Vision - Alibaba

33 RELATED PARTY TRANSACTIONS (Continued)
Notes to the Financial Statements
(c) Non-recurring transactions (Continued)
(vi) This represented charge received or receivable by the Group for the sharing of certain offi ce space with a fellow subsidiary.
The charge was calculated based on actual cost incurred in renting and maintaining the offi ce space and allocated according
to the headcount attributable to such fellow subsidiary over the total headcount in such offi ce.
(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) This represented license fee paid or payable by the Group to ultimate holding company at a fi xed fee of RMB2 million per
annum.
(ix) This represented charge paid by the Group for certain advertisements and marketing activities. The charge was determined
based on a mutually agreed basis. The Company considered this transaction as a related party transaction as two directors
of the Company own certain minority interests in this service provider and one of them is also a non-executive director of this
service provider.
(x) These represented amounts paid and received by the Group for purchase and 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) This represented charge paid by the Group for a non-recurring technical consultation and advisory fees relating to the
installation of an online payment platform of RMB30,000,000 to a fellow subsidiary in 2006. The charge was determined
based on a mutually agreed basis.
(xii) This represented charge paid by the Group for the removal and compensation expenses of RMB1,995,000 to a fellow
subsidiary. The charge was determined with reference to the costs it incurred for the rationalization of the offi ce premises.
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 were considered to have similar nature and value, such
transactions were not regarded as a revenue generating transaction and thus no revenue or expense
was recognized.
151