2012 Annual Report - ZTE

ZTE CORPORATIONNotes to Financial Statements (continued)(Prepared in accordance with PRC ASBEs)(All amounts in RMB’000 unless otherwise stated)(English translation for reference only)V. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS(continued)14. Fixed Assets (continued)2011CostOpeningbalanceIncreaseduring theyearDecreaseduring theyearExchangeRateadjustmentsClosingbalanceBuildings 3,836,137 623,004 (104,332) (8,066) 4,346,743Freehold land — 96,010 — (17,067) 78,943Electronic equipment 2,908,652 852,372 (393,963) (23,340) 3,343,721Machinery equipment 2,739,926 469,732 (761,898) (74,922) 2,372,838Vehicles 354,919 57,184 (54,049) (4,418) 353,636Other equipment 139,668 82,446 (6,872) (10,125) 205,117Accumulated depreciation9,979,302 2,180,748 (1,321,114) (137,938) 10,700,998Buildings 469,203 152,785 (64,538) (2,926) 554,524Freehold land — — — — —Electronic equipment 1,544,362 495,769 (299,301) (10,581) 1,730,249Machinery equipment 1,246,411 276,051 (312,703) (28,531) 1,181,228Vehicles 150,096 34,456 (36,364) (2,131) 146,057Other equipment 45,725 49,569 (5,976) (4,202) 85,116Net book value3,455,797 1,008,630 (718,882) (48,371) 3,697,174Buildings 3,366,934 470,219 (39,794) (5,140) 3,792,219Freehold land — 96,010 — (17,067) 78,943Electronic equipment 1,364,290 356,603 (94,662) (12,759) 1,613,472Machinery equipment 1,493,515 193,681 (449,195) (46,391) 1,191,610Vehicles 204,823 22,728 (17,685) (2,287) 207,579Other equipment 93,943 32,877 (896) (5,923) 120,0016,523,505 1,172,118 (602,232) (89,567) 7,003,824Depreciation for 2012 amounted to RMB1,032,556,000 (2011: RMB1,008,630,000).In 2012, transfer from construction in progress to fixed assets amounted to RMB859,262,000 (2011:RMB867,055,000) at cost.The carrying value of fixed assets reclassified as investment properties in 2012 was RMB270,006,000(2011: Nil).As at 31 December 2012, no houses or buildings were pledged as security for the preservation ofproperties subject to legal proceedings (31 December 2011: Nil). No Houses and buildings were underownership restriction (31 December 2011: Houses and buildings with a carrying value of RMB6,800,000were under ownership restriction as they had been pledged as security for borrowings).222