ZTE's management has apologised for its latest set of financial results, which has seen the manufacturer make a net loss of up to RMB2bn (£198.9m).
Shares at the maufacturer hit a one-month low following the issue of the preliminary results. Sales for the three months to 30 September fell 13%. It blamed the wider global economic slowdown, operators delaying their spending on telecoms equipment and how they buy equipment from the Chinese manufacturer. It said: 'In the international market, overseas operators slowed down their pace of investments because of a weakening global economy.' The results did not make a specific reference to its handset arm.
In response to the results, the ZTE management team said it was changing its strategy. It would close offices that keep making a loss, it will aim to slash operating costs and research and development expenditure, consolidate products that offer little potential, cut staff and restructure the business.
It added: 'The company will allocate more resources to its terminals business in North America and Europe, while proactively pursuing opportunities in the wireless and wired broadband segments in emerging markets including China and Asia Pacific.' It said it hopes to take part in the 4G rollout in China.
The statement said: 'Amidst the severe operating environment, senior management at ZTE is confident of overcoming the pressure and challenges, and lead the entire company in adjusting its strategy in a timely fashion, grasping business opportunities in the market, lowering costs, raising efficiency, and returning to profitability as quickly as possible.'
Editor: Graeme Neill