Chinese ZTE – intent on setting up shop in consumer and network infrastructure all over the world – has posted its slightly dented preliminary earnings.
There’s a 12.4 percent net profit drop compared to last year. Its net profit for the first half of 2011 was RMB 767.52 million, or USD $119.57 million.
ZTE claims the drop is because of its bid to flood the world with its equipment and devices – which it calls aggressive – in other words, spreading itself a little too thin.
Other factors didn’t help, like what it says is a change in product structure. It’s also waiting on software VAT refund subsidies.
However, it’s not quite doom and gloom. ZTE is happy with the growth in its international markets, as well as a boost in wireless network products and the smart terminal market, including smartphones. Profit, again, did decline in handsets – but the message it is putting out in the press seems to be that the growth was worth it.
As expected, ZTE wants to continue mch of what it has been up to – focusing on implementing its wireless networks and broadband networks all over the world. Meanwhile, it highlighted its internal venture capital fund in a statement “to seek growth opportunities”.
In other words if it manages to rake the money in we can expect it to do some shopping.
“The company will also improve its operating efficiency,” it squawked to investors in the statement, “and strive to contain costs”.