---
title: "Understanding the Market | ZTE falls over 10% due to declining operator demand and impact of confirmed revenue collection rhythm, with third-quarter net profit decreasing by 88% year-on-year"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/263406526.md"
description: "After ZTE released its performance for the first three quarters of 2025, its stock price plummeted over 10%, falling 10.67% to HKD 35.34 as of the time of writing. The company's net profit in the third quarter decreased by 88% year-on-year, mainly due to declining demand from operators and a revenue structure leaning towards low-margin businesses. Huatai Securities pointed out that although short-term performance is under pressure, the company continues to make breakthroughs in computing power layout, which has not changed its long-term development logic"
datetime: "2025-10-30T01:46:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/263406526.md)
  - [en](https://longbridge.com/en/news/263406526.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/263406526.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/263406526.md) | [繁體中文](https://longbridge.com/zh-HK/news/263406526.md)


# Understanding the Market | ZTE falls over 10% due to declining operator demand and impact of confirmed revenue collection rhythm, with third-quarter net profit decreasing by 88% year-on-year

According to Zhitong Finance APP, ZTE Corporation (00763) plummeted over 10% after its earnings report, falling 10.67% to HKD 35.34 as of the time of writing, with a transaction volume of HKD 1.038 billion.

In terms of news, on the evening of October 28, ZTE Corporation released its performance for the first three quarters of 2025, reporting an operating income of CNY 100.52 billion, an increase of 11.63% year-on-year; the net profit attributable to ordinary shareholders of the listed company was CNY 5.322 billion, a decrease of 32.69% year-on-year. In the third quarter alone, the company achieved an operating income of CNY 28.97 billion, an increase of 5% year-on-year, while the net profit attributable to the parent company was CNY 264 million, a decrease of 88% year-on-year. Huatai Securities believes that the decline in profits is mainly due to the year-on-year decline in revenue from the company's high-margin operator business and its reduced proportion, while the revenue structure is leaning towards low-margin computing power business.

Huatai Securities stated that the company's short-term performance pressure is due to the downturn in operator demand and the impact of the collection rhythm, but the logic of the company's long-term development around the second curve of computing power has not changed. In the first three quarters, the firm observed that the company's full-stack computing power layout continued to make breakthroughs: 1) In terms of chips, the company has self-developed DPU (Dinghai series) and large-capacity switching chips (Lingyun and Tianyi series), achieving large-scale high-performance interconnection of domestic GPU cards; 2) In terms of intelligent computing servers, the company has entered the core business scenarios of many domestic internet manufacturers such as Alibaba, Tencent, ByteDance, Baidu, and JD.com, as well as leading enterprises in finance and electricity. The company is also building an orthogonal super-node system aimed at high-performance training and inference, supporting the creation of ultra-large-scale clusters with tens of thousands of cards or more

### 相关股票

- [ZTE (000063.CN)](https://longbridge.com/zh-CN/quote/000063.CN.md)
- [ZTE (00763.HK)](https://longbridge.com/zh-CN/quote/00763.HK.md)

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