2012 Annual Report - ZTE

ANNUAL REPORT 20121. Breakdown of indicators by industry, product and region segments for the year as compared to theprevious yearUnit: RMB in millionsRevenue mixI. By industryOperatingrevenueOperatingcostsGrossprofitmarginYearon-yearincrease/decreaseinoperatingrevenueYearon-yearincrease/decreaseinoperatingcostsYear-on-yearincrease/decrease ingross profitmargin(percentagepoints)Manufacturing ofcommunicationequipment 84,219.4 64,091.5 23.90% (2.36%) 6.54% (6.36)Total 84,219.4 64,091.5 23.90% (2.36%) 6.54% (6.36)II. By productCarriers’ networks 41,602.7 29,677.1 28.67% (10.57%) 4.84% (10.49)Terminals 25,838.8 21,498.7 16.80% (4.06%) (5.89%) 1.62Telecommunicationsoftware systems,services and otherproducts 16,777.9 12,915.7 23.02% 31.09% 43.38% (6.60)Total 84,219.4 64,091.5 23.90% (2.36%) 6.54% (6.36)III. By regionThe PRC 39,556.1 29,051.4 26.56% 0.15% 10.58% (6.92)Asia (excluding the PRC) 16,062.7 12,765.6 20.53% 2.75% 10.16% (5.34)Africa 7,820.6 5,508.7 29.56% (26.76%) (3.28%) (17.10)Europe, Americas andOceania 20,780.0 16,765.8 19.32% 1.63% 0.99% 0.51Total 84,219.4 64,091.5 23.90% (2.36%) 6.54% (6.36)The Group reported RMB84,219.4 million in operating revenue for 2012, dropping 2.36% as compared with lastyear. Operating revenue generated from the domestic business amounted to RMB39,556.1 million, which wasstable compared with last year, while there was a decline in operating revenue generated from the internationalbusiness, decreasing by 4.48% to RMB44,663.3 million. Analysed by product segment, year-on-year decline wasreported for carriers’ networks and terminals, while growth was reported for telecommunications software systems,services and other products.The decrease in revenue from the Group’s carriers’ networks for 2012 reflected mainly the decrease in revenuegenerated from domestic wireline switch and access products, international CDMA systems equipment andinternational optical communications systems. The decrease in revenue from the Group’s terminals for 2012reflected mainly the general decrease in revenue generated from GSM handsets in the international markets anddata cards. The increase in revenue from and costs of the Group’s telecommunication software systems, servicesand other products for 2012 was mainly driven by the notable growth in revenue from and costs of video andnetwork terminals in the domestic market.29