Zte ‘rehabilitated’ in the United States, illegal export lawsuit closed

Zte ‘rehabilitated’ in the United States, illegal export lawsuit closed

Zte Close criminal case In the United States due to export offenses: a judge from the state of Texas End of five years of conditional suspension borne by the company, i.e. the probationary period started after, in 2017, ZTE has admitted to making sales to Iran In violation of the US export control regime. Admitting her guilt, Zte haggled and agreed to pay one Fine Nearly 900 million dollars. The closure of the criminal case led to the rise of the title Up to +60% on the Hong Kong Stock Exchange.

Ban closed, but Washington can go back on the offensive

The US judge decided not to proceed against ZTE, despite finding a possible error that violated the test and could require new penalties. With the maximum conditional suspension period of the sentence reached and the highest possible fine imposed, the proceedings close. However, the judge called on the government to move forward with other possible charges and other sanctions against ZTE, particularly in relation to issues related to export compliance.

March 31, 2022 – 12:00

DIGITAL360: Presentation of Financial Statements for 2021

Administration / Finance / Oversight

In another action in 2018, the US Department of Commerce determined that ZTE had misrepresented itself Regarding the measures taken against the managers who became responsible for sales in Iran and thus passed a complete ban For the company to buy American-made components This effectively resulted in the ban of its activities in the United States.

Thus ZTE entered into a deal In order to get unblocked: single payment Billion dollar fineagreed to change management and cooperate with a A supervisory body appointed by the Ministry of Commerce which will remain in place for ten years.

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Zte: “Important compatibility improvements”

Regarding compliance, the judge said, “The company has made progress.” who has completed the probationary period. Previously, the US export compliance program was “non-existent,” and now it is implemented “on occasion,” he said.

In a media statement Zte said it is “proud of the significant improvements.” In the internal culture and in the compliance program “which intends to make compliance with the law” the cornerstone of its development strategic.”

Difficulties in the United States have led the Chinese company to strengthen its presence in international markets. In 2021, Zte achieved increasing sales 12.9% compared to 2020, Equal 114.5 billion renminbi. Thenet income Attributed to holders of ordinary shares of the listed company 6.8 billion RMBAnd the by 59.9% Compared to the previous year while Net profit after extraordinary items always attributable to common stock holders is RMB 3.3 billionWith 219.2% increase every year. Basic earnings per share was 1.47 RMB. During the period, the company’s net cash flow from operating activities was CNY 15.7 billion, representing an increase of 53.7% year-on-year.

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