ZTE claims positive momentum for H1

ZTE claims positive momentum for H1

22 JUL 2013
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ZTE published preliminary numbers for the first half of 2013, which show an increased profit for the Chinese vendor but a drop in total sales.

According to the company, it saw a profit attributable to shareholders for the six months (January – June) of CNY302.34 million ($49.22 million), up 23.47 per cent, on revenue of CNY37.71 billion, down 11.6 per cent.

On an operating level, it narrowed its loss to CNY830.77 million, down 3.77 per cent from CNY863.35 million.

ZTE said that following a tough 2012, which saw it reporting a loss on the back of delayed deals and lower value contracts, it has now “achieved two consecutive quarters of positive results”.

The company said that its revenue had been impacted by falling sales of “GSM and UMTS products in the domestic market and GSM handsets and data cards in both domestic and the international markets”.

In a statement, ZTE said that it has been able to improve its profit margin through “enhanced control…over the profitability of business contracts”, also noting “strengthened cost control…which has resulted in the significant decrease in cost and expenses”.

Its profit was bolstered by “a substantial amount of investment income arising from the disposal of equity interests in Shenzhen ZNV Technology”.

ZTE sold its stake in “surveillance supplier” Shenzhen ZNV earlier this year.

It also noted a “substantial amount of exchange loss” during the period.

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Steve Costello

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