ZTE, the Chinese manufacturer and vendor of telecoms equipment is riding out the recession well - so far at least. Over the weekend the Shenzhen-headquartered company that has come from nowhere and in just a few years has carved itself an impressive global market share, reported revenues growth of 27.37 per cent, writes Martyn Warwick.
The figures show that in the year ending December 31, 2008 ZTE's turnover was close to six and a half billion Hong Kong dollars, on which the company achieved a net profit of $239 million.
Growth was split between the Chinese domestic market (where ZTE achieved 18.93 per cent growth) and its international operations (they rose by 33.53 per cent year-on-year) that now accounts for 606 per cent of the company's total revenues. The ZTE Group's efforts held up particularly well in the high-groth economies including parts of Africa, Asia and the Indian sub-continent.
Commenting on the figures, Hou Weigui, ZTE's chairman, said, "In 2008, the group made major breakthroughs and strong growth in the main product areas of GSM, WCDMA, FTTX and optical transmission. In China, we submitted bids for 3G projects of the three major carriers to prepare for undertaking the projects. Outside China, we have made major advances in strategic overseas markets and the multinational carrier market, paving the way for the Group to reach new heights in 2009."
Mr. Hou added that he expects to see significant growth in ZTE's domestic market over the course of the rest of this year and on into 2010 but admits that the international market will be challenging as the global recessions deepens even further.
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