China: ZTE Corp profit rise between 50 and 70 percent in 2007

28 January 2008

Shenzhen, China, 28 Jan – ZTE Corp, one of the largest Chinese telecommunications equipment manufacturers, saw its profits grow by between 50 and 70 percent in 2007 due to its foreign sales, the company said in a regulatory filing.

According to the statement filed with the Hong Kong Stock Exchange the company posted profit of 807 million yuan (US$112 million) in 2006.

The statement did not give the figure for profit in 2007, which is expected to be published on 20 March, in Shenzhen, at the company headquarters.

Last year ZTE won contract in Tunisia, India and Portugal selling a product similar to its rival Ericsson AB at a 30 percent cheaper price.

Also in 2007 and for the first, ZTE’s international sales are expected to have exceeded its domestic sales.

In Brazil, ZTE plans to triple in revenues in 2008 and in the first quarter of 2008 plans to open a Center for Training and advanced Telecommunications studies with several research laboratories.

The center, which will serve South America and represent an investment of US$10 million, will be located in the former headquarters of the company for South America, in Barueri, in the metropolitan region of Sao Paulo.

According to the company, the center will have the capacity to deal with up to 100 users and will have the support of the National Telecommunications Institute (Inatel), in Brazil, and ZTE University in China.

The South American training center will be the company’s sixth in the world – the other units are in China, Southern Asia, East Asia, France and Russia. (macauhub)