ZTE Corp is hoping strong sales of CDMA and Xiaolingtong network equipment will fuel a near 20 per cent increase in revenue this year. Wei Zaisheng, senior vice-president and chief financial officer of the Shenzhen-listed equipment supplier, which is also known as Shenzhen Zhongxing Telecom, said yesterday the company hoped to win 20 billion yuan (about HK$18.76 billion) worth of contracts this year, compared with 16.8 billion yuan last year. Last year, ZTE saw revenue grow 17.9 per cent to 11 billion yuan, while net profit grew 7.8 per cent to 567 million yuan. Mr Wei said strong sales of CDMA network and Xiaolingtong city-wide wireless system equipment and mobile handsets were responsible for the solid revenue growth and he expected they would continue to fuel growth. 'Last year, we doubled our CDMA contracts to 1.57 billion yuan, and doubled our market share. We believe our CDMA business will continue to grow this year,' Mr Wei said. Together with sales of CDMA handsets and network equipment, CDMA business accounted for 20 per cent to 30 per cent of ZTE's full-year earnings. China United Telecommunications Corp, the only licensed CDMA operator in China, has budgeted 10 billion yuan for its second phase CDMA upgrade and expansion plan. The carrier is planning to invest eight billion to nine billion yuan in a third phase of CDMA expansion, adding another 13 million lines, in the second half of the year. Sales of mobile handsets, which contributed about 10 per cent of ZTE's growth last year, would also be a driving force for this year's earnings, Mr Wei said. ZTE is expecting to more than triple its mobile handset sales this year to more than six million. However, Mr Wei said the revenue growth would not be parallel as prices would continue to decline. Shares in ZTE rose 1.3 per cent to 17.51 yuan yesterday after the company said it would pay a two-yuan cash dividend plus two bonus shares for every 10 shares.