Business, Telecom & Wireless

China's ZTE Net Profit Up 23.47% In H1 2013

Chinese telecom device maker ZTE published its semi-annual performance results ended June 30, 2013, stating that during the first half of 2013, the company achieved operating revenue of CNY37.708 billion, a year-on-year decrease of 11.57%; while its net profit attributable to shareholders was CNY302 million, a year-on-year increase of 23.47%.

According to the report, the company's operating revenue decline was attributed to the decrease of revenue from GSM and UMTS products in China and GSM mobile phones and data cards from abroad, as well as the appreciation of RMB.

In regards to making net profit in two consecutive quarters, ZTE said during the first half of 2013, the company enhanced their control over contract profitability. Though the overall sales scale saw a decrease, their overall gross margin was improved. Meanwhile, they reinforced cost management and control, focused on cost efficiency, and lowered costs of sales, management, and development during the reporting period. The company also gained investment profit by sale of a stake in Shenzhen ZNV Technology Company Limited.

ZTE published a new stock option incentive plan. The company said they will grant 10,320 stock options to 1,531 individuals. Those stock options account for 3% of the total stock of ZTE. This is the second time for ZTE to launch a stock option incentive plan. The first was launched in 2007.

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