ZTE Corporation provided group earning guidance for the full year ended December 31, 2013. For the full year ended December 31, 2013, the company expects net profit attributable to shareholders of the company is to be in the range of RMB 1,200,000 to RMB 1,500,000 and basic earnings per share are to be in the range of RMB 0.35 to RMB 0.44. The group expects a turnaround to profit for the year under review primarily for the following reasons: The group has strengthened its management over contract profitability and exercised stringent control over the execution of low gross margin contracts, resulting in improved gross margin for international projects and an increase in the operating revenue from domestic systems projects as a percentage of total operating revenue; the group has strengthened its control over costs and expenses with enhanced efficiency.

Total expenses (selling and distribution costs, administrative expenses and research and development costs) for the reporting period were significantly lower as compared to the same period last year. The company reported net cash inflow from operating activities for 2013 as it enhanced cash flow management with increased efforts in the collection of sales receipts, while exercising stringent control over various costs and expenses. The company's gearing ratio as at the end of 2013 is expected to be lower than that as at the end of the previous year, reflecting the increase in owners' equity attributable to shareholders of the listed company in line with the expected profitability for 2013 on the one hand and, on the other, the reduction in interest-bearing liabilities as a result of the company's measures to enhance cash flow management.