---
title: "Brief News: Exchange rate fluctuations drag down ZTE's net profit in the first quarter, down 46.6% year-on-year"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284152347.md"
description: "ZTE Corporation announced its financial report for the first quarter of 2023, with revenue increasing by 6.1% year-on-year to approximately 34.99 billion yuan, but net profit plummeted by 46.6% to 1.31 billion yuan. After deducting non-recurring gains and losses, net profit fell by 52.2% to approximately 936 million yuan. The company stated that the decline in profit was mainly affected by exchange rate fluctuations and asset impairment losses, with operating cash flow turning into a net outflow of approximately 1.98 billion yuan. Nevertheless, the stock price rose by 7.26% on Monday, closing at HKD 26"
datetime: "2026-04-27T04:25:58.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284152347.md)
  - [en](https://longbridge.com/en/news/284152347.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284152347.md)
---

# Brief News: Exchange rate fluctuations drag down ZTE's net profit in the first quarter, down 46.6% year-on-year

Telecommunications equipment manufacturer **ZTE Corporation** (0763.HK; 000063.SZ) announced on Friday that its revenue for the first quarter of this year increased by 6.1% year-on-year to approximately CNY 34.99 billion (USD 5.12 billion), but its net profit plummeted by 46.6% year-on-year to CNY 1.31 billion, and the net profit after deducting non-recurring gains and losses also fell by 52.2% to approximately CNY 936 million.

The company stated that the decline in profitability was mainly due to multiple factors, with financial expenses turning from a net gain of CNY 340 million in the same period last year to a net expenditure of CNY 341 million due to exchange rate fluctuations. Asset impairment losses nearly doubled year-on-year to approximately CNY 239 million, mainly due to increased provisions for inventory write-downs and accounts receivable impairments. Other income, including government subsidies, decreased from CNY 805 million in the same period last year to CNY 373 million.

During the reporting period, the company's operating cash flow turned into a net outflow of approximately CNY 1.98 billion, compared to a net inflow of CNY 1.85 billion in the same period last year.

_Li Shida_

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