SHENZHEN -- ZTE Corp, China's second-largest telecommunications equipment manufacturer, posted a year-on-year decline of 36.6 percent in net profit last year, according to an annual report the company filed with the Shenzhen Stock Exchange on Wednesday.

ZTE's net profit for 2011 fell to 2.06 billion yuan ($327.45 million).

The Hong Kong- and Shenzhen-listed company recorded an increase of 23.4 percent in business revenue to 86.25 billion yuan last year.

Earnings per share for 2011 stood at 0.61 yuan, compared with 0.98 yuan in 2010. The Board of Directors has recommended a pre-tax cash dividend of 2 yuan for every 10 shares.

In 2011, ZTE's terminal products sales continued to grow, with operating revenue of 26.93 billion yuan, up 52.6 percent from the previous year.

ZTE has paid 2.09 billion yuan in cash dividends over the past three years, according to the report.