ZTE has passed a resolution at its third shareholder meeting of the year to issue convertible bonds of no more than CNY4 billion to raise funds for the construction and development of TD-SCDMA related equipment.
ZTE says in an announcement that the funds raised this time will be mainly used on eleven areas of TD-SCDMA HSDPA system equipment development; TD-SCDMA terminal product development environment and scaled production capacity construction; TD reverse evolution technology industrialization; innovative mobile phone platform construction; next generation broadband and wireless mobile soft base station platform construction; next generation IP based multimedia and whole-service merging network industrialization; comprehensive network management system development and production; XPON fiber cable access industrialization; next generation cable network transmission equipment industrialization; ICT comprehensive service platform construction; and RFID integration system industrialization.
These eleven projects will reportedly need about CNY10.7 billion in total. ZTE says if the funds are not ready for the relevant projects when needed, the company can use other funds to invest on the project first and then fill up the gap when the scheduled funding is raised.
