ZTE Posts 23% Revenue Growth in 2011, but Profits Decline 37%

ZTE reported 2011 revenue of RMB 86.25 billion, an increase of 23.4% compared to 2010. However, net profit fell to RMB 2.06 billion, down 36.6% from 2010’s result. Basic earnings per share were RMB 0.61.


"In 2011, equipment investments by the telecommunications industry varied by region across the globe,�? said ZTE Chairman Mr. Hou Weigui. "During the year, ZTE adjusted its product lines to continue to provide comprehensive integrated solutions to carriers. A range of measures designed to improve efficiency and optimize production processes also were introduced."


Some highlights:


ZTE's domestic and overseas operating revenue grew 22.7% and 24% year-on-year respectively.


Domestic operating revenue was RMB 39.50 billion, accounting for 45.8% of overall operating revenue.


Overseas operating revenue was RMB 46.76 billion, accounting for 54.2%.


ZTE has secured over 30 commercial LTE contracts.


ZTE became the second-fastest growing smartphone company in the world during the year.


ZTE also was the fourth-largest mobile manufacturer in the world in terms of shipments during the year.


By product segment, Carrier Networks generated operating revenue of RMB46.522 billion, representing year-on-year growth of 10.83%. Terminal Products generated operating revenue of RMB26.933 billion, representing year-on-year growth of 52.63%. Operating revenue for Telecommunication Software Systems, Services and Other Products amounted to RMB12.799 billion, representing year-on-year growth of 24.46%.


According to statistics published by China's Ministry of Industry and Information Technology, revenue for the domestic telecommunications sector amounted to RMB901.15 billion for the first eleven months of 2011, representing a year-on-year growth of 9.6%.
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