Time to Take Notice of ZTE
Situation Overview ZTE is the largest publicly traded telecommunications equipment manufacturer from China. The company manufactures and supplies a broad range of wireless and fixed network equipment, having sold systems to service providers in China as well as international markets. In the wireless realm, its portfolio spans infrastructure and devices based on GSM/UMTS, Personal Handyphone System (PHS), WiMAX, and CDMA technologies. On March 25 and 26, 2009, the company held its Fifth Annual Analyst Conference in Shenzhen, PRC. Despite weak global economic conditions, ZTE delivered strong results, expanding further into international markets while strengthening its overall position in China. ZTE top line revenues grew over 27% to nearly RMB 44.3 billion in 2008, up RMB 9.5 billion from the 2007 level of RMB 34.8 billion (see Figure 1). Profits before income taxes also grew, expanding from RMB 1.7 billion to RMB 2.3 billion for a slightly faster 31% rate of growth. This rate of expansi