(Yicai Global) March 29 -- The majority shareholder of Chinese telecom equipment maker ZTE has sold nearly 81 million stocks amid disappointing earnings, caused by legal action in the States.
ZTE Holdings offered almost 2 percent of the company's outstanding shares via block trading on the Shenzhen Stock Exchange yesterday, at a discount of 18 percent in comparison to the closing price, the Shenzhen-based firm said in a statement yesterday, without disclosing a reason for the sell-off. This has reduced the shareholder's stake down to a bit more than 28 percent.
ZTE lost nearly CNY7 billion (USD1 billion) in 2018, mainly due to a settlement deal with the US government in order to offset its violations of US sanctions against Iran and North Korea. The firm made CNY4.5 billion in profit attributable to shareholders last year, its financial report that was published yesterday shows. The company estimated that it may turn profitable in the first quarter.
ZTE's share [SHE: 000063] has missed the rising wave of advancing stocks on the Shenzhen bourse today by sliding nearly 0.5 percent by the close.
Editor: Emmi Laine