ZTE profit plunge attributed to US sanctions
American curbs on its exports have bitten Chinese vendor ZTE, which has issued a profit downgrade as a result.
The trade bans were imposed in March in response to American accusations that ZTE was breaking sanctions on sales to Iran.
Reuters reports that ZTE's 2015 profit rose 22 per cent to US$493 million (3.2 billion yuan) – but in January it had announced a preliminary profit of $586 million (3.8 billion yuan).
The company attributed the change to “a reassessment of future cash inflows” as a result of the sanctions.
The company also announced management changes this week.
Former CTO Zhao Xianming has been elevated to president, replacing Shi Lirong; and it named a group of seven executive vice presidents that didn't include Tian Wenguo or Qiu Weizhao, who were named by the US. ®