ZTE records a net profit of 863 million yuan ($128 million) in Q1 2019

Monday, 29 April 2019 at 10:56

Chinese manufacturing company, ZTE, released its first quarterly report for 2019 and the semi-annual performance forecast for 2019. The 2019 semi-annual results forecast shows that ZTE expects net profit from 1.2 billion yuan (∼$178 million) to 1.8 billion yuan (∼$276 million). From January to March 2019, ZTE realized an operating income of 22.202 billion yuan (∼$3.3 billion), and the net profit attributable to ordinary shareholders of listed companies was 863 million yuan (∼$128 million). In the first quarter of 2019, the company continued to strengthen its cost control and its sales expenses decreased year-on-year.

In the first quarter of 2019, ZTE adhered to the innovation drive and firmly invested in 5G R&D. Its research and development investment was 3.093 billion yuan, accounting for 13.9% of operating income. This is about 4.1% higher than the 9.8% increase in the same period of last year. The financial report shows that ZTE has cooperated with more than 40 operators around the world in 5G, and its cumulative shipment share for global 4G base stations are close to 20%.

The Q1 2019 financial records posted by ZTE is quite impressive considering what it has endured in recent times. Just like Huawei, the Chinese manufacturer also has a couple of restrictions especially in the US and allied countries. Nevertheless, this has not stopped the company from pulling through with some good deals.