2 1 Shi Ji Jing Ji Bao Dao·2025-10-30 00:23Core Viewpoint - The telecommunications industry is accelerating the exploration of computing power business potential, with ZTE Corporation reporting a revenue increase but a significant decline in net profit for the first three quarters of the year [1] Financial Performance - For the first three quarters, ZTE achieved a total revenue of 100.52 billion yuan, a year-on-year increase of 11.6% [2] - The net profit attributable to shareholders was 5.32 billion yuan, down 32.69% year-on-year [2] - Operating cash flow for the first three quarters decreased by 77.92% to 1.78 billion yuan [2] - Basic and diluted earnings per share were both 1.11 yuan, reflecting a decrease of 32.73% [2] Business Segments - The operator network revenue was under pressure due to a decline in domestic telecom infrastructure investment, while international market revenue grew [2][3] - The enterprise business revenue increased by 130% year-on-year, and consumer business revenue showed steady growth [2] - The computing power segment saw a significant revenue increase of 180% year-on-year, with server and storage revenue up 250% and data center product revenue up 120% [6] Industry Trends - Domestic telecom operators are reducing capital expenditures on communication infrastructure as the 5G-A network matures, impacting ZTE's performance [3] - Capital expenditure in the computing power sector is expected to continue rising, with China Mobile planning to allocate 373 billion yuan to computing power in 2025, representing an increase to 25% of its total capital expenditure [3] Strategic Direction - ZTE is transitioning towards a "connectivity + computing power" strategy, focusing on consolidating its domestic market while actively investing in future technologies [4] - The company has segmented its business into four areas: network (50%), computing power (25%), home (15%), and personal (10%), indicating a rising share of computing power revenue [4] - ZTE's self-developed DPU chips and high-capacity switching chips are being utilized in major domestic internet and financial companies, enhancing its position in the computing power market [7]