Zhongxing Telecom Co Ltd (ZTE), the country's number two telecommunications equipment provider, posted a net profit yesterday of 513.18 million yuan (US$61.8 million) for the first half of this year, registering a growth of 163.5% from a year earlier.

Turnover for its core businesses reached 11.77 billion yuan (US$1.4 billion), up 100.7% from a year earlier, the company said in a statement. Profits for the core businesses also jumped 108.1 per cent to 4.3 billion yuan (US$518 million). Earnings per share stood at 0.641 yuan (7.7 US cents). The company statement showed that turnover from the international market soared 353.5 per cent over the same period of last year to top 2.07 billion yuan (US$249 million).

ZTE is so far competing with its international rivals mainly in developing markets such as Africa and South Asia. ZTE and its chief homegrown rival, telecommunications equipment maker Huawei Technologies, have risen to prominence in recent years, capitalizing on China's multi-billion-dollar telecommunications development to strengthen their own expertise. Wireless network products and services and handset products continued to be the two major driving forces for development.

ZTE said it intends to use proceeds from next year's planned IPO to expand its international market presence, conduct research and develop new products and technology.