ZTE names Yin as chairman

By:
James Pearce
Published on:

Zhao Xianming has resigned from the role to focus on his position as president of ZTE Corp

ZTE has named veteran company executive Yin Yimin as its new chairman, replacing Zhao Xianming who resigned from the role to focus on his position as president at the vendor.

The change in its board of directors comes just a week after ZTE struck a deal with US officials that will see it pay nearly $900 million for breaching US trade sanctions with Iran.

Yin was president of ZTE Corp from 2004 until 2010, and has served as president of ZTE Holdings, the controlling shareholder of ZTE Corp, since 2015. Yin will serve as chairman until 29 March, 2019.

In a statement filed with the Shenzhen stock exchange, ZTE reportedly said that Zhao resigned "in order to improve the company's management by differentiating the role of chairman and president."

Zhao, who was formerly the vendor’s chief technology officer, took charge in April following pressure from the US, which threatened to introduce a sales ban. 

The ban related to ZTE’s selling of products in Iran that included components made by US companies, but implementation was repeatedly delayed as ZTE tried to negotiate a fine with the US authorities.

Those negotiations conclude last week, with ZTE announcing a record fine equivalent to around 8% of the vendor’s revenue for 2016. The company reported revenue of $14.6 billion, 1.04% up on 2015, but a total loss of $111 million,

Without the fine, which still needs final approval in the US courts, ZTE would have reported a year-on-year increase in total profit of 25.82%, and net profit up by 19.24%, says the company.