August 29, 2025 - ZTE Corporation released its 2025 Interim Report. During the reporting period, the company

 achieved operating revenue of RMB 71.55 billion, a year-on-year increase of 14.5%; net profit attributable to 

ordinary shareholders of the parent company was RMB 5.06 billion, a year-on-year decrease of 11.8%; and 

non-GAAP net profit was RMB 4.10 billion, a year-on-year decrease of 17.3%. Company management stated 

that the return to revenue growth was primarily due to the strong expansion of its government and consumer 

businesses, while the profit decline was primarily due to a decline in gross profit margin for carrier networks 

and changes in its expense structure.

By Business Unit

• Carrier network revenue was RMB 35.06 billion, a year-on-year decrease of 6.0%, with gross profit margin 

falling from 54.3% to 52.9%, primarily due to slowing domestic 5G investment and changes in product mix.

• Government business revenue was RMB 19.25 billion, a year-on-year increase of 109.9%, with gross profit 

margin falling to 8.3%, primarily due to the expansion of its server and storage businesses.

• Consumer business revenue reached RMB 17.23 billion, a year-on-year increase of 7.6%, with gross profit

margin decreasing from 18.8% to 17.8% due to intensified price competition in home devices.

By Region

• Revenue in China reached RMB 50.62 billion, a year-on-year increase of 17.6%, accounting for 71% of 

total revenue.

• International market revenue reached RMB 20.94 billion, a year-on-year increase of 7.8%, accounting 

for 29% of total revenue.

In the first half of 2025, ZTE's R&D expenses were RMB 12.66 billion, a year-on-year decrease of 0.5%, 

accounting for 17.7% of revenue; selling expenses were RMB 4.38 billion, a year-on-year increase of 5.2%; 

and administrative expenses were RMB 2.13 billion, a year-on-year decrease of 4.8%. Financial expenses 

turned from RMB 46.3 million in the same period last year to RMB -440 million, primarily due to increased 

interest income and foreign exchange gains.

Technology and Market Progress

• Next-generation network technologies such as 5G-A, 50G-PON, and 400G OTN are already being piloted 

by operators.

• Server and storage revenue for the government and enterprise business doubled year-on-year, and 

intelligent computing servers received bulk orders from leading domestic internet companies.

• The consumer business launched AI phones, Wi-Fi 7 routers, and FTTR products, with cloud PC

 terminal sales exceeding 1 million units.

Outlook

The company stated that throughout 2025, it will adhere to the principle of "seeking progress while 

maintaining stability, maintaining integrity while innovating." While consolidating its carrier network 

foundation, it will accelerate the development of second-tier businesses such as computing power 

and AI terminals, striving for steady revenue growth throughout the year.