2012 Annual Report - ZTE

ANNUAL REPORT 2012CAPITAL EXPENDITUREThe following table sets out the Group’s capital expenditure for the periods indicated. The following capitalexpenditure was funded by the Group’s long-term bank loans, cash generated from operating activities andgovernment grants.Unit: RMB in millionsCapital expenditure 2012 2011Purchases of fixed assets and increase of construction in progress payments 1,257.6 2,548.5The Group’s capital expenditure for 2012 amounting to RMB1,257.6 million was mainly used for the completionof construction work at Xi’an Research and Development Centre, Shenzhen Hi-tech Industrial Park R&D Centreand Heyuan Production and R&D Training Base, equipment installation project and purchase of machinery andequipment, etc.INDEBTEDNESSUnit: RMB in millionsAs at 31 DecemberItem 2012 2011Secured bank loans 1,805.0 2,355.2Unsecured bank loans 17,614.9 16,461.9Unit: RMB in millionsAs at 31 DecemberItem 2012 2011Short-term bank loans 18,429.9 11,876.4Long-term bank loans 990.0 6,940.7Credit facilities available to the Group included long-term and short-term bank loans, which were mainly usedas working capital. Of the Group’s long-term loans, RMB loans were subject to fixed interest rates, while USDloans were subject to floating interest rates. To control the risk associated with RMB appreciation, the Group’sborrowings were mainly denominated in USD, apart from certain RMB loans.The Group’s bank loans in 2012 increased by RMB602.8 million over last year and were mainly applied to provideadditional working capital. The reasons for the change in the structure of the long- and short-term debts are setout in Note 34 to the financial statements prepared under HKFRSs.57