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)XI.OTHER SIGNIFICANT MATTERS (continued)4. Financial instruments and risk analysis (continued)Liquidity riskLiquidity risk refers to the risk of the lack of funds in performing obligations relating to financial liabilities.The group monitors its risk to a shortage of funds using a recurring liquidity planning tool. This toolconsiders the maturity profile of both its financial instruments and financial assets (e.g. trade receivablesand bank loans) and projected cash flows from operations.The Group’s objective is to maintain balance between the continuity and flexibility of financing throughthe use of bank loans, bonds payable and other interest-bearing loans. With the exception of the noncurrentportion of bank loans, all borrowings are repayable within one year.The maturity profile of financial assets and financial liabilities based on undiscounted contractual cashflow is summarised as follows:2012Financial assetsWithin1 year 1-2 years 2-3 yearsOver3 years indefinite TotalCurrentTrading financialassets 44,919 61,378 — — — — 106,297Cash 22,659,635 1,466,788 — — — — 24,126,423Available-for-salefinancial assets — — — — — 1,092,335 1,092,335Bills receivable — 4,282,220 — — — — 4,282,220Trade receivablesand long-termreceivable 16,981,824 5,086,352 778,880 63,174 626,592 — 23,536,822Factored tradereceivables andfactored longtermreceivables — 4,165,514 1,632,525 1,022,788 1,843,500 — 8,664,327Other receivables(excludingdividendsreceivable) 2,018,941 — — — — — 2,018,941Other non-currentassets — — 713,701 536,870 2,171,336 — 3,421,90741,705,319 15,062,252 3,125,106 1,622,832 4,641,428 1,092,335 67,249,272286