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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
Annual Report 2011 /
1
45 Related parties
(continued)
(b) Transactions with other government-related entities in the PRC
(continued)
These transactions are conducted in the ordinary course of the Group’s business on terms comparable
to the terms of transactions with other entities that are not government-related. The Group prices
its telecommunications services and products based on government-regulated tariff rates, where
applicable, or based on commercial negotiations. The Group has also established its procurement
policies and approval processes for purchases of products and services, which do not depend on
whether the counterparties are government-related entities or not.
The directors bel ieve the above information provides meaningful disclosure of related party
transactions.
(c) Transactions with key management personnel
Remuneration for key management personnel, including amounts paid to the Company’s directors and
supervisors as disclosed in note 12 and certain of the highest paid employees as disclosed in note 13, is
as follows:
2011
2010
RMB’000
RMB’000
Salaries and other emoluments
4,108
4,053
Retirement benefits
1,583
1,447
Bonuses
9,680
8,269
15,371
13,769
Total remuneration is included in “Staff costs” in note 9 (a).
(d) Contributions to defined contribution retirement plans
In accordance with the labour regulations of the PRC, the Group participates in various defined
contribution retirement schemes organised by the municipal and provincial governments for its
employees. The Group is required to make contributions to the retirement schemes at rates ranging
from 20% to 22% of the salaries, bonuses and certain allowances of the employees. A member of
the scheme is entitled to a pension equal to a fixed proportion of the salary prevailing at his or her
retirement date. The Group has no other material obligation for the payment of pension benefits
associated with these schemes beyond the annual contributions described above.
As at 31 December 2011 and 2010, there was no material outstanding contribution to post-
employment benefit plans.
The directors bel ieve the above information provides meaningful disclosure of related party
transactions.