Many investors choose short-term operations when operating stocks. They don’t know much about the listed companies of stocks. In fact, this is wrong. They need to have a certain understanding of the company, such as the company’s main business, etc. , today’s introduction to ZTE is actually the beginning of understanding. The Elliott Band Theory is something to learn technically.
ZTE is the world's leading provider of comprehensive communications and information solutions. Founded in 1985, the company is a large communications equipment company listed in Hong Kong and Shenzhen. By providing innovative technology and product solutions to telecom operators, government and enterprise customers in more than 160 countries and regions around the world, the company enables users around the world to enjoy a full range of communication services such as voice, data, multimedia and wireless broadband.
ZTE has a complete end-to-end product line and converged solutions in the communications industry. Through a full range of wireless, wired, business, terminal products and professional communication services, we can flexibly meet the differentiated needs and rapid innovation pursuits of different operators, governments and enterprise customers around the world. At present, ZTE has fully provided services to global mainstream operators as well as government and enterprise customers.
ZTE insists on creating value for customers through continuous technological innovation. It has established global R&D institutions in the United States, Sweden and China, and further strengthens independent innovation. R&D investment in core areas such as 5G wireless, core network, transport, access and chips has remained unchanged, and R&D investment has remained above 10% of operating revenue for many years. ZTE has 76,000 patent applications worldwide and has authorized more than 36,000 patents. It has ranked among the top five PCT international patent applications in the world for nine consecutive years. At the same time, ZTE is a major participant and contributor in global 5G technology research and standard formulation. According to a report by iplytics in February 2020, ZTE disclosed 2,561 basic patent families of 5G standards to ETSI, ranking among the top three in the world.
ZTE adheres to the concept of global sustainable development and achieves harmonious coexistence of society, environment and stakeholders; uses communication technology to help people in different regions enjoy equal communication freedom; integrates innovation, The concept of integration and green runs throughout the entire product life cycle and the entire process of R&D, production, logistics and customer service, making unremitting efforts to reduce energy consumption and carbon dioxide emissions globally; in 2019, he was selected for the second time by FTSE 4 Good Index Series, and ranked among the top 100 in the Social Responsibility Development Index of China's Top 300 Enterprises. ZTE is a member of the Global Compact and the United Nations Gesi (Global Electronics Sustainability Initiative). Since 2009, the organization has actively released sustainability reports/corporate social responsibility reports to the society for 12 consecutive years.
ZTE is committed to building the core competitiveness of independent innovation in the 5G era, and will accelerate the deployment of global 5G commercial scale with its leading end-to-end complete set of 5G products and solutions.
From the information provided by ZTE, we can see the main introduction of business operations:
Carrier network: Focus on the evolution needs of the operator network and provide wireless access , wired access, bearer network, core network, telecommunications software systems and services and other innovative technologies and product solutions.
Consumer business: focusing on consumers’ smart experience, taking into account industry needs, developing, producing and selling smartphones, mobile data terminals, home information terminals, integrated innovative terminals and other products, as well as related software applications and value-added products Serve.
Government and enterprise business: Focus on the needs of government and enterprise customers, and provide various information solutions to governments and enterprises based on products such as communication networks, the Internet of Things, big data, and cloud computing.
After understanding the introduction of ZTE, let’s take a look at the performance of several years. The following is the financial situation collected in recent years:
ZTE’s 2017 financial report shows that ZTE achieved operating income in 2017 108.82 billion yuan, a year-on-year increase of 7.5%; net profit attributable to common shareholders of listed companies was 4.568 billion yuan, a year-on-year increase of 293.8%; basic earnings per share was RMB 1.09 yuan.
ZTE achieved operating income in 2018. 85.51 billion yuan, net profit -6.98 billion yuan.
Within the scope of the 2018 annual performance forecast, the above performance is mainly due to the US$1 billion fine mentioned in the "Announcement on the Progress of Major Matters and Resumption of Trading" issued by the company on June 12, 2018, and the announcement on May 9, 2018. Operating losses and accrued losses caused by matters mentioned in the "Announcement on the Progress of Major Matters".
In general, ZTE’s performance in 2018 exceeded industry expectations. Business recovered quickly after the ban was lifted in the second half of the year. As of the fourth quarter of 2018, ZTE achieved net cash flow from operating activities of 1.01 billion yuan. ZTE also released its performance forecast for the first quarter of 2019. The report shows that the profit in the first quarter is expected to be 800-1.2 billion yuan, turning a loss into a profit year-on-year, an increase of 114.79%-122.19%.
In 2019, revenue was 90.737 billion yuan, a year-on-year increase of 6.11%; net profit was 5.148 billion yuan, a year-on-year increase of 173.71%; gross profit margin was 37.17%, a year-on-year increase of 4.26 percentage points; basic earnings per share was 1.22 yuan.
ZTE stated that its revenue in 2019 increased compared with the same period last year, mainly due to a year-on-year increase of 16.66% in operator network operation revenue, including year-on-year growth in domestic and foreign FDD system equipment and 5G system equipment. In addition, R&D investment in ZTE reached 12.548 billion yuan in 2019, a year-on-year increase of 15.06%. R&D investment accounted for 13.83% of operating income, a year-on-year increase of 1.08 percentage points.