February 1, 2018 / 2:17 PM / 7 months ago

China's ZTE says prelim results show return to profit of 4.55 billion yuan

HONG KONG (Reuters) - Chinese telecoms equipment group ZTE Corp (000063.SZ) said on Thursday it expected to returns to net profit in 2017 helped by higher revenue from carriers’ networks and its consumer business.

People stand at ZTE's booth during Mobile World Congress in Barcelona, Spain, February 27, 2017. REUTERS/Paul Hanna

It estimated its preliminary net profit of 4.55 billion yuan ($722.91 million) versus a loss of 2.36 billion the previous year, it said in a filing to the Shenzhen stock exchange.

That is in line with its guidance of between 4.3 billion and 4.8 billion yuan.

ZTE paid about $826 million to the U.S. government in 2017 to settle a sanctions case, it added in the filing.

The telecommunications equipment maker said it plans to raise 13 billion yuan via a private placement to support 5G mobile network technology development.

It plans to invest 42.9 billion yuan over three years in 5G technology.

Hong Kong shares in ZTE Corp (0763.HK) fell by 6.84 percent on Thursday, while its shares (000063.SZ) in Shenzhen plunged by the daily limit of 10 percent after the share issue plan was announced.

($1 = 6.2940 Chinese yuan renminbi)

Reporting by Twinnie Siu; Editing by

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