5G will go out of the communication industry in 2020 and grow into the top of the economy and society. From an international perspective, 5G is the focus of technological competition among major countries, and 5G-related news events often appear in major international media; from a domestic perspective, 5G has been selected into the seven major directions of "new infrastructure" and served as the vanguard, not only adding a touch of light to the "anti-epidemic" , is the first to resume work and production after the epidemic, and now China has opened more than 700,000 5G base stations.

As one of the four major equipment manufacturers, ZTE has performed well in 2020. In terms of business, as of September 2020, 55 5G commercial contracts have been obtained worldwide, and 5G cooperation has been carried out with more than 90 operators, covering more than 500 industry partners. In the third quarter, the global market share of 5G base station shipments was 33%. In terms of performance, the revenue in the first three quarters was 74.1 billion, a year-on-year increase of 15.4%; non-net profit deducted was 1.45 billion, a year-on-year increase of 103.6%.

It is understood that ZTE formulated a three-stage route of "recovery, development, and transcendence" in 2018, successfully completed the recovery period in 2019, and entered the development period in 2020. "In the first year of the strategic development period, the company has achieved a qualitative growth in the company's operating performance, achieved the established goals, and laid a good foundation for the realization of the overall goals of the development period." ZTE Chairman Li Zixue concluded in his New Year's speech.

In 2020, the 5G arena is surging, and ZTE has formulated the main development line of "digital economy road builder", and has made steady progress and achieved outstanding results in both the telecommunications market and the industry market. The "Trilogy" has passed halfway smoothly, and looking forward to 2021, the road ahead for ZTE will be broader.

ZTE accelerates its move towards cloudification, positioning itself as a "road builder of the digital economy"

How to understand "quality growth"

In a highly competitive, fast-iterative, and technology-intensive industry like the telecommunications industry, if manufacturers just want to look good on financial numbers, they will soon be eliminated from the market. Every generation of communication technology upgrades, there will be manufacturers who do not advance but retreat, and even leave the game sadly.

How to understand ZTE's "quality growth"? First look at R&D investment. ZTE’s R&D investment accounts for more than 10% of the year. The average annual R&D investment in the past three years has exceeded 12 billion yuan. In the first three quarters of 2020, R&D investment has reached 10.79 billion yuan, a year-on-year increase of 15.3%, accounting for 14.6% of revenue. ZTE has also implemented the fourth equity incentive plan, covering more than 6,100 employees and retaining core talents; it has introduced more than 5,000 talents to universities around the world and reserves R&D strength.

Next, look at the R&D results. By 2020, ZTE's 5G strategic global patent layout will exceed 6,500, ranking first in the 5G global strategic layout; chip patent applications will exceed 4,100. A number of advanced technologies are applied in the existing 5G network, such as SSB1+X stereo coverage, eDAS solution, PowerPilot solution, etc. In addition, in the field of communication core chips, more than 100 kinds of chips have been independently developed and designed, providing a key impetus for 5G network construction.

Finally, look at business progress. Driven by continuous high-intensity R&D investment, ZTE is the main supplier of 5G scale deployment in 2020, especially in China, the largest market, with more than 250,000 5G base stations shipped. With the idea of ​​building a high-quality network, 100% of 5G has been completed. The arrival and installation of the second-phase equipment showed excellent network quality.

It can be said that ZTE has achieved a virtuous cycle of R&D, products and business. It is the support of Chinese suppliers such as ZTE that enables China to carry out large-scale deployment of 5G and take the lead. The Ministry of Industry and Information Technology has stated that in the next 2021, China will build more than 600,000 5G base stations.

Transforming into an "extreme cloud company"

During the shareholders' meeting in June this year, ZTE President Xu Ziyang said in response to investors' questions that with the large-scale commercial use of 5G networks, a large number of innovations and applications will emerge in vertical fields, accelerating the transformation of traditional industries to digitalization and intelligence. ZTE hopes to make itself an "extreme cloud company" through digital transformation.

The outbreak of the new crown epidemic this year has led to "physical isolation", which has brought great challenges to a global company like ZTE: ZTE's more than 30,000 R&D employees cannot go to the office in time, and sensitive information such as core codes cannot Feel free to bring out. It is reported that through the self-developed cloud computer, video conferencing and other tools to work remotely, within a month and a half during the domestic epidemic, ZTE's research and development efficiency reached a level of 90%, which basically satisfied the company's business on the premise of ensuring information security. development needs.

This has prompted ZTE itself to accelerate its move towards cloudification. According to Xu Ziyang's public disclosure, in October 2020, ZTE took the initiative to arrange large-scale drills, and all 15,000 R&D personnel worked at home on the cloud, and the efficiency can basically reach the same level as face-to-face office.

In addition, ZTE is also practicing "making 5G with 5G" in its largest 5G smart factory–Nanjing Binjiang Manufacturing Base. Through digital twins, smart warehouses, cloud-based AGVs and machine vision, Binjiang Factory has gradually realized unmanned production, and production efficiency has been greatly improved. Among them, the missed inspection rate of assembly quality is reduced by 80%, the defect rate of key processes is reduced by 37%, the number of operators is reduced by 27%, and the turnover efficiency is increased by 20%. It is expected that by the end of next year, the 5G production workshop will basically be fully unmanned.

Whether it is cloud office or 5G manufacturing, ZTE has turned itself into an "experimental field", which not only effectively responded to the epidemic, improved office efficiency, verified the industrial application value of 5G technology, but also demonstrated ZTE's related products and solutions. The competitiveness of the scheme provides the best reference for the road construction digital economy.

Positioning as a "road builder of the digital economy"

Compared with the previous generation technology, the value of 5G is more reflected in vertical industries. The industry generally agrees that 80% of 5G will be applied in the industrial Internet, Internet of Vehicles and other fields. This year, the Ministry of Industry and Information Technology also issued a policy document to encourage general 5G transformation of industrial Internet intranets and the construction of intelligent connected vehicle demonstration zones.

Equipment manufacturers play an important role in building 5G industry infrastructure and promoting 5G industry applications. In 2020, ZTE has clarified its positioning as a "road builder of the digital economy", using new technologies such as 5G to empower the digital economy.

Li Zixue pointed out at the 2020 China 5G + Industrial Internet Conference that 5G is an important starting point for the transformation and upgrading of industrial networks, bringing digital revolution to the core links of manufacturing. In this process, manufacturing is no longer centered on people, but uses "5G network + big data + intelligent algorithm + cloud computing power" to build a new technology-centered manufacturing system, realize intelligent production, and become the driving force for productivity development. 's new engine.

Xu Ziyang also said at the 2020 China Mobile Partner Conference that ZTE has three key tasks for 5G industry applications. The first is to create the ultimate network: the network is extremely simple, with extremely high spectral efficiency, optimal performance, and the lowest energy consumption; the second is to create a precise cloud network, so that the network can move with the cloud and the cloud can be generated on demand; the third is to create an enabling platform to integrate The general core technical capabilities form an industry component library, which as a platform empowers industry customers and ecological partners, lowers the technical threshold, makes it easier to be invoked and upgraded by partners, and accelerates application innovation and ecological construction.

According to reports, ZTE has carried out a lot of exploration in the industry market in 2020, and it has been fruitful. In the 3rd "Blooming Cup" 5G Application Competition, ZTE and industry partners won 23 awards, including 4 first prizes: Yunnan Shenhuo Aluminum Industry 5G Edge Cloud Nonferrous Metal Smart Factory Application; 5GMEC-based Distribution A general-purpose machine vision platform to realize unmanned and intelligent factory product quality inspection; Jiangsu Jingyan Technology Project, 5G+AI to help intelligently create new factories; Baosteel Zhanjiang Iron and Steel 5G Smart Steel Plant Project, the first 5G independent core network-based project High-quality industrial private network.

The digital economy is the general trend, and it is also the general direction and platform for 5G to realize its potential and empower it. Through this positioning, ZTE is closely integrated with 5G, stepping out of the communication industry, entering thousands of industries, and building a digital economy. 2020 is the midpoint of ZTE's three-phase route, and it is also the starting point for the transformation to the ultimate cloud company and the full empowerment of industry digitalization.

Responsible editor: gt

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