Net profit was RMB1.07 billion (US$168 million), a year-on-year decline of 21.5 per cent. The decrease is mainly attributable to increased financial expenses.

Revenue from terminal sales increased 53.4 percent year-on-year. The company also reported year-on-year growth of 15 percent in carrier network revenue. This increase is attributed to increased sales of ZTE's wireline products, optical communications systems, domestic sales of GSM/UMTS system equipment and international sales of its CDMA system equipment.

ZTE also obtained a 16.3 percent share of the high-end data product market among China's telecommunications operators, moving into the No. 3 spot domestically. This is attributed to an increase in sales of the company's high-end data products such as the M6000/T8000.

Looking ahead to the final three months of 2011, ZTE said that it will be confronted with macroeconomic policy changes in China and a high degree of uncertainty in international economies.