ZTE Agrees to Sell Stakes of its Environmental Monitoring Business
China’s second largest telecom equipment maker ZTE Corp. have agreed to sell around 81 percent of an environmental monitoring business for 1.3 billion yuan that will contribute to its bottom line for 2013.
The company have already logged is biggest third quarterly loss since it went public in 1997 even though company executives predicted that the company will be profitable for the full year. The company also sold off its 65 percent equity interest in Shenzhen ZNV Technology Co. Ltd. and its wholly owned ZTE HK that was sold at 16 percent to Ocean Delight Investments Ltd. Shenzhen ZNV is a company that provides visual monitoring and environmental monitoring systems for telecommunication firms, utilities and rail lines.
The selling of its 81 percent stake will boost the company’s net gains in 2013 in the form of an investment income to 880 million yuan. ZTE is competing with its biggest rival Huawei Technologies in the global telecommunication equipment and handsets saw its bottom line suffer because of a sluggish telecom spending and a thin margin on its mobile phone sales.
Both companies also came under scrutiny in the United States when a US Congressional committee reported that they pose a potential threat in the country’s cyber security.