ZTE Pockets USD128 Million in First Quarter
Tang Shihua
DATE:  Apr 30 2019
/ SOURCE:  yicai

(Yicai Global) April 30 -- ZTE, China's second-largest telecoms equipment maker behind Huawei, made CNY863 million (USD128 million) in first quarter profit as it recovered from sanctions by the United States government.

The figure compares with a CNY5.4 billion loss for the same period last year, the Shenzhen-based firm said last night.

It racked up a huge loss last year after selling American hardware and software to Iran's largest telecoms firm and then failing to adhere to settlement terms agreed with the US for its punishment. The US began investigating in 2016 and ultimately fined ZTE more than USD2 billion over 2017 and 2018, and forced the firm to replace all board members and executives above the senior vice president level last year and bring in a special compliance coordinator.

ZTE also forecast a net profit of between CNY1.2 billion and CNY1.8 billion for the first half, compared with last year's CNY7.8 billion deficit.

Editor: James Boynton

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Keywords:   Financial Performance,Telecom Equipment,US Sanction,ZTE Corp.