ZTE Corporation provides integrated information and communication technology solutions across the People's Republic of China, the rest of Asia, Africa, Europe, the Americas, and Oceania. It operates through three segments: Carriers' Networks, Consumer Business, and Government and Corporate Business. The Carriers' Networks segment offers wireless and wireline access, bearer systems, core networks, server and storage, and other technologies and product solutions. The Consumer Business segment develops, produces, and sells home information terminals, smartphones, mobile internet terminals, and fusion terminals, along with related software applications and value-added services. The Government and Corporate Business segment provides informatization solutions for governments and corporations using communications networks, IoT, big data, and cloud computing. Founded in 1985, the company is headquartered in Shenzhen, the People's Republic of China.
ZTE's AI Push Accelerates Despite US Ban and Phone Delay
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US Rip and Replace Funding The US FCC raised $3.5 billion to fund removing ZTE gear from US networks, with 42% of replacements done. This shrinks ZTE's US market and adds regulatory pressure, weighing on the stock.
This is a new regulatory action that directly reduces ZTE's US revenue and increases uncertainty.
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Doubao AI Phone Delay ZTE's jointly developed Doubao AI phone is delayed, letting rival StepFun launch the first AI agent phone. This costs ZTE a first-mover advantage in the fast-growing AI phone market, hurting its competitive position.
This is a new competitive setback that could slow ZTE's entry into the AI phone market.
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Nvidia H200 Chip Access Nvidia began shipping H200 AI chips to China, and a ZTE unit reportedly got approval to buy them. This gives ZTE access to top AI hardware, boosting its ability to build AI products and services.
This is a new positive development that improves ZTE's access to critical AI technology.
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Agentic AI Phone and AI Infrastructure Wins ZTE unveiled the world's first agentic AI smartphone, NaviX Ultra, and helped build a domestic TPU computing cluster and an all-optical interconnect chip for AI GPU networks. These innovations position ZTE at the forefront of AI hardware and infrastructure, driving growth prospects.
These are new product and technology achievements that show ZTE's progress in AI, a key growth driver.
Q3 2026
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ZTE's AI Push Accelerates Despite US Ban and Phone Delay
▼
US Rip and Replace Funding The US FCC raised $3.5 billion to fund removing ZTE gear from US networks, with 42% of replacements done. This shrinks ZTE's US market and adds regulatory pressure, weighing on the stock.
This is a new regulatory action that directly reduces ZTE's US revenue and increases uncertainty.
▼
Doubao AI Phone Delay ZTE's jointly developed Doubao AI phone is delayed, letting rival StepFun launch the first AI agent phone. This costs ZTE a first-mover advantage in the fast-growing AI phone market, hurting its competitive position.
This is a new competitive setback that could slow ZTE's entry into the AI phone market.
▲
Nvidia H200 Chip Access Nvidia began shipping H200 AI chips to China, and a ZTE unit reportedly got approval to buy them. This gives ZTE access to top AI hardware, boosting its ability to build AI products and services.
This is a new positive development that improves ZTE's access to critical AI technology.
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Agentic AI Phone and AI Infrastructure Wins ZTE unveiled the world's first agentic AI smartphone, NaviX Ultra, and helped build a domestic TPU computing cluster and an all-optical interconnect chip for AI GPU networks. These innovations position ZTE at the forefront of AI hardware and infrastructure, driving growth prospects.
These are new product and technology achievements that show ZTE's progress in AI, a key growth driver.
News & notes moving000063.CS
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ZTE's 2026 interim net profit falls 45.57% year-on-year to 2.753 billion yuan
ZTE released its 2026 interim report, with net profit attributable to the parent company at 2.753 billion yuan, down 45.57% from the same period last year. Total operating revenue was 78.025 billion yuan, and net cash flow from operating activities was negative 127 million yuan, a year-on-year decline of 109.74%. The latest asset-liability ratio was 67.94%, gross margin was 25.48%, return on equity was 3.58%, and diluted earnings per share was 0.58 yuan.
IPv6 Concept Stocks Get a Boost: High-Growth and Leveraged-Buying Picks Revealed
The Cyberspace Administration of China, together with four regional cyberspace administrations and five leading large-model enterprises, has launched a one-year special initiative to enhance IPv6 capabilities for AI large models, promoting full IPv6 support for generative AI applications. Industry estimates show that the domestic IPv6-related industry exceeded 80 billion yuan in 2025. The market for equipment room hardware upgrades and supporting solutions driven by the migration of government, enterprise, IDC, and computing centers to IPv6 single-stack exceeds 300 billion yuan, with deployment spanning 2026 to 2030. Among the 31 A-share IPv6 concept stocks, ZTE, Inspur Information, and Unisplendour all have market capitalizations exceeding 100 billion yuan. Institutions forecast that Inspur Information, Unisplendour, and FiberHome Technologies will all see net profit growth exceeding 30 percent this year and next. As of July 28, leveraged funds had net bought 643 million yuan of Unisplendour, 196 million yuan of Inspur Information, and 60 million yuan of Star-Net Ruijie.
Cloud & Digital Infrastructure › Enterprise Data Storage Systems ▲Regulation
Artificial Intelligence › AI Tooling, Data & MLOps ▲Regulation
000938.CS · Demand · Positive IPv6 upgrade drives demand for Unisplendour's IT infrastructure and solutions; also net bought by leveraged funds.
000977.CS · Demand · Positive IPv6 migration increases demand for Inspur's servers and computing solutions.
600498.CG · Demand · Positive IPv6 upgrade initiative drives demand for telecom equipment and solutions, benefiting FiberHome as a key player.
002396.CS · Demand · Positive IPv6 special initiative and industry growth drive demand for network equipment, benefiting Star-Net Ruijie as an IPv6 concept stock.
000063.CS · Demand · Positive IPv6 migration boosts demand for ZTE's networking equipment and solutions.
002212.CS · Demand · Positive IPv6 upgrade may indirectly benefit Topsec's cybersecurity solutions for network transitions.
Hangzhou's First Domestic TPU Thousand-Card Intelligent Computing Cluster Goes Live, Computing Power Chip Concept Stocks Surge in Afternoon Trading
On the afternoon of July 24, A-share computing power chip concept stocks rebounded in volatile trading. Meishi Technology hit its daily limit up in a straight line, while PNC Process Systems and Tongfu Microelectronics also sealed their boards. ASR Microelectronics rose over 10%. In terms of news, during the 2026 World Artificial Intelligence Conference, the first domestic TPU thousand-card intelligent computing cluster in East China was officially inaugurated in Hangzhou. Jointly built by Hangzhou Telecom, ZTE, and Zhonghao Xinying, this cluster is the first large-scale domestic TPU cluster deployment project within the China Telecom system, marking the entry of domestic TPUs into the carrier-grade scale deployment stage. A research note from Guolian Minsheng Securities pointed out that the shipment share of domestic AI chips has exceeded 40%, with product matrices from manufacturers such as Huawei Ascend and Cambricon continuing to improve, while cloud vendors are simultaneously accelerating their self-developed ASIC layouts. A research report from China Merchants Securities showed that first-quarter 2026 revenues for Hygon Information Technology, Cambricon, Moore Threads, Muxi, and VeriSilicon grew by 68%, 160%, 155%, 75%, and 114% year-on-year, respectively. Moore Threads disclosed a major commercial contract worth 660 million yuan, and as of the end of April, VeriSilicon's new order scale reached 8.2 billion yuan. Sinolink Securities believes that industry fundamentals are sound, and in the third quarter, Nvidia Rubin, AMD MI450, and others will ship in large volumes, with leading companies in the global AI industry chain likely to continue exceeding performance expectations.
Moore Threads Technology Co Ltd · Demand · Positive Moore Threads disclosed a major commercial contract worth 660 million yuan, indicating strong product demand.
688041.CG · Demand · Positive Hygon's 68% YoY revenue growth cited in the report indicates strong demand for its AI chips.
688256.CG · Demand · Positive Cambricon's 160% YoY revenue growth and improving product matrix indicate strong demand for its AI chips.
688521.CG · Demand · Positive VeriSilicon's 114% YoY revenue growth and 8.2 billion yuan new orders signal robust demand for its chip design services.
002156.CS · Demand · Positive Tongfu Microelectronics sealed its board as part of the computing power chip concept rally, but no company-specific demand event is cited.
000063.CS · Demand · Neutral ZTE co-built the TPU cluster, but the article focuses on the cluster's launch, not ZTE's specific benefit.
Communication equipment concept strengthens intraday; institutions say AI demand surge drives high-speed growth in optical communication components
On July 23, the communication equipment concept rose 3.11% intraday. Among related constituent stocks, Sanwang Communication surged 19.99%, Changyingtong rose 7.52%, Xinwei Communication gained 6.91%, Tongding Interconnection climbed 6.38%, and Cambridge Technology advanced 5.94%. According to Securities Daily, ZTE and its partners jointly created a distributed all-optical interconnect chip and super-node application innovation solution. This solution builds a low-latency, ultra-high-bandwidth, scalable GPU computing network based on optical interconnect and optical switching technology, achieving full-stack autonomous control. A research report from Guotai Hainan Securities noted that the PON equipment market is undergoing a generational upgrade from 10G PON to 25G/50G PON. According to Frost & Sullivan forecasts, the global 25G/50G PON market size will reach 5.7 billion US dollars in 2029, with a compound annual growth rate as high as 99.8% from 2024. A research report from Guosheng Securities pointed out that the AI demand surge is driving high-speed growth in optical communication components. Data centers are transforming towards high density, low power consumption, and high speed, with optical module speed iteration accelerating. Related enterprises will fully benefit from AI infrastructure construction.
000063.CS · Technology · Positive ZTE and partners created a distributed all-optical interconnect chip and super-node solution for AI GPU networks.
002491.CS · Demand · Positive AI demand surge drives high-speed growth in optical communication components, benefiting Tongding Interconnection as a constituent.
300136.CS · Demand · Positive AI demand surge drives high-speed growth in optical communication components, benefiting Sunway Communication as a constituent.
Penghua SSE 180 ETF rises over 1.1%, AI supply chain and precious metals lead gains
Penghua SSE 180 ETF rose more than 1.1%, with the AI supply chain and precious metals sectors leading the market higher. In news, East China's first domestically produced TPU thousand-card intelligent computing cluster was completed in Hangzhou, jointly built by China Telecom, ZTE, and Zhonghao Xinying, marking the first large-scale domestic TPU cluster deployment project within the China Telecom system. Spot gold gained over 1% intraday, breaking above 4,120 dollars per ounce, supported by escalating geopolitical tensions and rate cut expectations. Kaiyuan Securities noted that favorable supply and demand news for AIDC is frequent, and it remains firmly bullish on the AI computing power supply chain, with the business model expected to upgrade to computing power operations plus token monetization. As of 1:13 PM on July 22, 2026, the SSE 180 Index rose 0.58%, with constituents such as Rockchip, Huaqin Technology, and Western Mining among the top gainers. The latest price of Penghua SSE 180 ETF was 1.18 yuan, aiming for a third consecutive daily gain. The ETF closely tracks the SSE 180 Index, which selects 180 securities with large market capitalization and good liquidity from the Shanghai market as samples. The top ten holdings include Kweichow Moutai, GigaDevice, and Cambricon, accounting for a combined 26.1%.
000063.CS · Demand · Positive ZTE jointly built the first domestic TPU thousand-card intelligent computing cluster, boosting AI computing demand.
601728.CG · Demand · Positive China Telecom jointly built the first domestic TPU thousand-card intelligent computing cluster, boosting AI computing demand.
中昊芯英(杭州)科技有限公司 · Demand · Positive Zhonghao Xinying jointly built the first domestic TPU thousand-card intelligent computing cluster, boosting AI computing demand.
ZTE Announces 2025 A-Share Dividend of 4.11 Yuan per 10 Shares, Record Date July 28
ZTE has announced its 2025 A-share equity distribution plan. Based on 3.999 billion shares after deducting repurchased shares, a cash dividend of 4.11 yuan per 10 shares will be distributed to all shareholders, with the total dividend payout reaching 1.644 billion yuan. The record date for this distribution is July 28, 2026, and the ex-dividend date is July 29, 2026.
ZTE unveils world's first agentic AI smartphone as Chinese makers pivot to AI
ZTE Corp. unveiled the NaviX Ultra, described as the world's first agentic AI smartphone, at the World Artificial Intelligence Conference in Shanghai. The device launches ByteDance's Doubao assistant via voice or a dedicated button and is designed to execute instructions autonomously across multiple applications, using on-device models for low-latency tasks and cloud systems for complex requests. StepFun also introduced an AI smartphone this week, while Honor plans to launch devices later this year with an agent developed with Alibaba. Chinese manufacturers are turning to agentic AI as the global smartphone market faces its steepest-ever annual decline projected for 2026, with budget-focused brands under margin pressure. ZTE's Nubia brand previously sold out an initial 30,000-unit production run of a prototype priced at 3,499 yuan, and IDC expects AI smartphones to account for more than half of China's market in 2026.
000063.CS · Technology · Positive ZTE unveiled the world's first agentic AI smartphone, NaviX Ultra, at WAIC.
0763.HK · Technology · Positive ZTE unveiled the world's first agentic AI smartphone, NaviX Ultra, at WAIC.
ByteDance · Demand · Positive ByteDance's Doubao assistant is integrated into ZTE's new AI smartphone, expanding its reach.
Honor Device Co., Ltd. · Technology · Neutral Honor plans to launch AI smartphones later this year with an agent developed with Alibaba, but no specific product details.
阶跃星辰 · Technology · Neutral StepFun also introduced an AI smartphone this week, but no further details on impact.
Nvidia has begun shipping a small number of H200 chips to China, according to a senior U.S. Commerce Department official. Jeffrey Kessler told lawmakers that exports have started, though only very few chips have been delivered so far. The H200 is one of Nvidia's most powerful AI processors, making the shipments politically sensitive. Some Chinese companies, including a unit of ZTE, have reportedly received approval to buy the chips, while Alibaba, Tencent and ByteDance were among firms previously cleared. The issue has reopened debate in Congress over how the U.S. is enforcing export controls.
NVDA · Demand · Positive Nvidia begins H200 shipments to China, opening a key market for its AI chips.
000063.CS · Demand · Positive ZTE unit reportedly approved to buy H200 chips, enabling access to advanced AI hardware.
0763.HK · Demand · Positive ZTE unit reportedly approved to buy H200 chips, enabling access to advanced AI hardware.
0700.HK · Demand · Positive Tencent was among firms previously cleared to buy H200 chips, benefiting from resumed shipments.
9988.HK · Demand · Positive Alibaba was among firms previously cleared to buy H200 chips, benefiting from resumed shipments.
ByteDance · Demand · Positive ByteDance was previously cleared to buy H200 chips, and shipments have begun, indicating potential access to advanced AI processors.
StepFun beats Doubao to launch AI agent phone as ByteDance device faces delay
StepFun will beat Doubao to market with the first AI agent phone, seizing an early lead in the AI hardware race. The device runs on StepFun’s self-developed underlying agent system and is manufactured by Huaqin Technology, a company listed on China’s A-share market. The launch event is set for July 13. In contrast, the second-generation Doubao AI phone, jointly developed by ByteDance and ZTE, was originally scheduled for release in the second quarter of this year but has yet to surface. The delay is reportedly due to the dual-filing review process for large language models.
Artificial Intelligence › AI Applications & Copilots Competition
阶跃星辰 · Technology · Positive StepFun is launching the first AI agent phone with its self-developed agent system, beating Doubao to market.
603296.CG · Demand · Positive Huaqin Technology is the manufacturer of StepFun's AI agent phone, which is launching ahead of competitors, likely boosting orders.
000063.CS · Competition · Negative ZTE's jointly developed Doubao AI phone is delayed, losing first-mover advantage to StepFun's device.
ZTE and GSMA to Co-locate ZTE Global Summit & User Congress and GSMA M360 ASEAN in Kuala Lumpur
ZTE and GSMA have signed an agreement to co-locate the 15th ZTE Global Summit & User Congress and GSMA M360 ASEAN in Kuala Lumpur, Malaysia, in September 2026. The ZTE event will run from 8 to 9 September, while GSMA M360 ASEAN will take place from 9 to 10 September. Centered on the theme "Architecting Infinity - From Connectivity to Digital Value", the ZTE summit will feature four chapters—VISION, VOLUME, VALUE, and VENTURE—covering topics from intelligent infrastructure to real-world digital transformation case studies. The co-located events will bring together global ICT leaders, operators, government officials, analysts, and media for keynotes, panels, new product showcases, and robot performances.
US spectrum auction raises $3.5 billion to fund replacing Chinese telecom equipment
The U.S. Federal Communications Commission announced that an auction of wireless mid-band spectrum raised more than $3.5 billion, with up to $3.3 billion of the proceeds earmarked to cover funds borrowed for the Rip and Replace program that removes Huawei, ZTE, and other Chinese gear from U.S. wireless networks. The FCC had previously estimated the total cost of replacing the Chinese equipment at $4.98 billion, but Congress initially approved only $1.9 billion before authorizing this one-time auction of AWS-3 spectrum. The agency reported last week that 42% of federal funding recipients have completed replacement and disposal of all Chinese equipment, though delays have been caused by permitting, supply chain issues, labor shortages, and severe weather.
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