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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
Annual Report 2011 /
1
45 Related parties
The Group is part of a larger group of companies under CTC and has significant transactions and relationships
with members of CTC. Apart from the transactions and balances disclosed in the financial statements set out
above, there are the following related party transactions:
(a) Transactions with CTC Group
Companies are considered to be related if one company has the ability, directly or indirectly, to control
or jointly control the other company or have significant influence over the other company in making
financial and operating decisions. Companies are also considered to be related if they are subject to
common control.
Because of the relationships between the Group, CTC and members of the CTC, it is possible that
the terms of those transactions are not the same as those that would result from transactions among
unrelated parties.
The principal transactions with CTC Group which were carried out in the ordinary course of business
are as follows:
2011
2010
RMB’000
RMB’000
Income from related parties:
Engineering related services (note (i))
10,968,423
9,901,200
IT application services (note (ii))
1,354,958
1,155,592
Provision of ancillary telecommunications services (note (iii))
5,389,628
4,519,671
Provision of operation support services (note (iv))
1,903,269
1,753,276
Supplies procurement service (note (v))
3,280,890
2,570,424
Property leasing (note (vi))
58,644
24,532
Management fee income (note (vii))
309,211
285,915
Expenses paid to related parties:
Property leasing charges (note (viii))
140,157
117,373
IT application service charges (note (ix))
164,755
178,137
Operation support service charges (note (x))
463,818
278,662
Supplies procurement service charges (note (xi))
1,638,763
447,754
Interest paid (note (xii))
51,021
31,728