Chinese equipment firm ZTE Corp. has doubled its revenues and net profits in the first half of 2004, according to the company's latest financial report.

Its revenues for the first six months were 11.8 billion Renminbi (US$1.4 billion), compared with RMB5.9 billion ($712 million) a year earlier, while net profit was RMB513 million ($62 million), up from RMB195 million ($23.5 million) in the first half of 2003.

Those first-half revenues are fast approaching the company's 2003 total of just over RMB15 billion (see ZTE Reports 2003 Earnings).

A ramp-up in revenues from outside China, which accounted for more than RMB2 billion in sales, were again cited as a major contributor to growth. (See ZTE Wins in Tunisia, ZTE Builds Uzbekistan IP Backbone, ZTE Wins Phillipines VOIP Project, and ZTE Boasts GSM Success.) The company doubled its international sales in 2003 (see ZTE Doubles International Revenues).

Investors liked the results. The numbers sent ZTE's share price up by RMB1.13, more than 5 percent, to RMB22.92 ($2.77) on the Shenzhen stock exchange.

Now the company plans further international expansion and aims to raise money from an IPO on the Hong Kong stock exchange to fund that overseas growth, though there is still no timetable for the listing (see ZTE HK IPO OK'd).

ZTE's international aspirations are also being aided by the strategies of the largest global telecom vendors that are keen to boost their presence in the massive Chinese market. Those international players have to ensure their gear is interoperable with the systems of Chinese suppliers such as ZTE and Huawei Technologies Co. Ltd., according to new reports from Heavy Reading (see Heavy Reading Reports on VOIP). The reports conclude that the resulting interoperability then helps the likes of ZTE and Huawei to sell their products, which are up to 50 percent cheaper than their Western rivals' products, to carriers all over the world.

— Ray Le Maistre, International News Editor, Light Reading