On October 25, Guolonghui reported that CMB International issued a research report stating that ZTE's third-quarter net profit fell by 8.2% year-on-year and 27.3% quarter-on-quarter, to 2.2 billion yuan. This decline was mainly due to lower spending by domestic telecom companies and delays in the company's ai server developments. The company's gross margin remains at around 40%, reflecting its effective cost control measures. The bank indicated that looking ahead, it is expected that the company's overall growth will remain flat this year, with net profit expected to increase by 8.2% next year, mainly benefiting from double-digit growth in overseas operators, consumers, businesses, and government services, partially offsetting the weakness in the domestic telecom market. The bank maintains a "buy" rating on ZTE, raising the target price from HK$22.17 to HK$22.43. The bank has lowered this year's revenue and net profit forecasts for the company by 5% and 9%, and next year's revenue and net profit forecasts by 5% and 6% respectively.