After yesterday’s elections of the New Board of Directors and Leadership Members of ZTE Corporation, today, ZTE announced the financial results for 2015, and they were quite impressive, hitting historic highs as overall operating revenues reached RMB100.19 billion ($15.5 billion) for the year ended 31 December 2015, up 23% compared to 2014 as as sales in 4G products, smart city and emerging ICT technologies reached unprecedented numbers.
The Group reported net profit attributable to holders of ordinary shares of the listed company of RMB3.21 billion ($500K) for 2015, with basic earnings per share amounting to RMB0.78 ($0.12). The Group’s operating cash flow was RMB7.405 billion ($1.14 billion) according to PRC ASBEs, was an all-time record for the Group. While the cash dividend totaled RMB1.038 billion ($160K) was the highest ever in the history of the Group.
The hike in profits will deliver a proposed payment of RMB2.5 ($0.37) in cash (before tax) for every 10 shares held on the basis of the number of shares held by shareholders (including A shareholders and H shareholders).
Overall financial expenses for 2015 decreased substantially year-on-year as the Group enhanced financial expenses control and optimised its debt structure. Meanwhile, substantial growth in net cash flow from operating activities over the previous year was also reported following enhanced efforts in sales revenue collection.
What is really impressive, is that the company’s international revenue, grew by over 25.2% compared to 2014, accounting for 47% of the total revenue, showing the good strategy the company has for entering markets outside China.
Domestically, the Group reported operating revenue of RMB53.11 billion, accounting for 53% of the Group’s overall operating revenue. The issuance of FDD-LTE permits, “Internet+” and the rush for optical fibre upgrades drove further growth in investments in 4G equipment and broadband networks. Meanwhile, the Group also vigorously expanded its cloud computing and Big Data services, Smart City and high-end routers.
As for consumer products, and by consumer we mean mainly smartphones, the numbers are even more impressive: 56 million smartphone shipments, a 16% Year-Over-Year growth with the overseas shipments growing by over 70%! That led ZTE to the 4th place of providers in the US and among the first four in many other countries (1st in Australia).