ZTE gears up for increase in 4G projects in second half
Leading telecoms equipment maker benefits from massive network construction as profit soars 264 per cent to 1.1 billion yuan in first half
ZTE Corp, the country's largest listed telecommunications equipment manufacturer, is gearing up for a fresh cycle of industry investments from the second half of this year, when more 4G mobile networks are rolled out across the mainland and in overseas markets.
"The group will strategically integrate and focus its resources during the second half," chairman Hou Weigui said in the company's filing with the Hong Kong stock exchange yesterday.
Shenzhen-based ZTE has generated plenty of gains from the massive construction of 4G networks on the mainland in the first six months of this year.
The world's fifth-biggest telecommunications equipment supplier posted a 264 per cent increase in interim net profit to 1.13 billion yuan (HK$1.42 billion), from 209.88 million yuan a year earlier, on the back of its domestic 4G system contracts and improved gross profit margin for its international projects.
Revenue was 37.69 billion yuan, little changed from 37.5 billion yuan in the previous corresponding period. About half of that revenue was from business on the mainland.
Carrier network equipment accounted for 57.9 per cent of overall revenue. Mobile devices, including 3G and 4G smartphones, contributed 27.6 per cent, while telecommunications software, services and other products made up 14.5 per cent of turnover.