ZTE has reported a net profit of RMB 564-million for the third quarter. The company strengthened its cost control, and reduced its sales and management expenses on a year-on-year basis.
In the third quarter, ZTE posted operating revenue of RMB 19,3-billion, and its R&D investment reached RMB 3,47-billion, covering 17,9% of the quarter’s revenue, a year-on-year increase of 6,7%, compared with 11,2% of the same period last year.
According to ZTE’s results announcement today, operating revenue of the first nine months ended 30 September 2018 reached RMB 58,8-billion, and net profit attributable to holders of ordinary shares of the listed company amounted to RMB -7,26-billion.
Meanwhile, the company published its Preliminary Announcement of 2018 Annual Results, estimating that net profit attributable to holders of ordinary shares of the listed company for the year of 2018 amounted from RMB -7,2-billion to RMB -6,2-billion.
During the first three quarters, ZTE adhered to the innovation-driven strategy, focused on valued customers and core products, proactively explored emerging technologies, and maintained great R&D investments in critical fields such as 5G wireless, core network, bearer, access and chipset. ZTE’s R&D expense reached RMB 8,5-billion, making up 14,5% of nine-month revenue, a year-on-year increase of 2,5%, compared with 12% of the same period last year.
ZTE’s major business are rapidly recovering with the negotiation and signing of new orders and the further implementation of existing orders. Meanwhile, the company has resumed normal operations in R&D, production and logistics. Specifically, its production and purchasing capabilities have been back on track, and its R&D progress has kept pace with the target pre-set at the beginning of the year. Also, ZTE has fully restored its customer services.
In addition, ZTE has deepened the negotiations with major global operators to constantly obtain new orders.