2012 Annual Report - ZTE

ZTE CORPORATIONMaterial MattersThe ultimate subscribers were issued 1.63 Warrants in respect of each Bond cum Warrant and a total of 65.20million warrants were listed on the Shenzhen Stock Exchange on 22 February 2008. The warrants, coded “ 中 興ZXC1”, was valid from 22 February 2008 to 21 February 2010. The last trading day for “ 中 興 ZXC1” was 5 February2010 (Friday) and trading has been terminated with effect from 8 February 2010 (Monday). Holders of “ 中 興 ZXC1”were entitled to exercise their rights during the last 10 trading days of the valid period, namely on trading daysduring the period from 1 February 2010 to 12 February 2010, both dates inclusive. The adjusted exercise of thewarrant on an ex-right and ex-dividend basis was RMB42.394 per share and the adjusted exercise ratio was1:0.922, namely the holder of 1 “ 中 興 ZCX1” Warrant was entitled to purchase 0.922 A share of the Company ata price of RMB42.394 per share during the exercise period.As at the close of trading on 12 February 2010, a total of 23,348,590 “ 中 興 ZXC1” Warrants had been exercised,accounting for 35.81% of the total number of warrants prior to the current exercise. A total of 41,851,410 “ 中 興ZXC1” Warrants had not been exercised and had lapsed. Following the exercise of the “ 中 興 ZXC1” Warrants, theCompany’s A share capital increased by 21,523,441 shares, raising proceeds of approximately RMB912 million.For details, please refer to the “Announcement on the Results of the Exercise of the “ 中 興 ZXC1” Warrants andChanges in Shareholding” published by the Company on 23 February 2010.2. There was no conversion, redemption or cancellation of the Bonds cum Warrants of the Company.3. Top ten bond holders and their holdingsAs at 31 December 2012, there were 1,673 holders of Bonds cum Warrants of the Company, the top ten of whichwere as follows:No.Name of bond holdersNumber ofbonds heldBondholding ratio1 New China Life Insurance Company Limited 7,991,671 19.98%2 China Petroleum Finance Company Limited 4,084,207 10.21%3 China Life Insurance Company Limited 3,505,536 8.76%4 Sino Life Insurance Co., Ltd. — Traditional — GeneralInsurance Products2,422,890 6.06%5 National Social Insurance Fund 901 Portfolio 1,999,991 5.00%6 Industrial and Commercial Bank of China — SouthernRisk-resistant Value-added Fund7 PICC Health Insurance Company Limited-Universal LifeInsurance1,851,373 4.63%1,400,000 3.50%8 Haitong-BOC-Fortis Bank 1,299,246 3.25%9 China Pacific Insurance (Group) Co., Ltd. 1,286,327 3.22%10 Taikang Life Insurance Co., Ltd. 771,170 1.93%4. There was no significant change in the profitability, asset conditions and credit standing of ChinaDevelopment Bank, the guarantor for the Bonds cum Warrants of the Company.72