ZTE (00763) announced interim results, net profit of about 5,058 billion yuan, a year-on-year decrease of 11.77%

According to the Zhitong Finance App, ZTE (00763) announced its 2025 interim results, with operating income of about 71,553 billion yuan, up 14.51% year on year; net profit attributable to common shareholders of listed companies was about 5,058 billion yuan, a year-on-year decrease of 11.77%; basic earnings per share were 1.06 yuan.

In the first half of 025, the company's domestic market revenue was about 50.617 billion yuan, up 17.55% year on year, accounting for 70.74% of revenue; gross margin was 33.69%, down 8.74 percentage points year on year.

For operator customers, 5G network construction is in a mature period, and domestic operator investment continues to decline, and the company's operator network revenue decline has narrowed; on the one hand, the company continues to cultivate wireless and wired products, optimize the market pattern, consolidate the basic infrastructure of domestic operator networks, and expand intelligent computing data center projects; on the other hand, it actively lays out future technology directions such as 10 gigabit access to lay a good foundation for the next stage of large-scale construction; for government and enterprise customers, the company fully grasps the opportunities for leading domestic Internet companies, industry companies, etc. to increase intelligent computing investment, deepen market expansion, expand the scale of cooperation, and intelligent computing services Device revenue increased dramatically, driving government and enterprise revenue to double; for consumers, the company's FTTR maintained market share, achieved breakthroughs in mobile internet products, and sales of the innovative 2-in-1 Cloud Pad exceeded 1 million units in the first half of the year, jointly driving steady growth in consumer business revenue.

In the first half of 2025, the company's international market revenue was about 20.936 billion yuan, up 7.77% year on year, accounting for 29.26% of revenue; gross margin was 29.45%, down 6.57 percentage points year on year.

For operator customers, the company adheres to the Dagongda T (Big T refers to mainstream operators) strategy, seizes market opportunities brought by Asia-Pacific network mergers, African and Latin American network modernization, and optical fiber construction, relies on superior products, focuses on resources, wins key battles, enhances the market pattern, and maintains steady operation; for government and enterprise customers, Chinese enterprises go overseas, and supercharge overseas countries to accelerate the construction of computing infrastructure such as data centers, new energy, and servers. The company closely follows new opportunities to expand the government enterprise and computing power market in large countries with a business base to achieve rapid growth in corporate government revenue for consumers; The company relies on The “ZTE + Nubia” dual brand strategy focuses on expanding the open channel market in Southeast Asia, Africa, the Middle East, etc., and has received widespread praise from users with a series of products such as folding, video, music, and games, driving double-digit growth in mobile phone product revenue.