ZTE Reports 48% Rise in 2009 Full Year Profits

ZTE has reported that its revenues for the full-year 2009 rose by 26% to US$8.82 billion. Net profit rose by 48% for the year to US$359.7 million. During the year, the Group's revenue from domestic operations amounted to US$4.5 billion, representing a year-on-year growth of 74%. Leveraging the opportunity of full-scale 3G construction in the nation, ZTE says that it emerged to become China's largest supplier of 3G network equipment as it dominated in the network construction tenders of the three leading carriers and developed positive and balanced strategic partnerships with the big three.

As for revenue from the international operations, it grew to US4.4 billion, 11.34% more year-on-year, and accounted for 49.56% of the total revenue of the Group.

Mr. Hou Weigui, Chairman of ZTE, said, "In 2009, our Group attained significant breakthroughs and growth in the mainstream product of carriers' network. In the mainstream market, we topped the overall ranking for the PRC 3G market during the reporting period, while revenue from Europe and America was growing fast as a percentage of the Group's sales revenue from international markets. We succeeded in making major breakthroughs in the mainstream market on the back of our strengths in research and development as well as our ability in swift network delivery, winning contracts to build commercial networks in major cities around the world for mainstream carriers such as CSL, KPN and Telenor."

ZTE's terminal business sustained rapid growth throughout 2009, as its global ranking in terms of handset delivery continued to rise. Sales of ZTE's terminal products were on the rise in Europe and the United States, auguring well for the realisation of ZTE's development and business objectives for 2010.

Mr. Hou concluded, "In the coming year, we will focus on improving its capabilities in integrate solutions and strive to constantly improve the quality of networks provided to customers by enhancing its competition strategy, product planning, product delivery and market behaviour, etc. Meanwhile, we will persistently observe the priority, working to increase our efficiency and pursue internationalisation in greater depth, laying solid foundations for our growth into a top-rate world-class enterprise as we take advantage of the opportunities at hand."