Chinese telecommunication equipment maker ZTE Corporation has published its interim results for the first half of 2010 ended June 30.
During the first half of 2010, ZTE achieved operating revenue of CNY30.725 billion, a year-on-year increase of 10.89%; its net profit was CNY877 million, a year-on-year increase of 12.02%; and its basic earnings per share amounted to CNY0.32.
During the reporting period, ZTE supported 3G network construction projects of some carriers and assisted with the replacement, coverage extension and improvements of relevant networks. This helped to consolidate the company's market share in China's 3G network construction amid a slowdown of investment in 3G networks. At the same time, the company leveraged its customization capability and cost advantage to participate in carrier tenders for products such as transmission networks, wireline access, and terminals.
ZTE's international revenue increased by 19.58% year-on-year to CNY15.255 billion, accounting for 49.65% of the company's total operating revenue. Though revenue from Asia declined due to an incident relating to the safety inspection of communications equipment in India, ZTE still reported year-on-year growth in international revenue and worked closely with global carriers, including France Telecom, Telkom SA, Telefonica of Spain and America Movil.
Looking to the second half of 2010, carriers will focus on the development of mobile broadband, which will require ongoing broadband construction. Carriers will continue with their testing and deployment of high-end technologies, including 4G technology. Cloud computing is also expected to be more adopted by carriers. The gradual implementation of the convergence of three networks in the Chinese market will underpin the development of a variety of technologies and services which will provide additional development opportunities for ZTE. The company will continue to enhance its partnerships with domestic carriers, and consolidate and boost its current market position by participating in major network construction projects in the second half of this year.
