ZTE said first-half net profit rose 263.9 percent to RMB 1.13 billion, while revenue increased to RMB 37.7 billion.
ZTE said it is expecting 208.2 percent to 244.5 percent increase in net profit to between RMB 1.7 billion and RMB 1.9 billion in the first nine months.
The Chinese telecom network company expects to post a year-on-year increase in revenue in the first nine months.
Products such as network routers and chipsets will be the growth drivers. The company also expects gains from more effective foreign exchange management.
In the first six months, ZTE reported operating revenue of RMB 19.26 million from the domestic market, accounting for 51.1 percent of the group’s operating revenue.
ZTE reported operating revenue of RMB 18.44 billion from the international market, accounting for 48.9 percent of the group’s overall operating revenue.
In the first six months, ZTE reported operating revenue of RMB21.84 billion for carriers’ networks.
ZTE said operating revenue for handset terminals amounted to RMB10.41 billion. Operating revenue from handset terminals in the domestic market fell in the first six months.
Operating revenue for telecommunications software systems, services and other products amounted to RMB5.46 billion.
ZTE Outlook
ZTE does not share specific revenue targets for H2 2014.
The company said it will benefit from the issue of 4G licenses in China and the approval of the trial operation of TD-LTE/LTE FDD hybrid networking.
ZTE will strategically integrate and focus its resources during the second half of 2014 in adherence to its core business principle of Innovation and Intensification.
editor@telecomlead.com
