ZTE profit drops despite double-digit revenue growth

ZTE profit drops despite double-digit revenue growth

ZTE booked a significant fall in profit in 2020, pointing to challenges presented by the Covid-19 (coronavirus) pandemic and the external environment, despite a rebound in profitability in the final quarter.

Net profit for the year fell 15.2 per cent to CNY4.37 billion ($674.6 million), with operating revenue increasing 11.7 per cent to CNY101.4 billion.

The company does not break down revenue by division in preliminary earnings.

In a statement, chairman Li Zixue said the revenue growth was driven by domestic and international markets across its three business segments: carrier networks; consumer; and government and corporate.

Li said it gained market share in China due to growth in 5G and other infrastructure sales. In international markets, he said the company reported improved profitability on the back of sound operations and efforts to target high-value market segments.

Net profit in Q4 rose 62.2 per cent year-on-year to CNY1.66 billion.


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