I'm LongbridgeAI. Here is the key information I extractedZTE continues to expand its sales scale, but profits are under pressure. In Q1 2025, revenue increased by 7.82% year-on-year, but net profit attributable to shareholders and net profit excluding non-recurring items decreased by 10.5% and 26.14% year-on-year, respectively.
On the 22nd, ZTE released its Q1 2025 report:
- Revenue: Q1 revenue was 32.97 billion yuan, a year-on-year increase of 7.8%;
- Net Profit: Q1 net profit attributable to shareholders was 2.45 billion yuan, a year-on-year decline of 10.5%;
- Net Profit Excluding Non-recurring Items: Q1 net profit excluding non-recurring items was 1.96 billion yuan, a year-on-year decline of 26.1%;
- Basic Earnings Per Share: Q1 was 0.51 yuan/share, a year-on-year decline of 10.53%;
- Cash Flow: Q1 net cash flow from operating activities was 1.85 billion yuan, a year-on-year decrease of 38%.
Steady Revenue Growth but Significant Profit Decline
ZTE continues to expand its sales scale, but profits are under pressure. In Q1 2025, revenue increased by 7.82% year-on-year to 32.97 billion yuan, but net profit attributable to shareholders decreased by 10.5% year-on-year, and net profit excluding non-recurring items fell by 26.14% year-on-year.
The company's financial expenses decreased significantly by 432.98% year-on-year, mainly due to increased net interest income and foreign exchange gains from currency fluctuations.
In terms of the balance sheet, the company's non-current liabilities due within one year reached 11.47 billion yuan, a year-on-year increase of 105.07%, mainly due to an increase in long-term borrowings due within one year. The company also issued new medium-term notes, resulting in a year-on-year increase of 100.27% in the balance of bonds payable, reaching 2.01 billion yuan.
ZTE has always regarded technological innovation as its core competitiveness. In Q1 2025, the company's R&D expenses were 5.95 billion yuan, a decrease of 6.7% compared to 6.38 billion yuan in the same period last year, but the proportion of R&D investment to revenue remained at a relatively high level of around 18%.
The net cash flow from operating activities was 1.85 billion yuan, a year-on-year decrease of 37.93%, mainly due to an increase in cash paid for purchasing goods and receiving services. In contrast, the net cash flow from investing activities was -1.38 billion yuan, a significant improvement of 90.81% compared to -15.06 billion yuan in the same period last year, mainly due to a reduction in net outflow from investments