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)16. Intangible assets (continued)2011 (continued)As at 31 December 2012, the Group was in the process of obtaining the land use right certificate of landblocks located in Shenzhen, Sanya and Nanjing in the PRC, with a net carrying value of approximatelyRMB476,871,000 (31 December 2011: RMB469,647,000).The carrying value of land use rights reclassified as investment properties in 2012 was RMB47,853,000(2011: Nil).Deferred development costs are analysed as follows:2012OpeningbalanceIncreaseduring theyearDecreaseduring theyearClosingbalanceHandsets 238,900 130,130 77,953 291,077System Products 1,686,710 754,234 285,087 2,155,8571,925,610 884,364 363,040 2,446,9342011OpeningbalanceIncreaseduring theyearDecreaseduring theyearClosingbalanceHandsets 187,049 136,194 84,343 238,900System Products 1,279,455 582,042 174,787 1,686,7101,466,504 718,236 259,130 1,925,610Deferred development costs accounted for 9.10% of total research and development costs in 2012(2011: 7.8%).227