Chinese equipment and handset vendor ZTE reported nearly a 10 per cent increase in its net profit for the first nine months of the year, with steady demand for its 4G, fibre and terminal products pushing operating revenue up 4.4 per cent.
For the nine months ending 30 September, ZTE’s profit hit CNY2.86 billion ($428 million), up 9.8 per cent year-on-year, on operating revenue of CNY71.6 billion.
The Shenzhen-based company picked up momentum in Q3, with operating revenue growing 5.3 per cent year-on-year to CNY23.8 billion and its net profit increasing 16 per cent to CNY1.23 billion.
The company mentioned in its earnings report that the telecoms industry is under pressure due to the weak global macro-economic environment over the last three quarters, but said China’s ‘Internet+’ policy is significantly impacting all business sectors and triggering upgrades of traditional industries and services.
ZTE said its focus on the premium smartphone segment, beefed up with the launch of the Axon 7, has helped it boost brand awareness and expand sales in Q3. It claims its handsets are ranked second in the US’ prepaid market and fourth overall in the country. In addition, it is in the top five in terms of handset shipments in Spain, Russia, Australia and Mexico.
The company didn’t break down revenue by group but said its chip shipments doubled compared with the same period last year, with overseas markets accounting for 80 per cent of shipments.
Looking to the future, the company expects steady growth in its system equipment and smartphone businesses.