ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, posted a 27.8% rise in first-quarter profit as the company increased sales of carrier network solutions and smartphones.
Net profit attributable to holders of ordinary shares of the listed company jumped to RMB 1.21 billion in the first three months, according to ZTE's quarterly results announcement. First-quarter revenue increased 17.8% to RMB 25.75 billion.
Innovation is powering the growth in ZTE's business as the company's research and development in the first three months accounted for almost 13% of quarterly revenue.
ZTE is strengthening its position as a global leader in 5G research, as the company deepens its collaboration with the world's largest carriers with the new proprietary FDD-LTE based Massive MIMO solution. ZTE's innovative Pre5G products are now deployed in more than 40 networks in 30 countries. ZTE is on track to begin 5G pre-commercial deployments in the third-quarter of 2018, with full commercial deployment starting in 2019. ZTE's network virtualization solutions are deployed in more than 180 networks globally, and the company this year unveiled the world's first Carrier DevOps platform.
For Wireline products, ZTE led the industry in innovations for 5G-ready bearer network products that integrate IP and optical transport technologies, introducing the 5G Flexhaul solution in February. The company is sustaining its momentum as one of the global industry leaders in PON (passive optical network) products and fixed access products, and gained 70% market share in a recent annual tender by China Mobile for data center servers.
In the first quarter, ZTE posted more than 25% growth in shipments of set-top-boxes as the company's Big Video business continues to strengthen. ZTE is also gaining market share in Rich Communications Suite (RCS) and Cloud-Computing solutions, as the company leverages innovations in network cloudification and artificial intelligence.
In IoT (Internet of Things), ZTE is leading the market in the development of Narrowband-IoT (NB-IoT) services, and was the first vendor to release a pre-commercial NB-IoT based smart-parking system, helped by proprietary innovations in networks, chipsets and devices. ZTE's self-developed chipsets posted 70% year-on-year growth in shipments in the first quarter.
ZTE, maker of the AXON and Blade lines of smartphones, introduced in February an upgraded version of AXON 7, the company's first device to support Google Daydream, to deliver compelling virtual reality experiences to consumers. At the Consumer Electronics Show in Las Vegas in January, ZTE unveiled the Blade V8, a new smartphone that allows users to take Bokeh photos and supports 3D photography.
ZTE, one of the top smartphone providers in the US, strengthened its partnerships with leading operators in North America and Japan through innovative consumer devices and connected vehicles solutions. ZTE is also one of the top device partners of China Mobile, and is leading the market in the development of encrypted smartphones for more robust information security.
In the Government and Corporate Business, ZTE is consolidating its position as one of the global leaders in Smart City technologies, with new projects in major Chinese cities, as well as in western European markets including Germany and France.
Looking forward, ZTE will proactively pursue new growth opportunities, with the company continuing to strengthen its ongoing commitment to R&D and rigorous operation management. ZTE will also deepen its collaboration with partners and customers to build healthy and sustainable industry ecosystems and mutually beneficial relationships.