News Brief

ZTE Announces 2009 Annual Results

9 April 2010, Hong Kong ― ZTE Corporation (“ZTE” or the “Group”) today announced its annual results for the year ended 31 December 2009.

Based on HKFRS, ZTE recorded a revenue of approximately USD8,820.7million in 2009, representing an increase of 36.08% against 2008. Net profit was USD359.7 million, representing an increase of 48.06% against 2008. Basic earnings per share were USD0.21. In 2009, net cash flow from operating activities per share was USD0.28.

Applying PRC ASBEs, during the year under review, the Group’s revenue from principal operations was approximately USD8,820.7 million, representing an increase of 36.08% against 2008. Net profit was USD359.7 million, representing an increase of 48.06% against 2008. Earnings per share amounted to USD0.21. In 2009, net cash flow from operating activities per share was USD0.31.

The Board of Directors recommended payment of a final dividend for the year ended 2009: the creation of 5 shares for every 10 shares and a cash dividend of USD0.44 for every 10 shares (including tax).

During the year, the Group’s revenue from domestic operations amounted to USD4,449.6 million, representing a year-on-year growth of 74.04%. The construction of 3G networks was strongly supported by the government as a new driver of economic growth. Leveraging the opportunity of full-scale 3G construction in the nation, the Group 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. Meanwhile, strong sales were reported for its TD-SCDMA, CDMA and xPON products.

As for revenue from the international operations, it grew to USD4,371.1 million, 11.34% more year-on-year, and accounted for 49.56% of the total revenue of the Group. The Group overcame the impact of the financial crisis and sustained growth in a lacklustre international telecom market on the back of its cost-competitiveness, technological edge and financial strengths. The Group made successive breakthroughs in the high-end markets around the world, as its principal products (with the exception of terminals), such as bearer networks, access networks and service networks, were gaining footholds in important markets in Europe and America, which are set to become significant growth spots for the Company in the coming years.

ZTE Increases Patents Applications by 50% in 2009 Against Global Drop in Patent Applications

Company is committed to investing in and developing innovative products to meet market needs

15 March 2010, Shenzhen, China ― ZTE announced that the World Intellectual Property Organization (WIPO) has released international (open) patent application figures for 2009. China came 5th on the ranking list, one place up from 2008, with a rapid increase in patent applications. ZTE increased its patents filed by 50% in 2009, as the number of WIPO applications worldwide drop for the first time in 30 years.

ZTE led many major companies in intellectual property in 2009, with a substantial increase in global patent applications. WIPO data show that ZTE’s international open patent applications reached 502 in 2009, 173 more than in 2008. ZTE actually applied for 1,164 international patents in 2009, and many are still being processed by WIPO.

ZTE to Build 40G Long-Haul Backbone Network for Portugal’s Optimus

2 March 2010, Shenzhen, China — ZTE announced an optical transmission agreement with Optimus, a Portuguese communication services provider. ZTE will build a long-haul optical transmission network for Optimus to connect Lisbon, the capital of Portugal, with Porto, the country’s second largest city.

The new Optimus network will be based on ZTE’s ZXWM M920 solution, a next generation intelligent optical networking product that combines high-capacity and long-haul transmission capabilities. This network will be replacing current infrastructure as Optimus’ legacy equipment can no longer meet the requirements of an ever-increasing customer base and growth in data traffic.

ZTE Opens Test Laboratory in Dusseldorf

4 March 2010, Dusseldorf ― ZTE has announced it is opening a test lab in the Dusseldorf Test & Innovation Centre. The company’s objective is to expand its testing and research activities in Europe and establish itself in Dusseldorf for the longer term. The contract with the Test & Innovation Centre, which is operated by Vodafone Germany, was signed on March 4, 2010, at the CeBIT fair in Hanover. 

Since 2005 ZTE Deutschland GmbH has had its German headquarters in Dusseldorf, at one of the main centres of the European telecommunications industry and close to its key partner Vodafone. Having successfully conducted tests in 2008 and 2009 on its leading Software Defined Radio (SDR) technology as well as leading-edge mobile phone technology in the Test & Innovation Centre, ZTE decided to set up a permanent local research lab in the same location. ZTE will benefit from the excellent test conditions, outstanding infrastructure and the good support which the Centre has to offer.

ZTE to Develop CDMA2000 Femtocells Based on Qualcomm System on Chip Solutions

23 March 2010, Shenzhen, China and San Diego — ZTE, a leading global provider of telecommunications equipment and network solutions and Qualcomm, a leading developer and innovator of advanced wireless technologies, products and services, announced they have entered into a development agreement around femtocell technology. The terms of the agreement allow ZTE to access Qualcomm’s Femtocell Station Modem™ (FSM™) chipset platform in order to develop CDMA2000® femtocell products.

The unprecedented growth in mobile data consumption, driven by smart phones and other data intensive devices has created the need for improved coverage and increased data throughput for subscribers. Up to 70% of wireless data originates indoors and femtocells allow operators to target areas where the solution is needed. Qualcomm’s FSM platform features flexible and fully integrated System on Chip (SoC) solutions consisting of baseband, RF and power management ICs coupled with commercial grade software, resulting in femtocells with the low power consumption and high levels of integration. This technology will allow operators to improve coverage, add capacity, increase data throughput and enhance the end user’s wireless experience while reducing operating costs in supporting mobile broadband applications.

ZTE Launches World's First CDMA/LTE Dual-Mode Remote Radio Unit

22 March 2010, Shenzhen, China — ZTE launched its ZXSDR R8880, the world’s first CDMA/LTE dual-mode Remote Radio Unit (RRU). ZTE’s ZXSDR R8880 dual-mode RRU currently supports 700MHz and Advanced Wireless Services (AWS) spectrum band.

 In addition to 700MHz and AWS, the R8880 also supports CDMA2000 1X, EV-DO and LTE networks simultaneously, a key functionality as the industry moves toward CDMA and LTE network convergence. In the CDMA arena, it supports Two Transmit Two Receive (2T2R) and LTE Multiple Input Multiple Output (MIMO) technologies as well. Based on the widely commercialized ZTE Soft Defined Radio (SDR) platform, the R8880 can improve the speed of network deployment and significantly reduce a network Total Cost of Ownership (TCO).

“We are seeing most North American CDMA operators opt for CDMA and LTE dual-mode networks, with AWS and 700MHz the most commonly used spectrum sources,” said Ms. Li Jian, General Manager of ZTE’s CDMA Product Line. “ZTE is addressing this market development by offering the R8880 as part of our leading UniRAN (Unified RAN) solution and helping North American tier-one CDMA operators move towards 4G.”

ZTE Realizes the World's First 14.7 Mbps EV-DO Rev.B Data Call

11 March 2010, Shenzhen, China — ZTE announced it successfully completed the first EV-DO Rev.B Phase II data call with a download rate of 14.7Mbps, making ZTE the first in the industry to introduce EV-DO Rev.B Phase II technology. ZTE introduced the world’s first 9.3Mbps EV-DO Rev.B Phase I system last year.

EV-DO Rev.B technology enhances spectrum efficiency to extend mobile talk-time by approximately 30% and effectively prolong standby time. A new baseband chip is also adopted in the Rev.B Phase II system. By introducing 64QAM high-order modulation technology, it supports a single carrier frequency with a downlink speed of 4.9Mbps and with 3-carrier frequency bundling technology, it achieves a peak rate of 14.7Mbps.

Currently, leading global operators have launched EV-DO Rev.B networks, including China Telecom, WANA, Smart Telecom and PTCL. To upgrade 9.3Mbps Phase I networks to 14.7Mbps networks is simple and straightforward, requiring only a baseband channel board replacement and a software upgrade.