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ZTE H1 profit up 9.3% to $270 million

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Sanjeeb Kumar Sahoo
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NEW DELHI: China-based smartphone and telecom equipment giant ZTE said that its net profit reached 1.8 billion yuan ($270 million),up by 9.3 % for the six months ending 30 June 2016.

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"Net profit attributable to holders of ordinary shares of the listed company rose to RMB1.77 billion for the six months ending 30 June 2016. Basic earnings per share amounted to RMB0.43," said the firm in a filing at the Shenzhen Stock Exchange.

The company reported an overall increase in operating revenue of 4.05% to RMB47.76 billion.

ZTE reported a domestic operating revenue of RMB27.8 billion, accounting for just over 58% of overall operating revenue. International operating revenue is RMB19.95 billion, accounting for almost 42% of the group’s overall operating revenue.

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The reported operating revenue for carriers’ networks business in H1 was RMB28.74 billion. Operating revenue for government and enterprise business amounted to RMB4.61 billion. Operating revenue for the consumer business amounted to RMB14.42 billion. The net cash flow from operating activities reached RMB 2.36 billion, a year-on-year increase of 56.17%.

In H1 2016, ZTE invested close to 15%, or RMB7.06 billion, of their total revenue in R&D, the largest such investment the company has made to date. Continued investment in R&D will contribute to the sustainable development of the company.

ZTE today also announced its new company strategy, M-ICT 2.0, which will drive the company’s growth over the next five years. M-ICT 2.0 is designed to help businesses seize opportunities in an economy defined by the emergence of the sharing economy, the vast use of peer-to-peer networks and dependence on the pervasive range of cloud computing platforms and services.

M-ICT 2.0 identifies five key trends: Virtuality, Openness, Intelligence, Cloudification and the Internet of Everything. Encapsulated into the acronym VOICE, ZTE will focus on the individual and interconnected impacts of each trend as they develop products and services. More information about M-ICT 2.0 and VOICE can be found in the ZTE white paper, “M-ICT 2.0: VOICE for a Digital Future”

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