ZTE, China’s second largest telecommunications equipment maker, expects net profit of between RMB 1.2 billion (around $178 million) and RMB 1.8 billion in the first half of this year, according to a statement filed to the Hong Kong and Shenzhen stock exchanges on Monday.

The company recorded losses of RMB 7.8 billion in the same period last year, which the company attributed in the statement to the $1 billion fine it paid for evading US sanctions by selling telecom equipment to Iran and North Korea. The US government then banned US companies from selling components to ZTE for seven years, which brought the company to a standstill because of its dependence on American-made parts.

In its quarterly earnings report filed to the two exchanges, ZTE said its first-quarter revenue was RMB 22.2 billion, down 19.3% year on year. Its net profit in the first quarter was RMB 862 million, a 115.95% increase from the same period a year earlier.

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Wei Sheng

Wei Sheng is a Beijing-based reporter covering hardware, smartphone, and telecommunications, along with regulations and policies related to the China tech scene. Before joining TechNode, he wrote about...