ZTE reported a net loss of CNY 2.357 billion for 2016, hurt by fines for violating US sanctions. That compares to a profit of CNY 3.208 billion in 2015. Excluding the fines, net profit would have risen 19.2 percent to CNY 3.825 billion, the company said.
Revenues rose just 1 percent to CNY 101.233 billion, suggesting a slowdown in the last quarter of the year after 4.4 percent growth in the first nine months of 2016. ZTE's operating profit showed a strong improvement, to CNY 1.165 billion from CNY 320.5 million in 2015.
The company also released a trading update for the first quarter, saying it expects operating revenues up 10-20 percent from a year earlier and net profit up over 20 percent, thanks to growth both in carrier networks and consumer products.
ZTE will release full quarterly results on 23 March.
telecompaper |