As China’s ZTE struggles to assess ‘potential impact’ of Washington’s export restrictions, board meeting delayed, shares still in limbo
Trading of ZTE’s shares in Hong Kong remain in limbo, after China’s largest-listed telecommunications equipment manufacturer said on Thursday that its scheduled board meeting next week has been postponed.
In a regulatory filing, ZTE chairman Hou Weigui said the company was unable to finalise its earning results for last year “pending a thorough assessment of the potential impact of the restriction measures on the business”.
The board meeting to consider and approve the company’s earnings results for last year was postponed to a later date, which the board will determine, according to Hou.
In January, ZTE said its preliminary estimates showed that the company achieved a 43.48 per cent increase in net profit last year to 3.78 billion yuan (US$582.44 million), up from 2.63 billion yuan in 2014, on the back of strong 4G network equipment orders and international 4G smartphone sales.
It projected total revenue to have grown 23.76 per cent to 110.82 billion last year from 81.47 billion yuan in 2014.