2025-09-18 14:41Summary of ZTE Corporation Conference Call Company Overview - ZTE Corporation reported a revenue of 71.553 billion yuan for the first half of the year, representing a year-on-year growth of 14.51% with a net profit attributable to shareholders of 5.058 billion yuan [2][10] - The company is currently in the third phase of its strategic leap period, focusing on self-developed core specialized chips to build a product foundation [2][8] Key Business Segments - Revenue Breakdown: - Carrier business: approximately 49% - Government and enterprise business: 27% - Consumer business: 24% [2][12] - Government and Enterprise Business: - Revenue grew by 109.93% year-on-year, driven by rapid growth in server and storage income, with AI servers accounting for 55% [2][12][4] - Consumer Business: - Revenue reached 17.235 billion yuan in the first half of 2025, a year-on-year increase of 7.59%, with smartphone market revenue growing over 30% [2][15] Product Innovations and Developments - The second curve business (IT digital energy, liquid cooling, smart terminals) saw nearly 100% year-on-year growth, indicating strong momentum [2] - ZTE launched 12.8T and 51.2T switch products supporting 400G and 800G transmission, along with self-developed DPU chips [2][4] - The company has developed over 110 types of commercial chips, enhancing its core competitiveness in the market [5][19] Market Strategy - International Market Focus: - Targeting major countries, large operators, and networks, leveraging the upgrade from 4G to 5G [5][16] - Domestic Market Trends: - Although the peak of 5G construction has passed, there remains demand for upgrading old base stations and software enhancements, with potential 6G investment expected by 2028-2029 [5][17] Financial Performance - In Q2, ZTE achieved a revenue of 38.585 billion yuan, a year-on-year increase of 20.92%, with a net profit of 2.604 billion yuan [11] - The company reported a net profit of 5.058 billion yuan for the first half of the year, with a non-recurring net profit of 4.104 billion yuan [10] Competitive Advantages - ZTE's self-developed core chips have improved product gross margins and supported profit retention [3][14] - The company is positioned to benefit from the scale-up and scale-out scenarios in the server field, enhancing profitability in the government and enterprise business [18] Conclusion - ZTE Corporation is demonstrating robust growth across its business segments, particularly in government and enterprise services, while also making significant strides in product innovation and international market expansion. The strategic focus on self-developed technologies and adapting to market trends positions the company well for future growth.