ZTE Corporation Announcement on the Progress of the "Quality and Return Double Improvement" Action Plan
The Company and all members of its Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
In response to the Central Political Bureau meeting's call to "activate the capital market and boost investor confidence" and the State Council's executive meeting's requirement to "vigorously enhance the quality and investment value of listed companies and adopt more forceful and effective measures to stabilize the market and confidence," and to protect the interests of all shareholders and promote the company's long-term healthy and sustainable development, ZTE Corporation (hereinafter referred to as the "Company") has formulated the "Quality and Return Double Improvement" Action Plan (hereinafter referred to as the "Action Plan"). The "Announcement on the 'Quality and Return Double Improvement' Action Plan" and the "Announcement on the Progress of the 'Quality and Return Double Improvement' Action Plan" were issued on February 8, 2024, and March 29, 2025, respectively. The progress of the Action Plan in 2025 is hereby announced as follows:
I. "Connectivity + Computing Power" New Strategy Shows Initial Results, Revenue Returns to Growth Track
In 2025, facing the challenges and opportunities brought by the rapid development of artificial intelligence, the Company adheres to innovation leadership. The "Connectivity + Computing Power" new strategy has taken a solid step forward, and revenue has returned to the growth track. At the same time, the industry cycle transition combined with business structure adjustment has put pressure on the Company's net profit attributable to shareholders.
In 2025, in the carrier network business, 5G network construction in the domestic market is in its mature stage, and carrier investment continues to decline. The Company's domestic carrier network revenue is under pressure. On the one hand, the Company is deeply cultivating wireless and wired products to consolidate its "ballast stone" position and actively expanding carrier intelligent computing data center projects. On the other hand, it is proactively planning for integrated space-air-ground, autonomous driving networks, and terabit optical networks to lay the foundation for the next phase of network construction. In the international market, the Company adheres to the "Major Country and Major T (Major T refers to mainstream carriers)" strategy, continuously deepening and innovating, strengthening operations in the existing market, and seizing market opportunities in 5G and fiber optic construction to expand scale and achieve relatively rapid growth in international carrier network revenue. In the government and enterprise business, the Company seizes the market opportunity of domestic leading Internet companies and industry customers increasing investment in intelligent computing, and its server and other computing power products continue to achieve breakthroughs with major customers. In the international market, the Company deepens cooperation with Chinese enterprises' overseas businesses, seizes the demand for computing power infrastructure such as servers, data centers, and new energy in overseas markets, and has achieved large-scale deployment in multiple countries and regions, driving a year-on-year increase of 100.5% in government and enterprise business revenue. In the consumer business, domestic home terminal products actively respond to market competition and maintain stable market share, with cloud computer terminal sales exceeding 2 million units. In the international market, the Company focuses on key major countries, strengthens the brand building of Nubia mobile phones, and actively expands markets in Southeast Asia, the Middle East, Africa, Europe, and the Americas, achieving double-digit growth in mobile phone product revenue.
II. Persist in R&D Investment, Build End-to-End Full-Stack Competitiveness