Understanding the Market | ZTE fell nearly 5% again, high-margin operator business declined, and Jefferies stated that third-quarter performance was far below expectations

ZTE's stock price fell nearly 5% again, down 4.68% as of the time of writing, at HKD 33.42, with a trading volume of HKD 789 million. The company's operating revenue for the first three quarters was CNY 100.52 billion, an increase of 11.63% year-on-year; net profit was CNY 5.322 billion, a decrease of 32.69% year-on-year. In the third quarter, operating revenue was CNY 28.97 billion, an increase of 5% year-on-year, and net profit attributable to the parent company was CNY 264 million, a decrease of 88% year-on-year. According to a report by Jefferies, revenue, core operating profit, and net profit for the third quarter of 2025 are expected to increase by 5%, decrease by 115%, and decrease by 88% year-on-year, respectively, with gross margin dropping from 40% to 26%