ZTE expects to report a profit in the first quarter of 2013 as a result of the company’s operational review and strategic realignment efforts.

It is executing its comprehensive strategic review begun last year to sharpen its focus on key products and markets and strengthen cash flow management. ZTE is generating net cash inflows from operations and recorded higher sales collection, achieved increased profitability on new contracts, applied stringent cost controls and recognised investment gains.

Due to delays in the progress of some domestic and international network projects, the recognition of earlier lower-margin contracts and a drop in revenue for terminal products, ZTE may post a full-year net loss attributable to shareholders of the listed company of between RMB2.5 billion and RMB2.9 billion in 2012, a reversal of 221.35% and 240.77% compared to a year earlier.