ZTE Corporation has announced its annual results for the year ended December 31, 2011.

Based on HKFRS, ZTE recorded revenue of RMB 86.25 billion in 2011, a 23.4 per cent increase compared to 2010. Net profit stood at RMB 2.06 billion, a 36.6 per cent decline from 2010?s result. Basic earnings per share were RMB 0.61.

Applying PRC ASBEs for the period ending December 31, 2011, the Group?s revenue from principal operations increased by 23.4 per cent to RMB 86.25 billion from 2010. Net profit was RMB 2.06 billion, a 36.6 per cent decline from 2010. Earnings per share were RMB 0.61.

The Group?s domestic and overseas operating revenue grew 22.7 per cent and 24 per cent year-on-year respectively. In 2011, ZTE?s terminal products sales continued to grow, with operating revenue of RMB 26.93 billion, a 52.6 per cent increase from the previous year.

The Board of Directors has recommended a cash dividend of RMB 2 (including tax) for every 10 shares.

ZTE has issued RMB 2.09 billion in cash dividends over the past three years. The dividend payout ratio was 30.6 per cent in 2011, above the rate of 20.8 per cent in 2009 and 24.2 per cent in 2010.

During the period under consideration, ZTE reported operating revenue of RMB 39.50 billion from the domestic market, accounting for 45.8 per cent of overall operating revenue and representing a year-on-year growth of 22.7 per cent.

The 12th Chinese National Five-Year Plan was also a driver of the company?s development. ZTE assisted with the development of large 3G developments in China and construction of the country?s national broadband network in 2011. The company?s domestic operating revenue grew in the domestic market through its support of 3G carriers. It also deployed broadband access networks and ancillary transmission networks.

From the overseas market, ZTE reported operating revenue of RMB 46.76 billion during the period, accounting for 54.2 per cent of overall operating revenue and representing year-on-year growth of 24 per cent.

In emerging markets, ZTE has completed market deployments following agreements with mainstream operators such as MTN and Am?rica M?vil. It also strengthened cooperation with multinational operators such as Telefonica and France Telecom.

In Europe, the company?s system equipment has been implemented by nine of Europe?s top 10 operators. In Japan, ZTE was selected by Softbank for TD-LTE projects.

The company further strengthened its role as an industry and technology leader in the TDD area with global promotion of TD-LTE in 2011. ZTE secured over 30 commercial LTE contracts and worked with over 100 operators around the globe to build testing networks during the year. ZTE also completed commercial deployments with top operators such as H3G, Hi3G, Softbank and CSL. In addition, market share has grown in both UMTS and GSM products. The company continues to strengthen its cooperation with operators like France Telecom and MTN Group.

The company also maintained its leading market share in the PTN area. Furthermore, the company?s high-end data communications technologies such as the M6000/T8000 router and next generation PON products reached a high point, with ZTE recording the highest market share in the world for these products.

According to a 2011 report by research firm Gartner, ZTE became the second-fastest growing smartphone company in the world during the year. ZTE also was the fourth-largest mobile manufacturer in the world in terms of shipments during the year. Growth from both mainland China as well as high-end markets like the United States, France and the U.K. were the main sources of the company?s handset sales growth in 2011.