How Did the 3.22 Million Annual Salary Female CEO Lead ZTE to Achieve 10% Growth During Industry Winter?

Listing | Zhongfang Network

Review | Li Xiaoyan

Recently, Fang Rong officially took on the role of Chairman of ZTE Corporation. With over 30 years of experience in the telecommunications industry, this seasoned executive, earning an annual salary of 3.228 million yuan and possessing deep industry expertise, has embarked on a new journey of transformation and development for ZTE. On March 6, 2026, ZTE released its 2025 annual report, delivering the first comprehensive performance report since Fang Rong’s appointment: total revenue of 133.896 billion yuan, a year-on-year increase of 10.38%, setting a new high for revenue from 2021 to 2025; net profit attributable to the parent company was 5.618 billion yuan, facing temporary pressure due to industry cycles and adjustments in business structure. Against the backdrop of slowing global ICT industry growth, pressure on traditional communication services, and complex geopolitical situations, this report highlights resilient revenue growth, explosive new businesses, and strengthened global competitiveness, demonstrating ZTE’s core competitiveness through industry cycles and the effectiveness of its strategic transformation.

In 2025, the global telecommunications industry entered a deep adjustment period: 5G construction stabilized, the pace of 5G-A commercial deployment slowed, and 6G research was still in preliminary stages. Capital expenditure by operators declined overall, with giants like Ericsson and Nokia experiencing profit declines, and Huawei’s revenue growth slowed to just 2%. In this environment, ZTE achieved double-digit revenue growth, surpassing 133.9 billion yuan, becoming one of the few leading companies in the industry maintaining high growth, with particularly strong resilience.

From a business structure perspective, ZTE’s three main segments show a healthy pattern of stable fundamentals, strong new engines, and a focus on consumer end. The carrier network business generated 62.857 billion yuan, accounting for 46.9% of total revenue, remaining the company’s “ballast” for steady development. Despite short-term fluctuations influenced by domestic carrier investment cycles, international markets grew by 12.39% year-on-year, effectively offsetting domestic market pressures and demonstrating ongoing risk resistance in global deployment. The government and enterprise business became the biggest growth highlight, with annual revenue reaching 37.222 billion yuan, a 100.49% increase year-on-year, including server and storage revenue growth of over 200%. Relying on explosive growth in computing infrastructure, this segment successfully opened new growth space in the B2B market. Consumer business remained steady, with revenue of 33.816 billion yuan, up 4.35%, driven by collaborations such as Nubia and ByteDance’s Doubao, launching AI-powered mobile assistants that mark a significant breakthrough in terminal intelligence transformation.

This growth is not accidental but the result of Fang Rong leading management to precisely implement the “connectivity + computing power” strategy. As a veteran in the telecommunications industry, Fang Rong is well-versed in industry development patterns. Since taking office, he has firmly promoted business structure optimization, consolidating traditional communication advantages while fully betting on the AI computing power track. This strategic focus has created growth opportunities, enabling ZTE to stabilize and even thrive amid industry cycle shifts.

2025 is a crucial year for the large-scale deployment of ZTE’s computing power business and a milestone in the company’s transformation from a traditional telecom equipment provider to an AI infrastructure service provider. Financial data shows that the company’s computing power business revenue grew approximately 150% year-on-year, accounting for 24.6% of total revenue, becoming a core driver of overall growth. Server and storage product growth exceeded 200%, data center products increased by 50%, and the company continued breakthroughs in leading internet and carrier intelligent computing center projects, steadily increasing market share.

Faced with explosive global demand for AI computing power, ZTE maintains high R&D investment. In 2025, R&D expenses reached 22.76 billion yuan, accounting for 17.0% of revenue, continuously building an end-to-end AI capability chain from chips, architecture, platforms to applications. The AIR MAX solution showcased at MWC2025 helps operators reduce costs and improve efficiency; the Co-Claw enterprise AI platform promotes large-scale enterprise AI productivity; and the Nubia M153 Doubao mobile assistant, developed in partnership with ByteDance, exemplifies cross-industry collaboration between mobile manufacturers and large model developers, preemptively laying out C-end AI entry points.

Despite external factors such as rising storage chip prices temporarily pressuring gross margins, ZTE has not slowed its AI deployment pace. From 400G/800G silicon photonic modules to quantum encryption storage systems, from cloud models to self-optimizing networks, the company continues breakthroughs in hardware, AI algorithms, and industry applications. Through technological innovation, it offsets cost pressures and lays a solid foundation for long-term profitability recovery. Under the industry’s compound annual growth rate of over 30% in the global intelligent computing market, ZTE’s computing business has shifted from “strategic investment phase” to “scaling phase,” becoming the strongest growth engine capable of navigating industry cycles.

In a complex international environment, ZTE adheres to the coordinated development of domestic and international dual circulation. In 2025, international revenue grew by 12.39% year-on-year, outpacing domestic growth, with continuous breakthroughs in Southeast Asia, the Middle East, and Africa, deepening and broadening its global deployment. Despite external challenges like the EU’s cybersecurity regulations, the company relies on technological compliance, product reliability, and localized services to steadily advance its international business, demonstrating the resilience of Chinese ICT companies on the global stage.

On the financial front, ZTE maintains extreme prudence. The board approved a maximum of 40 billion yuan in entrusted wealth management using its own funds in 2026, ensuring daily operations and R&D investments while improving capital efficiency through prudent management, contributing stable non-recurring income. Strong cash flow and flexible capital operations give ZTE ample “ammunition” during industry downturns, supporting ongoing investments in AI computing power and other new businesses, while managing external uncertainties and balancing R&D innovation with financial security.

Since Fang Rong’s appointment, he has emphasized long-termism and prudent management, leading the team to focus on core technologies, optimize business structure, and improve operational efficiency. In 2025, the company maintained cash dividends, planning to distribute a total cash dividend amounting to 35% of net profit attributable to the parent, rewarding investors with tangible returns and demonstrating confidence in long-term development.

Regarding the year-on-year decline in net profit attributable to the parent, ZTE clearly states this is a temporary phenomenon caused by industry cycle shifts and business structure adjustments. Slowing growth in traditional carrier services, the scale expansion phase of computing power business, and rising upstream chip costs have collectively exerted short-term pressure on profitability. However, compared to industry peers, ZTE’s profit fluctuations are common industry issues, while its high revenue growth, rapid new business expansion, and strong global resilience indicate the company’s fundamentals remain positive.

Short-term profit adjustments are paving the way for long-term growth. The doubling of government and enterprise business, explosive expansion of computing power, and intelligent transformation of terminal businesses are restructuring efforts that help ZTE move away from reliance on traditional communication equipment, building a diversified growth system of “connectivity + computing power + terminals.” As the scale effect of AI computing power becomes evident, gross margins gradually recover, and R&D investments translate into market competitiveness, the company’s profitability is expected to steadily rebound.