On March 8, Zte Corporation(000063) released the 2021 annual report. In 2021, Zte Corporation(000063) achieved an operating revenue of 114.52 billion yuan, a year-on-year increase of 12.9%; The net profit attributable to ordinary shareholders of listed companies was 6.81 billion yuan, a year-on-year increase of 59.9%; 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%; The basic earnings per share is 1.47 yuan; The net cash flow from operating activities was 15.72 billion yuan, a year-on-year increase of 53.7%.
2021 is the end of Zte Corporation(000063) strategic development period. In the face of covid-19 epidemic and complex external environment, Zte Corporation(000063) adhere to consolidating the foundation and expanding the new, while consolidating the core competitiveness, deepen the digital transformation and continue to expand the capability boundary and transaction boundary of enterprises. While maintaining the good growth of various businesses, the operation quality has improved significantly, and the core financial indicators such as operating revenue, net profit and net operating cash flow have reached a record high.
The company insists on taking root downward and continues to strengthen R & D investment in key areas such as underlying core technology and pan 5g digitization. In 2021, the R & D investment reached 18.8 billion yuan, accounting for 16.4% of operating revenue, an increase of 1.8 percentage points year-on-year.
In 2021, the company achieved year-on-year growth in the two major markets of China and the world, as well as the three major businesses of operator networks, government enterprises and consumers. Among them, the Chinese market achieved an operating revenue of 78.07 billion yuan, a year-on-year increase of 14.7%, accounting for 68.2% of the overall operating revenue; The international market realized an operating revenue of 36.45 billion yuan, a year-on-year increase of 9.1%, accounting for 31.8% of the overall operating revenue.
In terms of operator network, in 2021, Zte Corporation(000063) deeply participated in the large-scale construction of 5g and digitization in China, continuously consolidated the position of strategic supplier, continued to cultivate overseas value market, deepened healthy operation, and achieved an annual operating revenue of 75.71 billion yuan, an increase of 2.3% year-on-year.
In terms of government and enterprise business, Zte Corporation(000063) grasped market opportunities such as new infrastructure, industry digital transformation and dual carbon economy, focused on core products and top customers, strengthened channel capacity-building, and achieved overall rapid growth in energy, transportation, government affairs, finance, Internet, large enterprises and other markets, with an annual operating revenue of 13.08 billion yuan, a year-on-year increase of 16.0%, China’s government and enterprise business revenue 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 relevant industries, and continue to improve the influence of Zte Corporation(000063) brand among government and enterprise customers.
In terms of consumer business, Zte Corporation(000063) made continuous efforts in terms of brand, products and channels, promoted the sales of personal and family products, achieved rapid growth, and achieved an annual operating revenue of 25.73 billion yuan, a year-on-year increase of 59.2%. Among them, the operating income of household terminals increased by more than 80% year-on-year, and the operating income of mobile phone products increased by nearly 40% year-on-year.
In 2022, Zte Corporation(000063) will continue to adhere to the business philosophy of “simplicity of the main road, only speed, and win-win opening”, adhere to long-term ism and sustainable development, and constantly consolidate core competitiveness and optimize the market pattern; The company will continue to consolidate its investment in the core areas of chip and network technology, and maintain its market share in key areas such as chip architecture and network technology; At the same time, strengthen the business expansion of it, digital energy and smart home, actively promote the second curve, and inject stronger impetus into quality growth Zte Corporation(000063) continuously deepen its digital transformation, accelerate capacity precipitation and scheme iteration while improving production and transaction efficiency, and actively strengthen the depth and breadth of cooperation with customers, industries and ecological partners to achieve mutual success.
