China's ZTE Expects First-Quarter Profits to Double
Published on: 10th Apr 2014
By: Ian Mansfield
China's ZTE has forecast its first quarter profit will at least double from the same period last year which it said reflected the strengthening of core operations.
Net profit attributable to shareholders of the listed company will be between RMB 425 million and RMB 637 million (US$68.5-102.7 million) in the first quarter, a year-on-year increase of between 107.3% to 210.7%, according to ZTE's preliminary results announcement filed to the Hong Kong stock exchange.
ZTE said in a statement that it expects to record significant increases in both first quarter gross profit and gross profit margins, as the company continued to focus on servicing higher-margin contracts. Operating revenue from 4G infrastructure systems in China as a percentage of overall revenue increased, while gross profit margins for international projects improved.
The profitability of the company's principal business recorded a relatively significant increase. It is expected that net profit after extraordinary items attributable to shareholders of the listed company will be over RMB 583 million in the first quarter, compared to a loss of RMB 615 million a year earlier.