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)IVSCOPE OF CONSOLIDATION OF THE CONSOLIDATED FINANCIAL STATEMENT (continued)2. Changes in the scope of consolidationNew tier-one subsidiaries established during the period included ZTE Anhui Media Co., Ltd and ZTETrunking Technology Corp.; new tier-two subsidiaries established during the period included ChangshaZhongxing Software Co., Ltd, Artvision Technologies Inc., UAB ZTE Lithuania, ZTE Colombia S.A.S,, ZTERDC S.P.R.L, ZTE International Limited, ZTESOFT Singapore Technology PTE. Ltd, Zhongxing TelecomService Limited, Shenzhen Btravel Service Co., Ltd, ZTE Energy Conservation Services Co., Ltd, ZTEKYRGYZSTAN Limited Liability Company, ZTE Corporation de Guatemala S.A., 克 拉 瑪 依 中 興 石 油 科 技有 限 公 司 , 寧 波 中 興 智 慧 城 市 研 究 院 有 限 公 司 , ZTEICT Qinhuangdao Technology Co., Ltd and 南 京 守 護寶 信 息 技 術 有 限 公 司 ; new tier-three subsidiaries established included Nanjing ZTE Welink TechnologyCo., Ltd, Hengyang Zhongxing ICT Co., Ltd, ZTEJC Nigeria Limited, NETEX de Venezuela, C.A., ZTEServices Deutschland GmbH and SinoAbyssinia Information Engineering Technology P.L.C.In 2012, the following subsidiaries are not included in the scope of consolidation:Disposal DateNet AssetsBeginning ofyear todisposal dateNet ProfitShenzhen Changfei Investment Company Limited(“Changfei”) 827,262 217,374Shenzhen Special Equipment Company Limited(“ZTE Special Equipment”) 185,012 55,131Shenzhen Zhongxing Hetai Hotel Investment andManagement Company Limited (“Hetai”) 30,754 2,298Other than the aforesaid newly established and disposed subsidiaries, the scope of consolidation wasconsistent with that of the previous year.Shenzhen Changfei InvestmentCompany LimitedShenzhen Special EquipmentCompany LimitedShenzhen Zhongxing Hetai HotelInvestment and ManagementCompany LimitedPlace ofregistrationNature of businessPercentage ofthe Group’sShareholdingin totalPercentage ofThe Group’svoting rightsin totalReason fornot being asubsidiaryShenzhen Investment 51% 51% DisposalShenzhenShenzhenManufacturing ofCommunicationsand relatedequipmentHotel managementservices68% 68% Disposal82% 82% Disposal197