On the evening of April 27, ZTE issued the first quarterly report of 2018. During the period, it achieved a business income of 28.88 billion yuan, a year-on-year increase of 12.18%; net profit was 1.687 billion yuan, a year-on-year increase of 39.01%.
However, this is due to the fact that it does not consider the United States' refusal to influence the results. The quarterly report shows that it is currently impossible to accurately assess the impact of US sanctions on the quarterly report. It cannot guarantee the truth, completeness and accuracy of the quarterly report, nor can it predict the beginning of 2018. Financial position and operating results at the end of the next reporting period.
According to the announcement, the quarterly report was compiled based on the assumption that the refusal order had no impact on ZTE's first quarterly report in 2018. According to the provisions of the Accounting Standards for Business Enterprises, the BIS activation refusal order belongs to events after the balance sheet date. Currently it is unable to accurately assess its impact on the quarterly report, so it cannot guarantee the authenticity, accuracy and completeness of the quarterly report. At present, the company is assessing the impact of the refusal on the company. To wait for the company to fully estimate the refusal order for the company in 2018. After the impact of the first quarterly report, the company will rewrite the first quarterly report of 2018 and disclose it.
If we do not consider the impact of the US refusal order, we can see from the quarterly report that the overall business of ZTE Corporation has been steadily rising. The company’s technological leadership in areas such as 5G is also very clear. From the perspective of patent performance, 2017 is ZTE’s continuous success. In the eighth year, the number of PCT international patent applications ranked among the top three in the world. It was the only company in China that has won this honor for eight consecutive years. As of 2017, ZTE has a total of more than 69,000 pieces of global patent assets and has authorized more than 30,000 patent assets. Among them, there are more than 815 necessary patents for the 4G LTE standard, accounting for more than 13% of the world's total; 5G strategic layout patents exceed 2,000 worldwide.
'In order to better respond, it is expected that ZTE will increase its investment in technology in the future to make itself more capable. ' Close to ZTE's sources told the China Securities Journal reporter.