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ZTE ramps up 5G efforts, secures 25 commercial contracts globally

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ZTE ramps up 5G efforts, secures 25 commercial contracts globally

Chinese telecom equipment provider ZTE Corp. said Aug. 27 that it has secured 25 5G commercial contracts globally and has cooperated with more than 60 operators to stay competitive in the 5G era.

ZTE's operating revenue in the six months ended June 30 was 44.61 billion Chinese yuan, up 13.12% year over year from last year's 39.43 billion yuan. Operating revenue from its carriers' networks accounted for the largest chunk of the group's overall operating revenue at 32.49 billion yuan in the first half of 2019. ZTE's government and corporate business and its consumer business also contributed to its overall revenue, generating 4.7 billion yuan and 7.42 billion yuan, respectively.

Jefferies equity analyst Edison Lee said the company's revenue growth was "weaker than expected" as he had projected ZTE to "gain further share both locally and overseas."

The telecom equipment provider's net profit attributable to holders of ordinary shares of the listed company for the six months ended June 30 was 1.47 billion yuan, representing a 118.8% increase from a net loss of 7.82 billion yuan in the same period of 2018. ZTE's diluted earnings per share for the reported period was 35 fen, compared to a loss of 1.87 yuan a year earlier.

For the three months ended June 30, ZTE's operating revenue was 22.41 billion yuan, and its net profit attributable to holders of ordinary shares of the listed company was 607 million yuan.

In its chip segment, the company said that it has developed and completed mass production of more than 100 types of chips for sectors including wireless access, fixed-line access, bearers and terminals in the communication network. ZTE has also started producing core communication chips to facilitate large-scale 5G commercial applications with lower costs and lower consumption requirements.

As of Aug. 27, US$1 was equivalent to 7.16 Chinese yuan.