ZTE Corp<000063><0763>, the second-largest telecom equipment provider in China, said on Tuesday that it has entered into a connected transaction framework agreement with Shenzhen Ruide Electronic Industrial Co Ltd to purchase handset batteries from the latter, sources reported.

The amount of the total purchase from Ruide will not exceed RMB 650 million for the year ending Dec. 31, 2010, ZTE said.

The Shenzhen-based vendor has also signed another agreement to buy liquid crystal modules from Shenzhen Lead Communication Co Ltd. The contract value will not exceed RMB 255 million for this year.

ZTE previously said it expected its net profit for 2009 to increase 43% to 56% year on year to between RMB 2.37 billion and RMB 2.59 billion. The company attributed the profit growth to the large-scale construction of 3G networks in China and effective cost control last year.

 source:chinaknowledge