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China's ZTE reports net loss of $1.1 bn for H1 on impact from US sanctions

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

ZTE
The logo of China's ZTE Corp is seen at the lobby of ZTE Beijing research and development center building in Beijing, China Photo: Reuters
Sijia Jiang & Twinnie Siu | Reuters HONG KONG
Last Updated : Aug 30 2018 | 5:53 PM IST
ZTE Corp reported a first-half net loss of 7.8 billion yuan ($1.1 billion) on Thursday, weighed down by a ban on US firms selling parts to the Chinese telecom equipment maker that forced it to cease operations for three months.

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 per cent 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-US trade talks.

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First Published: Aug 30 2018 | 5:51 PM IST

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