Thursday, August 30, 2018

ZTE counts its losses for 1H18, renews focus on 5G

ZTE Corporation reported revenue of RMB 39.434 billion for the first six months of 2018, down 27% from RMB 54.010 for the same period in 2017.

For the six months, ZTE's net profit attributable to holders of ordinary shares of the listed company amounted to RMB-7.824 billion, representing year-on-year decline of 441.24%. Basic earnings per share amounted to RMB-1.87, which reflected mainly the company’s payment of the US$1 billion penalty to the U.S. government.

ZTE's operating revenue from the domestic market amounted to RMB25.746 billion, accounting for 65.29% of the Group’s overall operating revenue, while international sales amounted to RMB13.688 billion, accounting for 34.71% of the total.

ZTE's operating revenue for carriers’ networks, government and corporate business and consumer business amounted to RMB23.507 billion, RMB4.433 billion and RMB11.494 billion, respectively.

Management's commentary included the following:  "Looking to the second half of 2018, the Group will welcome new opportunities for development, given rapid growth in the volume of data flow over the network and the official announcement of the complete fully-functional 5G standards of the first stage. Specifically, such opportunities will be represented by: the acceleration of 5G commercialisation with the actual implementation of trial 5G deployment backed by ongoing upgrades of network infrastructure facilities; robust demand for smart terminals; as well as an onrush of new technologies and models with AI, IOT and smart home, among others, providing new growth niches. "

"In the second half of 2018, the Group will step up with technological innovation and enhance cooperation with customers and partners in the industry with an ongoing focus on high-worth customers and core products. In the meantime time, we will improve our internal management by enhancing human resources, compliance and internal control to ensure our Group’s prudent and sustainable development."



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