Monday, July 22, 2013

ZTE's 1H2013 Revenue Falls 11.6%, Profit Rises 23.5%

ZTE's preliminary financial results indicate that revenue for the first half of 2013 was RMB 37.7 billion, a decrease of 11.6%.  The company cited lower demand for GSM and UMTS products in China, and lower sales of GSM handsets and data cards.

ZTE 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. ZTE attributed the improvement to its ongoing operational review. 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 addition, 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.