ZTE reports Q1 sales and commits 15% to R&D

ZTE reported Q1 2020 operating revenue of RMB 21.484 billion (approximately US$3.03 billion), net profit attributable to holders of ordinary shares of the listed company of RMB 780 million, and net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted of RMB160 million, representing a year-on-year increase of 20.5%. Basic earnings per share was RMB0.18.

For the three months ended 31 March 2020, the research and development costs amounted to RMB3.241 billion, 15.1% of operating revenue, increased by 1.2 percentage point compared to the same period last year.

During Q1, ZTE collaborated with operators to guarantee the communication services of the front line against COVID-19. It has constructed 4G/5G networks and telemedicine diagnosis systems for hundreds of hospitals in China.  A part of the effort, ZTE released 5G remote diagnosis and mobile diagnosis services, as well as the smart video cloud solution for epidemic prevention and control. Moreover, the company launched a family "cloud classroom" services to support online education.