Financial Performance - ZTE Corporation reported a revenue of 100 billion CNY for the fiscal year 2024, representing a year-over-year growth of 15%[20]. - The company achieved a quarterly operating revenue of CNY 31,908.8 million in Q2 2024, with a net profit of CNY 2,991.4 million for the same period[35]. - The company reported a total of CNY 2,245.7 million in non-recurring gains for 2024, compared to CNY 1,926.2 million in 2023[37]. - The company's operating revenue for 2024 was CNY 121,298.8 million, a decrease of 2.38% compared to CNY 124,250.9 million in 2023[33]. - Net profit attributable to shareholders of the listed company for 2024 was CNY 8,424.8 million, down 9.66% from CNY 9,325.8 million in 2023[33]. - The net cash flow from operating activities decreased by 34.05% to CNY 11,479.8 million in 2024 from CNY 17,405.7 million in 2023[33]. - The gross profit margin decreased by 3.58 percentage points to 37.91% in 2024 from 41.49% in 2023[104]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 6,179.1 million, a decrease of 16.49% year-on-year[87]. - The company achieved other income of 2,932.7 million in 2024, a significant increase of 62.39% compared to 1,806.0 million in 2023[116]. Market Strategy and Expansion - The company aims to enhance its market share in existing markets while successfully expanding into new markets, focusing on profitable revenue and cash flow[9]. - ZTE plans to expand its market presence in Southeast Asia, aiming for a 25% market share by 2025[20]. - The company is actively pursuing a transformation towards a "connection + computing power" strategy to adapt to the evolving external environment[9]. - The company is focusing on major opportunities in the government and enterprise sectors, aiming for rapid growth through channel development and professional capability enhancement[11]. - The company is expanding its international presence by targeting key markets in Asia and Latin America, particularly in the data center and green low-carbon sectors[94]. Research and Development - The company is committed to advancing its R&D capabilities, emphasizing breakthroughs in core technologies and enhancing user experience in terminal products[11]. - Research and development expenses increased by 30%, totaling 15 billion CNY, focusing on AI and 5G technologies[20]. - The company is investing heavily in R&D, allocating 10 billion CNY, which is 10% of its total revenue, to develop new technologies and products[25]. - The number of R&D personnel decreased by 6.24% to 33,184 in 2024, representing 48.53% of the total workforce[114]. - The company has focused on green and intelligent solutions, achieving energy savings of over 35% through advanced RF module designs[47]. Product Development and Innovation - New product launches include a 5G-enabled device expected to contribute 5 billion CNY in revenue in the first year[20]. - ZTE has launched a new 5G technology, RedCap, aimed at reducing costs and power consumption, which is expected to capture a significant share of the industrial IoT market[25]. - The company has launched AI Core, integrating AI capabilities across network, business, and operations layers, which has been rated as a Leader by major consulting firms in 2024[49]. - The company has introduced innovative products in the 5G sector, including a dual-band 64TR AAU with a throughput of 20Gbps and a millimeter-wave AAU with a throughput exceeding 25Gbps[47]. - The company has launched a full-stack intelligent computing solution to meet the digital transformation needs across various industries, enhancing the competitiveness of its intelligent computing products[54]. Sustainability and Social Responsibility - ZTE is committed to sustainable development and social responsibility, actively participating in global green initiatives[13]. - The company is committed to a green low-carbon strategy, with a planned public donation of approximately 34.04 million in 2024[193]. - The company has successfully supported over 100 clients in launching core and critical business operations throughout 2024[45]. - The company is enhancing transportation management through a digital brain platform, significantly improving communication efficiency and reliability in railway operations[79]. Financial Management and Investments - The company's total assets increased by 3.17% to CNY 207,323.2 million in 2024, compared to CNY 200,958.3 million in 2023[33]. - The total liabilities rose by 1.20% to CNY 134,212.9 million in 2024 from CNY 132,626.9 million in 2023[33]. - The company's capital expenditure for 2024 was 5,021.8 million, compared to 4,959.6 million in the previous year[144]. - The company's cash demand is primarily for production and operations, repayment of maturing debts, capital expenditures, interest and dividend payments, and other unexpected cash needs[133]. - The company plans to use up to 20 billion RMB of its own funds for low-risk financial products in 2024[178]. Corporate Governance and Stakeholder Engagement - The board proposed a cash dividend of 6.17 per 10 shares for the 2024 fiscal year, subject to shareholder approval[155]. - The board consists of nine members, including three executive directors and three independent non-executive directors[183]. - The company respects the rights of stakeholders and actively collaborates with them for sustainable development[189]. Challenges and Risks - The company faces country-specific risks due to complex international economic and political situations, which may impact operations across various regions[198]. - The company is exposed to exchange rate risks primarily from sales, procurement, and financing in currencies other than RMB, which may affect its operations[200]. - The company aims to reduce exchange rate risks in the long term by promoting RMB pricing and settlement for overseas projects[200].
中兴通讯(00763) - 2024 - 年度业绩