ZTE H1 net profit down 68 per cent

ZTE announced an anticipated fall in profit for the first half of 2012, which it attributed to a number of issues including a reduced investment income, exchange losses, postponement of network contract tenders in its home market, and lower gross profit margin.

The vendor said that during the period it saw “relatively fast growth in overall revenue”, resulting from its efforts to “explore market niches and enhance its market position through initiatives in the perfection and innovation of product technologies”.

For the six months, the company reported a net profit attributable to shareholders of CNY245 million (US$38.6 million), down 68.17 per cent year-on-year, on operating revenue of CNY42.64 billion, up 15.21 per cent.
It noted that the period was “underpinned by slackened global economic growth, continued competition in the telecommunications industry, and volatility in exchange rates”.

Sales of devices stood at CNY14.28 billion, making up 33.4 per cent of total revenue. Revenue from operator network equipment was CNY21.28 billion, or 49.9 per cent of the total.

Growth in the ZTE’s international markets was slower, up 6.2 per cent to CNY21.76 billion, representing 51.02 per cent of the total.