The Directors of ZTE Corporation (the ´Company´) have noted the recent increase in the trading volume of the Company. The Directors have also noted a recent media report to the effect that the Company has won an exclusive contract to build a nationwide fixed-line voice next generation network (NGN) equipment for China Telecommunications Corporation (´China Telecom´). The Directors wish to state that this media report contained inaccuracies. In particular, the statement in the media report that the contract was the biggest in the group´s history in terms of value was inaccurate. The Directors would also like to clarify that the contract entered into between the Company and China Telecom is only a commercial trial network cooperation agreement to supply next generation network equipment for use by China Telecom in a commercial trial network. Except for these inaccuracies, the Company is not aware of any reasons for the aforesaid increase in the trading volume of the Company.
Shareholders and potential investors are advised to exercise caution when dealing in shares of the Company.
At the request of the Company, trading in its shares was suspended with effect from 9: 30 a.m., 3 June 2005, pending the release of an announcement in relation to price sensitive information of the Company. Application has been made to The Stock Exchange of Hong Kong Limited (the ´Hong Kong Stock Exchange´) for the resumption of trading in the shares of the Company with effect from 9: 30 a.m., 6 June 2005.
This announcement is made at the request of the Hong Kong Stock Exchange.
The Directors have noted the recent increase in the trading volume of the Company. The Directors have also noted a recent media report to the effect that the Company has won an exclusive contract to build a nationwide fixed-line voice network for China Telecom. The Directors wish to state that this media report contained inaccuracies. In particular, the statement in the media report that the contract was the biggest in the group´s history in terms of value was inaccurate. The Directors would also like to clarify that the contract entered into between the Company and China Telecom is only a commercial trial network cooperation agreement to supply next generation network equipment for use by China Telecom in a commercial trial network. This commercial trial network will commence testing in 2005 in many provincial capitals across the PRC and in large regional centres including Beijing, Shanghai and Guangzhou, and will consist of the construction of softswitch overlaying networks. In the PRC domestic telecommunications industry, the market practice with respect to major network rollouts is for the equipment supplier and the network service provider to initially enter into an agreement to provide equipment for commercial trial use. It is only upon completion of commercial trials that a definitive agreement for the sale and purchase of equipment is entered into if at all.
Except for the inaccuracies referred to above, the Company is not aware of any reason for the increase in the trading volume of the Company.
The Directors confirm that save as disclosed above, there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under Rule 13.23 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ´Listing Rules´), and the Directors are not aware of any matter discloseable under the general obligation imposed by Rule 13.09 of the Listing Rules, which is or may be of a price-sensitive nature.
Shareholders and potential investors are advised to exercise caution when dealing in shares of the Company.
At the request of the Company, trading in its shares was suspended with effect from 9: 30 a.m., 3 June 2005, pending the release of an announcement in relation to price sensitive information of the Company.
Application has been made to the Hong Kong Stock Exchange for the resumption of trading in the shares of the Company with effect from 9: 30 a.m., 6 June 2005.
This announcement is made by the order of the Board of the Company and the Directors individually and jointly accept responsibility for the accuracy of this announcement.
By Order of the Board
Hou Weigui
Chairman
Shenzhen, PRC
3 June 2005
As at the date of this announcement, the executive directors of the Company are Yin Yimin, Shi Lirong and He Shiyou; the non-executive directors of the Company are Hou Weigui, Wang Zongyin, Xie Weiliang, Zhang Junchao, Li Juping and Dong Lianbo; and the independent non-executive directors of the Company are Zhu Wuxiang, Chen Shaohua, Qiao Wenjun, Mi Zhengkun and Li Jin.
Please also refer to the published version of this announcement in the (South China Morning Post)
.png){kind=icon}
.png){kind=icon}
.png){kind=icon}
.png){kind=icon}