- Maintaining steady global business development while accelerating 5G 
infrastructure deployment 

ZTE Corporation (0763.HK / 000063.SZ), a major international provider of 
telecommunications, enterprise and consumer technology solutions for the Mobile 
Internet, today announced its first quarterly results ended 31 March 2020.

According to the announcement, for the three months ended 31 March 2020, ZTE 
reported operating revenue of RMB21.484 billion. Net profit attributable to 
holders of ordinary shares of the listed company reached RMB780 million, and 
net profit after extraordinary items attributable to holders of ordinary shares 
of the listed company amounted to RMB160 million, representing a year-on-year 
increase of 20.5%. Basic earnings per share was RMB0.18. 

The company continued to strengthen its R&D investment to build up its core 
competitiveness. For the three months ended 31 March 2020, the research and 
development costs amounted to RMB3.241 billion, 15.1% of operating revenue, 
increased by 1.2 percentage point compared to the same period last year.

During the first quarter of 2020, ZTE has placed great priority on its employee 
health and global customer services by promptly building and upgrading a remote 
office and customer service platform for all its employees. Moreover, the 
company has coordinated with partners to fight against COVID-19 and facilitate 
the resumption of production with digital means in an orderly manner.

Meanwhile, ZTE has been actively practicing social responsibilities. The 
company has collaborated with operators to guarantee the communication services 
of the front line against COVID-19. It has constructed 4G/5G networks and 
telemedicine diagnosis systems for hundreds of hospitals in China. 

As a responsible corporate citizen, ZTE has donated materials to support Wuhan 
and other regions in Hubei province, and has distributed face masks, 
ventilators, and other materials to organizations and local hospitals around 
the world. In collaboration with various overseas operators, ZTE has also 
carried out the diagnosis with hospitals, and provided small and medium 
enterprises with office facilities and a series of anti-COVID-19 programs as 
well.

Teaming up with industry partners, ZTE has been committed to empowering various 
industries to fight against COVID-19 by leveraging its leading technological 
strength like 5G and AI. Specifically, ZTE has released 5G remote diagnosis and 
mobile diagnosis services, as well as the smart video cloud solution for 
epidemic prevention and control. 

Moreover, the company has launched the family "cloud classroom" services to 
support online education. Featuring high efficiency and collaborativeness, 
ZTE's secure remote office solution has enabled users of different industries 
to have remote office services during the outbreak of COVID-19, thereby 
facilitating the safe and rapid resumption of work and enhancing economic 
resilience.

With the acceleration of new infrastructures, such as 5G and the Industrial 
Internet, ZTE has been actively involved in the deployments of operators' 5G 
infrastructure, and constantly scaled up its 5G production capacity. Meanwhile, 
the company has solidified cooperation with top industry players to promote the 
digital transformation of power, transportation, finance, government affairs 
and other key industries.  

By the end of the first quarter of 2020, ZTE has consecutively secured 
significant shares for the 5G RAN, 5G SA core network, 5G transport centralized 
procurement of China Mobile, China Telecom and China Unicom. The company has 
constructed 5G demonstration networks in multiple cities in China, achieving 
Giga+ 5G continuous coverage experience. Moreover, the company has completed 5G 
commercial deployments in Europe, Asia-Pacific, the Middle East and other major 
5G markets.  

In addition, ZTE has sustained high growth in market shares in optical 
networks, as well as in the segments of Metro WDM and Backbone WDM. The company 
and its partners have jointly explored 86 application scenarios and carried out 
over 60 demonstration projects on a global scale, building a series of 5G 
intelligent manufacturing demonstration projects along with top industry 
players.

In the field of terminal devices, ZTE has unveiled its first 5G video 
smartphone ZTE Axon 11 5G. The company has continuously strengthened its 5G 
terminal devices cooperation with more than 30 operators worldwide. It has 
embarked on the 5G terminal market in Japan by partnering with operators. 

Moving forward, ZTE will pay close attention to the global epidemic situation, 
and make reasonable coordination accordingly with its global customers and 
partners to cope with the global epidemic. The company will unswervingly 
concentrate on its major businesses while leveraging the opportunities of new 
infrastructure construction, expecting to create more values for its customers 
and the society.

Media Contacts:

Margaret Ma
ZTE Corporation
Tel: +86-755-26775189
Email: ma.gaili@zte.com.cn

SOURCE: ZTE Corporation