ZTE Reports Profit for 2013, but Sees Decline in Revenue

(Beijing) – ZTE Corp. turned a profit last year after a big loss in 2012, but revenue slipped.

The country's largest publicly listed telecoms equipment provider released its financial report for 2013 on March 26. It reported a net profit of 1.36 billion yuan last year, after losing 2.84 billion yuan in 2012.

The turnaround is certainly good news, but the decline in revenue – which was 75.2 billion yuan, down 10.6 percent – indicates profits came from cost cutting rather than recovering in its mobile phone and telecom hardware business, an industry expert said.