holders of ordinary shares of the listed company reached CNY6.5-7.2 billion ($1.02-$1.13 billion), an increase of 52.6% to 69% year-on-year.
“During the year, the company, confronted with complex external environment, continued to solidify its position with innovative initiatives while maintaining steady operations and optimizing its market structure. The company achieved double-digit year-on-year growth in operating revenue, with both domestic and international markets and all its three major businesses (operator networks, government and enterprise services and consumer services) seeing year-on-year growth in terms of operating revenue,” the vendor said in its earnings release.
ZTE noted that the firm had been deeply engaged in 5G network constructions in China during 2021, and kept optimizing its products and market structure overseas, with an aim to maintain robust growth with its operator business.
In China, ZTE said its key products of 5G, core network, transport network, and server&storage solutions have witnessed continued growth in terms of market share. “The company, in partnership with major operators, has fully carried out R&D innovation and digital industry expansion, embracing the opportunities and challenges in the digital era.”
“In overseas market, the company, cherishing the market opportunities like 4G modernization reconstructions, 5G infrastructure constructions, fiber-based transformation of fixed networks, transport network upgrades and home broadband product upgrades,” the vendor said.
In the IT field, ZTE said it has been consolidating the underlying competitiveness of IT products such as server and storage products, operating system and database, with the operating revenue of these IT products reaching CNY10 billion. “The company has established two special groups, specifically dedicated to mining and metallurgy, in hope to achieve deep expansion of the 5G application market. Meanwhile, the company, bolstered with its comprehensive ICT technology software and hardware advantages, has expanded its businesses into the field of automotive electronics, and established an automotive electronic product line to boost the development of intelligent, connected and electric vehicle fields.”
In October 2021, ZTE and Huawei Technologies secured contracts to deploy the converged 5G and 4G core network for China Mobile. Both ZTE and Huawei will each get about 50% of a contract to provide equipment and services worth CNY14.9 billion in 31 provinces across China.
According to previous press reports, Huawei had obtained a deal for CNY6.4 billion worth of equipment and CNY1.08 billion in services, while ZTE will contribute CNY6.57 billion in equipment and CNY891 million in services.
Also last year, ZTE and Huawei had secured the bulk of three contracts to provide 700 MHz base stations for China Mobile and China Broadcasting Network.
Through these three contracts, China Mobile aims to purchase approximately 480,000 5G base stations to expand its 5G footprint.
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