2012 Annual Report - ZTE

ANNUAL REPORT 2012Notes to Financial Statements(Prepared under Hong Kong Financial Reporting Standards)31 December 201251. COMMITMENTSGroupCompany2012 2011 2012 2011RMB’000 RMB’000 RMB’000 RMB’000Contracted, but not provided for:Land and buildings 484,417 836,989 69,323 256,197Investments in associates 41,712 945 — —526,129 837,934 69,323 256,197Authorised, but not contracted for:Land and buildings 21,600,404 21,752,024 — 5,859,00052. RELATED PARTY TRANSACTIONS(I)Transactions with related partiesIn addition to the transactions and balances detailed elsewhere in these financial statements, the Grouphad the following material related party transactions during the year:2012 2011Notes RMB’000 RMB’000The controlling shareholder:Purchase of raw materials (a) 235,557 355,172Sales of finished goods (b) 2,910 2,444Rental expense (c) 8,827 8,827Associates:Purchase of raw materials (a) 245,382 378,906Sales of finished goods (b) 7,337 13,284Rental income (e) 4,040 273Interest expense (f) 44 —Interest income (f) 9,705 —Jointly-controlled entities:Sales of finished goods (b) 125,836 318,490Entities significantly influenced by keymanagement personnel of the Group:Purchase of raw materials (a) 278,106 274,070Sales of finished goods (b) 19,747 66,582Rental expense (d) 50,676 47,066Rental income (e) 1,696 1,802Entities controlled by the controlling shareholder:Purchase of raw materials (a) 296,322 179,033Sales of finished goods (b) 950 671The substantial shareholderof the controlling shareholder:Purchase of raw materials (a) 2,634 1,701Sales of finished goods (b) — 4Rental income (e) 17 64417