& cplSiteName &

China's ZTE Gets New Chairman – Report

Iain Morris
3/14/2017
50%
50%

Chinese equipment maker ZTE is reported to have named Yin Yimin its new chairman just days after it said it would plead guilty to charges that it broke US export rules and pay an $892 million fine as a penalty. (See ZTE to Pay $892M Fine to Settle US Trade Dispute.)

The immediate appointment of Yin Yimin, previously chairman of controlling ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) shareholder ZTE Holdings, came swiftly after Zhao Xianming said he would resign as ZTE's chairman but continue in the roles of executive director and president, according to a Reuters report.

Formerly ZTE's chief technology officer, Zhao took charge of ZTE last April, replacing Shi Lirong in the leadership roles, after US authorities accused the Chinese vendor of selling products in Iran that included components made in the US. (See ZTE CEO to Quit in US Export-Ban Dispute.)

Since then, ZTE claims to have taken a number of steps to make its organization and business dealings more transparent, appointing a US lawyer as head of compliance and investing in new systems.

Zhao's decision to quit as chairman looks similarly aimed at burnishing ZTE's corporate image following the costly run-in with US authorities.

In a statement filed with the Shenzhen stock exchange, ZTE is reported to have said that Zhao resigned "in order to improve the company's management by differentiating the role of chairman and president."

According to Reuters, Yin has been chairman of ZTE Holdings since 2015 and was employed as ZTE's president between 2004 and 2010.


For all the latest news from the wireless networking and services sector, check out our dedicated mobile content channel here on Light Reading.


In a preliminary earnings statement published last week, ZTE said that provision for the $892 million fine had wiped out profits for the 2016 fiscal year. Having reported a net profit of about 3.2 billion Chinese yuan ($460 million) for 2015, ZTE expects to record a net loss of approximately RMB2.36 billion ($340 million) for 2016. (See ZTE Suffers $340M Net Loss on US Fine.)

Sales, meanwhile, are expected to edge up just 1%, to RMB101.23 billion ($14.64 billion), thanks to a "slight increase" in sales at the carrier networks and consumer businesses.

That level of growth looks disappointing by comparison with ZTE's bigger Chinese rival Huawei Technologies Co. Ltd. , which earlier this year said its revenues were likely to have risen by 32% for 2016. (See Huawei's Network Sales Up Around 32% in 2016.)

Western rivals Ericsson AB (Nasdaq: ERIC) and Nokia Corp. (NYSE: NOK) are faring much worse, however, both reporting sales declines of around 10% for 2016. (See Loss-Making Ericsson Still Short on Vision and Nokia Upbeat on Turnaround Despite Sales Decline.)

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Nokia Bell Labs & Verizon Stretch Fixed 5G to the Home
Dan Jones, Mobile Editor, 11/13/2017
Juniper's New Contrail VP Hails From Google
Craig Matsumoto, Editor-in-Chief, Light Reading, 11/15/2017
Eurobites: Telefónica Reckons Plastic Is Fantastic for FTTH
Paul Rainford, Assistant Editor, Europe, 11/15/2017
Animals with Phones
Why Cats Don't Run Tech Support Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives