On August 27, ZTE released the 2019 semi-annual report and the results of the first three quarters of 2019. The report shows that from January to June 2019, ZTE achieved operating income of 44.61 billion yuan, up 13.1% year-on-year; net profit attributable to common shareholders of listed companies was 1.47 billion yuan, up 118.8% year-on-year; basic earnings per share was 0.35 yuan. It is estimated that the net profit attributable to ordinary shareholders of listed companies will be 3.8 billion yuan to 4.6 billion yuan in the first three quarters of 2019.

ZTE adheres to its strategic focus and continues to strengthen 5G end-to-end innovative R&D investment and enhance the training and reserve of 5G talents. In the first half of 2019, R&D investment reached 6.47 billion yuan, accounting for 14.5% of operating income, up 1.7 percentage points from 12.8% in the same period of last year.

ZTE is committed to building the core competitiveness of independent innovation in the 5G era, focusing on the basic operating systems, distributed databases, core chips and other fields. ZTE’s new generation 5G wireless system chip and bearer switching network chip enter the product introduction stage. The 7nm process chip has been designed and mass-produced, and has begun to invest in the development of 5nm process chips. At the same time, ZTE will work closely on new technology research and development to accelerate the research and development progress of chips in leading technologies, advanced packaging, core IP and new materials applications.

ZTE’s self-developed operating system has been widely used in many key industries such as telecommunications, high-speed rail, electric power, industry, and automobiles. In the field of distributed databases, ZTE’s financial-grade transaction database GoldenDB, which has applied for more than 100 patents, is the only product that has been evaluated by the ICT’s distributed transaction database.

In terms of innovative talents, ZTE strengthens the introduction of high-end innovative talents and perfects the talent training mechanism. In the second half of the year, the national universities intend to absorb 5000+ 5G innovative talents to further enhance the company’s innovation strength.  As of June 30, 2019, the number of patent applications exceeded 74,000, the number of authorized patents worldwide exceeded 36,000, and the number of 5G strategic layout patents exceeded 3,700.  ZTE is a major player and contributor to global 5G technology research and standards development.  Based on the statistics of IPlytics in Germany, as of June 15, ZTE has disclosed to the ETSI 1424 families of 5G related standards, ranking the top three in the world.  In terms of network security, ZTE is committed to providing customers with end-to-end products and services, and has opened three network security laboratories in Nanjing, Rome and Brussels to provide transparent security verification for customers and regulators.

ZTE adheres to a proactive and stable business strategy, expands new growth space during the key window of 5G development, actively participates in carrier network construction and technology evolution, and seizes 5G technology change opportunities with long-term technology accumulation and core product competitiveness. As of the first half of the year, ZTE has obtained 25 5G commercial contracts worldwide, covering major 5G markets such as China, Europe, Asia Pacific and the Middle East. It has cooperated with more than 60 operators around the world to fully participate in the scale deployment of 5G networks in China.

During the reporting period, ZTE continued to focus on the main channel of operators, further strengthening its core competitiveness in 5G wireless, core network, bearer, chip and other technical fields. On the wireless side, 5G end-to-end commercial products and solutions, the full range of NR products achieve full-band, full-scenario coverage. 5G key technology Massive MIMO has five years of commercial practice experience and industry leading; 5G NSA&SA dual-mode base station fully supports carrier network architecture flexible selection and smooth evolution; Common Core realizes 2/3/4/5G/fixed full access and full integration. At the same time, support SA and NSA, saving operators 40% investment; 5G network slicing mall solution won the network slice contribution award at 5G World Summit in London; self-developed serial AI Engine supports 5G full scene intelligent. Serving more than 160 LTE/EPC commercial networks worldwide, the global 4G base station cumulative shipment share is close to 20%; NFV global more than 450 commercial and PoC cases, NB-IoT comprehensive technical competitiveness ranked first.

In terms of cable, 5G bearer end-to-end products have completed more than 30 commercial bureaus and live network experiments around the world. The three-in-one self-developed chip achieves the industry’s lowest latency. OTN Super 100G network performance leading, 200G scale commercial, single-carrier 400G refresh the farthest transmission distance record. Optical access to flagship TITAN capacity and integration industry first, embedded MEC achieve edge cloud and access network element integration, help Zhejiang Mobile save 60% upstream bandwidth, improve user video viewing experience. The total capacity of the large video system is over 100 million, and the smart venue solution is applied in many important sports events in China.

In the consumer business field, it cooperates with more than 20 operators around the world to develop 5G terminals and has a series of multi-modal 5G terminal product lines. In the first half of 2019, ZTE Axon 10 Pro 5G version was released in many countries around the world, and has been officially launched in China, Finland and the United Arab Emirates, becoming the first commercial 5G mobile phone in China, Nordic and Middle East; ZTE 5G indoor router MC801 obtained the Ministry of Industry and Information Technology. The 5G terminal telecom equipment network license will be officially put into commercial use in the domestic market.

In the first half of 2019, ZTE formed more than 30 5G+ series solutions in the industrial Internet, big video, car networking, media, energy, public safety, medical, education, eco-friendly, transportation and other industries and successfully implemented more than 50 demonstrations.  The project, which has strategic partnerships with more than 300 industry customers, has deployed business applications and has partnered with more than 200 industry-leading product providers to deliver 5G-based solutions for different industries.

Facing to the future, ZTE will further integrate internal and external resources and focus on mainstream market and mainstream products to continuously improve customer satisfaction and market share; it will gather first-class talents, strengthen compliance and internal control, and constantly improve internal corporate governance and adhere to core technology independent innovation. Focusing on the 5G end-to-end layout, and at the peak of the 5G investment construction period, ZTE will further maintain the sustainable development and innovation strength and achieve quality growth.