ZTE (000063) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 27.56 billion, down 3.94% year-over-year; nine-month revenue reached RMB 90.04 billion, up 0.73% year-over-year.

• Net profit attributable to ordinary shareholders for Q3 was RMB 2.17 billion, down 8.23% year-over-year; nine-month net profit was RMB 7.91 billion, up 0.83% year-over-year.

• Operating cash flow for the first nine months was RMB 8.05 billion, down 13.10% year-over-year.

Financial highlights

• Basic and diluted EPS for Q3 was RMB 0.45, down 10% year-over-year; nine-month EPS was RMB 1.65, flat year-over-year.

• Gross margin and operating profit details indicate cost pressures and increased R&D spending.

• Non-recurring gains for the first nine months totaled RMB 1.01 billion, mainly from software VAT rebates and other items.

• Total assets at September 30, 2024, were RMB 199.69 billion, down 0.63% from year-end 2023.

• Shareholders’ equity attributable to ordinary shareholders increased 6.33% to RMB 72.32 billion.

Outlook and guidance

• Management did not provide explicit forward guidance but highlighted ongoing cost management and investment in R&D.