2012 Annual Report - ZTE

More documents

Recommendations

Info

ZTE CORPORATIONNotes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201227. FACTORED TRADE RECEIVABLES/FACTORED LONG-TERM TRADE RECEIVABLESAs part of its normal business, the Group entered into some trade receivables factoring arrangements (the“Arrangements”) and transferred certain trade receivables to banks. Some of the trade receivables are notderecognised in their entirety and some of them were derecognized in their entirety but for which the Groupretains continuing involvement. More details are set in note 45.In the prior year, the Company entered into a contract of a telecommunications system project (the“project”) with an African telecommunications operator with a total contract amount of USD1,500,000,000.The related accounts receivable are to be settled by promissory notes issued by the telecommunicationsoperator with maturity dates ranging from 3 to 13 years. In 2009, two government strategic banks in thePRC have agreed to factor these promissory notes pursuant to the receivable purchase agreements (the“Agreements”), which stipulates the factoring conditions based on the future performance of the Africantelecommunications operator. During the financing period, the banks will charge interest to the Company andthe telecommunications operator. If there is any delay in the payment by the telecommunications operator, theCompany is not responsible for the related penalties. If there is default in the payment, the Company wouldbear the first 20% of default losses on the factored amount unless the Company breaches the Agreementsor the factoring conditions are not satisfied. As at 31 December 2012, under the above arrangements,accounts receivable due from the customer amounted to RMB7,745,078,000 (2011: RMB7,643,736,000)among which RMB6,196,062,000 (2011: RMB6,114,989,000) has been derecognised from the consolidatedstatement of financial position as these receivables have fulfilled the derecognition conditions as stipulatedin HKAS 39. An associated liability of RMB1,549,016,000 (2011: RMB1,528,747,000) has been recognisedin the consolidated statement of financial position to the extent of the Company’s continuing involvement.28. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLESGroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Prepayments 742,551 494,200 44,783 22,969Deposits and other receivables 4,242,756 4,224,883 2,649,421 3,125,304Due from subsidiaries — — 3,947,307 2,736,934Dividends receivable 400 1,500 6,242,066 3,696,751Interest receivable 307 8,257 — 1,904Entrusted loan # — 300,000 — —Advances and loans 241,063 — — —5,227,077 5,028,840 12,883,577 9,583,862None of the above assets is either past due or impaired. The financial assets included in the above balancesrelate to receivables for which there was no recent history of default.#The entrusted loan as at 31 December 2011 was fully collected on 18 January 2012.390
ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201228. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES (continued)Balances of amounts due from subsidiaries, the controlling shareholder, related companies and associatecompanies included in the above are as follows:GroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Subsidiaries — — 10,198,466 6,433,685The controlling shareholder — 642 — —Associate companies 250,032 — — —Related companies 841 2,377 — —250,873 3,019 10,198,466 6,433,685Amounts receivable from subsidiaries and related companies are unsecured, interest-free and payable ondemand.29. EQUITY INVESTMENT AT FAIR VALUE THROUGH PROFIT OR LOSSGroup and Company2012 2011RMB’000 RMB’000Listed equity investment, at market value:Mainland China 44,919 87,180The above equity investment as at 31 December 2012 represented the equity interests of 1.15% in NationzTechnologies, Inc. which was listed on Growth Enterprise Market on 29 April 2010 by way of initial publicoffering.30. DERIVATIVE FINANCIAL INSTRUMENTSGroup2012 2011Assets Liabilities Assets LiabilitiesRMB’000 RMB’000 RMB’000 RMB’000Forward currency contracts 26,050 (69,391) 8,438 (2,433)Other forward contracts 35,328 (30,239) — —Interest rate swaps — (16,856) — (4,120)61,378 (116,486) 8,438 (6,553)Portion classified as non-current:Interest rate swaps — (10,747) — (1,248)Current portion 61,378 (105,739) 8,438 (5,305)391
Page 2 and 3:
ImportantThe Board of Directors, Su
Page 5 and 6:
ANNUAL REPORT 2012DefinitionsIn thi
Page 7 and 8:
ANNUAL REPORT 2012GlossaryThis glos
Page 9 and 10:
ANNUAL REPORT 2012Bearer networkCor
Page 11 and 12:
ANNUAL REPORT 2012Corporate Informa
Page 13:
ANNUAL REPORT 201210 AuditorsPRCErn
Page 20 and 21:
ZTE CORPORATIONMajor Events of the
Page 22 and 23:
ZTE CORPORATIONHighlights of accoun
Page 24 and 25:
ZTE CORPORATIONHighlights of accoun
Page 28 and 29:
ZTE CORPORATIONReport of the Board
Page 30 and 31:
Page 33 and 34:
ANNUAL REPORT 20125. Breakdown of t
Page 35 and 36:
ANNUAL REPORT 2012(3) Assets and li
Page 37 and 38:
ANNUAL REPORT 2012In 2012, the Grou
Page 39 and 40:
ANNUAL REPORT 2012Details in invest
Page 41:
ANNUAL REPORT 20122. Liquidity risk
Page 45 and 46:
ANNUAL REPORT 20123Change in the us
Page 48 and 49:
Page 51 and 52:
ANNUAL REPORT 2012Nature Location T
Page 53 and 54:
ANNUAL REPORT 2012(4) Interest rate
Page 56:
ZTE CORPORATIONManagement Discussio
Page 59:
ANNUAL REPORT 2012CAPITAL EXPENDITU
Page 62:
ZTE CORPORATIONMaterial Matters(I)M
Page 65 and 66:
ANNUAL REPORT 2012Huawei’s litiga
Page 67 and 68:
ANNUAL REPORT 2012(11) In May 2012,
Page 69 and 70:
ANNUAL REPORT 2012(IV)ASSET TRANSAC
Page 71 and 72:
ANNUAL REPORT 2012(3) Progress of t
Page 73 and 74:
ANNUAL REPORT 20125. Updates on the
Page 75 and 76:
ANNUAL REPORT 20125. Status of liab
Page 77 and 78:
ANNUAL REPORT 2012(VIII) PASSING OF
Page 79 and 80:
ANNUAL REPORT 2012(XIV) SIGNIFICANT
Page 81 and 82:
ANNUAL REPORT 2012At the Thirtieth
Page 83 and 84:
ANNUAL REPORT 2012(4) Creditors and
Page 85 and 86:
ANNUAL REPORT 2012Ruide will still
Page 87 and 88:
ANNUAL REPORT 2012A potential suppl
Page 89 and 90:
ANNUAL REPORT 2012• Pricing and o
Page 91 and 92:
ANNUAL REPORT 2012Guaranteed partyD
Page 93 and 94:
ANNUAL REPORT 2012Note 5:It was app
Page 95 and 96:
ANNUAL REPORT 2012(XVI) UNDERTAKING
Page 97 and 98:
ANNUAL REPORT 2012Changes in Shareh
Page 99 and 100:
ANNUAL REPORT 2012(III)ISSUE AND LI
Page 101 and 102:
ANNUAL REPORT 2012Shareholdings of
Page 103 and 104:
ANNUAL REPORT 2012Aerospace Guangyu
Page 105 and 106:
ANNUAL REPORT 2012Directors, Superv
Page 107 and 108:
ANNUAL REPORT 2012Ms. Qu Xiaohui, b
Page 109 and 110:
ANNUAL REPORT 2012Ms. Xu Weiyan, bo
Page 111 and 112:
ANNUAL REPORT 2012Mr. Pang Shengqin
Page 113 and 114:
ANNUAL REPORT 2012(II)CHANGES IN TH
Page 115 and 116:
ANNUAL REPORT 2012Name Name of othe
Page 117:
ANNUAL REPORT 2012Note 7: Ms. Qu Xi
Page 120 and 121:
ZTE CORPORATIONDirectors, Superviso
Page 122 and 123:
ZTE CORPORATIONCorporate Governance
Page 125 and 126:
ANNUAL REPORT 2012III.Information o
Page 127 and 128:
ANNUAL REPORT 2012Finally, the Audi
Page 129 and 130:
ANNUAL REPORT 2012With respect to a
Page 131 and 132:
ANNUAL REPORT 2012(I)Functions of t
Page 133 and 134:
ANNUAL REPORT 2012regular Board of
Page 135 and 136:
ANNUAL REPORT 20124. In respect of
Page 137 and 138:
ANNUAL REPORT 2012e) consider the r
Page 139 and 140:
ANNUAL REPORT 2012(III)The Audit Co
Page 141 and 142:
ANNUAL REPORT 2012r) consider the r
Page 143 and 144:
ANNUAL REPORT 2012(IV)Corporate gov
Page 145 and 146:
ANNUAL REPORT 2012VIII. Accountabil
Page 147 and 148:
ANNUAL REPORT 20123. Internal contr
Page 149 and 150:
ANNUAL REPORT 20122. Statement of t
Page 151 and 152:
ANNUAL REPORT 2012Report of the PRC
Page 153 and 154:
ANNUAL REPORT 2012Consolidated Bala
Page 155 and 156:
ANNUAL REPORT 2012Consolidated Inco
Page 157 and 158:
ANNUAL REPORT 2012Consolidated Cash
Page 159 and 160:
ANNUAL REPORT 2012Balance Sheet (co
Page 161 and 162:
ANNUAL REPORT 2012Statement of Chan
Page 163 and 164:
ANNUAL REPORT 2012Notes to Financia
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
ANNUAL REPORT 2012Supplementary Inf
Page 313 and 314:
ANNUAL REPORT 2012Supplementary Inf
Page 315 and 316:
ANNUAL REPORT 2012Independent Audit
Page 317 and 318:
ANNUAL REPORT 2012Consolidated Stat
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
ANNUAL REPORT 2012Statement of Fina
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342: ANNUAL REPORT 2012Notes to Financia
Page 391: ANNUAL REPORT 2012Notes to Financia
show all

2012 Annual Report - ZTE

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?