ZTE Corporation (0763.HK / 000063.SZ), a major international provider of 
telecommunications, enterprise and consumer technology solutions for the Mobile 
Internet, has been included among major participants and setters of the global 
5G standards for leading the world in 5G technology, patents, standards, 
industries, and terminals, according to the latest report "Challenges and 
Prospects for China's Telecommunications Industry and Intellectual Property 
Market " by established investment management company Jones Lang LaSalle (JLL). 

According to the report, ZTE has also been ranked in the first tier of global 
patent layout in recognition of its contribution to the research and standard 
settings of the global 5G technology. To date, ZTE's patented technology value 
has exceeded RMB 45 billion.

Committed to creating value for customers through the accumulation of 
high-quality patents and aimed to be a "digital economy road builder"

With the advent of the digital economy era, a new generation of mobile 
information technology like 5G, has developed into a key driving force for the 
digital transformation and upgrading of the entire society. Enhancing 
independent technological innovation and strengthening the cultivation and 
layout of high-quality patents are playing an important role in the development 
of China's enterprises. As a major contributor to the global 5G standards, ZTE 
insists on building its stronger core competence and continues to research and 
develop in key technologies and basic sciences. The company has invested more 
than RMB 10 billion on a yearly basis in the R&D over the past years. In 2020, 
its R&D spending reached RMB 14.8 billion, accounting for 14.6% of its 
operating revenue.

As 5G technology becomes mature and gains increasing popularity, major global 
manufacturers are building their core competitiveness in the iterative patent 
layout. ZTE has launched a high-quality patent layout in many 5G-related 
fields. The company constantly strengthens its innovative R&D capabilities to 
maintain its competitive advantages in the domestic and international markets. 
Furthermore, by virtue of its global strategic layout,the company continues to 
bring its customers the innovative products and high-quality services, and is 
committed to creating value for its customers as a "digital economy road 
builder".

ZTE, backed up with its high R&D spending and continuous technology 
accumulation, has filed over 80,000 global patent applications by March 2021, 
and accumulated more than 38,000 granted patents globally, including 4,270 chip 
patent applications and more than 1,800 granted patents. According to the 
latest report "Who is leading the 5G patent race?" published in February by 
IPlytics, ZTE has been included global top 3 for its sustainable leadership in 
5G declared Standard-Essential Patents(SEP) to ETSI. 

Efficient operation strategies effectively driving the conversion of innovation 
achievements, boosting high-quality growth of the intangible assets

With the significant improvement of the innovation and creation capabilities, 
ZTE has been constantly strengthening the utilization of intellectual property 
(IP). In addition to reinforcing the cultivation and layout of high-value 
patents, ZTE proactively promotes the application, conversion and 
implementation of patents under highly efficient operation strategies. On the 
one hand, it makes efforts to increase the alignment of patent applications and 
technology R&D with market demand, while continuously improving the quality of 
patent applications. On the other hand, with the establishment of a management 
system across the entire IP life cycle, IP management is performed in all work 
flows including R&D, marketing, procurement, production design and sales and so 
on. In this way, a well-conceived and efficient patent protection network is 
built to promote the high-quality growth of the commercial value of the 
company's intangible assets.

"As one of China's high-tech companies in global competition, ZTE is fully 
aware of the value and significance of independent R&D and technological 
innovation. The company has maintained powerful investment in R&D for decades 
and has accumulated a large number of innovative technological achievements," 
said Hu Yi, Vice President and Head of Intellectual Property Department at ZTE 
Corporation. "Some of these achievements have been transformed into high-tech 
products to help ZTE expand overseas markets like Europe and North America, and 
some of them have developed into intangible assets including intellectual 
properties, such as patents. "

"With the progress of the times and the development of the industries, ZTE 
actively seeks how to further explore and leverage the value of intangible 
assets. The company reaches patent cross-licensing with mainstream companies in 
the telecoms industry, thereby achieving rapid iteration of new technologies 
and products through commercial interactions and promoting telecoms industry 
technologies to further impact vertical industries." 

"Besides, we collect reasonable R&D investment through transfers, licensing and 
other management methods to build a closed loop of sustainable development of 
"Innovation - Operation - Re-innovation". In the past few years, ZTE's 
intellectual properties income has grown steadily, which has brought cash 
benefits to the company and will continue to create predictable benefits. It is 
estimated that our intellectual properties will bring nearly RMB 4.5-6 billion 
revenue to the company during the period from 2021 to 2025." added Mr Hu Yi. 

As the best practitioner of global innovation and intellectual property 
commercial value, ZTE has always regarded intellectual property as the core 
strategy for enterprise development. Moving forwards, ZTE will continue to 
improve its core competence by enhancing the quality of intellectual property 
creation, and the efficiency of utilization and management of IP. While 
achieving a good balance between technological innovation investment and 
intellectual property return, ZTE will join forces with all partners to promote 
a high-quality development of the IP ecosystem, and empower the digital and 
intelligent transformation and upgrading of society. 

Please refer to the following link for the full report:
http://www.whytouch.com/pdf/gb483f72362e6573c99190c96622507e/index.php   

Media Contacts:
Margrete Ma                                                       
ZTE Corporation                                          
Tel: +86 755 26775189                                     
Email: ma.gaili@zte.com.cn   

SOURCE  ZTE Corporation