Huan Qiu Lao Hu Cai Jing·2025-12-12 08:09Core Viewpoint - ZTE Corporation's stock experienced significant volatility, with a sharp decline followed by a strong rebound, influenced by market rumors and a planned share buyback to stabilize investor confidence [1][2][3]. Group 1: Stock Performance - On December 12, ZTE's A-shares rebounded strongly, transitioning from a decline to an increase, while H-shares rose over 5% after a previous day where A-shares hit the daily limit down and H-shares fell more than 13% [1]. Group 2: Share Buyback Announcement - ZTE announced a plan to repurchase A-shares using its own funds, with a total buyback amount set between 1 billion and 1.2 billion yuan, aimed at implementing an employee stock ownership plan or equity incentives [2]. - The buyback is expected to involve approximately 19.02 million shares, accounting for about 0.40% of the company's total share capital, based on a maximum repurchase price of 63.09 yuan per share [2]. Group 3: Market Concerns and Clarifications - The urgent buyback was initiated in response to negative rumors regarding potential violations of the Foreign Corrupt Practices Act, which could lead to over 1 billion USD in payments to the U.S. government, prompting market sell-offs [3]. - ZTE clarified that it is in communication with the U.S. Department of Justice regarding these matters and firmly opposes any form of corruption, maintaining a zero-tolerance policy towards any potentially involved individuals [3]. Group 4: Financial Performance - For the first three quarters of the year, ZTE reported revenues of 100.52 billion yuan, a year-on-year increase of 11.63%, while net profit attributable to shareholders decreased by 32.69% to 5.32 billion yuan [4]. - The third quarter saw revenues of 28.97 billion yuan, a 5.11% increase, but net profit dropped by 87.84% to 264 million yuan, with a significant decline in non-recurring net profit [4]. - The overall gross margin fell to 30.55%, primarily due to decreased investment in communication infrastructure by domestic operators, impacting the operator network business [4]. - Despite challenges, ZTE's computing revenue grew significantly, with a 180% year-on-year increase, particularly in server and storage revenue, which rose by 250% [4]. However, computing business still only accounted for 25% of total revenue, limiting its impact on overall performance [4].