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)XI.OTHER SIGNIFICANT MATTERS (continued)4. Financial instruments and risk analysisThe main financial instruments of the Group, except for derivatives, include bank loans, cash, etc. Themain purpose of these financial instruments is to finance for the Group’s operation. The Group hasmany other financial assets and liabilities arising directly from operation, such as trade receivables andtrade payables and etc.The Group entered into forward currency contracts and interest rate swap contracts with the aim ofmanaging the foreign exchange risk and interest rate risk in the Group’s operation.The major risks which come from the Group’s financial instruments are the credit risk, liquidity riskand market risk.Classification of financial instrumentsThe book values of various financial instruments at the balance sheet date were as follows:2012Financial assetsFinancialassets dealtwith atfair valuethroughcurrent profitor lossLoans andreceivablesAvailable-forsalefinancialassetsTotalCash — 24,126,423 — 24,126,423Trading financial assets 106,297 — — 106,297Available-for-sale financial assets — — 1,092,335 1,092,335Bills receivable — 4,282,220 — 4,282,220Trade receivables and long-termreceivables — 23,274,818 — 23,274,818Factored trade receivables andfactored long-term receivables — 8,183,998 — 8,183,998Other receivables excludingdividends receivable — 2,018,941 — 2,018,941Other non-current assets — 3,386,821 — 3,386,821106,297 65,273,221 1,092,335 66,471,853281