2012 Annual Report - ZTE

ANNUAL REPORT 2012At the Thirtieth Meeting of the Fifth Session of the Board of Directors held on26 June 2012, it was considered and approved that the estimated purchaseof hotel services from Zhongxing Hetai or its subsidiaries by the Company forthe period from 1 July 2012 to 30 June 2013 be capped at RMB90 million,and the estimated lease of property and related equipment and facilities toZhongxing Hetai or its subsidiaries by the Company for the period from 1July 2012 to 30 June 2013 be capped at RMB46 million; andPlease refer to the above table for details of the execution of the aforesaidconnected transactions.Reason for the substantialdifference between transactionprices and referential market pricesN/ANote: For details of the connected transactions, please refer to Note VI to the financial statements prepared in accordance with PRC ASBEs.At the Thirty-eighth Meeting of the Fifth Session of the Board of Directors held on 28 December 2012, the followingcontinuing connected transactions were considered and passed:1 Purchases by the Group from connected party Zhongxingxin and its subsidiaries from 2013 to 2015 cappedat RMB900 million, RMB1,000 million and RMB1,100 million (before VAT) respectively;2 Purchases by the Group from connected party Mobi Antenna from 2013 to 2015 capped at RMB600 million,RMB800 million and RMB900 million (before VAT) respectively;3 Purchases by the Group from connected party Huatong for 2013 capped at RMB78 million (before VAT);4 Purchases by the Group from connected party Nanchang Software for 2013 capped at RMB33 million (beforeVAT);5 The “Property Leasing Contract” between the Company and connected party Zhongxing Development for aterm of 2 years from 18 April 2013 to 17 April 2015 with annual rental capped at RMB50.80 million.For details please refer to the “CONTINUING CONNECTED TRANSACTIONS — PURCHASES OF RAW MATERIALSFROM ZHONGXINGXIN” and “Overseas Regulatory Announcement” published by the Company on 28 December2012.79