In the process of rapid expansion and landing, including 5g infrastructure and application end, the performance of manufacturers in relevant industrial chains has also continued to rise.
On March 8, Zte Corporation(000063) released the annual financial report of 2021, which showed that the company achieved an operating revenue of 114.52 billion yuan during the year, with a year-on-year increase of 12.9%; The net profit attributable to ordinary shareholders of listed companies after deducting non recurring profits and losses was 3.31 billion yuan, a year-on-year increase of 219.2%.
In terms of the performance of the three major businesses, the revenue of consumer business increased by 59.22% year-on-year, contributing more than 20% to the group; The gross profit margin of the operator business, which accounted for 66.11% of the revenue contribution, increased by 8.66 percentage points.
The company pointed out in the financial report that 2021 is the end of the group’s strategic development period. During this period, the government and enterprise business grew rapidly, the terminal business continued to recover, and the layout of new business accelerated. Looking forward to 2022, the company will strengthen 5g industry, digital transformation business such as automotive electronics, digital energy business and smart home expansion , so as to accelerate it to become a new engine of performance growthp align=”center” style=”text-align:center;”> ( Zte Corporation(000063) financial report details of business segments, source: company financial report)
In terms of regional revenue contribution, Zte Corporation(000063) achieved a revenue of 78.07 billion yuan in the Chinese market in fiscal year 2021, with a year-on-year increase of 14.7%, accounting for 68.2% of the overall revenue; The international market revenue was 36.45 billion yuan, a year-on-year increase of 9.1%, and the overall revenue accounted for 31.8%.
In overseas markets, the company has achieved a high inter regional growth rate of 23.76% in Europe, America and Oceania , accounting for 14.96% of revenue, which exceeds the regional market in Asia (excluding China).
Among the three major businesses, the government enterprise business is part of ZTE’s core strategic position since 2021. According to Xie Junshi, former Zte Corporation(000063) executive vice president and chief operating officer, China’s government enterprise market will be a direction for ZTE to increase its strength, including investment in marketing, channels and schemes, and focus on strengthening the ability of scheme operation.
According to the financial report, the operating revenue of the company’s Chinese government and enterprise business increased by more than 40% year-on-year. Among them, the operating revenue of servers and storage doubled year-on-year; Data center, goldendb distributed database and other products have entered the leading enterprises in related industries.
In the field of operating system, the company has formed a full range of operating system solutions covering embedded, server, desktop, terminal and other equipment types, which are applied to communication, automobile, electric power, rail transit and other industries.
In the consumer business, the operating revenue of home terminals increased by more than 80% year-on-year, and the operating revenue of mobile phone products increased by nearly 40% year-on-year At the beginning of this year, Ni Fei, Zte Corporation(000063) senior vice president and President of ZTE terminal business division, said that even though he is currently facing external challenges such as tight supply chain, he still hopes that the annual growth of revenue in the Chinese market and overseas revenue of this business will exceed 200% and 50% respectively in 2022. “Only in this way can we narrow the gap with head (mobile phone) manufacturers as soon as possible.”
According to the financial report, the R & D investment of the company reached 18.8 billion yuan in 2021, accounting for 16.4% of the operating revenue, an increase of 1.8 percentage points year-on-year.
In the business outlook for 2022, the company said that the business part of operators will increase the self-development of core chips to ensure the commercial sustainability of products . The Chinese market dares to challenge a higher share, and the overseas market will strengthen strategic breakthrough and steady operation around the “big country, big T and big network”.
The government enterprise business part will focus on energy, transportation, government affairs, finance, Internet, large enterprises and other fields to realize the rapid replication and promotion of traditional advantageous products and new products such as servers and IDC data centers. Consumer business will gradually integrate mobile phones, broadband interconnection, terminal chip modules and ecological capabilities to form a “big terminal” , and create a smart ecology of the whole scene.
The new business regarded as part of the “second growth curve” will strengthen the expansion of 5g industry, digital transformation business such as automotive electronics, digital energy business and smart home. It is reported that for this purpose, the company has established two sub industry special teams of mining, metallurgy and steel, and integrated and established the digital energy products business department.
