ZTE Reports Q1

HONG KONG -- ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced its first quarterly results ended 31 March 2009.

During the review period, the Group managed to sustain growth for its businesses, at its great efforts, despite the impact of the global financial crisis. According to the PRC ASBEs, for the three months ended 31 March 2009, the Group recorded a revenue amounting to RMB 11.67 billion, representing an increase of 35.00% compared with the same period last year. Net profit was RMB 78.66 million, representing an increase of 29.17% compared with the same period last year. Basic earnings per share were RMB 0.06.

In terms of product category, ZTE posted a 46.9% growth in system devices, while revenues from 3G and GSM network construction maintain robust growth. Revenue from mobile handset products grows by 22.2% against the same period, representing remarkable rise in product sales. Also, telecom software systems, services and other products grew by 3.6% as compared to the same period last year.

The Group won a number of tenders for 3G network projects and terminal products from carriers in China, thanks to its efforts to match 3G related requirement and the specific standards of the different carriers. In the 3G tender bids offered by China’s three largest telecom operators, the Group has achieved a leading position in WCDMA network projects by successful deployments in more than half of developed municipalities in China, including Guangdong, Fujian, Shandong and Tianjin. Meanwhile, the Group secured solid presence in the previous TD and CDMA tenders and performed well in the previous 3G terminal biddings. Earlier this month, the Group launched its newest 40 types of 3G terminal products in China.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)