ZTE Corporation, a publicly listed global provider of telecommunications equipment and network solutions, announced that its interim net profit fell 12.33% to RMB769 million for the six months ended June 30, 2011

It however posted a 21.52% increase in operating revenue to RMB37.337 billion for the same period.

The company said its operating revenue for the first half also rose 21.52% to RMB37.337 billion. Net profit fell 12.33% to RMB769 million. Basic earnings per share amounted to RMB0.27.

In China, the Group reported operating revenue to RMB16.527 billion, accounting for 44.26% of the Group’s total operating revenue for the first half. Although there was a slowdown in overall investments in the domestic telecommunications industry, the Group ensured growth in operating revenue by improving the competitiveness of its products and by expanding the market share for wireless, data communication, terminal and other products.

During the period, the international part of the Group reported operating revenue of RMB20.810 billion, accounting for 55.74% of its total operating revenue and representing year-on-year growth of 36.41%. Strength from the international market was the key driver for the rapid growth in the first half of 2011. The Group’s diligent efforts in international market development came in a variety of ways. While gaining market share in emerging markets, the Group also continued to make large-scale alliances with global mainstream carriers by cooperating on different products which helped boost revenue from the international business.

Europe and America were the fastest-growing regions among top three overseas markets, rising 62% to RMB8.99 billion, accounting for 24.1% of the Group’s entire revenue. ZTE Asia-Pacific (excluding China) accounted for 18.2% of revenue while Africa accounted for 13.4% of revenue.

By product divisions, the Group registered year-on-year revenue growth of 8.01% for carriers’ networks, 43.96% for terminal products and 42.29% for telecommunication software systems, services and other products during the period. 

As a result, the Group now has a solid market position and presence in the global wireless market. In the first six months of 2011, ZTE won 23 LTE contracts across the world and more than half of them are in Europe, America, Japan and other developed regions. It has made significant growth when compared with the 3G era. The Group formed a strategic alliance with Hutchison to build the world's first TD- LTE / FDD LTE dual-mode network.

During the first half of 2011, the Group sustained rapid growth in the sale of its terminal products, reporting 43.96% year-on-year growth in sales revenue. Sales of the Group’s terminal products (comprising 3G handsets in various modes and data cards) in the domestic market were gaining pace as the population of domestic 3G users continued to grow. Internationally, the Group sustained strong growth as its terminal products, including the 3G handsets and data cards made breakthroughs among global mainstream carriers.