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4G drives increase in ZTE results
2015-03-25 15:45:00| Telecompaper Headlines
(Telecompaper) Growing sales of 4G network equipment and handsets led the increase in ZTE's results in 2014, according to the Chinese equipment maker's annual report. The group reported sales of carrier network equipment up 15 percent to CNY 46.77 billion, led by 4G sales in China and abroad, as well as demand for optical equipment in its home market. ZTE's handset and end-user device sales rose 6.5 percent last year to CNY 23.12 billion, which the company also attributed to demand for 4G equipment. Its software and services business was the only area not to grow in 2014, with revenues down 9.7 percent to CNY 11.59 billion due to weaker demand abroad. In total, ZTE grew sales 8.3 percent in 2014 to CNY 81.47 billion, of which 49.8 percent came from China. Net profit jumped 94 percent to CNY 2.63 billion, helped by higher gross margins on 4G equipment, tighter control of administrative costs and lower charges for bad debt, financing and forex effects. The company more than doubled operating cash flow to CNY 1.10 billion, and ZTE proposed a cash dividend of CNY 2.0 for every 10 shares held, plus two bonus shares for every 10 shares. ZTE also increased R&D spending 22 percent in 2014 to CNY 9.01 billion in 2014, focusing on 4G, 5G, high-end routers and semiconductors.
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Category:Telecommunications
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