ZTE Posts $1b Loss

ZTE posted a net loss of 7.8 billion yuan ($1.1 billion) for the first half ended June 30, falling from the year-earlier 2.3 billion yuan profit as a months-long ban on American technology imports exacted a toll, Nikkei reported. Operating revenue fell 27% to 39.4 billion yuan, the Chinese telecom equipment maker said Thursday. ZTE was forced to halt operations shortly after the US banned domestic suppliers from doing business with the Chinese company for violations of North Korean sanctions. The ban, initially intended for seven years, was lifted in mid-July after the company reached a deal with the Trump administration, and production has resumed. But the business environment remains tough as the company’s reputation suffered. The company did not hold a news conference on the interim results. At an extraordinary shareholders meeting Tuesday, President Xu Ziyang said ZTE remains on the “front line” of the communications sector. “Core production is back to normal, and we will now focus on in-house development of semiconductors,” said Xu. “Current order levels are on par with last year’s,” he added.