Advertisement

As China’s ZTE struggles to assess ‘potential impact’ of Washington’s export restrictions, board meeting delayed, shares still in limbo

Reading Time:2 minutes
Why you can trust SCMP
0
People look at smartphones and other devices displayed at ZTE’s stand during the Mobile World Congress Wireless show in Barcelona on February 23. Suppliers of goods subject to the US export curbs must now apply for a licence. Photo: AP

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.

That followed Shenzhen-based ZTE’s announcement last week that it was uncertain whether a solution can soon be reached with the United States government, which slapped the company with export restrictions over its alleged violation of longstanding trade sanctions on Iran.

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.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x