ZTE posted a downward revision of its Q1 earnings to account for the impact of a recent trade ban in the US, reversing what was a profit to a substantial net loss of more than CNY5.4 billion ($790 million).

The vendor previously reported a profit of CNY1.8 billion for the first three months of 2018, a figure that was up from a profit of CNY1.2 billion in Q1 2017.

However, updated non-operating expenses of CNY6.7 billion stemming from the US trade ban easily drowned out that figure. ZTE previously posted CNY28 million in non-operating expenses.

The US is a key supplier of components for ZTE and in May the company was forced to suspend operations after US officials implemented a seven-year trade ban for sanctions violations. However, the US lifted the ban and ZTE was able to resume trading in mid-July after it agreed to pay fines totalling $1.4 billion and change its leadership.

In mid-July, the company said it expected to record a heavy loss in the first half of the year as a result of the shutdown and fines, noting the loss could total between CNY7 billion and CNY9 billion. The change would represent a decrease of between 400 per cent and 500 per cent from a profit of nearly CNY2.3 billion in the first half of 2017.