ZTE posts results for the six months ending June 2011

ZTE Corporation has announced a 21.6 per cent increase in operating revenue to RMB 37.35 billion in the six months ending June 30, 2011.

In the first half of 2011, the company?s net profit was RMB 768.52 million, a 12.4 per cent decrease, compared with the same period last year. The fall in profit is due to ZTE?s market share expansion strategy, a change in product structure and pending software VAT refund subsidies.

ZTE?s revenue from international markets increased by 36.4 per cent year-on-year to RMB 20.81 million, accounting for 55.7 per cent of the company?s operating revenue.

ZTE shipped 60 million terminal products, including 35 million smartphones in the first six months of the year. This is a 400 per cent increase year-on-year in smart terminal sales. Consequently, operating revenue for the company?s handset products as a percentage of total operating revenue increased to 30.0 per cent from 25.4 per cent in the same period last year.

Overall gross profit margin for handset products declined to 19.6 per cent from 22.7 per cent previously.