Chang Jiang Shang Bao·2025-10-30 02:15Core Insights - ZTE Corporation reported a significant increase in revenue but a substantial decline in net profit for the first three quarters of 2025, indicating a "revenue without profit" scenario [2][3][4] Revenue Performance - ZTE achieved a historic revenue milestone, surpassing 100 billion yuan, with total revenue reaching approximately 1005.20 billion yuan, reflecting a year-on-year growth of 11.63% [3][4] - The revenue growth rate for the first three quarters of 2025 is the highest compared to the previous three years, where revenues were 925.59 billion yuan, 893.93 billion yuan, and 900.45 billion yuan respectively [3] Profitability Issues - The net profit attributable to shareholders for the first three quarters was approximately 53.22 billion yuan, a decrease of 25.84 billion yuan compared to the previous year, marking a year-on-year decline of 32.69% [4][6] - The company reported a significant drop in net profit for the third quarter, with a nearly 90% year-on-year decline, and a negative non-recurring net profit of -2.25 billion yuan, indicating a rare loss situation [4][5] Cost and Expense Analysis - ZTE's operating costs surged to 698.11 billion yuan, a year-on-year increase of 30.08%, which outpaced revenue growth [2][4] - Research and development expenses decreased to 178.14 billion yuan, down by 8.27 billion yuan year-on-year, reflecting a reduction in investment in innovation [6][11] Cash Flow and Financial Metrics - The net operating cash flow for the first three quarters was 17.77 billion yuan, a dramatic decline of 62.72 billion yuan, representing a drop of 77.92% year-on-year [11] - The company experienced a notable increase in financial expenses, which rose to -3.91 billion yuan compared to -1.66 billion yuan in the previous year [7] Market Dynamics and Strategic Shifts - ZTE is facing challenges due to a slowdown in global 5G investments, prompting a strategic shift towards new markets such as intelligent computing servers [2][9] - The company's enterprise business revenue surged by 109.9% to 192.54 billion yuan, becoming a key driver of overall revenue growth, despite its lower profit margins [9][10]