2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201215. PROPERTY, PLANT AND EQUIPMENT (continued)31 December 2011At 31 December 2010 andat 1 January 2011:BuildingsLeaseholdimprovementsCompanyMachinery,computersand officeequipmentMotorvehiclesConstructionin progressTotalRMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000Cost 2,915,435 67,842 2,936,164 234,240 796,915 6,950,596Accumulated depreciation andimpairment (340,272) (59,618) (1,400,754) (99,150) — (1,899,794)Net carrying amount 2,575,163 8,224 1,535,410 135,090 796,915 5,050,802At 1 January 2011, net ofaccumulated depreciation andimpairment 2,575,163 8,224 1,535,410 135,090 796,915 5,050,802Additions — — 739,496 47,759 425,535 1,212,790Disposals — — (34,407) (6,936) — (41,343)Transfers to subsidiaries — — (42,070) — — (42,070)Depreciation provided duringthe year (93,948) (5,394) (498,173) (21,878) — (619,393)Transfers 331,000 — 151,901 — (482,901) —At 31 December 2011, net ofaccumulated depreciation andimpairment 2,812,215 2,830 1,852,157 154,035 739,549 5,560,786At 31 December 2011:Cost 3,246,435 30,935 3,543,348 258,415 739,549 7,818,682Accumulated depreciation andimpairment (434,220) (28,105) (1,691,191) (104,380) — (2,257,896)Net carrying amount 2,812,215 2,830 1,852,157 154,035 739,549 5,560,786As at 31 December 2012, none of the Group’s buildings (2011: certain buildings with a net carrying amount ofRMB6,800,000) and certain of the Group’s machinery equipment with the carrying amount of RMB225,208,000(2011: RMB252,894,000) were pledged to secure bank borrowings granted to the Group(note 34).As at 31 December 2012, RMB683,394,000 of construction in progress (2011: Nil) were pledged to securebank borrowings granted to the Group (note 34).As at 31 December 2012, the Group was in the process of obtaining the real estate title certificates forbuildings located in Nanjing, Shenzhen, Shanghai, Xi’an and An’hui, the PRC, with net carrying value ofapproximately RMB1,128,081,000 (2011: RMB1,253,597,000), RMB1,916,442,000 (2011: RMB1,257,280,000),RMB211,076,000 (2011: RMB346,728,000), RMB203,338,000 (2011: RMB209,667,000) and RMB5,562,000(2011: RMB5,745,000), respectively.377