ZTE in Russia ZTI-Svyaztekhnologii

Parent Company

Main article: ZTE Corporation

Areas of activity

As part of the corporate strategy announced by the company in 2015, ZTE is focused on four main areas:

• telecommunication equipment,
• enterprise solutions,
• mobile devices and
• the latest technology.

Since 2015, the company has been actively working in the field of renewable energy sources: solar and hydropower, as well as on distributed heat and power generation technologies in remote mountainous and rural regions of the world.

As of autumn 2015, the ZTE representative office in Russia employed about 200 people of^[1]. The size of the state is floating and depends on the projects in which the company is involved.

Performance indicators

2024: Net loss of ZTE in Russia decreased to 847 million rubles at the end of the year

At the end of 2024, ZTE (ZTI-Svyaztekhnologii LLC) recorded a net loss of 847.07 million rubles in Russia. For comparison, a year earlier, losses amounted to 1.42 billion rubles. Financial indicators are given in the financial statements, which TAdviser got acquainted with at the end of July 2025.

ZTE's Russian business provided revenue of about 247.1 million rubles: this is 87.8% less than in 2023, when the figure was 2.02 billion rubles. The cost of sales collapsed by 96.1% - from 1.97 billion rubles to 76.01 million rubles. Management expenses are not reflected in the report, while commercial expenses decreased by 69% - from 429.12 million rubles to 133.06 million rubles. Other income fell by about a quarter, being at the level of 221.49 million rubles against 302.05 million rubles in 2023. At the same time, other expenses increased by 4.4% - from 1.19 billion rubles to 1.24 billion rubles.

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Фото: Bloomberg

Revenues from the sale of products, goods, works and services on an annualized basis rose from 282.96 million rubles to 509.13 million rubles, that is, by 79.9%. Payments to suppliers (contractors) for raw materials, materials, works and services decreased by 71% - from 149.06 million rubles to 43.16 million rubles. Expenses in connection with the remuneration of workers fell by 36.3%, amounting to 162.08 million rubles against 254.52 million rubles in 2023.

In 2024, the company registered gross profit in the amount of 171.09 million rubles, which is 192.8% more than a year earlier (58.43 million rubles). The profit from sales of 38.03 million rubles was shown, while a year earlier there was a loss from sales of 370.69 million rubles. Accounts receivable for the year decreased by almost a quarter - from 1.05 billion rubles to 806.8 million rubles. Accounts payable as of December 31, 2024 amounted to 4.78 billion rubles - 9.4% more compared to 2023 (4.37 billion rubles).^[2]

2022: ZTE cuts business in Russia due to sanctions, but is not leaving completely yet

In 2022, the revenue of the Russian office of ZTE - LLC ZTI-Svyaztekhnologii - decreased by 3.5 times, to 2.8 billion rubles, according to data in the database of legal entities "Kontur. Focus." The company ended the year with a net loss of 743.7 million rubles. In the ranking "TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 137 lines (37 lines of the list of applicants for inclusion in the number of the largest IT companies in Russia).

In 2022, there was a significant reduction in the scale of the organization's activities associated with restrictions caused by sanctions, - says the explanations to the balance sheet and financial accounting of ZTI-Svyaztekhnologii, published in the database of the Federal Tax Service.

At the same time, earlier in ZTE that the noted data on the revenue of their company in Russia from open sources is "far from complete," since they do not reflect the revenue from contracts between Russian customers and directly the headquarters in. China

In the explanations to the financial accounting, ZTI-Svyaztekhnologii refers to the circumstances caused by the sanctions, justifying the decrease in business activity

As of the end of 2022, the value of ZTI-Svyaztekhnologii's net assets was negative. However, a significant share in the debt structure is owed to the parent company ZTE Corporation (China).

The intentions to continue the work of the Russian office in the explanations to the financial account are rather vague. At the time of compiling the annual financial accounting, there is no information on the further development of events in the foreign policy arena. In this regard, it is not possible to fully assess the consequences of these events on the company's activities. These facts indicate that there is significant uncertainty that may cause significant doubts about the company's ability to continue operations continuously in the future. It's almost verbatim.

The main activity of ZTI-Svyaztekhnologii is activities in the field of communication based on wired technologies, including the sale and installation of imported telecom equipment, the provision of technical support services, the sale of smartphones.

From explanations to financial accounting, it follows that 87% of revenue, about 2.45 billion rubles, the Russian office of ZTE received from the sale of goods. The rest was for services.

About 84% of the company's revenue was brought by four customers: Rostelecom, MTS, MGTS and VimpelCom ( operates on the market under the Beeline brand).

As for, in particular, the direction of mobile devices, ZTE has not officially announced and has not taken its new products to Russia throughout 2022. At the same time, its smartphones, mainly not the newest models, can be purchased in various technology stores. According to estimates by a number of Russian retailers, the top most purchased ZTE smartphones in 2022 did not include^[3].

The explanations to the financial accounting also indicate that in 2022 ZTI-Svyaztekhnologii more than 6 times cut advertising costs. But its office rental costs remained at about the same level as in 2021. She has an agreement for the lease of premises with an area of ​ ​ 1756.6 square meters, valid until October 2023.

In November 2022, we recall that the US Federal Communications Commission (FCC) banned the import of telecom equipment of ZTE Corporation and a number of other Chinese companies and their subsidiaries into the country. The regulator said the products of these companies carry risks associated with the reliability of data storage and pose a threat to national security.^[4]. The American authorities have been pursuing ZTE since 2017, the trigger was the supply of ZTE "iron" to countries under sanctions. But in early 2022, the United States temporarily loosened its grip on ZTE, switching to Huawei and America's development of anti-Russian sanctions^[5].

History

2021

GSMA Mobile 360 Eurasia Forum

On September 15, the two-day GSMA Mobile 360 Eurasia forum successfully ended in Moscow, the central theme of which was "Expanding the possibilities of digital transformation in Eurasia." ZTE representatives spoke at the event twice: at a panel session with the theme "Empowering a Data-Driven Society" and at a thematic session with the theme "How Artificial Intelligence Amplifies 5G for Digital Transformation." Read more here.

Revenue growth by 50.1% to 10,101 million rubles

At the end of 2021, ZTE's revenue in Russia amounted to 10,101 million rubles, an increase of 50.1% compared to 2020, which allowed it to take 56th place in the ranking of TAdviser100: The largest IT companies in Russia 2022. The revenue of ZTI-Svyaztekhnologii Corporation LLC from the financial statements for 2020-2021 is indicated. Excluding VAT .

2020: Revenue in Russia - 6,728 million rubles

At the end of 2020, the revenue of ZTE in Russia amounted to 6,728 million rubles.

2019: Revenue - RUB 6.56 billion (+ 54.7 %)

At the end of 2019, ZTE (ZTI-Svyaztekhnologii LLC) took 29th place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 6,565,065 thousand rubles, which is 54.7% higher than in 2018.

2018: Revenue - 4.2 billion rubles

The revenue of ZTE (ZTI-Svyaztekhnologii LLC) for 2018 amounted to 4,242,688 thousand rubles.

2016: ZTE plans to build solar power plants in Dagestan

In the summer of 2016, the Government of Dagestan and ZTI-Svyaztekhnologii signed^[6] a general agreement^[7] the construction of two solar power plants in Kaspiysk and Khunzakh, which will supply electric energy to the wholesale market. The installed capacity of each station will be 5 MW.

The Chairman of the Government of Dagestan announced the readiness of the leadership of the republic to support the intentions of the corporation on construction and expressed his wish to include the investment and technological potential of ZTE in the Dagestan economy.

2015: Revenue growth 4x

Revenue of ZTI-Svyaztekhnologii increased by 194% in 2015 - from 2.41 billion rubles to 9.67 billion rubles. The company also came out of losses: in 2014 it was "in the red" by about 1.34 billion rubles, and in 2015 it received a net profit of 273.8 million rubles. Information about this is contained in the Contour-Focus database.

The Russian office of ZTE at the time of publication of the material could not answer TAdviser's questions about the results of work in 2015.

In 2015, ZTE developed its business in Russia in all major areas. A significant event in the direction of corporate business, for example, for ZTE was the conclusion of a cooperation agreement with the Roselectronics holding, which is part of the Rostec^[8]. It provides for interaction in the field of innovative technologies, solutions "Smart City," "Intelligent Transport System" and "Intelligent Antenna System." ZTE's cooperation with Roselectronics could reach 1.2 billion yuan. In September 2015, within the framework of this agreement, the Smart City project was launched in Fryazino near Moscow, the third party included the administration of this city.

The business of the Russian office of ZTE grew sharply in 2015

In November 2015, ZTE representatives talked about strengthening contacts with telecom operators such as Rostelecom MegaFon, MTS and interaction with VimpelCom and. Tele2 As a result, ZTE won two large competitions of Rostelecom for the supply of equipment, BROADBAND ACCESS a competition "" VimpelCom for three-year equipment supplies. ZTE also won the tender of the Ukrainian MTS.

According to the Contour-Focus database, one of the largest contracts concluded following placement on the official public procurement portal for ZTI-Svyaztekhnologii in 2015 was a contract with MGTS. It involves the supply of subscriber equipment to the operator for a total amount of 486.6 million rubles.

In the direction of mobile devices, the company planned to triple sales of smartphones in Russia. One of the steps to develop this business was the conclusion of a partnership contract with the online store JD.com, which entered the Russian market in 2015. In addition to JD.com, ZTE smartphones in Russia at that time offered Megafon, MTS, DNS, Svyaznoy and Beeline salons.

In addition to expanding its partner network, ZTE has invested in the promotion of smartphones in the Russian market. For example, in May, ZTE launched an online campaign in Yandex with the support of the DNS and Megafon retail networks. Over the month of this project, according to the vendor, weekly sales of one of its flagship ZTE smartphones - Blade S6 - have grown almost fivefold.

At the end of the year, ZTE reported Chinese^[9] about 1.25 million smartphones sold in Russia, as well as plans to increase their sales by 80% in 2016.

In 2015, to strengthen its position in the Russian market, ZTE appointed Tigran Poghosyan, senior vice president in Russia, who had previously led the project of the Sochi 2014 Olympics at Megafon for six years. ZTE also strengthened the Russian team with new Vice President Pavel Zaitsev, who had previously worked at various communications enterprises, including Rostelecom. He worked, however, in the company for a short time - until April 2016. At ZTE, he was responsible for interaction with telecom operators and government agencies.

1991: ZTE enters the Russian market

The company entered the Russian market in 1991.

Notes