ZTE: Last year's net loss was nearly 7 billion. It is expected to make a profit of 800-1.2 billion in the first quarter of this year.
Wall Street
03-2722:06
On the road to revival, ZTE seems to have a long way to go.
On Wednesday evening, March 27, ZTE’s annual report disclosed that it realized operating income of RMB 85.51 billion in 2018, down 21.41% year-on-year; net profit attributable to ordinary shareholders of listed companies was RMB -6.98 billion, down 252.88% year-on-year. The profit for the same period of the year was 4.568 billion yuan); the basic earnings per share was -1.67 yuan.
The performance showed a significant decline. ZTE attributed it to two points: one was a fine of 1 billion US dollars paid to the United States, and the other was the ban by the US Department of Commerce, which caused the company's main business activities to be carried out for a period of time. Raise the loss.
In addition, the above two points also caused ZTE to lose a lot in January-March last year. However, in the first quarter of this year, ZTE is expected to turn losses into profits, with profits reaching 800-1.2 billion yuan, an increase of 114.49%-122.19%.
Specifically, ZTE achieved operating income of 54.44 billion yuan in the domestic market in 2018, accounting for 63.7% of the Group's overall operating income; the international market achieved operating income of 31.07 billion yuan, accounting for 36.3% of the Group's overall operating income.
According to the business division, the operator network realized operating income of 57.07 billion yuan; the government business realized operating income of 9.23 billion yuan; and the consumer business realized operating income of 19.21 billion yuan.
In terms of gross profit margin, ZTE's gross profit margin was 32.91% during the reporting period, up from 31.07% in the same period of last year.
After nearly a year of "nurturing", ZTE continued to focus on the research and development of 5G technology. ZTE executives said at this year's "World Mobile Conference" that they have resumed cooperation with major global operators, and then the company hopes to take advantage of it from end to end.
In the annual report, ZTE listed the following points as development opportunities, and said that it will adhere to the core technology independent innovation, technology-led, and lead 5G innovation.
5G enters the critical stage of commercial deployment, and major countries in the world will launch 5G pre-commercial services to prepare for 5G scale commercialization; 5G will drive digital transformation of various industries, improve operational efficiency, realize business innovation and upgrade; 5G commercial promotes industrial chain maturity, Chips, modules, and terminals are gradually moving to the market, driving the innovative development of new applications.
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