2024-08-16 10:34Financial Performance - The company reported a half-year financial performance for 2024, with a focus on maintaining accurate and complete financial reporting[2]. - The financial report for the first half of 2024 is prepared in accordance with Chinese accounting standards and is unaudited[2]. - The report period covers from January 1, 2024, to June 30, 2024[4]. - The board of directors confirmed the authenticity and completeness of the financial report during the meeting held on August 16, 2024[2]. - Operating revenue for the first half of 2024 reached CNY 62,487,098, a year-on-year increase of 2.94% compared to CNY 60,704,794 in the same period of 2023[11]. - Net profit attributable to shareholders of the listed company was CNY 5,732,446, reflecting a 4.76% increase from CNY 5,472,153 in the first half of 2023[11]. - The net cash flow from operating activities amounted to CNY 7,000,399, up 8.94% from CNY 6,425,897 in the previous year[11]. - Total assets as of June 30, 2024, were CNY 205,507,776, representing a 2.26% increase from CNY 200,958,318 at the end of 2023[11]. - The total liabilities increased to CNY 134,747,078, a rise of 1.60% from CNY 132,626,873 at the end of 2023[11]. - The basic earnings per share for the first half of 2024 was CNY 1.20, up 4.35% from CNY 1.15 in the same period of 2023[11]. Revenue and Growth - The company reported a significant increase in revenue, achieving a total of 100 billion CNY, representing a year-over-year growth of 15%[10]. - User data showed an increase in active users, reaching 50 million, which is a 20% increase compared to the previous year[10]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[10]. - The company achieved a revenue of 62,487,098 thousand yuan in the first half of 2024, representing a year-on-year growth of 2.94%[49]. - The gross profit margin for the first half of 2024 was 40.47%, a decrease of 2.75 percentage points compared to the previous year, primarily due to changes in revenue structure and varying profit margins across different business segments[49]. Strategic Initiatives - The company emphasizes the importance of reading the report's risk disclosures related to future plans and development strategies[2]. - The company will continue to focus on risk management and strategic planning in its operations moving forward[2]. - New product launches include a 5G-enabled device expected to contribute an additional 5 billion CNY in revenue[10]. - Market expansion efforts are underway, targeting Southeast Asia with an expected market entry by Q3 2024[10]. - The company is exploring potential acquisitions to strengthen its market position, with a focus on companies in the AI sector[10]. - A new strategy for cost reduction has been implemented, aiming for a 10% decrease in operational expenses by the end of the fiscal year[10]. Research and Development - The company is investing in R&D, with a budget increase of 25% to enhance technology development and innovation[10]. - The company is focusing on digital transformation and green low-carbon development trends, emphasizing continuous R&D investment to enhance core technology and product competitiveness[14]. - The company has achieved significant advancements in its core technologies, including distributed databases and operating systems, with a leading market share in the local deployment of distributed transaction databases in the banking sector[17][18]. - The company’s AI Core integrates AI capabilities across network, business, and operations layers, enhancing network efficiency and user experience[21]. Environmental and Social Responsibility - In the first half of 2024, ZTE Corporation's total investment in environmental governance and protection was approximately 16.9 million yuan, primarily for handling waste gas, wastewater, hazardous waste, and garbage[156]. - ZTE Corporation reported a total hazardous waste emission of 11.6258 tons for lead waste, which is well below the approved emission limit of 49 tons[154]. - The company’s public welfare foundation provided economic support to 1,573 underprivileged high school students in various provinces during the first half of 2024[158]. - ZTE Corporation planted a total of 157,500 trees covering an area of 1,925 acres in the Xiaoxing'anling region as part of its environmental initiatives[159]. Governance and Compliance - The company has established a governance structure that includes a board of directors, supervisory board, and management team, ensuring effective decision-making and compliance with regulatory requirements[101]. - The company is enhancing its compliance management system to mitigate country-specific risks and is collaborating with external professionals for risk assessment[95]. - The board consists of nine members, including three executive directors and three independent non-executive directors, complying with regulatory requirements[117]. Shareholder Information - The total number of shareholders as of June 30, 2024, is 448,494, with 448,191 A-share shareholders and 303 H-share shareholders[102]. - The largest shareholder, ZTE New Communications Co., Ltd., holds 20.09% of the shares, totaling 958,940,400 A shares[104]. - The company distributed a cash dividend of 6.83 RMB per 10 shares, totaling approximately 3,266,960,810.02 RMB (including tax) for the fiscal year 2023[113]. Legal and Risk Management - The group reported no significant related party transactions exceeding 30 million RMB or 5% of net assets as of June 30, 2024[165]. - The group is actively defending against a lawsuit from China State Construction Engineering Corporation, with claims totaling approximately 257 million RMB for breach of contract and damages[162]. - The company has established a risk control system for derivative trading to mitigate potential legal and operational risks[89].