ZTE Corp. China's second-largest telecoms equipment maker, said it estimated its first-quarter net profit would fall 50 percent or more due to adjustment in capital expenditure.

"Capital expenditure by domestic telecommunications carriers have undergone seasonal adjustment, affecting the group's revenue from principal operations domestically," ZTE said in an statement on Tuesday.

"Part of the overseas contracts have not been fully performed, resulting in their contributions to the group's revenue not being realised," it added.

It added that net profit for the quarter "will decrease by 50 percent to 100 percent" compared to the same period in 2005.

ZTE said its net profit for the first quarter of 2005 was 230.4 million yuan (US$28.7 million), with earnings per share of 0.24 yuan.

Shares in ZTE have risen over 20 percent so far this year to close at HK$31.40 on Thursday, the last day of trading before the Easter break, compared to a 10.4 percent rise in Hong Kong's benchmark Hang Seng Index .