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)V. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS(continued)14. Fixed Assets (continued)2011 (continued)As at 31 December 2012, machinery and equipment with a book value of RMB225,208,000 (31December 2011: RMB252,894,000) was under ownership restriction as they had been pledged assecurity for borrowings.As at 31 December 2012, there were no retired fixed assets or idle fixed assets pending disposal (31December 2011: Nil).As at 31 December 2012, the Group was in the process of applying for property ownership certificatefor buildings in Shenzhen, Shanghai, Nanjing, Xi’an and Anhui in China with a net book value ofapproximately RMB3,464,499,000 (31 December 2011: RMB3,073,017,000).15. Construction in progress2012BudgetOpeningbalanceIncreaseduring theperiodTransferto fixedassetsTransfer toinvestmentpropertiesduring theyearClosingbalance Source of fundsNanjing R&DCentre Nil 730 729 1,459 — — Internal resourcesShanghai R&DCentre Phase II Nil 759 — 759 — — Internal resourcesStaff quarters Nil 613,485 158,461 739,000 — 32,946 Internal resourcesSanya R&D BaseProject Nil 2,041 1,562 — — 3,603 Internal resourcesEquipmentinstallation Nil 135,383 9,700 106,694 — 38,389 Internal resourcesXi’an District 2Phase I Nil 504,556 178,838 — — 683,394 Internal resourcesXi’an TechnologyPark Site A10 Nil 175,763 65,173 — 231,941 8,995 Internal resourcesTechnology ParkC3 R&D Centre Nil 120,379 114,850 — 219,368 15,861 Internal resourcesHeyuan R&Dtraining CenterPhase I Nil 87 9,372 — — 9,459 Internal resourcesIndustrial ParkNorth Phase II Nil 94 — — — 94 Internal resourcesOthers Nil 27,185 15,811 11,350 — 31,646 Internal resourcesTotal: 1,580,462 554,496 859,262 451,309 824,387223