2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201231. CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITSGroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Cash and bank balances 27,283,500 22,421,633 19,167,583 14,524,844Less:Pledged deposits — non-current (3,157,077) (949,666) (3,157,077) (949,666)Pledged deposits — current (1,380,180) (724,878) (734,069) (298,444)Time deposits with original maturity ofover three months (86,608) (85,000) — —Cash and cash equivalents 22,659,635 20,662,089 15,276,437 13,276,734Time deposits with original maturity ofless than three months (221,482) (2,015,145) — —Unrestricted bank balances and cash 22,438,153 18,646,944 15,276,437 13,276,734At the end of the reporting period, the cash and bank balances of the Group denominated in Renminbiamounted to approximately RMB12,010,286,000 (2011: RMB12,263,372,000). The Renminbi is not freelyconvertible into other currencies, however, under Mainland China’s Foreign Exchange Control Regulations andAdministration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted toexchange Renminbi for other currencies through banks authorised to conduct foreign exchange business.Pledged deposits include the deposits as at 31 December 2012 of RMB404,736,000 (2011: RMB44,464,000)with the People’s Bank of China, at a statutory reserve of 15% (2011: 16%) for RMB on customer depositsheld by ZTE Group Finance Company Limited.Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term time depositsare made for varying periods of between seven days and three months depending on the immediate cashrequirements of the Group, and earn interest at the respective short-term time deposit rates. The bankbalances and pledged deposits are deposited with creditworthy banks with no recent history of default.393