2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201226. TRADE AND BILLS RECEIVABLES/LONG-TERM TRADE RECEIVABLES (continued)An aged analysis of the trade and bills receivables that are not considered to be impaired is as follows:GroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Neither past due nor impaired 5,086,352 5,746,119 9,174,188 9,241,251Less than one year past due 13,948,065 19,420,846 22,537,797 19,407,69019,034,417 25,166,965 31,711,985 28,648,941Receivables that were neither past due nor impaired relate to a large number of diversified customers forwhom there was no recent history of default.Receivables that were past due but not impaired relate to a number of independent customers that havea good track record with the Group. Based on past experience, the directors of the Company are of theopinion that no provision for impairment is necessary in respect of these balances as there has not been asignificant change in credit quality and the balances are still considered fully recoverable.The balances due from subsidiaries, the controlling shareholder, associates and other related companiesincluded in the above are as follows:GroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Subsidiaries — — 21,690,412 18,414,733The controlling shareholder 346 77 — —A jointly-controlled entity 100,819 88,966 100,819 88,966Associates — 1,652 — —Related companies 2,654 25,957 618 16,773103,819 116,652 21,791,849 18,520,472The balances are unsecured, interest-free, and on credit terms similar to those offered to the major customersof the Group.The Group has pledged trade receivables of RMB950,000,000 and bills receivables of RMB617,229,000 (2011:RMB1,105,174,000 and RMB1,015,380,000) to secure the bank borrowings (note 34).389