Wednesday, August 18, 2010

ZTE Reports 1H 2010 Revenue of US$4.5 Billion

ZTE Corporation reported that its interim 2010 revenue of US$4.524 billion, up by 10.89% year-on-year. The net profit grew by 12.02% to US$129.143 million in the six months ended June 30, 2010 based on Hong Kong financial reporting standards. Basic earnings per share amounted to US$0.047.

ZTE's international revenue rose 19.58% year-on-year to USD2.246 billion, accounting for 49.65% of its total operating revenue. Revenue contribution from the European and US markets amounted to 18% of total revenue for the first time. The year-on-year revenue contribution from these two markets increased by 45%.

ZTE noted that its international revenue from Asia declined due to an incident relating to the safety inspection of communications equipment in India.

By product, the Group registered year-on-year revenue growth of 1.08% for carrier networks, 39.71% for terminal products and 17.99% for telecommunication software systems, services and other products. Driven by the buildup of 3G users in China, domestic sales of the Group's terminal products (comprising 3G handsets in various modes) increased significantly, laying a solid foundation for sales revenue growth of terminal products. Internationally, the Group's terminal products, particularly the 3G handsets and data card products, have made an impact in high-end markets.