ZTE H1 sales down 11.6%, profits improve

News General Global 22 JUL 2013
ZTE H1 sales down 11.6%, profits improve
ZTE reported a drop in first-half revenues, hurt by weaker market demand and currency effects. Revenues totaled CNY 37.71 billion, down 11.6 percent from a year earlier. ZTE blamed the fall on lower sales of GSM and UMTS equipment in its home market China and a drop in sales of GSM handsets and data cards across the world. 

Profitability improved however, helped by higher gross margins as well as cost reductions and operating efficiencies. After a financial gain from the disposal of its stake in Shenzen ZNV Technology, the ZTE's net profit rose 23.5 percent to CNY 302 million. 

In addition to the preliminary first-half report, ZTE's board approved a new stock-options incentive plan for employees. 

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