2016 was not a great year for Chinese telecommunications firm ZTE. The company says it had total losses of CNY767 million.
ZTE published its performance briefing for the entire year of 2016 and the first quarter of 2017; and the company also disclosed the financial impact of its "incident" in the U.S. Two weeks ago, ZTE confirmed that it reached a deal with the United States Department of Commerce to pay USD892 million for violating American sanctions on Iran and North Korea.
According to the performance briefing, ZTE's operating revenue was expected to reach CNY101.233 billion in 2016. Due to the incident in the U.S., the company paid a one-time penalty of USD892 million, which was about CNY6.15 billion, and its total losses were CNY767 million; and the company's net losses were CNY2.357 billion.
If excluding the above-mentioned losses, ZTE's total profit was CNY5.414 billion, a year-on-year increase of 25.82%; and its net profit attributable to shareholders was CNY3.825 billion, a year-on-year increase of 19.24%.
Reconciliation with the U.S. government is conducive to eliminating the huge business uncertainty. Statistics showed that during the first quarter of 2017, ZTE's operating revenue expected to see a year-on-year increase of 10% to 20%; while its net profit attributable to shareholders was expected to increase by 20% compared with the same period of last year. ZTE said the company has returned to the normal development track.