ZTE’s Q3 net profit plummeted by 68%: the reason is unknown

On the evening of October 29, ZTE issued an announcement to announce the financial report for the third quarter of 2020. While revenue rose sharply, there was a rare plunge in net profit.

In the third quarter, ZTE’s total revenue was 269.301 billion yuan, a year-on-year increase of 37.18%, the net profit attributable to ordinary shareholders of the listed company was 855 million yuan, a year-on-year decrease of 67.83%, and earnings per share were 0.19 yuan. A year-on-year decrease of 69.84%.

In the first three quarters of this year, ZTE’s total revenue was 741.294 billion yuan, a year-on-year increase of 15.39%, its net profit was 2.712 billion yuan, a year-on-year decrease of 34.30%, and its earnings per share was 0.59 yuan, a year-on-year decrease of 39.80%. %.

However, ZTE did not explain the specific reasons for the sharp decline in profits.

At the same time, ZTE disclosed that it plans to purchase 18.8219% of the shares of ZTE Microelectronics, a holding subsidiary of the company held by Hengjian Xinxin and Huitong Rongxin by issuing shares. The estimated transaction price range is 25.41-26.35 billion.

After the transaction is completed, ZTE will hold 100% of ZTE Microelectronics.

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