The financial report shows that ZTE's total operating income in the first quarter of this year was 27.526 billion yuan, a year-on-year increase of 6.92%; net profit loss was 5.407 billion yuan, a year-on-year loss from profit, ZTE achieved a net profit of 1.213 billion yuan in the same period last year. Basic earnings per share from before 0.4 yuan / share fell to (-1.29 yuan) / share.
According to ZTE’s explanation, the changes in the first-quarter earnings report were mainly due to the company’s 1 billion US$1 billion fine as stated in the “Major Events Progress and Resumption Announcement” issued on June 12, 2018, and the May 9th, 2018 issue. According to the "Notice on Progress of Major Events", the main business activities of the company could not be caused by the advancement of adjustments.
The first quarter financial report released at the end of April showed that ZTE achieved operating income of RMB 28.88 billion, up 12.18% year-on-year; net profit attributable to common shareholders of listed companies was RMB 1.687 billion, up 39.01% year-on-year; The net profit of non-operating profit and loss of ordinary shareholders was 1.368 billion yuan, a year-on-year increase of 27.93%. It can be seen that ZTE's first quarter earnings report was not affected by the US refusal, and many indicators have achieved growth.
In June, ZTE issued an announcement stating that it will resume business activities affected by the US Department of Commerce's refusal order as soon as possible after the termination of the BIS refusal order. In addition, it will fully evaluate the signing of the refusal order from the US on April 15, 2018. The impact of the agreement on the first quarter report and the reorganization of the first quarterly report for 2018.