ZTE Corporation says its profits rose by 35.9% in the first quarter of this year, helped by the sale of some company assets. Net income was up to 205 million yuan (£21 million), although quarterly sales were down 2.8% year-on-year to 18.1 billion yuan (£1.9 million).
In a statement, the company said “Since the second half of 2012, ZTE has stringently enforced measures to focus resources on key products and markets, target higher-margin contracts, improve cash flow management and reduce costs, under the company’s operational review. This has helped the company achieve a more optimal product and customer mix, and an improved cost structure. The company achieved combined savings of RMB 350 million in selling, administration and research costs in the first quarter compared with a year earlier. The results of the operational review, combined with the disposal gain, allowed the company to overcome the negative effects from currency fluctuation and asset write-downs to record higher net profit.”