ZTE released its 2019 annual report on Friday, with annual revenue of 90.74 billion yuan, an increase of 6.1% year-on-year. Net profit was 5.15 billion yuan, an increase of 173.7% year-on-year.
It had a net loss of 6.98 billion yuan in 2018. ZTE mentioned earlier that the 2018 loss was mainly due to a US $1 billion fine.
In 2019, ZTE's various services have returned to normal. Among them, the operator network achieved operating revenue of 65.585 billion yuan; the government and enterprise business achieved operating revenue of 9.155 billion yuan; the consumer business achieved operating revenue of 14.997 billion yuan.
ZTE Communication said that the revenue in 2019 increased compared with the same period of the previous year, mainly due to the year-on-year increase of 16.66% in the operator's network operating income. Interest rates increased steadily.
ZTE stated that as of the end of 2019, ZTE Communications had obtained 46 5G commercial contracts and had launched in-depth 5G cooperation with more than 70 operators worldwide.
ZTE Communications builds 5G demonstration networks in Spain, Austria and Italy, and continues to promote the global deployment of 5G.
In terms of consumer business, ZTE stated that it was the first to release the first 5G mobile phone ZTE Tianji Axon10Pro5G version in China, Northern Europe and the Middle East, and continued to strengthen cooperation with 5G terminals of more than 30 operators worldwide. In 2020, ZTE will launch nearly 10 5G mobile phones.
In terms of research and development, ZTE stated that the company will continue to strengthen 5G research and development and investment in 2019. The annual research and development investment will reach 12.55 billion-yuan, accounting for 13.8% of operating income, an increase of 1 percentage point from 12.8% in 2018.
In terms of chips, ZTE claims that 7nm chips are mass-produced and commercialized in global 5G deployments, and the development of next-generation chips is progressing smoothly. ZTE previously mentioned the development of 5nm chips, which should be the next-generation 5G chips.