ZTE has announced plans to enter the energy sector with the establishment of a new joint venture company.

The new JV, set up by ZTE, Zhongxing Weixiantong, ZTE Development, ZTE International and the president of ZTE Hou Weigui with a total investment of CNY1.29 billion, will mainly specialize in the development, investment, and production in the energy field. ZTE has reportedly spent CNY300 million on the JV, for which it takes 23.26% of the company's stake.

ZTE says that the establishment of the JV will further optimize its external investment structure and increase the return of its investment as well as to expand more profit-making points.

In the third quarter of this year, ZTE's net profit reached CNY143 million, which was an increase of 1.16 times over that of the same period of last year.