ZTE's 2025 New Year Address: Forging Ahead, Ushering in a New Chapter of "Connectivity + Computing Power"

ZTE's 2025 New Year Address: Forging Ahead, Ushering in a New Chapter of "Connectivity + Computing Power"2024 marked the end of the first phase of ZTE's "Surpassing" strategic period, a year full of both challenges and opportunities. In Chairman Li Zixue's 2025 New Year address, he reviewed the achievements of 2024 and outlined new aspirations and strategic plans for 2025

ZTE's 2025 New Year Address: Forging Ahead, Ushering in a New Chapter of "Connectivity + Computing Power"

2024 marked the end of the first phase of ZTE's "Surpassing" strategic period, a year full of both challenges and opportunities. In Chairman Li Zixue's 2025 New Year address, he reviewed the achievements of 2024 and outlined new aspirations and strategic plans for 2025. The full address is as follows:

Time flies, and a new year begins. On this occasion of bidding farewell to the old and welcoming the new, on behalf of ZTE Corporation, I would like to express my sincere gratitude for the support and trust of our global customers, partners, investors, and all sectors of society, and extend my New Year's greetings to you all! I also extend my heartfelt regards and best wishes to all ZTE employees and their families who provide unwavering support behind the scenes!

In 2024, we worked together shoulder to shoulder, overcoming numerous difficulties on the "Surpassing" journey and forging ahead. This year, we faced challenges head-on and persevered. With the 5G network construction entering maturity and the rapid development of AI technology, cross-industry integration is accelerating, making the company's transformation from connectivity to computing power increasingly urgent.

Despite numerous challenges, thanks to the concerted efforts of all employees, the company has demonstrated strong resilience and growth momentum. In the network field, we responded to changes in customer investment structure, deepened collaboration and refined cultivation, and our global market share has steadily increased; in the computing power field, we kept pace with the construction boom, our intelligent computing overall solutions are becoming increasingly sophisticated, and market project opportunities are gradually materializing; in the terminal field, the overseas mobile phone market continues to develop, and the rapid growth of cloud computers contributes incremental gains; in the digital energy field, data center business maintains rapid growth, and the expansion of new directions in energy storage brings long-term development opportunities.

We are unwavering in our belief and full of fighting spirit. Whether in China or overseas, from production lines to communication rooms, the pioneering and diligent figures of our frontline employees are everywhere. Behind the three first-class and two second-class National Science and Technology Progress Awards, lies the tireless dedication and relentless pursuit of independent innovation by our R&D personnel. The certification of the Binjiang base as China's first five-star 5G factory is a solid footprint of our commitment to "using 5G to manufacture 5G, and using intelligent production to create intelligence," empowering and promoting new industrialization. The carbon emission project receiving the highest "A" rating from CDP, a global authority, demonstrates our serious commitment to green and low-carbon development. On the front lines of disaster relief during the extremely heavy rainstorm in Huludao and the super typhoon in Hainan, we used emergency communication drones to build an aerial information lifeline, using technological innovation to demonstrate the responsibility and dedication of ZTE people.

Looking ahead to 2025, the external environment remains complex and volatile, with a new round of technological revolution and industrial transformation deepening, AI becoming a competitive high ground, and 5G-A continuously expanding new intelligent connection scenarios. Opportunities and challenges coexist, and we must maintain strategic determination, accelerate the expansion and transformation towards "connectivity + computing power," and accelerate the creation of a new situation.

Centering on the business theme of "steady progress and innovation," we will enhance major risk control, ensure steady revenue growth, and maintain a balance between revenue and profit. We will improve the occupancy rate of the existing market, expand the success rate of the incremental market, and increase the coverage rate of variable opportunities. With long-term operation as the ultimate goal, we will contribute "profitable revenue and cash-flow-generating profits."

In terms of business expansion:

• Network field: We will cultivate and explore, seizing opportunities in 5G-A and all-optical networks to continuously improve our market position.

• Computing power field: We will adhere to positioning intelligent computing as a long-term strategic main channel, strengthen the development of the "ten thousand-card project" and large model capabilities, leverage our full-stack technological advantages, promote open decoupling, strengthen computing power with networks, achieve win-win cooperation, and promote the development of a diversified domestic intelligent computing ecosystem.

• Government and enterprise field: We will seize the momentum, grasp major opportunities in industry computing power construction, major emergencies, and integrated vehicle-road-cloud solutions, cultivate key industries and leading customers, strengthen channel construction, enhance professional capabilities, and achieve leapfrog growth.

• Terminal field: Smartphones will continue to pursue cost leadership and product differentiation strategies overseas; in China, we will strengthen e-commerce expansion and flagship phone breakthroughs. Cloud computers should seize the window of opportunity for rapid scaling.

In terms of R&D, we will adhere to technological leadership and breakthroughs in fundamental technologies, strengthen the "chip + complete machine + modular R&D + large model" paradigm, continuously consolidate the foundation of core technologies, solidify the leading competitive position of network products, strengthen the comprehensive solution capabilities of computing power products, improve the user experience and cost advantages of terminal products, and inject strong momentum for breakthroughs into new fields such as new energy and automotive electronics.

In terms of management, we will bravely innovate and actively adapt to the process of the company's business structure gradually shifting towards the government and enterprise and consumer markets, vigorously promoting the innovative model of "large enterprise small team," accelerating agile transformation, deepening internal collaboration, creating a new ecosystem of competition and cooperation, and continuously expanding our "circle of friends." We will deepen the construction of an "ultimate AI company," leveraging AI technology to significantly improve process and operational efficiency; improve the construction of a standardized and intelligent quality prevention system, keeping complexity to ourselves and simplicity to our customers, safeguarding the quality bottom line, and building quality competitiveness.

We will continue to strengthen the three strategic cornerstones of "talent, compliance, and internal control," adhering to the principle of valuing contributors, stimulating organizational creativity, building a world-class compliance platform, and establishing a sound and effective internal control system to prevent risks, ensure stability, and promote development. We will strengthen market value management in the capital market, enhance investor confidence, and deliver returns to shareholders. We will actively practice global green and low-carbon initiatives, assume social responsibility, and jointly shape a sustainable future.

2025 marks the 40th anniversary of ZTE's founding. Starting as a small factory engaged in processing supplied materials, the company, through the continuous efforts of several generations, has grown into a leading global provider of comprehensive information and communication technology solutions. Throughout its forty years of development and growth, the corporate culture rooted in the core values proposed by founder Hou Weigui has been passed down from generation to generation, encouraging all ZTE people to forge ahead bravely.

Looking back on the past, the competition of a thousand ships is now a memory; looking forward to the future, a mighty spring breeze is setting sail. Forty years of deep accumulation, the spirit of hard work and innovation ingrained in our blood, has filled us with the momentum to forge ahead. Forty years of dedicated cultivation, long-term adherence to independent R&D of core technologies, and comprehensive breakthroughs in underlying core technologies have laid the foundation for our striving for excellence. Forty years of journey through wind and rain, seizing opportunities in one technological revolution after another, has demonstrated our perseverance in forging ahead.

The deeper the thinking, the more determined the action. Despite the challenges of a severe external environment and profound internal transformation, no difficulty can stop our progress! Unwavering in our original aspiration and inheriting our mission, on the new journey of "Surpassing," let us continue to bravely break through, move forward with even greater determination, and write a new chapter of our own!

Finally, at this beautiful moment of bidding farewell to the old and welcoming the new, I wish you all a refreshing new year, filled with smoothness, health, good fortune, and happiness!

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