ZTE achieves two consecutive quarters of positive results; gross profit margin gained
22 July 2013, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, today issued guidance for first-half profit to increase about 23.5%.
Based on ZTE’s preliminary financial results, the company achieved net profit attributable to shareholders of RMB 302 million in the first half, a 23.5% increase compared with a year earlier. This continues the momentum in ZTE’s operational review, as the company has achieved two consecutive quarters of positive results. In the first half, ZTE’s revenue was RMB 37.7 billion, a decrease of 11.6%, a result of lower demand for GSM and UMTS products in China, and lower sales of GSM handsets and data cards.
ZTE’s gross profit margin gained in the first half, a result of improved cost controls and a focus on efficiency. The company’s sales, administrative and research and development expenses declined significantly, and the company recognized a financial gain from the disposal of a subsidiary.
In the first half of 2013, the Renmenbi appreciated in value against the U.S. dollar, resulting in less favorable foreign exchange comparisons with a year earlier. ZTE was also affected by a depreciation in the Euro, Japanese Yen and some emerging market currencies against the U.S. dollar.
ZTE today also announced details of its stock option incentive scheme for employees.
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