Hua Er Jie Jian Wen·2025-10-28 12:56Core Insights - ZTE Corporation reported a significant increase in revenue but a drastic decline in net profit for the third quarter of 2025, indicating a "growth without profit" scenario [1][2] Financial Performance - In Q3 2025, ZTE's revenue reached 28.97 billion yuan, a year-on-year increase of 5.11%, while net profit plummeted by 87.84% to 264 million yuan [1][2] - For the first three quarters of 2025, total revenue was 100.52 billion yuan, up 11.63% year-on-year, but net profit fell by 32.69% to 5.32 billion yuan [1][2] - Operating costs surged to 69.81 billion yuan in the first three quarters, a 30.08% increase, significantly outpacing revenue growth [2] Profitability Metrics - The gross margin decreased from 40.39% in the previous year to 30.55%, reflecting a nearly 10 percentage point drop due to rising costs [2] - Basic and diluted earnings per share for Q3 were both 0.06 yuan, down 86.67% year-on-year [1] Cost Management and Investment Gains - ZTE managed to reduce R&D expenses by 4.43% to 17.81 billion yuan, lowering the R&D expense ratio from 20.7% to 17.7% [3] - Sales expenses decreased by 1.50% to 6.25 billion yuan, with the sales expense ratio dropping from 7.05% to 6.22% [3] - Investment income improved from a loss of 256 million yuan to a gain of 221 million yuan, contributing to a net improvement of 1.86 billion yuan [3] Stock Performance - ZTE's stock price fell by 3.76% to 49.39 yuan per share, down over 10% from its yearly high of 55.85 yuan [4]