Summary of ZTE (0763.HK) Conference Call Company Overview - **Company**: ZTE Corporation (0763.HK) - **Industry**: Telecommunications and AI technology Key Financial Projections - **2Q25E Revenues**: Expected to grow by 12% YoY and 8% QoQ to Rmb35.6 billion [1] - **Gross Margin**: Anticipated to improve to 37.8% in 2Q25E from 34.3% in 1Q25 [1] - **Net Income**: Projected to increase by 12% QoQ to Rmb2.7 billion in 2Q25E [1] - **Revenue Contribution from Non-Telecom Business**: Non-telecom segments (computing network, automotive electronics, digital power, smart devices) accounted for 35% of total revenues in 1Q25 [1] AI Innovations and Product Offerings - **AI Product Range**: ZTE is expanding its portfolio with AI servers, storage, software solutions, smartphones, home networks, smart displays, and robots [2] - **NebulaCoder-V6 Model**: Ranked first in the "Chinese LLM Evaluation May 2025 report" by SuperCLUE, showcasing ZTE's capabilities in scientific reasoning, mathematical reasoning, and code generation [2] - **DeepSeek All-in-One Machine**: Launched AiCube, compatible with multiple mainstream GPUs, enhancing enterprise clients' AI deployment [2] Earnings Revisions - **Net Income Revisions**: 2025-27E net income revised down by 4%, 4%, and 2% respectively due to lower gross margins [2] - **Revenue Revisions**: 2025-27E revenues cut by 1% reflecting a slowing capex cycle in telecom networks [2] - **Operating Expense Ratio**: Revised down to 29% and 27% for 2026-27E, maintaining 2025E unchanged [2] Valuation and Price Target - **Target Price for H-share**: Updated to HK$29.3 (previously HK$33.0) based on a target P/E of 12.0x for 2026E [8] - **Target Price for A-share**: Adjusted to Rmb45.4 (previously Rmb51.1) based on a target P/E of 20.3x for 2026E [8] - **Market Capitalization**: HK$103.8 billion / $13.2 billion [14] Risks and Considerations - **Market Risks**: Demand fluctuations in telecom infrastructure and 5G BTS building in China could impact estimates [13] - **Non-Operating Gains/Losses**: Historical non-operating items have varied significantly, which could lead to upside or downside risks [13] Conclusion - **Investment Rating**: Maintained Neutral for both ZTE-A and ZTE-H due to the slowing capex cycle in the telecom sector [1][8]

Core Viewpoint - Shenzhen Dazhu CNC Technology Co., Ltd. (Dazhu CNC) has submitted a listing application to the Hong Kong Stock Exchange, with CICC as the exclusive sponsor [2]. Group 1: Company Overview - Dazhu CNC specializes in providing production equipment solutions for PCB manufacturing, focusing on the research, production, and sales of PCB-specific production equipment [4]. - As of June 3, 2023, Dazhu CNC's stock price was 35.54 CNY, with a total market capitalization of 15.123 billion CNY [4]. - According to data from Zhaoshang Consulting, Dazhu CNC is the largest manufacturer of PCB-specific production equipment globally, holding a market share of 6.5% as of 2024 [4]. Group 2: Financial Performance - Dazhu CNC's revenue for the years 2022, 2023, and 2024 is projected to be 2.786 billion CNY, 1.634 billion CNY, and 3.343 billion CNY, respectively [5]. - The net profit for the same years is expected to be 432 million CNY, 136 million CNY, and 300 million CNY, respectively [5]. - The gross profit margins for these years are 34.0%, 29.2%, and 27.2%, indicating a downward trend in profitability [5]. Group 3: Leadership - Gao Yunfeng holds approximately 83.63% of Dazhu CNC's issued share capital through Dazhu Laser, while Dazhu Holdings holds about 0.76% [6]. - Yang Chaohui, with over 20 years of experience in the PCB industry, serves as the Chairman and General Manager of Dazhu CNC, responsible for the company's daily operations and strategic decisions [9].

证券代码（A/H）：000063/00763 证券简称(A/H)：中兴通讯 公告编号：202547 中兴通讯股份有限公司 关于按照《香港上市规则》公布 2025 年 5 月份证券变动月报表的公告 本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有虚假记载、误导 性陈述或重大遗漏。 中兴通讯股份有限公司根据《香港联合交易所有限公司证券上市规则》（简 称"《香港上市规则》"）规定，在香港联合交易所有限公司披露易网站 （www.hkexnews.hk）刊登了截至 2025 年 5 月 31 日的证券变动月报表。 根据《深圳证券交易所股票上市规则》关于境内外同步披露的要求，特将有 关公告同步披露如下，供参阅。 特此公告。 中兴通讯股份有限公司董事会 2025 年 6 月 5 日 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00763 | 說明 | | | | | | | | | | 法定/註冊股份數目 ...

Group 1 - ZTE Corporation has launched a "Low Altitude Industry Ecosystem Platform" in Shenzhen, aiming to create an industry think tank and project consortium with the participation of 32 companies across the supply chain [2][3] - The platform includes manufacturers of aircraft, payloads, and components in the upstream, infrastructure service providers in the midstream, and logistics, urban governance, and emergency rescue services in the downstream [3] - The initiative reflects a shift in the low-altitude economy from individual efforts to collaborative ecosystem building, addressing the challenges of coordination as drone usage increases [2][3] Group 2 - The concept of "All-Space" expands the low-altitude economy to a more integrated system encompassing land, sea, air, and cyberspace, as discussed at the recent World Drone Conference [4][5] - Shenzhen has launched an "All-Space Unmanned System Procurement Platform" to facilitate the supply-demand connection for drones, unmanned vehicles, and ships, emphasizing a one-stop service approach [5] - The city plans to establish over 1,200 low-altitude takeoff and landing points, supported by a robust policy framework and significant investment in the aerospace industry [6]

Group 1 - BlackRock's stake in ZTE Corporation decreased from 6.63% to 5.84% as of May 27 [1]

Group 1 - The core viewpoint of the news is that the CSI Technology Leading Index has shown a recent upward trend, with a notable increase of 1.68% on May 29, reaching 2226.27 points, with a trading volume of 64.237 billion yuan [1] - The CSI Technology Leading Index has increased by 1.13% over the past month, but has decreased by 8.99% over the past three months and is down 5.19% year-to-date [2] - The index comprises 100 high R&D intensity, high profitability, and high growth potential technology companies, reflecting the overall performance of such companies in the technology sector [2] Group 2 - The top ten weighted companies in the CSI Technology Leading Index include: Heng Rui Pharmaceutical (8.94%), Mindray Medical (5.11%), Northern Huachuang (5.01%), Haiguang Information (4.68%), Luxshare Precision (4.33%), Weir Shares (4.04%), BOE Technology Group (3.88%), ZTE Corporation (3.76%), NewEase (3.2%), and Zhongji Xuchuang (3.15%) [2] - The market capitalization distribution of the CSI Technology Leading Index shows that 60.10% is from the Shenzhen Stock Exchange and 39.90% from the Shanghai Stock Exchange [2] - The industry composition of the index includes: Information Technology (47.24%), Healthcare (22.50%), Industry (15.67%), and Communication Services (14.59%) [2] Group 3 - The index samples are adjusted every six months, with adjustments implemented on the next trading day after the second Friday of June and December each year, with a sample adjustment ratio not exceeding 45% [3] - Weight factors are adjusted along with the sample adjustments, and generally remain fixed until the next scheduled adjustment [3] - Special circumstances may lead to temporary adjustments of the index, such as delisting of samples or corporate actions like mergers and acquisitions [3]

Group 1 - The telecommunications equipment sector in Hong Kong has shown strength, with notable gains in several companies [1] - VITEC (06133.HK) increased by 5.88%, indicating strong market performance [1] - Hongteng Precision (06088.HK) rose nearly 4%, contributing to the overall positive trend in the sector [1] Group 2 - Other companies such as Huiju Technology (01729.HK), BYD Electronics (00285.HK), and ZTE Corporation (00763.HK) also experienced upward movement in their stock prices [1]

Group 1 - The core viewpoint of the article highlights the emergence of a new "ecosystem builder" in the trillion-level low-altitude economy, with ZTE Corporation launching a "Low Altitude Industry Ecosystem Platform" in Shenzhen, aiming to integrate resources across the industry chain [1][2] - The platform has attracted 32 member companies from various sectors, including upstream manufacturers of aircraft and components, midstream infrastructure service providers, and downstream logistics and emergency services [2][3] - ZTE's initiative is seen as a response to the increasing complexity of low-altitude operations, where effective collaboration among players is essential to address challenges in communication, navigation, and monitoring [2][3] Group 2 - The concept of "full space" is emerging as a new focus in the low-altitude economy, expanding the vision from low-altitude to a comprehensive network that includes land, sea, air, and cyberspace [4] - Shenzhen has already initiated actions towards "full space" exploration, including the launch of a procurement platform for unmanned systems that aims to connect various unmanned vehicles and provide integrated services [4][5] - The low-altitude economy is recognized as a critical entry point for urban competition, with cities like Guangzhou and Hefei prioritizing the development of "full space unmanned systems" [5][6] Group 3 - Shenzhen, known as the "drone capital of the world," boasts over 2,000 companies in the industry and a quarterly growth rate of 48% in the drone sector [7] - The city is actively enhancing its policies to support the low-altitude economy, including the establishment of a 2 billion yuan aerospace industry fund and the planning of over 1,200 low-altitude takeoff and landing points [7][8] - The collaboration among government, research institutions, leading enterprises, and innovative small and medium-sized enterprises is crucial for driving the low-altitude economy in Shenzhen and across China [7]

Core Viewpoint - ZTE Corporation has announced the election of Li Miaona as the employee director of the board, effective from May 23, 2025, until the end of the current board's term in March 2028, following the approval of amendments to the company's articles of association and related rules at the first extraordinary general meeting of 2025 [1]. Group 1 - The company held its first extraordinary general meeting of 2025, where it approved the proposal to amend the articles of association and related rules [1]. - Li Miaona was elected as the employee director by the company's ninth employee representative assembly, with her term starting on May 23, 2025 [1]. - The total number of directors who are also senior management or employee representatives will not exceed half of the total number of directors on the board [1]. Group 2 - Li Miaona, born in 1974, graduated from Renmin University of China in 1997 with a bachelor's degree in history [3]. - She joined the company in 2000 and has held various positions, including roles in the quality department, human resources, and financial services [3]. - Currently, she serves as the chairperson of the labor union committee and has extensive management and operational experience [3]. Group 3 - Li Miaona does not hold shares in ZTE Corporation and has no relationship with the controlling shareholder or other directors and senior management [4]. - She has not faced any penalties from the China Securities Regulatory Commission or other disciplinary actions from stock exchanges [4]. - Li Miaona meets all qualifications required by relevant laws, regulations, and the company's articles of association [4].

证券代码（A/H）：000063/00763 证券简称（A/H）：中兴通讯 公告编号：202545 中兴通讯股份有限公司 关于选举第十届董事会职工董事的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记载、误导性陈 述或重大遗漏。 2025 年 4 月 24 日，中兴通讯股份有限公司（简称"公司"或"中兴通讯"）召开 二〇二五年第一次临时股东大会，审议通过《关于修改<公司章程>、<股东大会议事规 则>及<董事会议事规则>有关条款的议案》。根据《公司章程》规定，公司设职工董事 一名，职工董事由公司职工民主选举产生和罢免。 公司第九届职工代表大会第六次会议选举李妙娜女士担任本公司第十届董事会职 工董事，任期自 2025 年 5 月 23 日起至本公司第十届董事会届满之日（即 2028 年 3 月 27 日）止。李妙娜女士的简历请见附录。 2 特此公告。 中兴通讯股份有限公司董事会 2025 年 5 月 24 日 1 附录： 李妙娜，女，1974 年出生。李女士于 1997 年毕业于中国人民大学档案学专业，获 历史学学士学位。李女士于 2000 年加入公司，2000 年至 2005 年先后任 ...