Financial Performance - ZTE Corporation reported a revenue of CNY 124,250.9 million in 2023, representing a year-on-year increase of 1.05% from CNY 122,954.4 million in 2022[18]. - The net profit attributable to shareholders increased by 15.41% to CNY 9,325.8 million in 2023, compared to CNY 8,080.3 million in 2022[18]. - The net cash flow from operating activities surged by 129.70% to CNY 17,405.7 million in 2023, up from CNY 7,577.7 million in 2022[18]. - Total assets reached CNY 200,958.3 million, an increase of 11.06% from CNY 180,953.6 million in 2022[18]. - The company's total liabilities rose by 9.24% to CNY 132,626.9 million in 2023, compared to CNY 121,410.4 million in 2022[18]. - Basic earnings per share increased by 14.62% to CNY 1.96 in 2023, up from CNY 1.71 in 2022[19]. - The weighted average return on equity improved to 15.19%, up 0.53 percentage points from 14.66% in 2022[18]. - The gross profit margin for 2023 was 41.53%, up 4.34 percentage points year-on-year, driven by improvements in operator networks, government and enterprise, and consumer businesses[57]. - The revenue from the carrier network segment was CNY 82,758.9 million, growing by 3.40% year-on-year, with a gross margin of 49.11%, an increase of 2.89 percentage points[62]. - The enterprise business revenue decreased by 7.14% year-on-year to CNY 13,583.5 million, but the gross margin improved by 9.59 percentage points to 34.94%[63]. - The consumer business revenue was CNY 27,908.5 million, down 1.33% year-on-year, while the gross margin increased by 4.50 percentage points to 22.26%[65]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 6.83 per 10 shares to all shareholders, subject to approval at the shareholders' meeting[2]. - The proposed cash dividend for 2023 is 6.83 CNY per 10 shares, with a total cash distribution not exceeding 3.303 billion CNY, representing 35.0% of the net profit attributable to shareholders of 9.33 billion CNY[147]. - As of December 31, 2023, the company has accumulated distributable profits of approximately 25.22 billion CNY[147]. - The company has a total of 403,259 shareholders as of December 31, 2023, with 402,955 holding A-shares and 304 holding H-shares[127]. - The top 10 shareholders hold only unrestricted shares, indicating a stable shareholder structure[128]. Strategic Focus and Innovation - The company emphasizes the importance of maintaining strategic focus and innovation to navigate the increasingly competitive ICT industry[10]. - In 2024, the company aims for "strategic breakthrough" amidst complex environments and opportunities in 5G and AI-driven markets[10]. - The company plans to enhance its core competitiveness in wireless and wired products while rapidly developing its computing power business[11]. - The company is committed to precise growth strategies, focusing on accurate market positioning and resource allocation[11]. - The company aims to deepen digital transformation and optimize processes to improve operational efficiency[11]. - The company highlights the significance of ESG principles in its operations and governance[11]. - The company recognizes the dual nature of opportunities and challenges in the current technological revolution[11]. - The company is focused on leveraging its technological advantages to overcome difficulties and drive progress[11]. - The company aims to create value for customers and returns for shareholders while contributing to societal development[11]. - The company is committed to fostering a high-resilience organization and enhancing risk prevention capabilities[11]. Research and Development - Research and development investment amounted to CNY 26,783.3 million, a 14.34% increase from the previous year, representing 21.56% of operating revenue, up 2.51 percentage points[69]. - The company launched the world's first 5G cloud laptop "Yufeng 2" and achieved the top market share in the domestic cloud terminal market[62]. - The company is investing heavily in R&D, with a budget allocation of 10% of total revenue, focusing on 5G technology advancements[188]. - The group has 35,393 R&D personnel, representing 49.1% of the total workforce[199]. Market Expansion and International Presence - The company is actively expanding its overseas market presence, including a data center project for China Telecom in Indonesia[37]. - The company is focusing on the promotion of FTTR in the optical network terminal sector, enhancing smart home applications[55]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[182]. - The company is considering strategic acquisitions to enhance its technology portfolio, with a budget of 2 billion yuan allocated for potential mergers and acquisitions[188]. Corporate Governance - The company has established a multi-layered corporate governance system to enhance operational transparency and efficiency[123]. - The company has a mission to connect the world through networks and lead innovation for the future[122]. - The company has a compliance management committee overseeing adherence to laws and regulations impacting its operations[112]. - The company has established clear contracts with financial institutions to minimize operational risks[110]. - The company has a board diversity policy, currently with 22% female representation among board members[155]. Risk Management - The company faces various operational risks, including country risk, intellectual property risk, and exchange rate risk, which may impact its business operations[117][118][119]. - The company is committed to enhancing compliance management to mitigate risks associated with international operations across over 100 countries[117]. - The company has established a risk control system for derivative transactions to mitigate legal risks and enhance financial stability[110]. - The company is actively expanding its global low-cost financing channels to manage interest rate risk through diversified debt structures[120]. Employee and Workforce Information - As of December 31, 2023, the total number of employees in the group is 72,093, with an average age of 34.6 years[198]. - Female employees account for approximately 23.9% of the total workforce, totaling 17,233 individuals[198]. - The total employee compensation for the group in 2023 is approximately 30 billion yuan[200]. - Employee compensation includes salaries, bonuses, and allowances[200]. - The company has implemented a recruitment strategy focused on diversity in gender, age, education, and professional experience[199].
中兴通讯(00763) - 2023 - 年度财报