ZTE (000063) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached RMB 28.97 billion, up 5.11% year-over-year; nine-month revenue was RMB 100.52 billion, up 11.63% year-over-year.

• Net profit attributable to ordinary shareholders in Q3 was RMB 264 million, down 87.84% year-over-year; nine-month net profit was RMB 5.32 billion, down 32.69% year-over-year.

• Significant decline in Q3 profitability due to lower non-recurring gains and higher costs.

Financial highlights

• Gross margin pressure evident as cost of sales increased 30.08% year-over-year for the nine-month period.

• Basic and diluted EPS for Q3 were RMB 0.06, down 86.67% year-over-year; nine-month EPS was RMB 1.11, down 32.73% year-over-year.

• Operating cash flow for the nine months was RMB 1.78 billion, down 77.92% year-over-year.

• Total assets at September 30, 2025, were RMB 214.66 billion, up 3.54% from year-end 2024.

Outlook and guidance

• Management notes ongoing cost pressures and market volatility, with a focus on optimizing debt structure and maintaining liquidity.