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)39. Operating revenue and costs (continued)Details of operating revenue generated from top 5 customers in 2012 was as follows:2012Name of customerAmountAs a percentageof total operatingrevenueCustomer 1 11,254,790 13.37%Customer 2 8,802,487 10.45%Customer 3 7,337,803 8.71%Customer 4 2,090,403 2.48%Customer 5 1,393,316 1.65%30,878,799 36.66%Sales to the top five customers of the Group generated revenue of RMB30,878,799,000 in 2012 (2011:RMB29,096,531,000), accounting for 36.66% (2011: 33.73%) of the operating revenue of the Grouprespectively.40. Construction contractsConstruction contracts are stated as the sum of accumulated costs and accumulated gross profit (loss)recognized less settled contract amounts and expected losses on contracts. See Note V. 8. In currentyear, no single contract accounted for more than 10% of the operating revenue.41. Taxes and surcharges2012 2011Business tax 636,812 902,012City maintenance and construction tax 272,157 283,939Education surcharge 202,272 196,805Others 80,710 80,1451,191,951 1,462,901For tax standards, please refer to Note III “Taxation”.42. Selling and distribution costs2012 2011Wages, welfare and bonuses 4,054,141 3,851,279Consulting and services charges 2,993,890 2,448,883Travelling expenses 790,856 1,035,633Transportation and fuel charges 552,475 508,079Office expenses 360,407 285,239Advertising and promotion expenses 516,256 415,156Rental fees 461,181 313,263Communication expenses 132,059 122,047Others 1,319,368 1,973,65411,180,633 10,953,233246