ZTE said operating revenues for the first quarter slipped to CNY 21.48 billion from 22.02 billion the year before, and that the net profit declined to CNY 780 million from 863 million year-on-year. The net profit after extraordinary items however rose 20.5 percent to CNY 160 million, thanks to investment gains. Basic earnings per share went to CNY 0.18.
R&D costs in the quarter totaled CNY 3.24 billion, making up over 15 percent of revenues. The spending was up 1.2 percent from the year-earlier period.
The company said the quarter was marked by the coronavirus pandemic and measures taken to alleviate the distress caused by it, as well as by the deployment of new infrastructures such as 5G and the Industrial Internet.
Going ahead, ZTE said it will pay close attention to the global epidemic situation, and coordinate accordingly with global customers and partners. It will also concentrate on its major businesses and develop new opportunities for its infrastructure.
