Sales surge 50 per cent in the US and Europe, contributing the largest portion of overseas revenue for the first time
ZTE recorded revenue of RMB 70.264 billion (£6.57 billion) in 2010, representing an increase of 21 per cent against 2009. Net profit rose 32.22 per cent to RMB 3.250 billion (£304 million).
During the year, the company’s revenue from domestic operations amounted to RMB 32.198 billion (£3 billion), representing year-on-year growth of 5.9 per cent. ZTE said the increase can be attributed to the expansion of 3G markets and its leading position in terms of CDMA and WCDMA market share.
ZTE gained 50 per cent growth in the government and enterprise network markets which it said further enhanced its domestic market share.
Group revenues from international operations grew 27.45 per cent to RMB 38.066 billion (£3.56 billion) and accounted for 54.18 per cent of total operating revenue and for the first time the US and European markets contributed the largest portion of overseas revenue. These markets recorded year-on-year growth of 50 per cent, which accounted for 21 per cent of operating revenue.
This year ZTE said it will continue to its presence and share in both domestic and international markets by deepening relations with mainstream carriers, and by moving from “strategic engagement to strategic cooperation”. It will also move into emerging technologies such as cloud computing and Integrated Circuit.
The company added the focus for wireless communications will be to develop LTE markets, while wired communications will look to strengthen bearer networks and expand in the fixed broadband markets. It said mobile phones, especially high-end smartphones, will aim to increase handset shipments in order to improve competitiveness of the company.
ZTE chairman Mr. Hou Weigui said: “In the coming year, the Group will proactively respond to the dynamic requirements of customers and strengthen cooperation in response to the profound changes in the global telecommunications market. Other areas of focus will also include the recruitment and development of high-caliber staff, product differentiation as well as cost-effectiveness and quality of ZTE’s solutions.”