ZTE | Executive Insights 2023

Digitalization is gaining vitality despite the uncertainty, driven by digitalization, networking, and intelligence. The real and digital worlds are converging and evolving at a fast pace, reshaping the entire human society. As a digital native company, ZTE will always stick to the philosophy of simplicity, agility, and openness, and speed up its evolution by riding the trend. In a field with affinities and certainties, we keep innovating for simplicity, coming from our decades-long efforts in ICT innovation. We promote computing and network convergence, redefining hardware and software integration to work out optimal end-to-end solutions. In the field with abilities and uncertainties, we act actively to explore new opportunities. Internally, we step up efforts to enhance underlying capability with highly flexible components for fast implementation. Externally, we launch minimum viable products and make constant iterations for different scenarios. Join hands with customers and partners, we aim to build a digital and intelligent ecosystem for great value and shared success. In the era of data explosion, there are many challenges: for example, the slowdown of Moore's law, closing the gap to the Shannon limit, and the pursuit of sustainable and green goals and digital security. Championing digital innovation essentially depends on computing and network convergence, an upgrade of digital infrastructure. This is also a conclusion for us to fully employ and lead the digital era. At the infrastructure level, the key is performance and efficiency. One focus is the mode of fixed cell design plus domain-specific architecture, aiming for the continuation of Moore's law. The answer is hardware acceleration through smart network interface cards and DPUs to optimize both hardware and software. At the application level, the key is service extension. First, evolve 5G to advanced 6G, all-optical mesh networks, and space-air-ground integrated networks, breaking the boundaries. Second, with deterministic networks and the integration of sensing, communication, computing, and control, the application boundary is extended. Finally, with a user-centric architecture and more advanced cloud-network convergence, the capability boundary is further extended. At the ecosystem level, the key is a diverse and robust value chain. Even in a multi-vendor and multi-cloud environment, quality services are integrated. Collectively, computing and digital capabilities are available at the same time, and as always, we work together with partners to safeguard sustainable development, basically intelligent and secure business operations. Facing challenges and opportunities, by sticking to its strategy, ZTE will make targeted and programmatic efforts for steady growth and continue to promote its digital transformation. In this way, we aim to make greater progress in product planning, market expansion, and organizational design. Regarding product planning, we will keep improving our core ICT capabilities and build solid competence in product design, R&D, and delivery to meet different customer demands. On this basis, we will develop a full series of ICT products and integrated solutions to guarantee technological leadership in the first curve and enhanced competitiveness in the second curve. As for market expansion, ZTE will explore more digital scenarios together with global operators, enterprises, consumers, and partners, tapping into our stronger product capabilities. We will further expand into new fields such as automotive electronics and renewable energy. As for organizational design, we will strengthen our efforts in digitalization to build a highly resilient and green company. Based on industrial insights, application scenarios, and integrated operations, we will give full play to our special teams to adapt to the needs of customers and markets. From large-scale 5G SA networks to highly efficient green computing hubs and diverse industry applications, ZTE is dedicated to providing integrated solutions involving cloud, network, intelligence, and terminals. As a driver of the digital economy, we are always on our way to create great value. More open, agile, resonant, and intelligent, ZTE is willing to work with our partners in the industry and ecosystems to shape digital innovation and embrace a new digital future.