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)52. Notes to cash flow statement2012 2011Cash received in connection with other operating activities:Interest income 149,409 283,618Cash paid in connection with other operating activities:Selling and distribution costs 6,869,445 6,851,199Administrative expenses and research and development costs 2,372,982 2,748,30353. Supplemental information on cash flow statement(1) Supplemental information on cash flow statement:Reconciliation of net profit/(loss) to cash flows from operating activities:2012 2011Net profit/(loss) (2,604,621) 2,243,093Add: Provision for impairment of assets 467,050 946,687Depreciation of fixed assets 1,032,556 1,008,630Amortisation of intangible assets and deferred developmentcosts 505,963 397,770Amortisation of long-term deferred assets 10,411 17,768Loss on disposal of fixed assets, intangible assets andother long-term assets 19,446 30,629Loss from changes in fair value 107,396 88,675Finance expenses 2,024,594 1,330,388Investment income (1,258,886) (1,064,549)Increase in deferred tax assets (89,769) (473,591)Increase/(decrease) in deferred tax liabilities 139,900 (89,167)Decrease/(increase) in inventories 3,411,983 (3,254,859)Increase in operating receivables (4,114,258) (9,317,255)Increase in operating payables 4,754,242 6,473,093Cost of share-based payment 6,722 41,821Increase in cash not immediately available for payments (2,862,713) (191,350)Net cash flow from operating activities 1,550,016 (1,812,217)251