2012 Annual Report - ZTE

ZTE CORPORATIONNotes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201219. LONG-TERM, PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLESGroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Deposits for purchase of property,plant and equipment 217,482 161,722 217,482 161,722Upfront fee — 529,518 — 378,556Other long-term receivable 229,744 — — —447,226 691,240 217,482 540,27820. INVESTMENTS IN SUBSIDIARIESCompany2012 2011RMB’000 RMB’000Unlisted shares, at cost 6,191,055 4,481,184Less: Impairment # (92,315) (96,215)Loans to subsidiaries 2,484,940 2,863,8388,583,680 7,248,807#An impairment was recognised for certain unlisted investments in subsidiaries, with a carrying amount of RMB1,017,031,000 (beforededucting the impairment loss) (2011: RMB514,760,000) because the respective subsidiaries were loss-making.The Company’s balances of trade and bills receivables, other receivables, trade and bills payables andother payables with the subsidiaries are disclosed in notes 26, 28, 32 and 33 to the financial statements,respectively. The amounts due from/to subsidiaries are unsecured, interest-free and are repayable on demand.The amounts advanced to the subsidiaries included in the investments in subsidiaries above are unsecured,interest-free and have no fixed terms of repayment. In the opinion of the directors, these advances areconsidered as quasi-equity loans to the subsidiaries.382