November 14 – ZTE Corporation (000063, 0763.HK) is reportedly sold another 5.05 million shares of Nationz Technologies (300077), or 1.86 percent of total interest, reports stcn.com.

Until now, ZTE has liquidated a total of 12.75 percent interest in Nationz Technologies and holds remaining 7.25 percent of unrestricted shares.

ZTE realized before-tax investment return of 550 million yuan from the disposals.

Performance of Nationz Technologies had been diminishing consistently in the first three quarters on uncertainties of national mobile payment standard and a slowing market expansion.

In addition, the promotion of mobile payment in various regions slowed, bringing impact on Nationaz Technologies’ sales. Nationaz Technologies suffered a 52.96 percent year-on-year fall in net profits to 9.18 million in third quarter when sales revenues plunged 17. 58 percent to 446 million yuan.

Despite a government subsidiary of 14.68 million yuan in third quarter, the firm predicted a annual fall of between 40 and 55 percent in net profits for whole 2011.

USBKEY, a large contributor to firm’s performance, experienced decline in both selling price and sales volume due to fierce market competition.

Nationz Technologies also suffered an addition of operation and research costs that drive down the gross profit margin.