INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
INCOME TAXES  
Schedule of Loss from continuing operations before income tax expense

 

 

 

For the years ended December 31,

 

 

 

2011

 

2012

 

2013

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

US$’000

 

 

 

 

 

 

 

 

 

 

 

Non-PRC

 

1,236

 

888

 

(6,777

)

(1,120

)

PRC

 

(1,605

)

(11,586

)

(26,157

)

(4,320

)

 

 

 

 

 

 

 

 

 

 

 

 

(369

)

(10,698

)

(32,934

)

(5,440

)

Schedule of income tax expense

 

 

For the years ended December 31,

 

 

 

2011

 

2012

 

2013

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

US$’000

 

 

 

 

 

 

 

 

 

 

 

Current

 

13,188

 

17,490

 

(11,809

)

(1,951

)

Deferred

 

(2,043

)

(11,197

)

13,104

 

2,165

 

 

 

 

 

 

 

 

 

 

 

 

 

11,145

 

6,293

 

1,295

 

214

 

Schedule of reconciliation of tax computed by applying the statutory income tax rate to income tax expense

 

 

For the years ended December 31,

 

 

 

2011

 

2012

 

2013

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

US$’000

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before income tax expense

 

(369

)

(10,698

)

(32,934

)

(5,440

)

 

 

 

 

 

 

 

 

 

 

Income tax computed at PRC statutory tax rate of 25%

 

(93

)

(2,674

)

(8,233

)

(1,360

)

Preferential tax rates

 

(948

)

83

 

(50

)

(8

)

International rate differences

 

7,327

 

4,376

 

4,459

 

737

 

Additional 50% tax deduction for qualified research and development expenses

 

(2,660

)

(4,915

)

(7,227

)

(1,194

)

Non-deductible expenses

 

11,304

 

10,454

 

22,164

 

3,661

 

Other permanent difference

 

 

(6,626

)

 

 

Effect of changes in tax rates on deferred taxes

 

(1,586

)

3,779

 

3,947

 

652

 

Changes in unrecognized tax benefits

 

(480

)

 

 

 

Changes in the valuation allowance

 

(1,719

)

276

 

(2,123

)

(351

)

Effect of changes in tax rates on prior year tax

 

 

 

(11,642

)

(1,923

)

Deferred tax adjustment

 

 

1,540

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

11,145

 

6,293

 

1,295

 

214

 

Schedule of the components of deferred tax assets and liabilities

 

 

For the years ended December 31,

 

 

 

2012

 

2013

 

 

 

(RMB’000)

 

(RMB’000)

 

(US$’000)

 

 

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

- Allowance for doubtful accounts

 

6,096

 

1,266

 

209

 

- Deferred Revenue

 

840

 

2,436

 

402

 

- Accruals

 

6,690

 

3,394

 

561

 

Less: valuation allowance

 

 

 

 

 

 

 

 

 

 

 

 

Net current deferred tax assets

 

13,626

 

7,096

 

1,172

 

 

 

 

 

 

 

 

 

Non-current:

 

 

 

 

 

 

 

- Tax losses

 

6,481

 

394

 

65

 

- Property and equipment

 

2,202

 

1,719

 

284

 

Less: valuation allowance

 

(2,517

)

(394

)

(65

)

 

 

 

 

 

 

 

 

Net non-current deferred tax assets

 

6,166

 

1,719

 

284

 

 

 

 

 

 

 

 

 

Total Deferred tax assets

 

19,792

 

8,815

 

1,456

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Non-current:

 

 

 

 

 

 

 

- Property and equipment

 

 

2,127

 

351

 

 

 

 

 

 

 

 

 

Net non-current deferred tax liabilities

 

 

2,127

 

351

 

 

 

 

 

 

 

 

 

Total Deferred tax liabilities

 

 

2,127

 

351

 

Schedule of roll-forward of accrued unrecognized tax benefits

 

 

December 31,

 

 

 

2012

 

2013

 

 

 

RMB’000

 

RMB’000

 

US$’000

 

 

 

 

 

 

 

 

 

Balance–beginning

 

23,850

 

21,563

 

3,562

 

Increase based on tax positions related to the current year

 

3,169

 

16,694

 

2,757

 

Decrease based on tax positions related to the current year

 

(5,456

)

(13,956

)

(2,305

)

 

 

 

 

 

 

 

 

Balance–ending

 

21,563

 

24,301

 

4,014