ZTE Profitability After the Sanctions
ZTE hopes to gain significant profits in the third quarter of 2018 despite heavy losses in the first half of the year following a US boycott.
ZTE, the world’s fourth largest telecommunications product manufacturer, has been hit by a severe 7-year US bailout last April. The US boycott of ZTE‘s products had shut down its product line for three months. According to Dhaka’s financial managers, US officials have agreed to punish company managers who ignored US sanctions against Iran and North Korea to lift sanctions.
In reports on the financial exchanges of the Shenzhen Stock Exchange, Zadeyia expects a net profit of about 24.2 million yuan ($ 3.54 million) to one billion yuan (146 million yuan) after the loss of 7.8 billion yuan in the first half of the year in the quarter before September. $ 4. Million). The company’s net profit in the same period last year was about 1.6 billion yuan.
The company’s new CEO, at a meeting on Tuesday with shareholders, emphasized the company’s product profile.
After charging ZTE‘s $ 1.4 billion fine and agreeing on major changes to its board of directors, since July, the restrictions that have caused tensions in US-China trade relations have been resolved and the company’s business status has been routinely eroded. Has been. Experts have also estimated losses of about 7 to 9 billion yuan for the first half of the year.
Yanni predicts. Operating revenue for the first half of the year also shows a decline of 27 to 39 billion yuan of predictions.
Shenzhen-based companies and Huawei’s multifunctional city have faced increasing pressure from Western markets in the global trade and have been at risk of dealing with them for spying on the Chinese government.
In the same vein, the Australian government announced late last week that it would ban imports of fifth-generation communications equipment from Chinese manufacturing companies.
Following up on the news, stocks fell to 2.6% in Hong Kong and 0.6% in Hong Kong Stock exchanges before 1.1%. The company lost about $ 3 billion in market shares in June before resuming its offerings in June.