ZTE reveals 14.5 percent YoY revenue growth for 1st half of 2025

ZTE unveils its financial results for the 1st half of 2025 with a 14.5 percent increase over last year's result.

File photo: nubia 3 GT 5G

 A good start for ZTE

The company's net profit attributable to holders of ordinary shares was 5.06 billion yuan. Net profit after extraordinary items for the period was 4.10 billion yuan.

A significant driver of growth was the company's "second-curve" business, which includes computing power and terminal devices. Revenue from this segment grew nearly 100 percent year-on-year and now accounts for over 35 percent of ZTE's total revenue.

Geographically, revenue from the domestic market in China was 50.62 billion yuan, a 17.5 percent increase. International market revenue reached 20.93 billion yuan, up 7.8 percent year-on-year.

Segment Performance:

• Operator Networks: Revenue was 35.06 billion yuan. The company noted a narrowing year-on-year decline in this segment as it mitigated the effects of a slowdown in domestic 5G capital expenditure.
• Government & Enterprise: This segment saw significant growth, with revenue increasing 109.9 percent to 19.25 billion yuan, establishing it as the company's primary growth engine.
• Consumer Business: Revenue grew 7.6 percent to 17.24 billion yuan, driven by home terminals, smartphones, and cloud PCs. The international revenue of its smartphone business grew over 30 percent.
• The combined revenue contribution from government & enterprise, and consumer businesses now exceeds 50 percent of ZTE's total revenue.

Strategic Focus and R&D:

ZTE highlighted the advancement of its "All in AI, AI for All" strategy, focusing on integrating artificial intelligence with information and communication technology (AI-ICT). The company's research and development expenses for the period totaled 12.66 billion yuan, representing approximately 18 percent of its operating revenue.

According to the announcement, ZTE has filed approximately 94,000 global patent applications, with over 50,000 granted. This includes nearly 5,500 patent applications in the AI field and approximately 5,700 in the semiconductor sector.

In its connectivity business, ZTE stated that its shipments of 5G base stations and core networks rank second globally, according to recent industry reports. The company is also developing computing infrastructure, providing products like servers and data center clusters for AI applications, with deployments reported in over 18 vertical industries.

REDMAGIC 10 Pro

In the consumer terminal field, ZTE launched several AI-enabled devices, including new smartphones and its first consumer-grade tablet, while expanding the international presence of its nubia and REDMAGIC brands.

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