Rakon expects demand in the Chinese smartphone market to push its growth in the coming years.
The company manufactures and exports components for global positioning systems and mobile phones.
It reported a loss of $3.9 million in the six months to the end of September, while revenue dropped more than 5% to $89 million.
Rakon is currently developing its position in various markets and is investing in more manufacturing to meet expected demand, especially with the 4G network.
Last week, the company announced plans to axe at least 60 jobs from shifting some production from Auckland to China, resulting in savings of about $10 million per year.
Managing director Brent Robinson said Rakon's production in China is expected to double in the next year.
"China has clearly overtaken the United Stares with the number of, or the percentage of, smartphones sold there - up to 26.5% for this year out of 660 million units is forecast for this year," he said.
Mr Robinson said Rakon supplies five out of the seven major smartphone brands into the Chinese market. He says the company also has more than 25 local brands that it is shipping product to.
Huge growth is expected for China with up to 80% of middle class households expected to use smartphones by 2017.
Shares in Rakon closed down 2 cents to 43 cents on Thursday.
