ZTE earnings jump, though poor 2002 performance puts figures in context

20 Oct 2003

China’s second-largest equipment vendor ZTE Corp saw its third-quarter results boosted by a growing domestic demand for telecoms equipment as it posted a 169% rise in net profit. However, a low earnings base in the comparable period of 2002 put a sheen on net earnings of CNY100.71 million, which remain some way below the performance of past years. Whilst turnover for the first nine months of the year grew nearly 60% to CNY9.8 billion, the vendor warned that growth in the final quarter of the year is unlikely to scale similar heights due to a higher base in the same period of 2002; the fourth quarter accounted for more than two-thirds of the company’s earnings last year. ZTE scrapped a planned share floatation in April 2003, citing a weak market. Its quarterly results made no mention of whether another attempt to float the company was imminent, despite the market growing by around 40% in the intervening period.