ZTE Nine-Month Operating Revenue Rises 26.5% to RMB58.29 Billion

Terminal sales revenue increases 53%

SHENZHEN, China--()--ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, announced today that its operating revenue rose to RMB58.29 billion for the nine months ended September 30, 2011, an increase of 26.5 per cent year-on-year.

Net profit attributable to parent company shareholders for the same period was RMB1.07 billion, a year-on-year decline of 21.5 per cent. The decrease is mainly attributable to increased financial expenses. Basic earnings per share for the period were RMB0.31.

Revenue from terminal sales increased 53.4 per cent year-on-year, driven mainly by growth in sales of 3G and CDMA terminals, and GSM handsets and data cards. Revenue attributed to telecommunications software systems, services and other products saw year-on-year growth of 28 per cent as a result of an increase in fixed terminals and services sales. The company also reported year-on-year growth of 15 per cent in carrier network revenue. This increase is attributed to increased sales of ZTE’s wireline products, optical communications systems, domestic sales of GSM/UMTS system equipment and international sales of its CDMA system equipment.

As TD-LTE becomes more popular around the world, ZTE continued to strengthen its position as an industry leader in this sector in the first three quarters of 2011. This is evident in the company’s initiatives in high-end markets, including new partnerships with Hutchison (Sweden), Softbank (Japan) and operators in India and Saudi Arabia. ZTE also has further developed its partnerships with multinational operators such as France Telecom and MTN Group in the GSM/UMTS arena.

ZTE secured a record-high market share of 12.5 per cent for the period in the PTN field, maintaining its position as the global leader in optical product manufacturing.

ZTE also obtained a 16.3 per cent share of the high-end data product market among China’s telecommunications operators, moving into the No. 3 spot domestically. This is attributed to an increase in sales of the company’s high-end data products such as the M6000/T8000.

In the first three quarters of 2011, ZTE’s terminal product sales continued to grow, and it is now ranked as the No. 5 handset manufacturer in the world. Its flagship products such as the Blade, Skate and other smartphones have enhanced the company brand. To date, more than 5 million ZTE Blade phones have been sold worldwide. Based on the Blade’s success, ZTE launched the Skate, a next-generation 4.3-inch, large-screen smartphone in September. The Skate is available in China, Hong Kong and selected European countries.

Looking ahead to the final three months of 2011, ZTE will be confronted with macroeconomic policy changes in China and a high degree of uncertainty in international economies. The company will focus on projects that aim to expand or upgrade wireless networks that are in line with the Chinese government’s broadband strategy. It also will seek opportunities in the ICT industry and related smart terminals market.

Further, the company will strive to completely understand customer requirements and will seek to maintain a positive balance between scale and profit with the fundamental aim of sustaining stable growth.

Contacts

Media:
ZTE Corporation
Margrete Ma
Tel: +86 755 26775207
Email: ma.gaili@zte.com.cn
or
Edelman PR
Diana Pong / Andres Vejarano
Tel: +852 2837 4753 / 2837 4735
Email: diana.pong@edelman.com / andres.vejarano@edelman.com

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Contacts

Media:
ZTE Corporation
Margrete Ma
Tel: +86 755 26775207
Email: ma.gaili@zte.com.cn
or
Edelman PR
Diana Pong / Andres Vejarano
Tel: +852 2837 4753 / 2837 4735
Email: diana.pong@edelman.com / andres.vejarano@edelman.com