ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today issued guidance for full-year profit to increase 94.2%, with rising revenue powered by demand for 4G LTE network systems and smartphones.
Net profit attributable to shareholders of the listed company is expected to be RMB 2.64 billion (USD 424 million) in 2014, compared with RMB 1.36 billion a year earlier, according to preliminary unaudited results published by ZTE today, based on accounting standards of the People¡¯s Republic of China. Full-year revenue is forecast to be RMB 81.24 billion, 8% higher than in 2013.
Gross profit margin improved during 2014, as ZTE continued to optimize its business operations to attain higher contract profitability. The company¡¯s financial expenses decreased through effective management of interest costs and foreign exchange exposure.
ZTE posted growth in its 4G TD-LTE and FDD-LTE systems business in China, as well as its 3G and 4G smartphone operations internationally. Further information will be available in ZTE¡¯s annual results announcement on 25 March, 2015.
Table 1: Preliminary financial results for the year ended 31 December 2014 (unaudited, based on accounting standards of the People¡¯s Republic of China)