ZTE sees record H1 profit

Chinese telecom equipment maker ZTE Corp on Wednesday posted a record first-half net profit thanks to improving margins in its global business and revenue from new contracts to build China's next-generation telecom network.

The company said its first-half net profit rose 263 percent year-on-year to 1.13 billion yuan ($184 million), up from 310 million yuan a year earlier.

"The group continued to assume a leading position in 4G product tenders, with effective growth in market shares," the company said in a statement to the Shenzhen Stock Exchange after the market.

ZTE will benefit from higher 4G capital expenditures in China, analysts said.

The company's operating revenue for terminal products, including smartphones and tablets, dropped 16.49 percent in the first half from a year earlier due to declining 3G cell phone revenue in China, ZTE said in the statement.