ZTE Corporation (SHE:000063, HKG:0763) announced that it passed a PRC government review for its status as a national hi-tech enterprise. The status shall be valid for three years. In accordance with the Income Tax Law of the PRC and national tax regulations applicable to hi-tech enterprises, the company shall be entitled to a preferential tax policy and subject to a reduced income tax rate of 15% during the valid term of its hi-tech enterprise status.

The company intends to complete formalities for registering its preferential status before the final settlement of its income tax for 2011.

According to the National Administration of Taxation, the company shall for the time being pay its provisional enterprise income tax at a 15% tax rate. Therefore, the company's full-year profit for 2011 will not be affected.