Amid U.S. sanctions, Chinese telecom equipment maker ZTE counted its home China market as its biggest revenue source — and the only source to post growth — during the first half of 2020.

In the first six months of the year, ZTE grew its revenue from the Chinese market 15.8% year-on-year to 31.8 billion yuan ($4.6 billion), accounting for 67.3% of the total, according to the company’s 2020 interim earnings report. But revenue for its other three main regions outside China fell by between 7% and 12% as the U.S. led a global campaign pressuring other countries not to buy Chinese equipment. The company’s total revenue reached 47.2 billion yuan, up 5.8% year-on-year.

In terms of business categories, ZTE earned the most from its carriers’ networks, totaling 35 billion yuan during the period, up 7.7% year-on-year. Revenues from the consumer business as well as the government and corporate business reached 7.4 billion yuan and 4.8 billion yuan, representing a year-on-year drop of 0.15% and a year-on-year increase of 2.5%, respectively, the earnings report showed.

During the period, the company’s net profit attributable to holders of ordinary shares grew 26.3% year-on-year to 1.9 billion yuan.

ZTE said that it has so far secured 46 commercial 5G contracts from China, Europe, Asia Pacific and the Middle East, lagging behind that of Huawei, which said in February that it had 91 commercial 5G contracts, including 47 from Europe. The two Chinese companies were outshone by their Swedish counterpart, Ericsson, which announced earlier this month that its commercial 5G deal tally had reached 100 as it benefits from a growing number of Western carriers that are shunning Chinese-made equipment under the pressure from Washington.

ZTE shares rose 4.2% in the Monday morning session in Hong Kong after the results were announced.

Contact reporter Ding Yi (yiding@caixin.com)

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