2012 Annual Report - ZTE

ZTE CORPORATIONMaterial Matters2. General Media Queries(1) In August 2012, the Company and ZTE HK reached an agreement for settlement with Union EternalEngineering Limited (“Union Eternal”) in respect of engineering work payments. The case had been officiallyclosed following the issuance of a notice in writing by the High Court of the Hong Kong Special AdministrativeRegion on 24 August sanctioning the withdrawal of the application for the liquidation of the Company andZTE HK previously filed by Union Eternal. For details, please refer to the “Announcements of the Board ofDirectors” published by the Company on 16 and 27 August 2012, respectively.(2) In October 2012, the Board of Directors of the Company issued a statement regarding the InvestigativeReport of the House Permanent Select Committee on Intelligence of the United States and the terminationby Cisco Systems Inc. of the strategic cooperation agreement with the Company. For details, please referto the “Announcement of the Board of Directors” published by the Company on 9 October 2012.(II)APPROPRIATION AND REPAYMENT OF NON-OPERATING FUNDS BY CONTROLLING SHAREHOLDERAND ITS CONNECTED PARTIES1. There was no appropriation and repayment of non-operating funds of the Company by thecontrolling shareholder and its connected parties during the year.2. Statement on fund appropriation issued by Ernst & Young Hua Ming LLPThe “Statement on Amounts Receivable from the Controlling Shareholder and Other Connected Parties byZTE Corporation” issued by Ernst & Young Hua Ming LLP was set out in an announcement published bythe Company on 28 March 2013 on the website designated for information disclosure.(III)THE GROUP WAS NOT SUBJECT TO BANKRUPTCY, REORGANISATION OR RELATED ACTIONSDURING THE YEAR66