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China's ZTE reports net loss of $1.1 bn for H1 on impact from US sanctions

In June, the network equipment and smartphone maker paid the United States $1.4 billion in penalties in a deal to have the supplier ban lifted

Sijia Jiang & Twinnie Siu | Reuters  |  HONG KONG 

The logo of China's ZTE Corp is seen at the lobby of ZTE Beijing research and development center building in Beijing, China Photo: Reuters
The logo of China's ZTE Corp is seen at the lobby of ZTE Beijing research and development center building in Beijing, China Photo: Reuters

Corp reported a first-half net loss of 7.8 billion yuan ($1.1 billion) on Thursday, weighed down by a ban on US firms selling parts to the Chinese that forced it to cease operations for three months.

The result compared with the 7 billion to 9 billion yuan net loss estimate disclosed last month, and the 2.3 billion yuan profit booked in the same period a year earlier.

Operating revenue in the first half fell 27.0 per cent to 39.4 billion yuan.

In June, the network equipment and maker paid the United States $1.4 billion in penalties in a deal to have the supplier ban lifted. The ban, imposed in April in relation to sanction violations, crippled and became a source of friction in Sino-US trade talks.

First Published: Thu, August 30 2018. 17:51 IST
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