China XLX Fertiliser Ltd

NOTES TO THE FINANCIAL STATEMENTS31 December 20088. Related party transactions(a)In addition to those related party information disclosed elsewhere in the financial statements, theGroup had the following transactions with related parties on terms agreed between the parties:Group2008 2007Rmb’000 Rmb’000Sale of finished goods – 319Sale of raw materials and consumables – 137Sale of water, electricity and steam 2,726 2,737Service fee income 82 72Purchase of finished goods – 728Purchase of raw materials and consumables 15,065 2,681Service fee expenses 2,413 766Operating lease expenses 492 34,360Interest expense 5,835 –Payment on behalf for purchase of raw materials – 1,998Purchase of property, plant and equipment – 209,909These transactions were between the Group and Henan Xinlianxin Chemicals., Ltd and its subsidiariesand associates which certain directors have significant influence over but which did not form part ofthe Relevant Business acquired by the Group. The executive directors and executive officers have intotal a 24% equity interest in Henan Xinlianxin Chemicals., Ltd.(b)Compensation of directors and key management personnelSalaries and bonus 9,988 9,977Contribution to defined contribution plans 70 8910,058 10,066Comprise amounts paid to:- Directors of the Company 8,447 8,145- Other key management personnel 1,611 1,92110,058 10,066Annual Report 200864