ZTE has boosted its first-half net profit 40% after more than doubling its domestic revenue on the back of China's 3G boom.
The Chinese vendor recorded a net profit of 780 million yuan ($114.13 million) as revenue grew 40.4% to 27.7 billion yuan.
ZTE's domestic revenue grew 111.7% to 14.95 billion yuan, with local operators China Unicom and China Telecom awarding ZTE a significant share of the contracts for their mobile network rollouts. Its international business grew just 0.7% to 12.76 billion yuan.
The company shipped 75,000 CDMA base stations – its highest ever, and 50% more than it sold in the whole of 2008. Sales to carriers grew 46.2% and handset revenue rose 29.8%.
“The group will continue to implement the strategies of differentiation and cost leadership in the second half of the year,” chairman Hou Weigui said.
In a filing to the Hong Kong Stock Exchange, ZTE warned that the group's second-half result will be “affected to a certain measure” by the ongoing global financial crisis, and could also be vulnerable to currency fluctuations.