Aim Higher and Act Bigger to Achieve Expansion

As the new year brings a fresh start, on behalf of the company, I would like to extend my sincere greetings and gratitude to all colleagues for your dedication and your families for their constant support. My heartfelt thanks also go to our global customers, partners, investors, and the people from all walks of life for your great trust in ZTE.

The year 2022 marked the start of the company's expansion phase. This year, the macro environment was still challenging, as evidenced by the COVID-19 pandemic, complex geopolitical situations, and the global economic downturn. Nevertheless, hardships forge the warrior spirit. Following the trend of digitalization and green development, we have made steady progress in line with our strategy. In addition, we have been pursuing excellence when tackling the hardest challenges. Specifically, investments have been increased in R&D to continuously enhance the core competitiveness of our key technologies and products. We have strengthened our foundation and explored new horizons, achieving steady growth in both Chinese and international markets. Moreover, we have maintained a year-on-year revenue growth in terms of operator, enterprise, and consumer business, and guaranteed rapid development of innovative business, involving Server and Storage Products (SSPs), terminals, 5G applications, automotive electronics, and digital energy. All ZTErs have been forging ahead with concerted and vigorous efforts, laying a solid foundation for the expansion phase.

In the future, the external environment will only be more complex. Against such backdrop, digital economy has become an irreversible trend and a key driving force for countries to rebuild their economies and competitive advantages. As a driver of digital economy, ZTE will stick to its strategy and grasp the opportunities brought by computing power, renewable energy, and digitalization, to resolutely fulfill the goals set for the expansion phase.

In 2023, we will aim higher and act bigger, making continuous breakthroughs while maintaining steady and sustainable growth. ZTE will retain its leadership in key technologies, and strive to win first place in the competitiveness of major products. In the Chinese operator market, we will firmly increase market shares, and continuously strengthen capabilities in providing better services and facilitating the strategic transformation and sustainable development of operators. In the international operator market, the company will stay focused and improve efficiency, secure sound operations, and achieve expansion in high-value markets, major networks, and the partnerships with key operators. Regarding the enterprise business, we will focus on high-value customers and industries, including Internet, finance, power, and transportation, enhance the competitiveness of major products and solutions such as SSPs and transport networks, and intensify high-quality collaboration to ensure rapid growth. In terms of the consumer business, the company will make steady progress and strengthen differential innovation to keep optimizing product experience. In addition, we will further expand the innovative business, and effectively allocate resources to make agile breakthroughs in the market. In 2023, we will step more firmly with targeted and pragmatic efforts. To achieve expansion under greater challenges, we must stay alert to potential risks, make the best use of resources based on targeted business planning, guarantee financial health and flexibility, and continuously enhance corporate resilience. Moreover, we must face up to our weak links and make continuous improvements to maintain high-quality growth.

Success hinges on outstanding capabilities. In this increasingly challenging world, we will further consolidate our fundamental capabilities and optimize the risk management and control system. Specifically, risks will be actively identified and prevented to safeguard compliance in a systematic manner, and internal control will be reinforced to foster a culture of integrity. Furthermore, we will deepen digital transformation to continuously improve operational efficiency, and strengthen organizational capabilities as well as the synergy of systems for sustainable development of the company.

We have a long journey ahead with a promising future. Advancing in the expansion phase, all ZTErs will brave challenges with determination and make headway with perseverance. Let's achieve expansion and write a brilliant new chapter together!

Wish you and your families a happy and healthy new year!

Li Zixue, Chairman of ZTE

December 30, 2022

ABOUT ZTE:

ZTE helps to connect the world with continuous innovation for a better future. The company provides innovative technologies and integrated solutions, its portfolio spans all series of wireless, wireline, devices and professional telecommunications services. Serving over a quarter of the global population, ZTE is dedicated to creating a digital and intelligent ecosystem, and enabling connectivity and trust everywhere. ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges. www.zte.com.cn/global

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