ZTE confirmed it made a loss in the first half of 2018 following its well documented woes in the US market, and pledged to take a pragmatic approach during the remainder of the year

The loss of CNY7.8 billion ($1.1 billion) was not unexpected, with the vendor having previously published a revision of its numbers for the first quarter to account for charges related to its US trade embargo and subsequent penalties. Operating revenue of CNY39.4 billion was down 27 per cent year-on-year, again attributed to the suspension of its operating activities.

ZTE expects to return to profit in Q3, albeit at a lower level than in 2017. This week, executives from the company talked-up its return to business as normal and predicted growth in 2019.

The bulk of ZTE’s H1 revenue (65.3 per cent) came from China. It said it “persisted in a proactive and prudent business strategy while seeking to expand new niches for growth”. In its international operations, it “firmly adhered to its strategy of globalisation with a strong focus on the telecommunications carriers’ market and premium core customers”.

It also discussed its 5G preparations, stating it continued to increase its investment, carrying out projects with more than 20 mainstream global operators.

“The Group’s 5G products and solutions are in sync with the global timetable for 5G commercialisation and are ready for commercial system application as systems, having undergone 5G testing and verification conducted in association with customers.”

ZTE provided little colour for its devices operation, although this was not immune from the wider corporate troubles.