ZTE (000063) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 133,895.5 million in 2025, up 10.38% year-over-year; net profit attributable to ordinary shareholders was RMB 5,617.7 million, down 33.32% year-over-year; adjusted net profit (excluding non-recurring items) was RMB 3,370.4 million, down 45.45% year-over-year.

• Domestic market revenue grew 9.42% to RMB 89,734.1 million, accounting for 67.02% of total; international market revenue rose 12.39% to RMB 44,161.4 million, accounting for 32.98%.

• Board approved a cash dividend of RMB 4.11 per 10 shares, subject to shareholder approval.

Financial highlights

• Operating cash flow was RMB 3,918.7 million, down 65.86% year-over-year.

• Basic EPS was RMB 1.17, down 33.52% year-over-year; adjusted EPS was RMB 0.70, down 45.74%.

• Gross margin in domestic market fell by 11.90 percentage points to 31.28%; international market gross margin rose by 1.25 percentage points to 28.16%.

• Total assets reached RMB 217,739.4 million, up 5.02% year-over-year.

Outlook and guidance

• 2026 network investment remains cyclical; intelligent computing business is still in the cultivation phase.

• Focus on “connection + computing power” strategy, deepening innovation and business synergy.

• Plans to strengthen 5G-A, 6G research, and AI-driven product development across all business lines.