Financial Performance - ZTE Corporation reported unaudited financial results for the six months ending June 30, 2024[1]. - The company reported a significant increase in revenue, achieving a total of $X million for the first half of 2024, representing a Y% growth compared to the same period last year[5]. - Operating revenue for the first half of 2024 reached CNY 62,487,098, representing a year-on-year increase of 2.94% compared to CNY 60,704,794 in the same period of 2023[12]. - Net profit attributable to shareholders of the listed company was CNY 5,732,446, reflecting a growth of 4.76% from CNY 5,472,153 in the first half of 2023[12]. - The net cash flow from operating activities amounted to CNY 7,000,399, an increase of 8.94% compared to CNY 6,425,897 in the previous year[12]. - Total assets as of June 30, 2024, were CNY 205,507,776, showing a 2.26% increase from CNY 200,958,318 at the end of 2023[12]. - Total liabilities increased to CNY 134,747,078, up by 1.60% from CNY 132,626,873 at the end of 2023[12]. - Equity attributable to shareholders of the listed company rose to CNY 70,395,332, marking a 3.51% increase from CNY 68,008,307 in the previous year[12]. - Basic earnings per share for the first half of 2024 were CNY 1.20, a 4.35% increase from CNY 1.15 in the same period of 2023[12]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the financial report, with all members present at the meeting[2]. - The board of directors includes three executive directors and three independent non-executive directors[1]. - The announcement was made on August 16, 2024, by the chairman of the board, Li Zixue[1]. - The company has revised its governance structure in accordance with regulatory requirements, enhancing its decision-making efficiency through a "three meetings and one layer" governance framework[104]. - The company has fully complied with the corporate governance code principles and provisions as outlined by the Hong Kong Stock Exchange during the reporting period[104]. - The current board consists of nine members, including three executive directors and three independent non-executive directors, meeting regulatory requirements[121]. Market Expansion and Strategy - The company is expanding its market presence in D regions, aiming to capture a larger share of the telecommunications market[5]. - The company is focusing on expanding its domestic government and enterprise market, leveraging opportunities in digital construction, and deepening cooperation with leading clients in the internet and finance sectors[95]. - The company is committed to launching innovative products in line with global consumer electronics market recovery trends, focusing on differentiation and cost leadership strategies[95]. - The company is focusing on new product and technology development, with ongoing investments in research and development to enhance its competitive edge in the market[198]. Research and Development - The company is investing in R&D for new technologies, with a budget allocation of G million, focusing on enhancing product performance and user experience[5]. - Research and development expenses for the first half of 2024 were CNY 12,725,895 thousand, a decrease of 0.51% year-on-year, accounting for 20.37% of total revenue, down 0.70 percentage points[55]. - The total R&D investment amounted to CNY 13,428,930 thousand, a decrease of 0.97% year-on-year, with capitalized R&D accounting for 5.24% of total R&D investment, down 0.43 percentage points[57]. Environmental and Social Responsibility - The company emphasizes sustainable development and actively practices dual-carbon green development[157]. - In the first half of 2024, the total investment in environmental governance and protection by the company was approximately 16.9 million yuan, primarily for handling waste gas, wastewater, hazardous waste, and garbage, as well as installing environmental monitoring equipment[161]. - The company has planted a total of 157,500 trees covering an area of 1,925 acres as part of its environmental initiatives[163]. - The company has actively participated in public welfare activities, providing economic support to 1,573 underprivileged high school students[163]. Shareholder Information - The company has a total of 448,494 shareholders as of June 30, 2024, with 448,191 being A-share shareholders and 303 being H-share shareholders[105]. - The top 10 shareholders hold a total of 20.09% of the shares, with ZTE Corporation holding 958,940,400 A-shares and 2,038,000 H-shares[107]. - The company approved a cash dividend of RMB 6.83 per 10 shares, totaling approximately RMB 3.27 billion for the 2023 fiscal year[118]. - Cumulative cash profit distribution from 2021 to 2023 amounted to RMB 6.58 billion, representing 81.5% of the average annual net profit of RMB 8.07 billion for the same period[118]. Legal Matters - In the first half of 2024, the group did not experience any major litigation or arbitration matters as defined by the Shenzhen Stock Exchange and Hong Kong Stock Exchange regulations[166]. - A lawsuit was filed by ZTE Brazil against a Brazilian company for approximately 31.35 million Brazilian Reais (about 43.20 million RMB) due to unpaid goods, with a court ruling in favor of ZTE Brazil for the same amount plus interest and inflation adjustments[167]. - The Brazilian court confirmed that ZTE Brazil could offset a potential liability of 176.99 million Brazilian Reais (approximately 24.4 million RMB) in a related case if it loses[168]. Financial Management - The company has strengthened its foreign exchange risk management through various strategies, including internal settlement management and the use of foreign exchange derivatives[86]. - The company has a credit risk management system in place, including customer credit assessments and the purchase of credit insurance to mitigate potential impacts on business development[101]. - The company has maintained a loan repayment rate of 100% and an interest payment rate of 100%[188]. - The company has not encountered any significant high-risk financial management items or situations that could lead to impairment during the reporting period[179].
中兴通讯(00763) - 2024 - 中期业绩