中兴通讯：51亿净利润“质量堪忧”

Core Viewpoint - ZTE Corporation reported a net profit of 5.148 billion yuan for 2019, but the quality of this profit is questionable due to significant reliance on non-recurring gains and tax refunds [1][2][6]. Financial Performance Summary - ZTE's total revenue for 2019 was 90.737 billion yuan, representing a year-on-year growth of 6.11% [1]. - The net profit of 5.148 billion yuan includes 2.663 billion yuan from land sales, highlighting a dependency on asset disposals for profit [1][7]. - After excluding non-recurring gains, the adjusted net profit was only 484.7 million yuan, raising concerns about the sustainability of its core business profitability [1][4][6]. Non-Recurring Gains Breakdown - The non-recurring gains before tax amounted to 5.504 billion yuan, with a post-tax figure of 4.663 billion yuan [2]. - Major components of non-recurring gains included: - Disposal of non-current assets: 2.688 billion yuan (48.84%) - Other non-recurring items: 2.713 billion yuan (49.30%) [3]. - Tax refunds and investment income contributed significantly to the reported profits, with software product VAT refunds at 1.24478 billion yuan and investment gains at 819.63 million yuan [5][6]. Land Sale Contribution - The land sale from the Shenzhen Bay project contributed 2.662 billion yuan to ZTE's profits, accounting for 37% of the total profit [7][8]. - The company utilized land leasing as a strategy to bolster profits during challenging financial periods, raising questions about the sustainability of this approach moving forward [8][9].