ZTE steps up 5G network gear deployment overseas as capital spending in China is set to decline

The Shenzhen-based company has secured 35 commercial 5G equipment supply contracts across major markets around the world

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ZTE Corp has established 5G cooperation pacts with more than 60 mobile network operators across the globe. Photo: EPA-EFE

Li Taoin Shenzhen

Published: 7:15am, 29 Oct 2019Updated: 8:34am, 29 Oct 2019

ZTE Corp, the world’s fourth largest telecommunications equipment supplier, is accelerating deployment of its 5G gear overseas amid a potential decrease in capital spending by mobile network operators in China.

Shenzhen-based ZTE said on Tuesday that it has already secured 35 commercial 5G network supply contracts across major markets around the world, as the company pushed to turn around its business this year from a record 7 billion yuan (US$991 million) loss in 2018 when it ceased major operating activities for nearly four months under a US trade ban that was later lifted.

The firm projected its overall net profit this year to range from 4.3 billion yuan and 5.3 billion yuan, according to a statement released after the close of trading in Hong Kong and Shenzhen.

Its preliminary estimates show that net profit for the quarter ended September 30 reached 2.7 billion yuan, up 371 per cent from the same period a year ago. Revenue grew a modest 1.5 per cent to 19.6 billion yuan.

Telecommunications equipment maker ZTE Corp displays its range of 5G mobile base stations inside its booth at the annual MWC Barcelona trade show, held in the Spanish city in February this year. Photo: Bien Perez

Shares of ZTE rose nearly 1 per cent to close at HK$21.55 on Monday before its third-quarter results were announced.