ZTE has announced financial results for the first quarter ended March 31, 2017, as follows:
1. Operating revenue for the first quarter of RMB 25.74 billion (approximately $3.74 billion), up 17.8% compared with RMB 21.86 billion in first quarter of 2016.
2. Operating profit for the first quarter of RMB 764.1 million, up 143.2% compared with RMB 314.2 million in first quarter of 2016.
3. R&D expenditure for the first quarter of RMB 3.33 billion, up 9.2% versus RMB 3.05 billion in first quarter of 2016.
4. SG&A expenditure for the first quarter of RMB 3.47 billion, up 4.2% compared with RMB 3.33 billion in first quarter of 2016.
5. Profit attributable to shareholders of RMB 1.21 billion (approximately $175.7 million), up 27.5% compared with profit of RMB 949.5 million in first quarter of 2016.
6. Cash as of March 31, 2017 RMB 29.25 billion, versus RMB 32.35 billion as at December 31, 2016.
Additional results and notesZTE reported negative net cash flows from operating activities for the first quarter of 2017 of RMB 971.2 million, compared with positive net cash flow from operation of RMB 3.94 billion in the first quarter of 2016.
The company noted that the higher first quarter profit derived from sales growth for carrier network solutions and smartphones. More specifically, ZTE stated that in the first quarter it achieved over 25% growth in shipments of set-top-boxes as part of its Big Video business, while shipments of in-house developed chipsets rose 70% year on year during the quarter.
