Welcome to the Future

A vast technological development plan. and one that ZTE Corporation is ploughing ahead with successfully, while also getting involved in a revolutionary project introduced in China and now widely renowned: technology based on the innovative use of artificial intelligence, aimed at supporting operators in constructing a new generation of networks.

ZTE's solution provides various applications for cloud services, smart networks, components and devices on just one single platform. The artificial intelligence cloud provides video and voice services based on a range of next-generation technologies, including facial and voice recognition, human and vehicle identification, and Natural Language Processing (NLP) technologies.

ZTE Italia has signed agreements with some major Italian universities in order to establish a close relationship with the academic world and to encourage young talent into the company. The ultimate goal is to contribute to the country's technological development, investing in construction and promoting collaboration with local players, embracing diverse and complementary experiences along the way.

In July 2017, ZTE Italia signed an important Memorandum of Understanding with the University of Rome Tor Vergata, in order to found the JTC (ZTE Joint Training Center), a centre aimed at developing and promoting managerial training through collaboration with the university's engineering department. The centre will join ZTE University, a world circuit made up of 19 centres, founded in order to provide high-level training services to customers, employees and partner companies alike. A network that involves almost 500,000 people and more than 400 companies worldwide.

On 6 February 2018, the Innovation and Research Center (ZIRC),  which focuses on 5G services, was inaugurated in collaboration with the University of L'Aquila at the Tecnopolo d'Abruzzo (AQ). The centre not only represents an opportunity for Italy to invest in research and development, but is also a concrete means of support for L'Aquila, a city undergoing reconstruction and regeneration following an earthquake in 2009.

ZTE's strategy is to develop social commitment based on the sector's best practices, focusing on continuous improvement in order to become a global role model for CSR (Corporate Social Responsibility).

During its (not 33?) years of operation, ZTE has established itself in the sector by ensuring that its corporate social responsibility is one of its guiding principles. Precisely for this reason, one of ZTE Corporation's numerous initiatives involved actively participating in rebuilding areas hit by the tsunami in the Indian Ocean in 2006, as well as areas destroyed by the earthquake in Sichuan in 2008.

ZTE also created the Children Caring Special Fund in Sichuan in order to help children in need by rebuilding schools and promoting education in poor areas. In February 2009, ZTE Corporation officially became a member of the United Nations Global Compact.

Since then, the Global Compact's Ten Principles have become the bedrock of ZTE's corporate culture, which stands out thanks to its commitment to promoting collaboration between the economy, environment and society in the name of harmonious development.

Ethics and sustainability, responsibility for the environment and opportunities are the three pillars of ZTE's CSR VISION:
- Putting ethics and sustainability at the heart of the company's mission, in order to guarantee the protection and progress of human rights, as well as the health, safety, well-being and development of all people who directly and indirectly contribute to the company's growth every day.
- Operating responsibly with regard to the environment and actively contributing to present and future ecological challenges on a global basis.
- Offering customers the opportunity to make the most of a constantly evolving world, while creating value for society in all countries in which ZTE operates.

ZTE has also developed an eco-sustainable business strategy that is committed to reducing CO2 emissions in technological innovations in order to provide highly-efficient network solutions that guarantee energy conservation and environmental protection. Promoting the use of solar and wind energy, providing eco-sustainable networks through the use of  all-IP technologies aimed at simplifying the network and encouraging the re-use of equipment.

ZTE is associated with ecoR'it in Italy, a consortium that handles the correct management of business and domestic electrical and electronic equipment waste (WEEE), as well as waste batteries and accumulators.

Corporate Governance

Reporting potential violations

ZTE has established a system for the reporting and management of behaviours and/or conduct that may represent a violation, even a potential one, of the Code of Conduct, of company procedures and regulations as well as of current laws and regulations.

The Code of Ethics of the ZTE Group aims to clearly define the set of principles and values that characterize the activities of the company, which must be observed by all those who have, for any reason, relationships and relations with the company (Directors, Managers, Employees, Consultants, Customers, Suppliers and Partners).

Knowledge of the contents of the Code and, above all, compliance with its guidelines, principles and rules governing business relations - both internally and externally - are decisive factors for the success of the company.

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Model 231

ZTE, in order to ensure conditions of fairness and transparency in the performance of its activities and to consolidate its image and position on the market as well as to protect the expectations of its shareholders and the work of its employees, has adopted in Italy its own model of organization, management and control in line with Legislative Decree 231/2001 and subsequent amendments.

However, pursuant to articles 6 and 7 of 231 Decree, the 231 Models must be suitable to prevent the types of crimes of relevance pursuant to 231 Decree.

In particular, recently the criminal offences referred to in art. 1, paragraph 11, of Law Decree no. 105 dated 21 September 2019, relating to the violation of the rules on the National Cybernetic Security Perimeter referred to in the same Law Decree, have been added to the so-called “231-relevant crimes list”. Moreover, some changes have occurred relating to the Company’s business and structure (e.g. the creation of the so-called Cybersecurity Lab).These news and changes have made it appropriate to perform a specific risk analysis (in Italian attached and in translation phase)  in order to verify the existence of any need to amend the regulations set out in the current version of the 231 Model, aiming at making the latter compliant to the above-mentioned new legislation and structure.

To this end, the lawyers of Orrick, Herrington & Sutcliffe (Europe) LLP (i) have been commissioned to conduct this risk analysis and (ii) to prepare, on the basis of the results of this activity,a specific Special Section of the 231 Model, relating to Cybersecurity crimes

It is therefore proposed that the Board of Directors approve and adopt the new version of Model 231.

In the next months, the opportunity will be taken to update once again the 231 Model with regard to both the Special Section at stake (according to the specific regulation which is to be issued about) and to the other parts of the document. For full details, please refer to the annexes distributed.

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Internal whistleblowing channels

• E - mail:  [email protected]
• Website: www.zte.com.cn/global/whistleblowing/report
• LCM system: http://lcm.zte.com.cn（"Compliance Audit—Violation Report"）
• E - mail:  [email protected]

External independent third party report channel

• E - mail ODV:  [email protected]
• Website:  www.tip-offs.com.cn/ZTE
• E - mail: [email protected]
• Hotline: 400-0707-099 (Chinese mainland)
• + 8621 -3313-8584 (Overseas, Hong Kong, Macao and Taiwan)