At the same time, ZTE has also updated a number of accounting subjects such as inventory, engineering contract payments, employee payables, etc. Among them, operating income has been reduced by approximately 1.35 billion yuan, and operating costs have increased by approximately 570 million yuan. Sales, management and The three expenses for research and development have all decreased, but the asset impairment loss has increased to 9.99 billion yuan, an increase of 106.6%.
ZTE’s results announcement on July 13th stated that it expected a loss of RMB 7-9 billion in the first half of the year and a profit of RMB 2.29 billion in the same period last year.
ZTE said that the change in the statement was mainly due to the company's 1 billion US dollars fine as stated in the “Development and Resumption of Major Events Announcement” issued on June 12, 2018, and the “Notice on Progress of Major Events” issued on May 9. The company's main business activities can not be caused by the advancement of adjustments caused by the comprehensive.
Previously, ZTE was affected by the US ban, and it was suspended for nearly three months. Around the 12th of this month, news of the ban was circulated. At this time, ZTE’s share price plummeted, and the company’s top management was basically replaced. At the same time, it also paid a high amount. Fine. Currently, ZTE has resumed normal production.
In addition, ZTE issued an announcement to review and approve the “Proposal on Election of the 7th Board of Directors Export Compliance Committee”, the establishment of the Board of Directors Export Compliance Committee, and election of Yuming Bao (Bao Yuming), Li Zixue, Fang Wei, Cai Manli, Wu Jundong as the company Member of the Export Compliance Committee of the Seventh Board of Directors, the convener is Yuming Bao (Bao Yuming). The term of the above members shall be from the date of deliberation and approval of the board of directors of the company to the expiration of the term of the seventh board of directors of the company (ie March 29, 2019). only.
In addition to the above information disclosure, ZTE also confirmed that ZTE had compensated Maxell for $43.3 million in the Texas and Maxell lawsuits.