(Telecompaper) Chinese telecom equipment and mobile phone maker ZTE reported net profit up 35.9 percent to CNY 205 million in the first quarter, compared to the year-earlier period. The improvement came from ZTE's operational review and a disposal gain from the sale of a controlling stake in telecom and video surveillance equipment subsidiary Shenzhen ZTE Netview Technology (ZNV) for CNY 1.3 billion. The company's gross margin has expanded for two consecutive quarters thanks to increasing cost control efforts. Revenue declined 2.8 percent to CNY 18.09 billion in the first quarter compared to a year earlier.