2022-03-08 16:00Financial Performance - ZTE Corporation reported a significant increase in revenue, reaching approximately CNY 114.5 billion, representing a year-on-year growth of 10%[7]. - The company achieved a net profit of CNY 7.2 billion, which is a 15% increase compared to the previous year[8]. - In 2021, the company achieved a revenue of RMB 114.52 billion, representing a year-on-year growth of 12.9%[15]. - The net profit attributable to shareholders was RMB 6.81 billion, a significant increase of 59.9% compared to the previous year[20]. - The basic earnings per share for 2021 was RMB 1.47, reflecting strong profitability growth[15]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, increased by 219.23% to RMB 3,305.9 million in 2021 from RMB 1,035.6 million in 2020[21]. - The total revenue for the fourth quarter of 2021 was RMB 30,696.5 million, with a net profit of RMB 960.0 million[22]. - The overall gross margin for 2021 increased by 3.63 percentage points to 35.24%, driven by an improvement in the operator network gross margin, which rose by 8.66 percentage points to 42.45%[63]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 3 RMB per 10 shares to all shareholders, based on the total share capital as of the dividend record date[3]. - The board of directors proposes a cash dividend of RMB 3 per 10 shares to all shareholders, which will be adjusted based on the total number of shares on the dividend record date[156]. - The company has maintained a cumulative cash distribution of profits amounting to 62.6% of the average distributable profits over the last three years, exceeding the requirement of at least 30%[159]. - The audited net profit attributable to ordinary shareholders for 2021 is approximately RMB 8,270.19 million, with a total distributable profit of about RMB 13,100.76 million after accounting for retained earnings and statutory surplus reserves[155]. Corporate Governance - The board of directors has approved the annual report, ensuring the accuracy and completeness of the financial information presented[2]. - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and promoting equal rights for all shareholders[145]. - The board of directors is composed of nine members, including three executive directors with extensive experience in the electronics/telecommunications industry[162]. - The board of directors held a total of 14 meetings in 2021, with an attendance rate of 100% for all members[165]. - The independent non-executive directors confirmed their independence in accordance with the Hong Kong Stock Exchange Listing Rules[162]. - The audit committee held 7 meetings in 2021, addressing audit arrangements, financial reports, and internal control audits[191]. - The audit committee reviewed the unaudited financial statements for 2021, confirming compliance with accounting standards and no significant issues affecting the financial position[192]. Risk Management - The company emphasizes the importance of reading the risk factors associated with its future plans and operations[3]. - The company is managing foreign exchange risks through business strategy guidance, internal settlement management, and the use of foreign exchange derivatives[143]. - The company is controlling interest rate risks by managing the total amount of interest-bearing liabilities and optimizing the debt structure[144]. - The company has established a risk control and information disclosure system for derivative investments to effectively regulate investment behavior and control risks[99]. Research and Development - The company plans to invest CNY 10 billion in research and development for new technologies and products in the upcoming year[7]. - Research and development (R&D) investment amounted to RMB 18,804.0 million in 2021, a 27.08% increase from 2020, accounting for 16.42% of operating revenue[70]. - The number of R&D personnel increased by 5.28% to 33,422, representing 46.0% of the total workforce, up by 2.9 percentage points[69]. - The company has over 26 years of R&D experience in the chip field, achieving industry-leading full-process design capabilities and supporting product competitiveness through continuous iteration of processes, chips, and products[32]. Market Position and Strategy - ZTE aims to enhance its market presence in Europe and Asia, targeting a 15% increase in market share by 2025[8]. - The company is focusing on strategic partnerships and potential acquisitions to bolster its capabilities in cloud computing and AI technologies[7]. - The company is actively involved in the development of advanced technologies such as AI-based video compression, cloud rendering, and digital twin technology, enhancing user experience and operational efficiency[10]. - The company is addressing country-specific risks by establishing a comprehensive compliance management system and collaborating with external agencies for risk assessment[142]. Sustainability and Social Responsibility - ZTE is committed to achieving carbon neutrality by 2030, aligning with global sustainability goals[8]. - The company has outlined its corporate governance and social responsibility initiatives in the report[4]. - The company is committed to digital transformation and green low-carbon development as part of its strategic goals[29]. Operational Efficiency - The company is focusing on digital transformation and enhancing operational efficiency across all segments[18]. - The company aims to enhance operational efficiency through digital transformation and strengthen compliance management to mitigate enterprise risks[140]. - The company is integrating mobile, broadband, terminal chip modules, and ecological capabilities to create a "big terminal" for a comprehensive smart ecosystem[140].