ZTE has reported a record 1.13 billion yuan ($184 million) profit for 1H14 - up 263.9% - and forecast triple-digit profit growth for the first nine months of the year.
Revenue grew to 37.7 billion yuan. Just over half (51.1%) of ZTE's operating revenue for the half-year came from its domestic Chinese market.
Internationally, ZTE said it had continued to focus on its strategy of focusing on major populous nations and mainstream global operators.
ZTE's carrier networking segment generated revenue of 21.84 billion yuan, while handset revenue reached 10.41 billion. The remaining 5.46 billion came from telecom software systems and services.
Demand for 4G equipment helped boost networking revenue, particularly in China as the big three operators progressed with their massive LTE rollouts.
ZTE said it is continuing to spend around 10% of its annual sales revenue on R&D. The company has 18 R&D centers in China, the US, Sweden, France and elsewhere.
Looking ahead, ZTE forecasted that it will post a profit of between 1.7 billion and 1.9 billion yuan for the first nine months of the year. This would be a year-on-year increase of between 208.2% and 244.5%.
The vendor said it is anticipating a new investment cycle with the large-scale deployment of 4G networks worldwide, but cautioned that carriers must address the threat of becoming mere “dumb pipe” providers.