Embrace Challenges and Stride Forward with Confidence and Courage

2024 New Year Message from Chairman Li Zixue

As the new year approaches us with hopes anew, on behalf of ZTE, I would like to extend my heartfelt thanks and greetings to our global customers, partners, investors, and people from all walks of life. My best wishes also go to all ZTErs for your dedication and to your families for their continued support.

In 2023, due to the slow global economic recovery and complex geopolitical landscape, uncertainty has become the new normal, bringing enormous challenges to the ICT industry. For all that, the company maintained strong business resilience thanks to the joint efforts of all colleagues. With high R&D investments as always, we made continuous innovations in key technologies such as chipsets, algorithms, and architecture, safeguarding the competitive edge of our main products. Keeping pace with customers' business transformation and changes in the investment structure, we accelerated expansion from connectivity to computing power, further consolidating our position as a core supplier. Also, we must be well aware that, there was still pressure in achieving new growth. In the face of the increasingly fierce industry competition and rapid technological innovation, we should never stop making progress and pursuing excellence for expansion into new fields and markets. 

The year 2024 is crucial for the company to succeed in the expansion phase. What lies ahead is a complex environment never seen before. In the coming year, we will see interwoven impacts of the complicated international landscape and China's innovations in science and technology. As large-scale 5G construction in China reaches a plateau, new driving forces are emerging for business growth, as evidenced by the upsurge of intelligent computing triggered by AIGC. In such context, the ICT industry is undergoing evolution with both new opportunities and challenges. Despite all the difficulties along the journey of expansion, we will stay committed to our original aspiration. That means strong determination to execute our three-phase strategy and promote the convergence of "connectivity + computing" by focusing on innovation and application. Specifically, we will enhance innovations in 5G-Advanced, all-optical networks, computing infrastructure, large AI models, and new 5G applications, significantly increase the revenue from terminal business based on AIoE, and seize the strategic opportunities brought by digital, intelligent, and green transformation. While continuously promoting the growth of global digital economy, we will create more value for customers, help employees fulfill career dreams, bring significant returns to shareholders, and contribute to social development.

In business operations, we will maintain "targeted and pragmatic efforts for steady and sustainable growth". In 2024, growth remains the top priority of the company. As such, we need to secure our presence in existing markets, tap into market potential, and seek new growth opportunities. While consolidating core competitiveness of the 1st-curve business, we must strive to expedite the development of 2nd-curve business. To this end, targeted actions need to be taken, especially in business planning, resource allocation, market identification, and R&D investment.

Concerning corporate management, we will bring new vitality to our teams and unleash the full potential of employees. It is expected that all of us can take on new challenges and step out of the comfort zone to push our boundaries constantly. In the year to come, we will keep advancing digital transformation to level up the efficiency of overall operations and business flows, thus promoting the company's evolution from an "effective" to a "highly efficient" organization. In terms of the three strategic cornerstones—talent, compliance, and internal control, we aim to attract talent from all over the world, establish a best-in-class compliance management system, and foster a culture of integrity within the company, so as to build a highly resilient organization with stronger risk prevention capabilities. As a leading ICT enterprise, ZTE is always committed to fulfilling its responsibilities and leveraging technologies for social good. Looking ahead, we will continue to embed ESG across corporate operations and governance, and strive to close the digital divide, enabling connectivity and trust everywhere. 

Opportunity always lies in challenges, and success often comes to those who dare to act. In every generation of network evolution, ZTE was always courageous to break new grounds and scale new heights, gaining strong technological edges and capabilities over the years. Moving forward, we will see historic opportunities arising from a new round of sci-tech revolution and industrial transformation, and also the challenges posed by great-power competition and economic troughs. Nevertheless, I believe that no difficulties could ever hold us back. With deep-rooted creativity and entrepreneurial spirit, all ZTErs are ready to carry forward our mission and write a brand new chapter. On the new journey ahead, we will reinforce the strategic determination and focus on long-term development. Through targeted and pragmatic efforts, we expect to pursue progress and innovations while ensuring stability. Together, let's stride forward with confidence and courage and embrace a brighter future.

At such a moment when everything takes on a new start, I wish all of you a refreshing, happy, and healthy new year!

Li Zixue

Chairman of ZTE Corporation

December 29, 2023

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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