China-based ZTE booked profit growth in the first nine months of 2021, with a rising share of the country’s 5G market driving a double-digit increase in revenue.
Net profit increased 130.9 per cent year-on-year to CNY3.3 million ($516.9 million) on revenue of CNY83.8 billion, up 13.1 per cent. Gross profit margin rose by 4.7 percentage points to 36.8 per cent.
The company stated its operator network, government and enterprise, and consumer businesses “maintained good growth momentum in both domestic and international markets”.
COO Xie Junshi (pictured) told a ZTE analyst conference its operator business recorded a larger market share of 5G wireless and core network products in China.
He noted the company is committed to becoming a “highly resilient” operating organisation to adapt to the challenge of “uncertainty in the new normal, and adhere to a green and low-carbon strategy to achieve long-term sustainable development”.
R&D expenses increased 31.3 per cent to CNY14.2 billion, accounting for 16.9 per cent of revenue compared with 14.6 per cent.
Xie said it established Future Lab for R&D of prospective technologies and is partnering with top universities and research institutes to establish “long-term cooperation mechanisms for innovation”.
Net profit in Q3 increased 125.4 per cent to CNY1.2 billion, with operating revenue increasing 14.2 per cent to CNY30.8 billion.
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