ZTE has posted its financial results for the first half of 2013. The vendor’s revenue for the period under review stood at RMB 37.7 billion. The company witnessed a decline of 11.6 per cent in its revenue for the first half of 2013 in comparison to the corresponding period in 2012.

The slow growth in the telecom networking and handsets business impacted ZTE’s growth in the first half of 2013. Further, lower demand for UMTS (3G) products in China, also had a negative impact on ZTE’s revenue growth.

According to industry analysts, RMB appreciation also affected ZTE’s revenue growth. In the first half of 2013, the RMB appreciated significantly in value against the dollar, resulting in less favorable foreign exchange comparisons a year ago. The company’s performance was also affected by depreciation in currencies such as the Euro, Japanese Yen in some of the emerging market as against the dollar.

However, despite registering a decline in revenue, ZTE achieved a net profit of RMB 302 million in the first half of 2013, witnessing an increase of 23.5 per cent over the corresponding period in 2012. ZTE has attributed its positive growth to a significant decline in the company’s sales, administrative and research and development expenses. ZTE also recognised financial gains with the disposal of one of its subsidiary.