At the end of January, Huawei’s rotating CEO Xu Zhijun revealed in his 2017 New Year’s speech that Huawei’s sales revenue is expected to reach RMB520 billion in 2016, a year-on-year increase of 32%. On March 7, ZTE also released the 2016 Annual Results Express and the 2017 First Quarter Results Express, and disclosed the specific financial impact of the relevant events in the United States.
In terms of sales revenue, 520 billion is roughly equivalent to 1.5 Lenovo, 5 Gree Electric Appliances, 5 ZTE, and 5 Alibaba, exceeding the sum of BAT; according to Huawei's past 5 years, Huawei's approximately 60% of its revenue comes from overseas. . According to this calculation, in 2016, Huawei generated about 312 billion yuan in overseas revenue. Up to now, Huawei has more than 170,000 employees and operates in more than 170 countries and regions around the world, serving more than one-third of the world's population.
According to the 2016 Annual Results Express, ZTE expects its operating income to be RMB 101.23 billion in the year. Due to the impact of related events in the United States, it will be subject to a one-off penalty of US$892 million and a total loss of RMB 767 million. The net attributable to ordinary shareholders of listed companies. The loss was RMB 2.357 billion. Excluding the aforementioned accrued losses, the total profit of the company was RMB 5.414 billion, a year-on-year increase of 25.82%; the net profit attributable to ordinary shareholders of listed companies was RMB 3.825 billion, a year-on-year increase of 19.24%.
A settlement with the US government will help eliminate the huge uncertainty in operations. In addition to its commitment to continuous technological innovation and global business development, the new management team has significantly strengthened compliance management, strongly promoted institutional, institutional and cultural changes, and aims to create new, more compliant, healthier and trustworthy new ZTE has achieved initial results. The data shows that in the first quarter of 2017, ZTE expects its operating income to increase by 10%-20% over the same period of the previous year, benefiting from the continuous improvement of the company's product competitiveness and the continuous optimization of internal management. The net profit attributable to the common shareholders of listed companies. It has increased by more than 20% compared with the same period of last year and has re-entered the normal development track.
Compared with Huawei's performance, Huawei is far less profitable than Huawei. According to Huawei's 2016 annual report, its profit margin is only about 7%. It is reported that Huawei's revenue in 2016 increased by more than 130 billion compared with 2015. The renminbi, but the profit has only increased by 1 billion yuan, which means that over 130 billion yuan of income has almost no contribution to effective profits. Therefore, Ren Zhengfei mentioned in the New Year's operation that Huawei's terminal should increase its market share and make profits first.
ZTE believes that ICT technology will be applied to various industries in the 5G era, and it will cause subversive changes in human production and lifestyle. As a 5G innovation leader and digital transformation enabler, ZTE has taken the lead in achieving technological breakthroughs in 5G, especially in the industry leading level. ZTE has launched a full range of 5G high and low frequency products and complete solutions for pre-commercial use, helping operators to seize the opportunities ahead of the 5G era. ZTE has been committed to the commercialization of 5G core technology Massive MIMO in the 4G era through the application of innovative technologies. Up to now, ZTE Pre5G Massive MIMO has deployed more than 40 networks in 30 countries around the world. The commercialization of the future 5G will bring a first-mover advantage and a favorable position.
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