09:01     ZTE<00763> - Results Announcement (2)                               

                                                                              
    (3) An analysis of profit from continuing operations.                     
                                                                              
                                                                              
                                                            RMB'000 RMB'000   
                                                                              
    TURNOVER                                          21,220,062   17,036,083 
                                                                              
    Cost of sales                                    (13,813,530) (11,226,066)
                                                    _____________   __________
                                                                              
    Gross profit                                    7,406,532       5,810,017 
                                                                              
    Other revenue and gains                           534,129         251,969 
    Research and development costs                (2,265,211)      (1,535,726)
    Selling and distribution costs                (2,799,630)      (1,981,543)
    Administrative expenses                         (981,420)        (869,022)
    Other operating expenses                        (162,352)        (213,853)
                                                    __________      __________
                                                                              
    PROFIT FROM OPERATING ACTIVITIES                1,732,048       1,461,842 
                                                    ==========================
                                                                              
                                                                              
                                                                              
    (4) The basis of calculation for basic EPS and diluted EPS of the         
    current year.                                                             
                                                                              
    The calculation of basic earnings per share is based on the net profit    
    attributable to shareholders for the year of RMB1,272,489,000 (2003: RMB1 
    ,028,306,000) and the weighted average of 810,759,661 (2003: 800,755,200) 
    ordinary shares in issue during the year, as adjusted to reflect the bonus
    issue of 133,459,200 A shares on 5 May 2004.                              
                                                                              
    No diluted earnings per share has been presented as the Company did not   
    have any dilutive potential ordinary shares during the year.              
                                                                              
    For more details, please refer to the press announcement today.