Tuesday, July 23, 2013: 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 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.
