PR83801

SHENZHEN, China, Apr. 24, 2020 /PRNewswire=KYODO JBN/--

- Maintaining steady global business development while accelerating 5G

infrastructure deployment

ZTE Corporation (0763.HK / 000063.SZ), a major international provider of

telecommunications, enterprise and consumer technology solutions for the Mobile

Internet, today announced its first quarterly results ended 31 March 2020.

According to the announcement, for the three months ended 31 March 2020, ZTE

reported operating revenue of RMB21.484 billion. Net profit attributable to

holders of ordinary shares of the listed company reached RMB780 million, and

net profit after extraordinary items attributable to holders of ordinary shares

of the listed company amounted to RMB160 million, representing a year-on-year

increase of 20.5%. Basic earnings per share was RMB0.18.

The company continued to strengthen its R&D investment to build up its core

competitiveness. For the three months ended 31 March 2020, the research and

development costs amounted to RMB3.241 billion, 15.1% of operating revenue,

increased by 1.2 percentage point compared to the same period last year.

During the first quarter of 2020, ZTE has placed great priority on its employee

health and global customer services by promptly building and upgrading a remote

office and customer service platform for all its employees. Moreover, the

company has coordinated with partners to fight against COVID-19 and facilitate

the resumption of production with digital means in an orderly manner.

Meanwhile, ZTE has been actively practicing social responsibilities. The

company has collaborated with operators to guarantee the communication services

of the front line against COVID-19. It has constructed 4G/5G networks and

telemedicine diagnosis systems for hundreds of hospitals in China.

As a responsible corporate citizen, ZTE has donated materials to support Wuhan

and other regions in Hubei province, and has distributed face masks,

ventilators, and other materials to organizations and local hospitals around

the world. In collaboration with various overseas operators, ZTE has also

carried out the diagnosis with hospitals, and provided small and medium

enterprises with office facilities and a series of anti-COVID-19 programs as

well.

Teaming up with industry partners, ZTE has been committed to empowering various

industries to fight against COVID-19 by leveraging its leading technological

strength like 5G and AI. Specifically, ZTE has released 5G remote diagnosis and

mobile diagnosis services, as well as the smart video cloud solution for

epidemic prevention and control.

Moreover, the company has launched the family "cloud classroom" services to

support online education. Featuring high efficiency and collaborativeness,

ZTE's secure remote office solution has enabled users of different industries

to have remote office services during the outbreak of COVID-19, thereby

facilitating the safe and rapid resumption of work and enhancing economic

resilience.

With the acceleration of new infrastructures, such as 5G and the Industrial

Internet, ZTE has been actively involved in the deployments of operators' 5G

infrastructure, and constantly scaled up its 5G production capacity. Meanwhile,

the company has solidified cooperation with top industry players to promote the

digital transformation of power, transportation, finance, government affairs

and other key industries.

By the end of the first quarter of 2020, ZTE has consecutively secured

significant shares for the 5G RAN, 5G SA core network, 5G transport centralized

procurement of China Mobile, China Telecom and China Unicom. The company has

constructed 5G demonstration networks in multiple cities in China, achieving

Giga+ 5G continuous coverage experience. Moreover, the company has completed 5G

commercial deployments in Europe, Asia-Pacific, the Middle East and other major

5G markets.

In addition, ZTE has sustained high growth in market shares in optical

networks, as well as in the segments of Metro WDM and Backbone WDM. The company

and its partners have jointly explored 86 application scenarios and carried out

over 60 demonstration projects on a global scale, building a series of 5G

intelligent manufacturing demonstration projects along with top industry

players.

In the field of terminal devices, ZTE has unveiled its first 5G video

smartphone ZTE Axon 11 5G. The company has continuously strengthened its 5G

terminal devices cooperation with more than 30 operators worldwide. It has

embarked on the 5G terminal market in Japan by partnering with operators.

Moving forward, ZTE will pay close attention to the global epidemic situation,

and make reasonable coordination accordingly with its global customers and

partners to cope with the global epidemic. The company will unswervingly

concentrate on its major businesses while leveraging the opportunities of new

infrastructure construction, expecting to create more values for its customers

and the society.

Media Contacts:

Margaret Ma

ZTE Corporation

Tel: +86-755-26775189

Email: ma.gaili@zte.com.cn

SOURCE: ZTE Corporation