ZTE(000063)2025-02-28 12:00Financial Performance - In 2024, the company's operating revenue was CNY 121,298.8 million, a decrease of 2.38% compared to CNY 124,250.9 million in 2023[27]. - The net profit attributable to ordinary shareholders of the listed company for 2024 was CNY 8,424.8 million, down 9.66% from CNY 9,325.8 million in 2023[27]. - The net cash flow from operating activities decreased by 34.05% to CNY 11,479.8 million in 2024, compared to CNY 17,405.7 million in 2023[27]. - Total assets increased by 3.17% to CNY 207,323.2 million in 2024, up from CNY 200,958.3 million in 2023[28]. - The total liabilities rose by 1.20% to CNY 134,212.9 million in 2024, compared to CNY 132,626.9 million in 2023[28]. - Basic earnings per share decreased by 10.20% to CNY 1.76 in 2024, down from CNY 1.96 in 2023[28]. - The weighted average return on equity decreased by 3.22 percentage points to 11.97% in 2024, compared to 15.19% in 2023[28]. - The gross margin for the overall business was 37.91%, a decrease of 3.57 percentage points year-on-year[86]. - The revenue from the domestic market was CNY 82,005.7 million, accounting for 67.61% of total revenue, with a year-on-year decrease of 5.18%[89]. - The company's international market revenue for 2024 was 39,293.1 million, a year-on-year increase of 4.04%, accounting for 32.39% of total revenue; gross margin was 26.91%, down 10.56 percentage points year-on-year[90]. Market Strategy and Positioning - ZTE Corporation maintained a steady increase in global market share in the network sector, adapting to changes in customer investment structures[6]. - The company aims to enhance its market position in the 5G-A and all-optical network construction opportunities, focusing on deepening market penetration[7]. - ZTE is committed to a long-term strategy in the computing power sector, emphasizing the development of intelligent computing capabilities and a diverse domestic ecosystem[7]. - The company is focusing on expanding its "connection + computing power" strategy to enhance market opportunities[85]. - The company plans to deepen cooperation with leading clients in the internet and finance sectors to enhance market share and business scale[170]. Innovation and Technology Development - ZTE's digital energy sector, particularly data center business, experienced rapid growth, contributing to long-term development opportunities[6]. - The company plans to leverage AI technology to significantly improve operational efficiency and enhance product quality standards[8]. - ZTE aims to strengthen its core technology capabilities through continuous innovation in chip, machine, and assembly research and development[8]. - The company is actively pursuing a "big enterprise-small team" innovation model to accelerate agile transformation and internal collaboration[8]. - The company is focusing on AI trends and emerging market demands, implementing a dual-brand strategy with ZTE and Nubia to accelerate mobile product revenue growth[90]. - The company is actively engaged in research and development of new technologies and products, with a focus on protecting intellectual property rights through patents and trademarks[174]. Sustainability and Social Responsibility - The company is dedicated to sustainable development and actively participates in global green initiatives, enhancing its social responsibility[8]. - The company has set a target for external charitable donations of approximately 34.0375 million in 2024[166]. - The company is committed to sustainable development, integrating ESG practices into its strategic objectives and stakeholder engagement[178]. Shareholder Information and Corporate Governance - The company reported a total of 399,962 shareholders as of December 31, 2024, with A-share shareholders numbering 399,665 and H-share shareholders at 297[184]. - The top 10 shareholders hold a combined 20.09% of shares, with ZTE New Communications Co., Ltd. owning 958,940,400 A-shares and 2,038,000 H-shares[185]. - The company emphasizes a commitment to compliance management to mitigate country-specific risks, including legal, tax, and political factors[173]. - The company aims to enhance its corporate governance framework, ensuring transparency and efficiency in decision-making processes through a multi-tiered governance structure[179]. Research and Development - In 2024, the company's R&D expenses amounted to 24,031.5 million, a decrease of 4.97% year-over-year, representing 19.81% of revenue, down 0.54 percentage points[103]. - The number of R&D personnel decreased by 6.24% year-over-year to 33,184, representing 48.53% of the total workforce[106]. - The company has developed over 1,000 digital star cloud partners across 18 industries, recognized as a leading digital solution provider in 2024[71]. Financial Management and Risk Control - The company has implemented measures to manage foreign exchange risks, including internal settlement management and the use of foreign exchange derivatives[148]. - The company has established a risk control system for derivative trading to mitigate market, liquidity, credit, and operational risks[150]. - The company’s derivative trading is primarily aimed at hedging foreign exchange risks associated with its assets and liabilities[149].