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ZTE swings to 2016 loss on U.S. fine

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Staff Writer | March 8, 2017
ZTE said it swung to a net loss last year, after it made provisions to pay a fine to the U.S. for violating Iran sanctions.
ZTE   Net loss was 2.36 billion yuan
ZTE said it has agreed to pay $892 million in fines and plead guilty to violating U.S. sanctions on Iran and obstructing justice, ending a five-year probe that has raised trade tensions between the U.S. and China.

The largest publicly traded telecom manufacturer in China reported a net loss of 2.36 billion yuan ($342 million) for 2016, compared with a profit of CNY3.21 billion in the previous year.

Without the provisions, net profit would have grown 19.2% in 2016, ZTE said in its filing to the Hong Kong stock exchange. Operating revenue grew 1% to CNY101.23 billion.

The company said it expects net profit to rise between 21.1% and 31.7% in the first quarter of this year.