Annual Report 2009 - Alibaba

35 RELATED PARTY TRANSACTIONS (Continued)
(b) Non-recurring transactions
2009 2008
RMB’000 RMB’000
(Restated)
Purchase of other technology and related services from
a fellow subsidiary (Note viii) (2,550) (3,509)
Purchase of property and equipment from fellow subsidiaries (Note ix) (2,579) (820)
Sale of property and equipment to fellow subsidiaries (Note x) 2,862 4,504
Reimbursement from an associated company for costs
incurred in relation to the Japan website (Note xi) – 15,200
(i) These represented expenses paid or payable by the Group for the use of certain technology, intellectual property and related
know-how provided by the ultimate holding company. The expenses were calculated based on a mutually agreed basis.
(ii) This represented license fee paid or payable by the Group to the ultimate holding company at a fixed fee of RMB2 million per
annum.
(iii) These represented charges paid or payable by the Group to various fellow subsidiaries and related companies in relation to the
purchase of keywords and display advertisement on websites operated by various fellow subsidiaries and related companies as
well as certain technology and related services from a fellow subsidiary. These charges were calculated based on market rates of
the related services.
(iv) This represented charges received or receivable by the Group from fellow subsidiaries for the cross-selling of the Group’s website
inventory. The charge was calculated based on a pre-determined percentage of the underlying transaction amount.
(v) This represented charges received or receivable by the Group from an associated company for the cross-selling of the associate’s
products. The charge was calculated based on a pre-determined percentage of the underlying transaction amount.
(vi) This represented charge received or receivable by the Group for the provision of administrative services to fellow subsidiaries. The
charge was determined on a cost basis.
(vii) This represented charge received or receivable by the Group for the provision of technology services to fellow subsidiaries. The
charge was calculated based on actual cost incurred in providing such services plus a margin of 15%.
(viii) These represented amounts paid or payable by the Group for the purchase of other technology and related services from a fellow
subsidiary. These charges were determined on a cost basis.
(ix) These represented amounts paid or payable by the Group for purchase of certain property and equipment from fellow subsidiaries.
These charges were based on the net book value of the property and equipment transferred.
(x) These represented amounts received or receivable by the Group for sale of certain property and equipment to fellow subsidiaries.
These charges were based on the net book value of the property and equipment transferred.
(xi) In 2008, Alibaba Japan paid US$2.2 million to the Group mainly for reimbursing the costs incurred by the Group in upgrading
the Japan website as well as certain property and equipment and customer information of the Japan website before the deemed
disposal of Alibaba Japan by the Group. The charge was determined on a cost basis or based on the net book value of the
property and equipment transferred.
The Group also exchanged certain advertising, promotion and related services, such as hyperlinks on respective
websites, with fellow subsidiaries. As such reciprocal services provided by the Group and such fellow subsidiaries to
each other are considered to be of a similar nature and have a similar value, such transactions are not regarded as
revenue-generating transactions and thus no revenue or expense were recognized.
The directors are of the opinion that the above transactions were conducted in the ordinary course of business of the
Group.
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