ZTE reported 2012 annual of RMB 84.2 billion, representing a decline of 2.4% for 2012.
In China, revenue of RMB 39.6 billion was stable compared to a year earlier, accounting for 47% of the company’s total. Overseas revenue dropped 4.5% to RMB 44.7 billion, representing 53% of the company’s total The company recorded a net loss attributable to shareholders of listed company of RMB 2.84 billion. ZTE posted positive operating cash flow of RMB 1.87 billion. In 2012, ZTE recorded positive free cash flow for the first time in three years.
In 2012, ZTE saw an improvement in its business mix. Combined revenue for Europe and the Americas increased 1.6% from a year earlier, after strong growth in sales in the United States market. In the Asia Pacific market, revenue increased 2.8%. In the network infrastructure division, the company shifted towards higher-margin business. In the terminals division, the mix shifted towards smart devices.
Revenue by technology division:
- Network infrastructure sales were RMB 41.6 billion.
- Terminal sales were RMB 25.84 billion, in line with the company’s target.
- Software and services sales were RMB 16.8 billion.
Despite the pressure on its operations in 2012, ZTE boosted spending on research and development by 4% to RMB 8.83 billion. The company noted that it ranked first in international patent applications by the World Intellectual Property Organization in each of the past two years, and was the first Chinese company to reach the Top-10 in patent applications to the European Patent Office.
