HONG KONG/BEIJING, Jan 21 (Reuters) - Shares of ZTE Corp were set to open up 3.3 percent in Hong Kong on Tuesday after the company said on Monday that it had swung into profit last year, following its first-ever annual loss in 2012.
ZTE, the world’s fifth-largest telecom equipment maker, flagged a 2013 net profit of 1.2 billion yuan to 1.5 billion yuan ($198 million to $248 million), versus a net loss of 2.84 billion yuan in 2012. A poll of 25 analysts estimated a 1.65 billion yuan net profit, according to Thomson Reuters I/B/E/S.
The company, which competes with the likes of Ericsson and Huawei Technologies Co Ltd, said the profit was achieved after imposing stringent controls over the signing of low-margin supply contracts, improving margins in global projects and keeping a lid on costs.
($1 = 6.0527 Chinese yuan)
Reporting by Clement Tan and Paul Carsten; Editing by Kenneth Maxwell