Hong Kong – China’s ZTE Posts 1.1 Billion First-half Loss On Impact From U.S. Supplier Ban

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    The company name of ZTE is seen outside the ZTE R&D building in Shenzhen, China April 27, 2016. REUTERS/Bobby Yip/File PhotoHong Kong – CZTE Corp reported a first-half net loss of 7.8 billion yuan ($1.1 billion) on Thursday, weighed down by a ban on U.S. firms selling parts to the Chinese telecom equipment maker that forced it to cease operations for three months.

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    The result compared with the 7 billion to 9 billion yuan net loss estimate disclosed last month, and the 2.3 billion yuan profit booked in the same period a year earlier.

    Operating revenue in the first half fell 27.0 percent to 39.4 billion yuan.

    In June, the network equipment and smartphone maker paid the United States $1.4 billion in penalties in a deal to have the supplier ban lifted. The ban, imposed in April in relation to sanction violations, crippled ZTE and became a source of friction in Sino-U.S. trade talks.

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    7 years ago

    My bro Munch says that economic success is reached by working together.