Strong earnings growth despite crisis

By Zhu Shenshen  |   2009-4-24  |     NEWSPAPER EDITION

CHINESE telecommunications equipment makers posted strong earnings growth despite the impact of the global financial crisis unlike their overseas rivals.

Shenzhen-based Huawei Technologies Co, China's biggest private telecom equipment maker, has said its net profit rose 20 percent to US$1.15 billion last year, up from US$956.9 million a year earlier. Its revenue jumped 43 percent from a year ago to US$18.33 billion last year.

Net profit at ZTE Corp, a Shenzhen-listed firm, climbed 29 percent to 78.66 million yuan (US$11.56 million) in the first quarter of this year, it said in a statement last night. The company generated revenue of 11.67 billion yuan in the same period, an increase of 35 percent.

In comparison, Sweden-based Ericsson Inc saw a 47-percent plunge in net profit for last year and Alcatel-Lucent's net loss widened last year.

Huawei and ZTE provide clients, mainly in emerging markets, competitive technologies and products with lower prices compared with rivals including Ericsson, Nokia, Siemens and Alcatel Lucent.

Now the two Chinese firms have expanded in the developed markets of North America and Europe. Last month, Huawei won a contract to supply the network infrastructure for a cellphone service that United States cable-TV provider Cox Communications Inc plans to launch later this year. ZTE has business cooperation with 50 of the top 100 global carriers, the company said.