|By Business Wire||
|April 10, 2014 07:02 AM EDT||
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, forecast the company’s first-quarter profit will at least double from the same period last year, reflecting the strengthening of core operations.
Net profit attributable to shareholders of the listed company will be between RMB 425 million and RMB 637 million in the first quarter, a year-on-year increase of between 107.3% to 210.7%, according to ZTE’s preliminary results announcement filed to the Hong Kong stock exchange today. Basic earnings per share will be between RMB 0.12 and 0.19, compared to RMB 0.06 a year earlier, based on pre-audited financial data.
ZTE expects to record significant increases in both first quarter gross profit and gross profit margins, as the company continued to focus on servicing higher-margin contracts. Operating revenue from 4G infrastructure systems in China as a percentage of overall revenue increased, while gross profit margins for international projects improved.
The profitability of the company’s principal business recorded a relatively significant increase. It is expected that net profit after extraordinary items attributable to shareholders of the listed company will be over RMB 583 million in the first quarter, compared to a loss of RMB 615 million a year earlier.
ZTE is optimistic about the company’s business prospects as global 4G network deployments accelerate and demand for 4G mobile devices increase.
ZTE is a publicly-listed global provider of telecommunications equipment and network solutions with the most comprehensive product range covering virtually every telecommunications sector, including wireless, access & bearer, VAS, terminals and professional services. The company delivers innovative, custom-made products and services to over 500 operators in more than 160 countries, helping them to meet the changing needs of their customers while growing revenue. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in several international bodies devoted to developing telecommunications industry standards. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. The company is China’s only listed telecom manufacturer that is publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.
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