Key Developments: ZTE Corp (ZTCOF.PK)
23 May 2013
Latest Key Developments (Source: Significant Developments)
ZTE Corp announced that it welcomes the ruling by the Paris District Court requiring Huawei Technologies Co. Ltd. to pay damages to the Company, and dismissing Huawei's infringement claim against the Company over a data card patent. The decision by the Paris District Court on March 28, to reject all of Huawei's claims over the EP724 data card patent followed similar rulings in China and Germany. The Paris court dismissed Huawei's claim over the rotator head data card patent on grounds of lack of novelty, and ordered Huawei to pay EUR 100,000 in damages to ZTE and ZTE's subsidiary in France. Full Article
ZTE Corp announced that it will pay no dividend to shareholders for fiscal year 2012. Full Article
ZTE Corp announced that it expects its net profit for fiscal year (FY) 2012 to be approximately RMB -2,500 million to RMB -2,900 million, or to decrease by 221.35%-240.77%, compared to that of FY 2011 (RMB 2,060,166,000). The Company cited the decreased business income as the main reason for this forecast. According to I/B/E/S Estimates, analysts expect the Company's net profit for fiscal year 2012 to be RMB 615.33 million. Full Article
Shenzhen Jufei Optoelectronics Co Ltd announced that ZTE Corp has sold its entire 21,879,000 shares in Shenzhen Jufei Optoelectronics Co Ltd, representing a 16.09% stake. Full Article
ZTE Corp Announces Discloseable Transaction Disposal Of 81% Equity Interest In Shenzhen Znv Technology Co., Ltd.
ZTE Corp announced that the Board held on December 28, 2012, the Board approved the First Disposal Agreement, pursuant to which the Company has agreed to dispose its 65% equity interest in the Target Company to Ocean Delight; and the Second Disposal Agreement, pursuant to which ZTE HK, a wholly-owned subsidiary of the Company, has agreed to dispose its 16% equity interest in the Target Company to Ocean Delight. Upon completion of the Disposal, the Company will retain an indirect 9% equity interest in the Target Company through ZTE HK, and the Target Company will cease to be a subsidiary of the Company. As one or more of the applicable percentage ratios for the Disposal, on an aggregated basis, exceed 5% but are less than 25%, the Disposal constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements under Chapter 14 of the Hong Kong Listing Rules. The consideration under the First Disposal Agreement shall be the USD equivalent of RMB1,036,790,000. The consideration under the Second Disposal Agreement shall be the USD equivalent of RMB255,210,000. Full Article
Shanxi Lead Investment Co Ltd announced that it has signed a strategic cooperative framework agreement with ZTE Corporation, for their cooperation on the digital high-definition home education platform of university for the aged project. ZTE will design and develop set top boxes and other terminal devices, and the Company will be responsible for the planning, operation maintenance, marketing, and service provision for the project. Full Article
China All Access (Holdings) Ltd announced that Guangdong All Access a wholly owned subsidiary has entered into the Equity Transfer Agreement with ZTE Corp, pursuant to which Guangdong All Access has conditionally agreed to acquire, and ZTE has conditionally agreed to sell, the Sale Interest, being 51% equity interest in the entire registered capital of the Target Company (Shenzhen City Changfei Investment Company Limited), for a total consideration of RMB816 million. Upon the Acquisition Completion, the Target Company will become a 51% owned subsidiary of the Company and the financial results of the Target Group will be consolidated into the consolidated financial statements of the Company. Full Article
ZTE Corp announced that the Board has approved the CCBI (CCB International (Shenzhen) Investment Co., Ltd.,) Disposal Agreement, pursuant to which the Company has agreed to dispose 30% equity interest in Changfei Investment to CCBI (Shenzhen) at a consideration of RMB480,000,000; and the All Access Disposal Agreement, pursuant to which the Company has conditionally agreed to dispose 51% equity interest in Changfei Investment to Guangdong All Access at a consideration of RMB816,000,000. Upon completion of the Disposal, the Company will cease to have any interest in Changfei Investment and Changfei Investment will cease to be a subsidiary of the Company. Full Article
ZTE Corp's ZTE India Scales Down R&D Operations To Cut Costs; Jobs Losses At Bangalore Unit On Cards-The Economic Times
The Economic Times reported that ZTE Corp, China, is scaling down R&D operations in India as part of a cost-cutting drive that could trigger a large-scale job cull of research staff in Bangalore. The Chinese gearmaker issued a media statement, saying it is merging R&D operations with Indian Engineering & Service Centre (IESC ) to cut costs. The Bangalore-based IESC is purely involved in routine engineering support services for multiple projects and not R&D. ZTE Corporation recently said it would close loss-making offices worldwide, consolidate products with little development potential and hold back workforce expansion following third quarter loss forecast. Full Article
Novatel Wireless Inc announced that it has filed a lawsuit against ZTE Corp a Chinese company, and ZTE (USA), Inc. for infringing on a key Novatel Wireless patent related to the MiFi family of mobile hotspots and wireless data modems. The suit was filed in the United States District Court for the Southern District of California. This infringement lawsuit is the second patent infringement lawsuit Novatel Wireless has filed against ZTE related to technology in mobile hotspots. Full Article
NEW YORK - Europe's top trade official for the first time late on Friday officially cited Chinese mobile telecommunications equipment makers Huawei and ZTE Corp for violating anti-dumping and anti-subsidy guidelines.