2012 Annual Report - ZTE

ZTE CORPORATIONReport of the Board of Directors(4) Financial assets and financial liabilities held in foreign currenciesUnit: RMB in thousandsItemFinancial assetsIncluding:OpeningbalanceGains/lossesarising fromfair valuechange forthe periodCumulativefair valuechangedealt with inequityImpairmentcharge forthe periodClosingbalance1. Financial assetsat fair valuethrough profit orloss 8,438 17,503 — — 61,378Including:derivativefinancial assets 8,438 17,503 — — 61,3782. Loans andreceivables 37,049,026 — — (254,258) 46,426,1763. Available-for-salefinancial assets 184,974 — — — 167,2574. Held-to-maturityinvestments — — — — —Sub-total of financial assets 37,242,438 17,503 — (254,258) 46,654,811Financial liabilities 11,818,759 (66,959) (12,736) — 14,029,4828. Major customers and suppliersSales by the Group in 2012 to its largest customer amounted to RMB11,254.79 million, accounting for 13.37%of the total sales of the Group for the year, while sales to its five largest customers amounted to RMB30,878.80million, accounting for 36.66% of the total sales of the Group for the year. None of the Directors or Supervisorsor their associates or any of the shareholders holding 5% or more of the shares of the Company had any interestin any of the five largest customers of the Group. (The above figures of the Group are consistent under PRCASBEs and HKFRSs).Purchases by the Group from its largest supplier amounted to RMB4,526.64 million in 2012, accounting for 9.81%of the total purchases of the Group for the year, while the purchases made from its five largest suppliers amountedto RMB10,309.08 million, accounting for 22.35% of the total purchases of the Group for the year. (The abovefigures of the Group are consistent under PRC ASBEs and HKFRSs).9. Technological innovationsThe Group’s development strategy is and will always be focused on proprietary development of new products, driveof industry-wide technological progress and delivery of value enhancements to customers. The Group’s efforts in2012 to further optimise its organisation and structure, enhance the application of project-based operations andimprove R&D efficiency have provided strong assurance for rapid business development.34