HONG KONG, July 21 (Reuters) - Chinese telecom equipment maker ZTE Corp on Tuesday reported a jump in first-half preliminary net profit, thanks to increased investment in China’s 4G next-generation telecom infrastructure and improved margins in its global business.
The Shenzhen-based company said its preliminary first-half net profit rose 43 percent year-on-year to 1.6 billion yuan ($258 million), according to a filing to the Shenzhen stock exchange after market closed on Tuesday.
That is set to be the company’s highest first-half net profit, although the growth was slower than the 263 percent year-on-year jump recorded at the same time of last year.
“ZTE increased revenue from sales of FDD-LTE network systems, in addition to wireline switch and access systems, while contract profitability improved,” the company said in a separate statement. ZTE did not elaborate in the brief statement.
It came one day after cross-town rival Huawei Technologies Co Ltd, which competes with ZTE in telecom equipment and smartphones, posted a 30 percent increase in first-half revenue to 175.9 billion yuan and said it would achieve “effective growth” in 2015.
ZTE’s board earlier this month approved an A-share buyback plan estimated at no more than 1 billion yuan.
The company’s Shenzhen-listed shares closed up 0.9 percent prior to the earnings release, lagging a 1.6 percent rise in the benchmark.
$1 = 6.2095 Chinese yuan renminbi Reporting by Yimou Lee; Editing by Mark Potter