ZTE Corporation, a prominent Chinese technology vendor, announced impressive financial results for 2024. The company reported an annual revenue of CNY 121.30 billion (approximately $16.65 billion). This growth occurred despite a complex external environment characterized by shifts in industry investment structures.
Technological advancements like artificial intelligence, large models, 5G-Advanced (5G-A), and all-optical networks played pivotal roles. They ushered in innovative applications and business models, bolstering ZTE’s market position. The company steered its focus towards computing power, evident in its hefty R&D expenditure of RMB 24.03 billion, about 20% of its revenue.
Domestically, ZTE’s revenue hit CNY 82.01 billion, contributing to 67.6% of its total earnings. Meanwhile, the international segment contributed CNY 39.29 billion, or 32.4% of the total. Revenue streams from operator networks, government and enterprise sectors, and consumer businesses were CNY 70.33 billion, CNY 18.56 billion, and CNY 32.41 billion, respectively. The latter two segments witnessed substantial growth, aligning with the company’s objective to refine revenue structures.
Internationally, ZTE saw steady revenue growth. Traditional business sectors retained stable market shares, while new ventures like data centers and new energy sectors witnessed scalable deployments. In the government and enterprise domain, increased R&D investments enhanced product competitiveness, driving a 36.7% year-on-year revenue growth. The focus was particularly evident in products such as servers and data center switches, which expanded into sectors including internet, finance, and power.
In terms of technological advancements, ZTE exploited opportunities in the 5G-A field and all-optical networks. The company initiated over 100 low-altitude sensing and communication pilots across 25 provinces and cities in China. In the optical domain, ZTE pioneered the first inter-provincial 400G OTN backbone network and connected national computing hubs, facilitating large-scale commercial shipments of 800G pluggable OTN ports.
Looking forward, ZTE aims to embrace artificial intelligence more effectively. They plan to strengthen capabilities in “network-computing-terminal-energy” sectors and streamline organizational efficiency. By collaborating with global partners, ZTE envisions a sustainable, efficient, and intelligent future.