China’s ZTE posts fourth-quarter net loss after U.S. sanction case fine

23 Mar, 2017 2:22 pm
HONG KONG – Chinese telecommunications equipment maker ZTE Corp on Thursday reported a net loss of 5.22 billion yuan ($760 million) in fourth-quarter profit, as it booked a $892 million charge to settle a U.S. sanctions case.

The loss for the three months through December compared with a profit of 1.09 billion yuan in the preceding quarter.

Excluding all one-off factors, the loss was 21.5 million yuan versus profit of 479 million yuan three months prior.

Revenue rose 24.6 percent to 29.67 billion yuan from the previous quarter.

Earlier this month, ZTE agreed to plead guilty and pay a fine to settle a long-standing U.S. sanctions case. On Thursday, it said the agreement became effective on March 22.

The fine left ZTE posting a 2.36 billion yuan loss for 2016, rather than 3.83 billion yuan in profit, which would have been 19.2 percent over 2015, ZTE said. -Reuters

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