ZTE reports revenues of $12.6 billion in Jan-Sep

ZTE said its R&D expenses accounted for for 20.7% of operating revenue during the period

Chinese vendor ZTE announced revenues of CNY 90.04 billion ($12.64 billion) for the first three quarters of 2024, representing an increase of 0.7% year-on-year. In a release, the vendor noted that its net profit for the period reached CNY 7.91 billion, up 0.8% year-on-year.

During the first three quarters, ZTE’s R&D expenses amounted to CNY 18.64 billion, accounting for 20.7% of operating revenue. The company said it continued to drive innovations in technologies such as 5G-A, all-optical networks and full-stack intelligent computing.

“In the first nine months of 2024, despite a complex and challenging external environment, ZTE maintained precise and pragmatic operations, ensuring stable management. The company actively capitalized on the development trends of the ICT industry, accelerating technological and market-driven innovation, while significantly enhancing its operational efficiency and management capabilities,” ZTE said.

“During the period, ZTE’s overall operations remained stable. While the domestic operator network business faced pressure due to the investment environment, the international market continued to achieve breakthroughs with major countries and key telecom operators, maintaining double-digit growth,” ZTE said.

Meanwhile, the company’s consumer and government-enterprise businesses achieved rapid growth during the first nine months, the vendor added.

“In the connectivity domain, ZTE continues to maintain a leading position in key products across both wireless and wired markets. According to the latest data from telecommunications consulting agencies, the company ranks second globally in cumulative shipments of 5G base stations and 5G core networks, as well as in market share for fixed network products,” the Chinese vendor said.

During MWC 2024, which took place in Barcelona earlier this year, ZTE announced 5G-Advanced (5G-A) plans and released a number of products. ZTE unveiled 10 5G-A products including UBR and FDD massive MIMO products,  mmWave products and non-terrestrial networks (NTN) ground base station to extend 5G-A scenarios, and the a series of products with integrated communication and computing for rich B2C, B2B applications.

Zhang Wanchun, senior vice president at ZTE, noted in his keynote speech during an event at MWC 2024 that, the unveiling of 5G-Advanced technologies is an exciting milestone for the possibility and potential of the future communication technology development. “5G-Advanced represents more than an evolution stage from 5G to 6G in speed and connectivity; it signals a paradigm shift in the way people live, work and play,” he said.

Meanwhile, Li Xiaotong, vice president at ZTE and general manager of RAN products, said: “5G-A is an enhancement to 5G and a connection to 6G. 5G-A will enhance its capabilities in three major 5G scenarios, in terms of eMBB, mMTC and uRLLC, and meanwhile, it will open up three major scenarios, including integrated sensing and communication, universal intelligence and ubiquitous connectivity.”