Nan Fang Du Shi Bao·2025-10-29 04:17Core Insights - ZTE Corporation reported a revenue of 100.52 billion yuan for the first three quarters of 2025, marking an 11.63% year-on-year increase [2] - The company faced challenges in profitability, with a net profit of 5.322 billion yuan, and a significant decline of 43.77% in net profit after excluding non-recurring gains and losses [2][4] Revenue Growth - The "second curve" strategy focusing on computing power has driven significant revenue growth, with computing revenue increasing by 180% [3] - The enterprise business saw a remarkable growth of 130% year-on-year, while server and storage revenue surged by 250% [3] - Computing revenue now accounts for 25% of total revenue, indicating a strong shift towards this new business model [3] Profitability Challenges - In Q3 2025, the company reported a revenue of 28.967 billion yuan, a 5.11% increase year-on-year, but net profit dropped by 87.84% to 264 million yuan [4] - The net profit for the first three quarters declined by 32.69%, with a 43.77% drop in net profit after excluding non-recurring items [4] - The increase in operating costs, which reached 69.811 billion yuan (up 30.08% year-on-year), has significantly impacted profitability [4] Cash Flow and Future Outlook - The net cash flow from operating activities for the first three quarters was 1.777 billion yuan, a substantial decrease of 77.92% [5] - The company is navigating a critical transformation period, balancing traditional operator business adjustments with the growth of new business lines [5] - Future focus will be on enhancing the profitability of the new computing-driven enterprise business while managing cash flow challenges during the transition [5]