2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 20124. OPERATING SEGMENT INFORMATION (continued)Segment assets exclude deferred tax assets, pledged deposits, cash and cash equivalents, investmentsin jointly-controlled entities and associates, other receivables, other unallocated head office and corporateassets as these assets are managed on a group basis.Segment liabilities exclude derivative financial instruments, interest-bearing bank borrowings, other payables,bonds payable, tax payable, deferred tax liabilities, provision for retirement benefits and other unallocatedhead office and corporate liabilities as these liabilities are managed on a group basis.Year ended 31 December 2012 Networks TerminalsSegment revenue:Telecommunicationssoftware systems,services and otherproductsTotalRMB’000 RMB’000 RMB’000 RMB’000Telecommunications system contracts 41,602,641 — 13,612,066 55,214,707Sale of goods and services — 25,838,804 3,165,847 29,004,65141,602,641 25,838,804 16,777,913 84,219,358Segment results 5,813,740 544,063 1,397,425 7,755,228Bank and other interest income 149,409Dividend income and unallocated gains 4,359,312Corporate and other unallocatedexpenses (12,406,791)Finance costs (1,888,481)Share of profits and losses ofassociates and jointly-controlledentities 48,123Loss before tax (1,983,200)Segment assets 35,099,356 11,594,963 14,155,206 60,849,525Investments in jointly-controlled entities 46,814Investment in associates 408,954Corporate and other unallocated assets 48,606,198Total assets 109,911,491Segment liabilities 9,834,371 953,128 3,966,100 14,753,599Corporate and other unallocatedliabilities 72,519,162Total liabilities 87,272,761Other segment information:Impairment losses recognisedin profit or loss 230,713 143,293 93,044 467,050Depreciation and amortisation 765,139 475,217 308,573 1,548,929Capital expenditure* 1,366,329 848,607 551,026 2,765,962* Capital expenditure consists of additions to property, plant and equipment, intangible assets and prepaid land lease payments.361