Chinese networking vendor ZTE maintained its strong profit growth in 2015, but this time it was fuelled by a healthy jump in revenues as much as cutting overheads.
In its guidance for full-year 2015 ZTE said it expects revenue to top RMB 100 billion, with improved sales of LTE and optical networks driving the growth as well as smart city, enterprise ICT solutions and routers.
This will mark a 24% increase in revenues from 2014, which saw ZTE almost double its profits in spite of modest revenue growth thanks to a fairly extensive streamlining exercise. 2015 profits didn’t increase by such a large ratio this time but by a similar number in absolute terms – jumping by 44% to RMB 3.78 billion.
ZTE recorded higher sales of 4G long-term evolution (LTE) network solutions internationally, in addition to China,” said the ZTE announcement. “The company also posted increased sales of optical network solutions as the demand for broadband networks strengthens.
The growth in annual revenue was also driven by increased sales of high-end routers in overseas markets, while ZTE posted higher revenue from sales of enterprise information and communications technology (ICT) solutions including smart city and data centre solutions to companies and government departments. In addition, ZTE also boosted sales of 4G smartphones outside China, as well as terminal products for homes.
|Item||Year ended 31 December 2015||Year ended 31 December 2014||Change (percent )|
|Operating revenue||RMB 100.83 billion||RMB 81.47 billion||23.8 percent|
|Net profit attributable to shareholders of the listed company||RMB 3.78 billion||RMB 2.63 billion||43.5 percent|
|Basic earnings per share||RMB 0.92||RMB 0.64||43.8 percent|