ZTE reports worst fiscal H1 this year, expects to be back on track in 2019
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The US export bans imposed on some Chinese companies in early 2018 left ZTE in shambles, but the OEM is not out of business just yet. In fact, now that that the US government has speared ZTE, the Chinese OEM is planning to make a comeback in 2019.
In order to lift the bans, ZTE had to pay US$1.7 billion in sanctions, of which only US$1.4 billion were paid back in July. ZTE also released the financial report for the first half of 2018, and it turns out that all this debacle with the US government caused a US$1.1 billion loss. Even though the company took a dramatic hit, ZTE still expects a net profit of up to US$146.4 million by Q3 2018, while production and orders are now back on schedule.
ZTE hopes to reestablish its projected growth trajectory for 2019 through the advent of the 5G technology. It looks like the first 5G handsets will come from China, and ZTE does not want to miss out on this opportunity. Meanwhile, the Australian 5G ban might put a dent in ZTE’s plans; however, the Chinese OEM might not be affected by this problem, since its presence in Australia was modest at best.