Shares drop to lowest since 2009 as company warns profits for the first half of the year could decline by as much as 80 per cent
ZTE’s shares have fallen by 17 per cent after it warned profits for the first half of this year could drop by as much as 80 per cent compared to a year ago.
Shares at the Chinese equipment manufacturer fell to 10.32 Hong Kong dollars (86p) today – the lowest it has been since 2009.
The Chinese equipment manufacturer said on Friday that net income for the first six months of this year was expected to be between 154 million yuan (£15.5 million) and 308 million yuan (£31 million), down from 769.3 million yuan (£100.9 million) from the same period last year.
ZTE said the reason for the predicted decline in profits was lower investment income compared to 12 months ago, losses from foreign exchange and a drop in domestic revenue.