The telecom equipment maker’s interim net profit declined 12.33 percent to RMB769 million. Basic earnings per share were RMB0.27.
In China, ZTE reported operating revenue to RMB16.527 billion, accounting for 44.26 percent of the group’s total operating revenue for the first half.
Though there was a slowdown in overall investments in the domestic telecom 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 percent of its total operating revenue and representing year-on-year growth of 36.41 percent.
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 percent to RMB8.99 billion, accounting for 24.1 percent of the Group’s entire revenue. ZTE Asia-Pacific (excluding China) accounted for 18.2 percent of revenue while Africa accounted for 13.4 percent of revenue.
By product divisions, the group registered year-on-year revenue growth of 8.01 percent for carriers’ networks, 43.96 percent for terminal products and 42.29 percent for telecommunication software systems, services and other products during the period.
In wireless products, the group actively participated in LTE tenders in the Asia-Pacific region, Europe and Latin America. It also secured contracts for large-scale commercial or trial LTE networks as well as 2G/3G network capacity expansion and modernisation projects of global mainstream carriers in the Asia-Pacific region, Eastern Europe, Africa and Latin America. The Group was able to do this by seizing opportunities presented by the global trend of wireless broadband network construction and network modernisation and re-engineering.
The group 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, and implemented TD-LTE/FDD LTE / GSM / EDGE multi-mode terminal.
Among wireline products, the competitiveness of the group’s access network products continues to strengthen, with rapid sales growth reported in both the domestic and the overseas markets. Sales of bearer network products are also more competitive.
For PTN, the group became the world’s No. 1 in terms of new market share in the first half of 2011. WDM and other products became more competitive and the optical network remained a global leader. In the first half of 2011, the group’s FTTx, MASN, DSLAM and other fixed network products were ranked No. 2 in the world.
During the first half of 2011, the group sustained rapid growth in the sale of its terminal products, reporting 43.96 percent 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.
In the period, the group expanded sales of higher-end products making ZTE the fifth-largest mobile phone maker in the world.
Sales for smart terminal product increased 400 percent and Blade, Skate, Light Tab and other products will help the Group to raise brand awareness among customers.
By Telecomlead.com Team