ZTE Corporation announced its financial performance for the first half of the year recording a revenues increase by 40.4 % on a YoY basis at RMB 27.7 billion (USD 4.05 billion) as per The Accounting Standards for Business Enterprises (ASBE), and HKAS for The Hong Kong Accounting Standards (HKAS). Net profit too grew 40.5 % at RMB 780 million or EPS of RMB 0.45.

Revenues from domestic market were at RMB 14.95 billion at surge of 111.7 % when compared to last year’s figures. Significant contracts from China Unicom and China Telecom contributed heavily to the revenues from the domestic market.

Revenues from overseas operations however grew by only 0.7 % reflecting a slowed down mode by most of the global carriers. The international operations contributed 46 % or RMB 12.76 billion to the total revenues.

Vertical-wise, carrier networks registered a healthy growth of 46.2% while the handset terminal business division contributed 29.8%. Software systems, services and other products contributed 29.2%.

The company increased its R&D spend during the first half by 58.2% while sales & distribution costs grew by 21.4 %. Administrative expenses increased by 21 %. Finance expenses however declined by 8.6 %.

Mr. Hou Weigui, Chairman of ZTE, said, “the Group will seek to consolidate its businesses with the three leading PRC carriers on the back of its initial market shares in the domestic 3G sector. Meanwhile, the Group will seek to maintain its competitive edge in the international market and focus on large, populous countries as potential emerging markets. We will also strengthen cooperation with key strategic carriers in high-end markets such as Western Europe and North America to unfold further opportunities for cooperation with top-tier global carriers, in response to upgrades of communications technologies taking place in developed countries/regions and changes in the competitive scenario for global suppliers.