ZTE forecast a 60-80 percent drop in net profit for the first half of the year, hurt by lower capital gains, higher forex losses and fewer contracts in its home market China. Net profit for the six months is estimated at CNY 154-308 million or CNY 0.04-0.09 per share, versus CNY 769.3 million or 0.23 per share a year earlier. Last year's results included gains from selling down its stake in Nationz Technologies, while this year it suffered exchange rate losses due to the depreciation in the euro and emerging market currencies. ZTE said it also saw a delay in some tenders by Chinese carriers and its gross profit margin was down compared to a year ago. Cash flow from operating activities still improved year-on-year.
