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ZTE could return to profit in the three month’s to 30th September, despite a gruelling fall from grace in H1 2018
China’s ZTE has taken a huge step on the road to recovery by announcing that it expects to post a profit in its third quarter of 2018.
The announcement was made in a filing to the Shenzhen Stock Exchange on Friday, in which ZTE said that it expected to post a third quarter profit of up to 1 billion Yuan ($145 million).
The announcement seems incredible, given that the firm was forced to suspend all production in May this year, as its spat with the US government completely decimated the company’s production lines.
ZTE was forced to pay a fine of $1 billion and reshuffle its board to escape from a US banning order which threatened to bankrupt the company earlier this year. As an additional penance, ZTE was also required to place a further $400 million in escrow, set aside against any future transgressions.
The company’s road to recovery will be a long, hard one, with many obstacles still to be overcome, but the world’s 4th biggest telecoms kit manufacturer is making great strides towards this goal.
After a near total collapse in the first half of the year, which saw ZTE’s stock price on the Shenzhen Stock Exchange plummet from 31.31 Yuan in April to 12.23 Yuan in July, the company’s share price has been consistently rising since a deal with the US was reached. Today, ZTE’s share price stood at 18.95 Yuan, as it continues its most unlikely of resurrections.
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