2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements (continued)(Prepared in accordance with PRC ASBEs)(All amounts in RMB’000 unless otherwise stated)(English translation for reference only)I. CORPORATE BACKGROUND (continued)On 4 June 2010, 3,239 Scheme Participants under the first award of the Phase I Share Incentive Schemefulfilled the conditions for the second unlocking of Subjects Shares. A total of 26,452,094 A shares wereunlocked as Subject Shares of the second unlocking. The total number of share capital remained unchangedafter the unlocking, although there was a change in the inherent structure of the share capital.The implementation of the Company’s 2009 profit distribution and capitalisation of capital reserve wascompleted on 24 June 2010, whereby 5 bonus shares for every 10 shares held were issued based on thenumber of shares recorded in the shareholders’ register on the record date by way of capitalisation of capitalreserve. The share capital was increased by a total of 955,577,228 shares as a result, and the total sharecapital after the capitalisation was 2,866,731,684 shares.On 15 December 2010, 763 Scheme Participants under the second award of the Phase I Share IncentiveScheme fulfilled the conditions for the first unlocking of Subjects Shares. A total of 2,520,957 A shares wereunlocked as Subject Shares of the first unlocking. The total number of share capital remained unchangedafter the unlocking, although there was a change in the inherent structure of the share capital.The implementation of the Company’s 2010 profit distribution and capitalisation of capital reserve wascompleted on 7 July 2011, whereby 2 bonus shares for every 10 shares held were issued based on thenumber of shares recorded in the shareholders’ register on the record date by way of capitalisation of capitalreserve. The share capital was increased by a total of 573,346,336 shares as a result, and the total sharecapital after the capitalisation was 3,440,078,020 shares.On 21 July 2011, 3,199 Scheme Participants under the first award of the Phase I Share Incentive Schemefulfilled the conditions for the third unlocking of Subjects Shares. A total of 60,532,063 A shares wereunlocked as Subject Shares. The total number of share capital remained unchanged after the unlocking,although there was a change in the inherent structure of the share capital.On 29 December 2011, 752 Scheme Participants under the second award of the Phase I Share IncentiveScheme fulfilled the conditions for the second unlocking of Subjects Shares. A total of 5,230,667 A shareswere unlocked as Subject Shares. The total number of share capital remained unchanged after the unlocking,although there was a change in the inherent structure of the share capital.On 24 December 2012, 735 Scheme Participants under the first award of the Phase I Share Incentive Schemefulfilled the conditions for the second unlocking of Subjects Shares. A total of 6,589,151 A shares wereunlocked as Subject Shares. The total number of share capital remained unchanged after the unlocking,although there was a change in the inherent structure of the share capital.As at 31 December 2012, the total number of the Company’s issued share capital on an accumulative basiswas 3,440,078,020 shares. Please refer to Note V.34 for details.The controlling shareholder of the Group is Shenzhen Zhongxingxin Telecommunications Equipment CompanyLimited, a company incorporated in the PRC.The financial statements were approved by the Board of Directors of the Company by way of resolution on27 March 2013. In accordance with the Articles of Association of the Company, the financial statements willbe tabled at the general meeting for consideration.163