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NOTES TO THE FINANCIAL STATEMENTS<br />
For the year ended December 31, 2010<br />
36 RELATED PARTY TRANSACTIONS (Continued)<br />
(b) Non-recurring transaction<br />
<strong>Alibaba</strong>.com Limited Annual <strong>Report</strong> 2010<br />
138<br />
2009 2010<br />
RMB’000 RMB’000<br />
Purchase of property and equipment from fellow subsidiaries (Note xi) (2,579) (2,936)<br />
(i) These represent expenses paid or payable by the Group for the use of certain technology, intellectual property and<br />
related know-how provided by the ultimate holding company. The expenses are calculated based on a mutually<br />
agreed basis.<br />
(ii) This represents license fee paid or payable by the Group to the ultimate holding company at a fixed fee of RMB2<br />
million per annum.<br />
(iii) These represent charges paid or payable by the Group to various related companies and a fellow subsidiary in relation<br />
to the purchase of keywords and display advertisements on websites operated by various related companies as well as<br />
certain technology and related services from a fellow subsidiary. These charges are calculated based on market rates<br />
of the related services.<br />
(iv) These represent net amount paid or payable or received or receivable by the Group to fellow subsidiaries for the<br />
cross-selling of the Group’s website inventory, website and storefront creation services and online software tools and<br />
services. These charges are calculated based on a pre-determined percentage of the underlying transaction amount.<br />
(v) This represents charge received or receivable by the Group from the associated companies for the cross-selling<br />
of products of the associated companies. The charge is calculated based on a pre-determined percentage of the<br />
underlying transaction amount.<br />
(vi) These represent charges received or receivable by the Group for the provision of administrative services to fellow<br />
subsidiaries. The charges are determined on a cost basis.<br />
(vii) These represent charges received or receivable by the Group for the provision of technology services to fellow<br />
subsidiaries. The charges are calculated based on actual cost incurred in providing such services plus a margin of 15%.<br />
(viii) These represent charges paid or payable by the Group to fellow subsidiaries for the administrative services provided<br />
by those fellow subsidiaries. The charges are determined on a cost basis.<br />
(ix) This represents charge paid or payable by the Group to a fellow subsidiary for the technology services provided by<br />
that fellow subsidiary. The charge is calculated based on actual cost incurred in providing such services plus a margin<br />
of 15%.<br />
(x) These represent charges paid or payable by the Group to an associated company for the provision of customer<br />
support services. The charges are determined on a cost basis.<br />
(xi) These represent amounts paid or payable by the Group for the purchase of certain property and equipment from<br />
fellow subsidiaries. These charges are based on the net book value of the property and equipment transferred.
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