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)32. Bonds payable2012OpeningbalanceIncreaseduring theyearDecreaseduring theyearClosingbalanceBonds cum Warrants 3,884,198 165,936 (4,050,134) — Note 1Bonds payable — 6,107,993 — 6,107,993 Note 23,884,198 6,273,929 (4,050,134) 6,107,9932011OpeningbalanceIncreaseduring theyearDecreaseduring theyearClosingbalanceBonds cum Warrants 3,755,790 160,408 (32,000) 3,884,198Note 1 On 30 January 2008, the Company issued 40,000,000 bonds with warrants with a nominal value of RMB100 each anda total amount of RMB4 billion and are fully redeemable within 5 years from the date of issue. Balance of outstandingbonds as at the end of the period has been reclassified as non-current liabilities due within one year. For details pleaserefer to Note V. 30.Note 2 On 13 June 2012, the Company issued 3-year unsecured corporate bonds for a total amount of RMB6 billion. The corporatebonds carry a coupon interest rate of 4.2% with bond interest payable annually on 13 June. As at the issue date, liabilitycosts arising from the deduction of issue expenses amounted to RMB5,965,212,000.33. Other non-current liabilities2012 2011Long-term financial guarantee contract 3,689 3,689Provision for retirement benefits 54,041 48,716Factored interests payable 341,719 377,059Hedging instruments — non-current portion 10,747 1,248Deferred income relating to staff housing 182,086 192,833592,282 623,545240