ZTE's profit rises as margins improve

By Sherry Qin

ZTE (HK:763) (CN:000063) grew its net profit by 15% in 2023 as margins improved, while its revenue ticked up slightly.

The telecommunications equipment maker said late Friday that its profit came at 9.33 billion yuan ($1.30 billion) for last year, up 15% from 2022.

Revenue was CNY124.25 billion, compared with CNY122.95 billion in 2023, supported by the carriers' network business. The segment, which contributes most of ZTE's revenue, had 3.4% growth in revenue thanks to higher contributions from wireless and wireless products, the company said.

ZTE's 2023 gross profit margin came in at 41.53%, an increase of 4.34 percentage points. It attributed the rise to margin improvements for the carriers' network segment, the government and corporate business, and its consumer business.

ZTE declared a final dividend of CNY6.83 per 10 shares.

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03-10-24 2059ET

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