2012 Annual Report - ZTE

ANNUAL REPORT 2012Supplementary Information to Financial Statements(Prepared in accordance with PRC ASBEs)(All amounts in RMB’000 unless otherwise stated)(English translation for reference only)1. BREAKDOWN OF EXTRAORDINARY GAINS/LOSSESAmount for2012Loss from the disposal of non-current assets (19,446)Investment gains from disposal of equity investment 1,190,786Profit and loss of changes in fair value arising from trading financial assets and tradingfinancial liabilities except for valid straddle business relevant to normal business ofthe company, as well as investment gain realized from disposal of trading financialassets and trading financial liabilities (100,488)Net amount of other non-operating income and expenses 516,760Effect of income tax 238,1421,349,470Note 1 The Group recognizes extraordinary items in accordance with “Explanatory Announcement for Information Disclosure by Issuers ofPublic Securities No. 1 Extraordinary Items” (CSRC Announcement [2008] No. 43). The extraordinary gain/(loss) items within thedefinition of extraordinary gain/(loss), and the extraordinary gain/(loss) items defined as ordinary gain/(loss) items:Amount for 2012ReasonRefund of VAT on software products 2,108,253 In line with national policies and receivedon an ongoing basisRefund of individual tax 1,103 In line with national policies and receivedon an ongoing basis2 RECONCILIATION OF DIFFERENCES BETWEEN FINANCIAL STATEMENTS PREPARED UNDER PRCAND HONG KONG FINANCIAL REPORTING STANDARDSThere were no significant differences between financial statements prepared under PRC ASBEs and underHKFRSs. Ernst & Young is the auditor for the Group and Company’s financial statements prepared underHKFRSs.3 RETURN RATIO ON NET ASSETS AND EARNINGS PER SHARE2012Weightedaverage returnon net assets(%)Earnings per shareBasicDilutedNet profit attributable to ordinary shareholders of the Company (12.43%) RMB(0.83) RMB(0.83)Net profit after extraordinary items attributable to ordinaryshareholders of the Company (18.34%) RMB(1.22) RMB(1.22)309