In 2021, with the accelerated implementation of 5g applications in more and more industries and fields, the embryonic form of change in the digital age has begun to emerge, and the role of science and technology in promoting high-quality economic development and improving people’s livelihood has become increasingly prominent.
This year, through continuous innovation investment and self transformation, we continuously broaden the imagination and application scenarios of the digital economy, and practice our era positioning as a “road builder of the digital economy”.
Towards the end of 2021, we try to write from the perspective of “science and technology empowerment”, and take you through ten key words to review the marks of Zte Corporation(000063) using innovative ICT technology to drive the transformation and upgrading of industry, industry, society and intelligence in the past year.
I. quality growth
2021 is a key year in the Zte Corporation(000063) strategic cycle. Facing the challenge of covid-19 epidemic and external environment, Zte Corporation(000063) adheres to consolidating the foundation and expanding the new, deepens healthy operation, improves operation efficiency, actively promotes the rapid development of government enterprises, consumers and innovative business while maintaining the steady growth of network business of operators, and realizes the qualitative growth of business performance.
In the first three quarters of 2021, Zte Corporation(000063) achieved an operating revenue of 83.825 billion yuan, including 30.754 billion yuan in a single quarter, a record high in recent three years; The net profit attributable to the parent company reached 5.853 billion yuan, exceeding the historical annual profit; The gross profit margin continued to improve, with a year-on-year increase of 4.7 percentage points to 36.8%. From July to September 2021, the gross profit margin in a single quarter reached 38.0%. In the first three quarters, the net cash flow from operating activities was 11.17 billion yuan, a year-on-year increase of 188.7%, a new high since the listing. In the business segment, the revenue of China and international, operator network, government enterprise business and consumer business increased. The company has basically reached the original goal of the development period and will move forward to the next strategic development cycle as scheduled.
II. Fixed capital of main channel
Scientific and technological innovation is inseparable from the completion of information infrastructure network. Facing the current wave of digital intelligence transformation, Zte Corporation(000063) believes that the development of 5g should be guided by solving problems and creating new value as the core.
In 2021, Zte Corporation(000063) deeply participated in China’s 5g scale construction, continuously optimized overseas mainstream products and mainstream market pattern, and maintained the steady growth of the first curve dominated by operator business. In the Chinese market, the company is committed to realizing the transformation from mainstream suppliers to core suppliers, continuously improving its ability in terms of product innovation, agile R & D and efficient delivery, and continuously increasing the market share of key products such as 5g wireless, core network and bearer; In the overseas market, with the help of market opportunities such as 4G modernization, 5g new construction, optical fiber transformation of fixed network, bearer network upgrading and upgrading of home broadband products, we continue to optimize the pattern of advantageous products, reduce the impact of overseas epidemic through ICT technology, employee localization and efficient coordination of industrial chain, and realize healthy operation.
III. extension of the second curve
In 2021, the second growth curve represented by industrial digitization will be opened, Zte Corporation(000063) on the basis of consolidating the first curve dominated by operator business, expand the second curve represented by government enterprise business, consumer business, automotive electronics and enterprise digitization, so as to save potential energy and kinetic energy for leapfrog development in the next strategic cycle.
In terms of government enterprise business, in 2021, while achieving business growth, a number of competitive government enterprise star products will be precipitated. The operating revenue of server and storage products doubled year-on-year in the first three quarters, and has entered the leading company in finance, Internet, energy and other industries; Goldendb distributed database was rated as the first brand in the domestic distributed database financial industry. It has been in commercial and stable operation in the core system of large commercial banks for more than three years, and has expanded to other industries. In terms of terminal business, the operating revenue of mobile phones and home information terminals maintained a rapid growth year-on-year. In terms of 5g industry application, select key subdivided industries such as mining, metallurgy and iron and steel to further expand the market.
In the field of automotive electronics, an automotive electronics team was established in March this year to position the automotive electronics business as a provider of basic capabilities of digital vehicles, core components, intelligent network products and solutions. Up to now, Zte Corporation(000063) has reached strategic cooperation with China FAW, Saic Motor Corporation Limited(600104) and other automotive enterprises; In the field of enterprise digitization, Zte Corporation(000063) has long used the concept and technology of cloud to reconstruct the enterprise’s office, R & D and operation, and create a “ultimate cloud company”. At present, the company has created a series of component digital products and service solutions, and has the ability to become a service provider for enterprise digital transformation, It can empower various fields of enterprise operation with a building block business component library, and become the “accelerator” of enterprise digital transformation.
IV. terminal speed increase
In 2021, ZTE terminal will continue to make efforts through brands, products and channels, with rapid growth in China and steady improvement in the world. In the first three quarters, mobile phone revenue increased by about 40% year-on-year, and home information terminal revenue increased by about 90% year-on-year. The annual terminal shipments are expected to exceed 100 million, of which 50% are self-developed chips.
ZTE terminal continues to practice “creativity”, based on R & D capability, driving cutting-edge technologies to be put into commercial use. Off screen camera technology brings 100% full screen into reality, and computing image technology opens a new era of multi subject mobile images. High precision timing / high reliability industrial interconnection technology, 5g RF, gateway and network performance technology, key technologies of ultra reliable and ultra-low delay communication, terminal human-computer interaction technology, v2x cloud control platform and vehicle networking technology, and a large number of leading industry technologies have been implemented in various fields, becoming an important force to promote the construction of digital economy.
In the post epidemic era, the market gradually recovers, 5g applications accelerate, and consumption scenarios continue to extend. Creating a “big terminal” ecology is an important trend for the development of the intelligent terminal industry in the future. ZTE terminal grasps the market development opportunities of 5g mobile phones and mobile Internet products and constructs a “1 + 2 + n” ecosystem, that is, taking smart phones as the core, integrating personal and family data, and providing users with a full scene 5g smart experience with rich 5g smart ecological products around the four scenes of sports health, business travel, family education and audio-visual entertainment.
v. bottom innovation
Zte Corporation(000063) always take technological innovation as the first driving force for enterprise development, adhere to “taking root downward”, and continuously consolidate the foundation through bottom innovation such as chip, algorithm, architecture, database and operating system, so as to provide efficient and reliable infrastructure solutions for the development of digital economy.
In the field of basic software, goldendb distributed database V6.0 was newly released in March Version 0 has comprehensively improved and improved the core mechanism from kernel to protocol and database, which fully meets the security and stability requirements of state-owned banks. Based on the existing joint-stock banks, Rural Credit Union, urban commercial banks and rural commercial banks, goldendb further started the replacement of the core database system of large state-owned banks, and further expanded its business scope from banks to insurance, securities and other financial fields, as well as operators and other markets.
In November, a new version of Zte Corporation(000063) operating system was released. The new operating system allows different devices in different scenarios to use the same platform, which solves the problem of fragmentation of the operating system to a great extent. In the past year, Zte Corporation(000063) operating system successfully entered the energy industry. In the field of intelligent vehicles, Zte Corporation(000063) has formed an operating system product series covering three core components: RTOS, hypervisor and Linux, which can cover a variety of vehicle scenarios such as intelligent cockpit, intelligent driving, intelligent Internet connection and central computing. It has microsecond hard real-time response capability, and has obtained iso26262asil-d functional safety management and product certification.
VI. ecological empowerment
Zte Corporation(000063) go deep into the industry, understand the industry, and provide the industry with real value creating scenario solutions through building block components. At present, Zte Corporation(000063) has developed more than 500 partners worldwide, and has explored nearly 100 5g innovative application scenarios in factories in Thailand, ports in Belgium, farms in Austria, industry, transportation, electric power, environmental protection and other fields in China.
The digital economy era is an era of mutual benefit and symbiosis. In the face of “uncertain business challenges”, Zte Corporation(000063) has always advocated “sunny growth”, comprehensive openness, transparency, symbiosis and win-win, strong links and efficient coordination with industry, industry and society, and accelerated the digital and intelligent transformation and upgrading of the whole society by building a digital rainforest.
VII. Acme cloud
Zte Corporation(000063) believes that the essence of digital transformation is to reduce enterprise transaction costs and improve transaction efficiency. Since 2016, Zte Corporation(000063) has implemented a comprehensive digital transformation and is committed to building an “extreme cloud company” that deepens all cloud, intelligent and lightweight in R & D, operation, office, production and other fields.
At present, Zte Corporation(000063) has built a company level digital office unified entrance icenter, accessed more than 180 applications, and realized that pocket ZTE mobile phone is popular all over the world. Teamwork can be completed in the digital twin system space. In terms of R & D, through Devops R & D cloud, it can realize multi location and multi specialty online collaboration at the same time, and the version can be released on a daily basis. In terms of production, Zte Corporation(000063) Nanjing Binjiang intelligent manufacturing base has established a 5g fully connected digital intelligence factory with the ultimate scenario based on the concept of “manufacturing 5g with 5g”, and has reduced the production cycle by 30% and increased the production efficiency by 40%. In terms of operation, the system automatically promotes the business flow, and the operation efficiency has increased by 15% annually. At the same time, through its own digital practice, Zte Corporation(000063) has formed a series and component-based digital product and service solution, which can empower various fields of enterprise operation with a building block business component library.
In April 2021, Zte Corporation(000063) passed the “digital trusted service assessment” of the Institute of information and communications in the first batch. In November, it won the 2021 ram chalan Management Practice Award, which fully affirmed Zte Corporation(000063) its forward-looking exploration in digital transformation and its leading contribution to the digital transformation of enterprises and industries.
VIII. High toughness structure
In the face of various uncertain factors in the external environment, Zte Corporation(000063) continues to seek its own evolution and transformation, comprehensively improves operation efficiency and organizational toughness by building a “high toughness organization”, and realizes flexible supply chain, high compatibility and substitutability of R & D, rapid response of operation and digital and remote flexible project delivery, so as to face the impact of operation risk, It can be found early, can not be killed, recover quickly and see far.
In the schedule office and R & D links, based on the digital platform, the remote office preparation of all employees of the company can be completed at the hour level, and the efficiency of office and R & D is the same as that of daily work. In the marketing link, we have quickly built online channels by using digital technology to ensure continuous links with customers and barrier free communication.
In terms of supply chain, Zte Corporation(000063) has built a new network, new model and new platform of supply chain through business transformation and it system reconstruction based on multi factories and multi legal persons, and built a network chain supply chain with multi layout in Shenzhen, Heyuan, Nanjing, Xi’an and Changsha, so as to realize multi port and shore import, multi center distribution, multi base manufacturing and multi factory delivery, and apply big data AI technology realizes business online and key business intelligence, senses supply and demand changes and risks in real time, and establishes a supply chain intelligent operation center to maximize efficiency, improve supply chain toughness and ensure business continuity. In terms of project delivery, a global cloud delivery center has been established to provide “zero contact” and “instant satisfaction” online network deployment, operation and maintenance for global operators with end-to-end automation tools and digital systems. Since the beginning of 2020, cloud delivery solutions have benefited more than 200 telecom networks and their users around the world.
IX. college recruitment 6000 +
Facing the deepening development of digital economy, strengthening industrial cooperation and ecological win-win has become an important feature of the times, resulting in a huge demand for “digital intelligence” talents. Zte Corporation(000063) continue to build a leading team of international scientific and technological talents and a high-level innovation team to support the sustainable development of enterprises and society. In 2021, Zte Corporation(000063) will further strengthen campus recruitment and provide 6000 + high-quality jobs for global outstanding graduates, covering all kinds of jobs such as R & D, marketing, operation support and supply chain.
In order to provide more talents with broad career development space, continue to maintain the company’s core competitiveness in the ICT field, Zte Corporation(000063) continues to strengthen the attraction and incentive of core talents, and launched the “Blue Sword plan” to train future leaders for the company. Since the plan was promoted in 2014, the first batch of blue sword members have achieved rapid growth under the cultivation of the company, It has become the leading talent and core backbone of Zte Corporation(000063) .
X. practice double carbon
At present, carbon neutralization has become a global consensus. Facing the “hard battle” of low-carbon transformation, as a “digital economy road builder”, Zte Corporation(000063) is laying a “digital economy Boulevard” through four dimensions: green enterprise operation, green supply chain, green digital infrastructure and green industry empowerment, so as to help operators and industry customers realize green, low-carbon and sustainable development.
The overall goal of Zte Corporation(000063) is to achieve carbon peak as early as 2030 and carbon neutralization as early as 2060. At present, Zte Corporation(000063) is working with partners to continuously and widely carry out 5g + innovative green practice, and has implemented more than 60 demonstration projects worldwide.
[Conclusion]
Standing at the end of 2021, we further understand that the huge wheel of digital wave is rolling in, helping to accelerate the evolution of a new round of scientific and technological and industrial revolution, and enabling a better digital intelligence life has always been the direction of our efforts. We also firmly believe that the exploration journey of digital economy is endless, and work together to promote the innovation and application of digital technology and build a digital intelligence tropical rain forest, Is the best way to empower the future.
To meet the new starting point of 2022, Zte Corporation(000063) will take root downward and grow in the sun with an open, integrated and win-win attitude, work together with you to foresee the future, create the future, and explore more opportunities and unknowns in the wave of digital development.
(Shanghai Securities News)
