I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
90
15. DEFERRED TAX LIABILITIES
The deferred tax liabilities of the Group are made up of the following:
Taxable
temporary
differences
Total
RMB’000
RMB’000
Balance as at 1 January 2014
20,970
20,970
Recognised in profit or loss (Note 21)
(1,956)
(1,956)
Balance as at 31 December 2014
19,014
19,014
Balance as at 1 January 2013
27,443
27,443
Recognised in profit or loss (Note 21)
777
777
Reversal of temporary differences
(7,250)
(7,250)
(6,473)
(6,473)
Balance as at 31 December 2013
20,970
20,970
The Group is subject to income taxes in the tax jurisdiction in PRC. According to the New Corporate Income Tax
Law (“CIT”) and the Detailed Implementation Regulations (“DIR”), dividend distributed to a foreign investor by
Foreign Invested Enterprises (“FIE”) incorporated in PRC would be subject to a withholding tax of 5% to 10%. PRC
tax authorities have granted a special tax concession which states that from 1 January 2008 onwards, dividend
distributed out of a FIE’s profit arising in year 2008 and beyond, to be distributed to the foreign investors as dividend
shall be subject to withholding tax.
16. TRADE AND OTHER PAYABLES
Group
Company
2014
2013
2014
2013
RMB’000
RMB’000
RMB’000
RMB’000
Trade payables
Third parties
62,523
106,715
–
–
Other payables and accruals
Third parties
537
671
–
–
Amount owing to a Director
411
427
411
427
Other payables
8,303
5,992
–
–
Accruals
12,876
13,715
1,278
2,175
22,127
20,805
1,689
2,602
84,650
127,520
1,689
2,602
(a)
Trade payables are non-interest bearing and the normal trade credit term granted to the Group is ninety (90)
days (2013: ninety (90) days).
(b)
Amount owing to a Director represents advances and payments made on behalf, which are unsecured, interest-
free and payable upon demand in cash and cash equivalents.
