Shares in ZTE rose as much as 7 per cent in Hong Kong on Tuesday morning after the Chinese telecommunications equipment maker posted a nearly fivefold jump in third-quarter profit, driven by rapid expansion in its computing infrastructure and overseas operations.
Net profit attributable to shareholders reached 1.31 billion yuan (US$196.3 million) for the three months ended September 30, up 395 per cent from a year earlier, according to an exchange filing released on Monday evening. Revenue climbed 34 per cent to 38.81 billion yuan over the same period.
The Shenzhen-based company said its third-quarter surge in computing infrastructure, consumer terminals and international sales helped counter a slump in capital expenditure by domestic telecoms carriers.