0175 Geely Automobile Holdings Limited Annual Report 2011

Annual Report 2011Geely Automobile Holdings LimitedNOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTSFor the year ended 31 December 201111. Taxation (Continued)The tax charge for the year can be reconciled from the profit before taxation per consolidated income statementas follows:2011 2010RMB’000RMB’000Profit before taxation 2,183,208 1,900,323Tax at the PRC enterprise income tax rate of 25% (2010: 25%) 545,802 475,081Tax effect of expenses not deductible in determining taxable profit 152,851 136,732Tax effect of non-taxable income (46,486) (60,357)Tax effect of unrecognised tax losses 15,767 21,800Utilisation of previously unrecognised tax losses (75,300) (410)Tax effect of different tax rates of entities operating in other jurisdictions 21,720 34,203Deferred tax charge on distributable profits withholding tax (note 27) 29,156 34,966Effect of tax exemption granted to the PRC subsidiaries (207,513) (294,095)Underprovision in prior years 31,362 2,692Tax expense for the year 467,359 350,612The applicable tax rate is the PRC enterprise income tax rate of 25% (2010: 25%). The Group is also liable towithholding tax on dividends to be distributed from the Group’s foreign-invested enterprises in the PRC in respectof its profits generated from 1 January 2008. Deferred tax liability of RMB29,156,000 (2010: RMB34,966,000) wasrecognised for the distributable profits not yet paid out as dividends that are generated by the PRC subsidiariesof the Company during the year.12. DividendsA final dividend for the year ended 31 December 2010 of HK$0.026 per share amounting to approximatelyRMB170,416,000 were paid to the shareholders of the Company during the year.A final dividend for the year ended 31 December 2011 of HK$0.028 per share amounting to approximatelyRMB183,833,000 has been proposed by the Board of Directors after the balance sheet date. The proposeddividend will be accounted for as an appropriation of accumulated profits in the year ending 31 December 2012if it is approved by the shareholders in the forthcoming annual general meeting.87