ZTE's Q3 attributable profit jumps 394% to CNY 1.31bn as revenue climbs 34%

ZTE Corporation's net profit attributable to shareholders rose 394.46% year on year to CNY 1,307.4m (CNY 1.31bn) in the third quarter of 2026, from CNY 264.4m in the same quarter of 2025, according to its third quarterly report published on 26 October 2026. Operating revenue grew 33.99% to CNY 38.81bn from CNY 28.97bn a year earlier. Basic earnings per share were CNY 0.27, against CNY 0.06 a year earlier. The figures are unaudited and prepared under PRC Accounting Standards for Business Enterprises.

Part of the jump came from items ZTE classes as extraordinary. They totalled CNY 714.5m in the quarter after deducting a CNY 126.1m income-tax effect and CNY 0.2m attributable to non-controlling interests, the report shows. The largest line, CNY 690.6m before tax, combines gains and losses from fair-value changes on financial assets and financial liabilities with gains and losses from disposing of them. In the income statement, gains from changes in fair values reached CNY 500.7m in the third quarter, against CNY 43.9m a year earlier. Stripping out all extraordinary items, attributable profit was CNY 592.9m, up 363.65% year on year.

Over January to September 2026, operating revenue rose 16.23% year on year to CNY 116.84bn, while attributable net profit fell 23.71% to CNY 4.06bn from CNY 5.32bn in January-September 2025. Excluding extraordinary items, nine-month attributable profit was CNY 2.81bn, down 27.46%. By Polstob's calculation from the income statement, gross margin (operating revenue minus operating costs, as a share of revenue) was 24.6% in the third quarter, against 25.9% a year earlier, and 25.2% for the nine months, against 30.5%. Research and development costs were CNY 16.94bn over the nine months, compared with CNY 17.81bn in the same period of 2025.

Inventories reached CNY 73.63bn on 30 September 2026, 56.61% more than the CNY 47.02bn held at the end of 2025; ZTE mainly attributes the rise to higher purchases of materials, which it also cites for increases in trade payables (up 54.70%) and bills payable (up 65.33%). Net cash flow from operating activities fell 59.78% to CNY 715.0m for the nine months, which the company puts down mainly to more cash paid for goods and labour services. Currency cash fell 49.94% to CNY 16.89bn, while trading financial assets rose 70.66% to CNY 29.69bn; the report links both moves mainly to buying more income-generating products.