ZTE's Q3 Report: Steady Operations, Accelerated Growth in Multiple Fields, and Deepening Digital Transformation

ZTE's Q3 Report: Steady Operations, Accelerated Growth in Multiple Fields, and Deepening Digital TransformationZTE released its Q3 2024 report on October 21, 2024. The report shows that from January to September 2024, the company achieved revenue of 90

ZTE's Q3 Report: Steady Operations, Accelerated Growth in Multiple Fields, and Deepening Digital Transformation

ZTE released its Q3 2024 report on October 21, 2024. The report shows that from January to September 2024, the company achieved revenue of 90.04 billion yuan, an increase of 0.7% year-on-year; net profit attributable to shareholders of 7.91 billion yuan, an increase of 0.8% year-on-year; non-GAAP net profit attributable to shareholders of 6.9 billion yuan; and net operating cash flow of 8.05 billion yuan. Against a backdrop of a complex and ever-changing external environment, ZTE has maintained steady operations, actively grasped the development pace of the ICT industry, accelerated technology and market innovation, and improved its management efficiency and operating efficiency.

In the first three quarters, the company's overall operations remained stable. While the domestic operator network business was under pressure due to the investment environment, the international market continued to make breakthroughs with major operators and large carriers, achieving double-digit growth. Simultaneously, consumer and enterprise businesses both achieved rapid growth. The company's R&D expenditure in the first three quarters was 18.64 billion yuan, accounting for 20.7% of total revenue, driving technological innovations such as 5G-A, full-fiber optic networks, and full-stack intelligent computing, accelerating deep integration and application with various industries, and providing strong support for accelerating the development of new forms of productivity.

In the field of connectivity, ZTE continues to maintain its leadership in key products in both the wireless and wired markets. According to the latest data from telecommunications consulting firms, the company ranks second globally in terms of 5G base station and 5G core network shipments, and holds the second-largest global market share in fixed-line products. Its RAN products, 5G core networks, and 5G optical transmission have received industry leader ratings. The company's optical access products have gained international recognition and won three awards at the international NetworkX Summit.

Focusing on the commercial deployment and application of 5G-A, ZTE has conducted all-scenario technological innovation and cooperation with operators to jointly build a "air-ground-space integrated" 5G-A all-domain stereo network, stimulating new business vitality in ground, low-altitude, and high-altitude tracks, and promoting the new development of satellite internet. Among them, in the field of low-altitude economy, the company has collaborated with partners to verify the application of 5G-A integrated sensing and communication in multiple scenarios such as logistics delivery and low-altitude safety in over 80 pilot projects across 25 provinces and municipalities, including Beijing, Nanjing, and Shenzhen. In addition, the company has launched the 800GOTN pluggable solution, achieving a transmission distance of 2,000 km, and has released a new generation of intelligent optical access products based on 50GPON technology, providing users with gigabit access experience and helping the industry enter the era of gigabit optical networks.

In the field of computing power, ZTE has identified intelligent computing as its long-term strategic main track, providing full-stack, full-scenario intelligent computing solutions, and building an open, inclusive, and prosperous intelligent computing ecosystem. In terms of intelligent computing infrastructure and platform technology, the company has launched an "one-machine-multiple-cores" open architecture AI server that is compatible with mainstream GPUs and uses network-strong computing, launching 2200G network cards based on self-developed chips. It is promoting the OLink high-speed bus interconnection standard and has independently developed high-capacity switching chips, carrying out research in areas such as core technologies for clusters with over 10,000 cards, native computing power, long-distance interconnection of intelligent computing centers, and intelligent distribution of inference tasks. The company focuses on integrated delivery of infrastructure and engineering services for large model training and application, and is promoting the implementation of intelligent computing infrastructure construction projects in multiple locations and industries.

In terms of large models and applications, the company has independently developed the Xingyun series of large models, with R&D large models effectively driving improved R&D efficiency. Communication large models have been applied in scenarios such as anti-fraud, heavy protection, new calls, and experience assurance, accelerating the advancement of self-aware networks, and actively expanding models and applications in fields such as industry, automobiles, steel, water conservancy, and urban lifelines. In terms of application ecosystems, the company has established an open intelligent computing laboratory, providing GPU interconnection, optimization, and large model compatibility testing and certification for multiple manufacturers, working with industry partners to actively promote the construction of domestic open intelligent computing infrastructure and application ecosystems.

In the field of terminals, adhering to the "AI for All" concept, ZTE is actively promoting intelligent transformation, striving to make cutting-edge AI products accessible to the global public. In the third quarter, the company released the fully upgraded AI all-round imaging flagship Nubia Z60 Ultra leading version and the AI + satellite phone Nubia Z60S Pro, and launched the inclusive 5G phone ZTE Yuanhang 40s. The Nubia brand continues to advance its overseas strategy, with characteristic products such as Neo2, Music, and Focus entering markets such as Argentina, Ethiopia, and Germany. Aiming at home users, the company is building a high-quality gigabit network experience, with FTTR products continuously innovating, launching the industry's first AI-enabled screen series product RoomPON 6.0. Cloud terminal products further strengthen market competitiveness, ranking first in domestic cloud terminal shipments in the first half of the year.

The automotive electronics business is deepening its cooperation with car manufacturers. The company has jointly released the self-developed automotive-grade high-performance central computing unit SOC chip "Han Yu" M1 with car manufacturers; signed a strategic cooperation agreement with FAW for the multi-domain fusion chip "Red Flag No. 1"; and launched a million-level car-cloud communication major product with SAIC Motor, realizing the industry's first mass production of domestic automotive-grade dual-core 4G communication modules, accelerating the overseas expansion of domestic intelligent connected vehicles with SAIC Motor.

ZTE is actively promoting the application of intelligent digital technologies in its own business and in the industry. The company's data management capabilities have received the highest level 5 certification in the national Data Management Capability Maturity Assessment (DCMM), reaching a leading level in China. ZTE's Nanjing Smart Binjiang 5G Factory has won the first five-star 5G Factory certification in China, becoming a benchmark for the deep integration of 5G technology and electronic equipment manufacturing.

In terms of industry empowerment, the company relies on the 5G+PON industrial field network and Digital Xingyun, combined with the Xingyun large model, to comprehensively assist the digital construction of numerous industries, including industry, transportation, emergency response, electricity, culture and tourism, education, and small and micro enterprises. Among them, the smart major emergency response system has won 50% of the market share in the national emergency aviation capability rescue improvement project, and the large unmanned helicopter rescue platform has provided support on the front lines of multiple disaster relief efforts. Based on 5G+XR network media fusion to empower digital cultural tourism construction, the company has jointly created the world's first 5G-AVR large-space immersive theater project with partners.

Looking ahead, as intelligent digital technology applications deepen and become more practical in industries, ZTE will adhere to bottom-line innovation, consolidate the intelligent digital foundation, expand application boundaries, and work closely with customers, industries, and ecosystem partners for mutual benefit and win-win results, promoting intelligent digital transformation across industries and contributing to high-quality industrial development.

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