On August 16, ZTE Corporation released its 2024 half-year report. According to the report, ZTE achieved an operating revenue of 62.49 billion yuan in the first half of the year, representing a year-on-year growth of 2.9%. The net profit attributable to the parent company was 5.73 billion yuan, a year-on-year increase of 4.8%. Among the various sectors, the government and enterprise business performed the best, showing robust growth after adjustments in 2023: it achieved an operating revenue of 9.172 billion yuan, marking a significant year-on-year increase of 56.09%.
Overall, while the operator network segment faced growth pressures due to the domestic investment environment, ZTE benefitted from its business transformation strategy, expanding from "full connectivity" to "connectivity + computing power." This led to rapid growth in the government and enterprise, as well as consumer businesses, thereby ensuring the company's overall stable performance.
Analyzing ZTE's three main business segments, both the government and enterprise business and the consumer business returned to a rapid growth trajectory. Specifically, in the first half of 2024, the company's operator network business generated an operating revenue of 37.296 billion yuan, down 8.61% year-on-year, primarily due to the domestic investment environment. However, it continued to make significant breakthroughs in major international markets, maintaining double-digit growth. The gross profit margin was 54.32%, up 0.12 percentage points year-on-year.
During the same period, the government and enterprise business revenue was 9.172 billion yuan, up 56.09% year-on-year, mainly due to an increase in server and storage revenue. The gross profit margin was 21.77%, down 5.74 percentage points year-on-year, primarily due to changes in the revenue structure.
The consumer business achieved revenue of 16.019 billion yuan, up 14.28% year-on-year, mainly due to revenue growth in household terminals and mobile products. The gross profit margin was 18.93%, up 1.11 percentage points year-on-year.
From a domestic and international business perspective, ZTE achieved revenue of 43.06 billion yuan in the domestic market in the first half of the year, accounting for 68.9%, with a gross profit margin of 42.48%. In the international market, it generated revenue of 19.43 billion yuan, accounting for 31.1%, up 10.44% year-on-year, with a gross profit margin of 36.02%.
