2012 Annual Report - ZTE

ZTE CORPORATIONNotes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201221. INVESTMENTS IN JOINTLY-CONTROLLED ENTITIESGroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Unlisted investment, at cost — — 44,559 43,940Share of net assets 19,510 18,891 — —Goodwill on acquisition 27,304 27,304 — —46,814 46,195 44,559 43,940The Group’s balances of trade receivables with jointly-controlled entities are disclosed in notes 26 to thefinancial statements. The amounts due from jointly-controlled entities are unsecured and interest-free.Particulars of the jointly-controlled entities are as follows:NameBestel Communications Limited(“Bestel”)Puxing Mobile TechCompany Limited #( 普 興 移 動 通 訊 設 備 有 限 公 司 )Place ofincorporation/registrationand operationsRepublic ofCyprusThe PRC/MainlandChinaNominal valueof issued andpaid-up capital/registered capitalOwnershipinterestPercentage ofVotingpowerProfitSharingPrincipal activitiesCYP600,000 50 50 50 Provision oftelecommunicationssolutions and relatedconsultancy servicesRMB128,500,000 34 50 50 Provision oftelecommunicationssolutions and relatedconsultancy services#The English name of this associate is directly translated from its Chinese name.The investment in Bestel is held by a wholly-owned subsidiary of the Company. There was no operatingactivity in 2012.The following table illustrates the summarised financial information of the Group’s jointly-controlled entities:2012 2011RMB’000 RMB’000Share of the jointly-controlled entities’ assets and liabilitiesAssets 142,496 152,652Liabilities 122,986 133,761Net assets 19,510 18,891Share of the jointly-controlled entities’ resultsRevenue 128,885 218,339Profit before tax 619 440Tax — —Profit after tax 619 440384