ZTE’s top line benefitted from strong international sales in H1, offsetting a flat local market, with its consumer division returning to growth and core network business declining.

Net profit increased 2.9 per cent year-on-year to CNY5.7 billion ($797 million), supported by a CNY770 million extraordinary gain.

Total revenue rose 2.9 per cent to CNY62.5 billion, led by a 10.4 per cent increase in international sales to CNY19.4 billion, 31.1 per cent of total revenue.

In a statement, the vendor explained the domestic market was under pressure due to a weak overall investment environment, while internationally it “continued to achieve breakthroughs with major countries and large telecom operators, maintaining double-digit growth”.

Domestic revenue was stable at CNY43.1 million.

Government and enterprise sales grew 56 per cent to CNY9.2 billion and consumer business 14.7 per cent to CNY16 billion.

Operator network revenue declined 8.6 per cent to CNY37.3 billion.

R&D expenses were flat at CNY12.7 billion, 20.4 per cent of operating revenue.