Aug. 23, 2009 (Al Bawaba) -- Strong Increase in Revenue Drives ZTE’s Growing Global Market PositionZTE Corporation (“ZTE” or the “Group”) (A share stock code: 000063.SZ /H share stock code: 0763.HK), a leading global provider of telecommunications equipment and network solutions, today announced its Interim results through 30 June 2009. ZTE recorded a revenue of RMB27.7 billion in the first half year of 2009, representing an increase of 40.4% against the same period of 2008 according to ASBEs and HKAS. Net profit was RMB780 million, a year-on-year growth of 40.5 %. Basic earnings per share were RMB 0.45. During the reporting period, with the benefit of full-scale construction of 3G networks in China, the Group reported operating revenue of RMB14.95 billion in the domestic market, representing a year-on-year growth of 111.7%.
The performance of the Company’s wireless products, factoring in the network tenders of China Unicom and China Telecom held during the first half of the year, was in line with expectations. On the back of its cost advantage and customization capabilities, the Company achieved significant breakthroughs in the coastal provinces and other growth opportunity regions.
The Company’s revenue from its international operations grew 0.7% to RMB12.76 billion in this time period and accounted for 46.0% of its total operating revenue. Second-generation (2G) network construction and capacity expansion in key developing markets, coupled with the demand for bandwidth upgrades and innovative services in developed countries, formed the cornerstones for the stable development of the Group’s international market. In 1H09, ZTE continued collaboration with mainstream operators from the world’s top 20 most populous countries including Indonesia, Vietnam and Turkey while also successfully forging partnerships with tier-one operators from Europe and the Americas including Verizon, TeliaSonera, Telstra and Telenor. Specific to product groups, ZTE registered year-on-year revenue growth of 46.2% for carriers’ networks, 29.8% for handset products and 29.2% for telecommunication software systems, services and other products during the reporting period. In the wireless sector, ZTE’s industry-leading SDR solution promotes the long-term development of GSM/UMTS/LTE and CDMA products, facilitating a strong increase in market share and competitiveness.
The Company’s UMTS products have been deployed by mainstream operators in countries with heavy populations including Indonesia, Vietnam and Turkey and branches of Telstra, TeliaSonera and SingTel, three leading global operators. In 1H09, ZTE’s CDMA base stations achieved a record high shipment volume of 75,000 units: 1.5 times greater than total shipments in 2008. Meanwhile, the Company’s WiMAX products have successfully entered high-end markets including Malaysia, Saudi Arabia, Japan and various European countries.
