(Yicai Global) Jan. 12 -- Chinese telecoms giant ZTE Corp is selling its entire 90 percent stake in its trunking solutions provider Caltta Technologies for CNY1 billion (USD154.7 million) to focus on developing its main business of fifth-generation wireless networks.

The purchaser is chipmaker Beijing E-Town Dragon Semiconductor Industry Investment Center, ZTE said yesterday.

No reasons for the sale were given but the equity transfer will allow ZTE to focus on 5G, a company insider told Yicai Global. The firm’s Vice President Cui Li had earlier said that he hoped ZTE could occupy a 35 percent share of China’s 5G market, more than it currently holds in the 4G one.

The funds will help cover some of ZTE’s massive research and development costs. The company spent CNY10.8 billion (USD1.67 billion) on R&D in the nine months to Sept. 30 last year.

ZTE's operating revenue was up 15.4 percent in the first three quarters of last year from the same period in 2019 to CNY74.1 billion (USD11.5 million), according to its latest earnings report.

The firm’s stock [SHE:000063] closed up 1.12 percent at CNY35.32 (USD5.46) today.

Shenzhen-based Caltta Tech provides end-to-end trunking solutions, which are the backbone of phone lines that supply wireless communications, to government agencies and big industries such as airports and utility suppliers.

Editors: Xu Wei, Kim Taylor