Advancing with Determination, Making Further Breakthroughs —Toward an Intelligent Future of High-Quality Growth

Time flies, and everything starts anew. Together, we have journeyed through the extraordinary year of 2025—a milestone that marks ZTE's 40th anniversary, leaving behind historic footprints of inheritance and development along the way. This is a heartfelt retrospect that reminds us of the challenges and achievements over the past 40 years. It is exactly the determination and resilience that define who we are today. This is also a journey to carry forward the glory, where we upgraded the vision and mission to fully embrace the AI era.

Pioneering the way in innovation, we made remarkable breakthroughs with determination. Committed to the "Connectivity + Computing" strategy, we took solid steps, bringing our revenue back on the growth track. Our network business continued to deepen and refine, solidifying its role as a cornerstone of profitability. In computing, we partnered with top-tier industry players, creating new engines for growth. As for terminals, we launched the very first agentic AI smartphone with our partner, exploring the new paradigm for interacting with mobile apps. Meanwhile, we remain clear-minded of the challenges ahead: intense pressure on profitability brought by cyclical changes and business structure shift, and the need to improve core capabilities such as branding and channel management. All these call for brave and unwavering efforts.

Staying true to original aspiration, we achieved significant milestones with perseverance. ZTE's intelligent computing SuperPod and "Co-Sight Super Agent" have respectively won the SAIL Award and topped an open-source agent leaderboard, showcasing our resolute efforts in intensive R&D. We once again secured the CDP A rating, reaffirming our pursuit of green and sustainable development. Also, at the 20th anniversary of the Veteran Care Program, our founder Mr. Hou Weigui revisited the homeland of veterans—this commitment beyond time and distance truly embodies the sense of responsibility and devotion embedded in ZTE's DNA.

This year, every achievement we made shines with the sweat of all ZTErs and the support of our families. Also, we are deeply grateful for the long-standing trust of our global customers, partners, and investors, as well as the heartfelt care from all walks of life. On the occasion of the New Year, on behalf of the Board of Directors and the management team, I'd like to extend my sincerest gratitude and warmest wishes to each and every one of you!

Looking ahead to 2026, we stand at a pivotal crossroads in an era of surging waves. The global environment remains complex and volatile, with uncertainties on the rise. In China, the blueprint of the 15th Five-Year Plan (2026-2030) is unfolding, while technological innovations—from AI to 5G-A—are catalyzing new forms of business and new sectors. Yet, we must be fully aware that network investments continue to face cyclical pressures, and it still takes time to achieve commercial viability for intelligent computing. In this landscape filled with both opportunities and challenges, we will adhere to our operating principle, namely "Unity for Prosperity, Quality for Profitability", to safeguard the company's long-term growth.

"Unity for Prosperity" indicates the source of strength for overcoming challenges. "Unity", rooted in our culture of mutual respect, embodies the wisdom of coexistence and co-prosperity, which truly stems from a mindset of seeking unity in diversity.

To this end, we should:

· Optimize business portfolio and resource allocation by considering four key factors—huge market size, high complexity, great growth potential, and large gross margin;

· Focus on our core strategy and leverage synergy to break through innovation bottlenecks;

· Fully empower and motivate frontline teams to unleash organizational vitality and innovation potential;

· Keep expanding "circle of friends", strengthen an open ecosystem centered on underlying technologies, and strive to become a top player in the intelligent computing industry;

· Continue to advance green development, remain committed to tech for good, and co-create a sustainable, intelligent future.

"Quality for Profitability" outlines the only path to making further breakthroughs. The international markets still hold great potential—we must enhance our presence in existing markets, seize opportunities in major countries and key operators, as well as the global expansion of Chinese enterprises, to ensure solid operations. In the Chinese operator market, we should secure our shares in network business and expand growth boundaries by exploring more scenario-based demands. In the government and enterprise markets, we need to take the opportunities arising from intelligent computing while balancing revenue and profitability.

For terminal business, we will resolutely advance development in key countries, and enhance integrated operations and brand building in the overseas market; in the Chinese market, we will step up efforts in endpoint AI and actively explore new forms of devices.

Overall, innovation must remain our core engine of growth. As cross-disciplinary integration has become a defining feature of the AI era, it is more important than ever to provide integrated solutions for customers and create shared value. We should also safeguard quality as the bottom line, and enhance quality for higher efficiency and profitability. This explains how we will navigate cyclical changes and rise to the challenges posed by the times.

Standing at the forefront, we face challenges head-on and stride resolutely toward our vision—"to lead in connectivity and intelligent computing". Now is the moment to answer the call of our times. Let's set sail with courage, steer forward with strategic focus, and unite strengths for shared prosperity. Together, we are bound to create an intelligent future of high-quality growth.

Finally, as we bid farewell to the old and welcome the new, I wish you and your family health, happiness, and success in the year ahead!

Fang Rong

Chair of ZTE Corporation

December 31, 2025