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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

(RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 

## 6. Investment in joint ventures (cont’d) 

As of December 31, 2013, the Groups’ share of joint ventures’ capital commitment that are approved but not contracted for and joint ventures’ contingent liabilities were Rmb 321 (US$52) (2012: Rmb 2,004) and Rmb 12,843 (US$2,098) (2012: Rmb 12,836) respectively. According to Qingdao Municipal Government’s regulation, all hotels in Qingdao, the People’s Republic of China, are imposed for tourism development levy and hotel augmentation levy which are equivalent to 1% of total revenue and 3% of room revenue respectively. According to releases made by the Qingdao Local Taxation Bureau, the tourism development levy and the hotel augmentation levy were withdrawn effective from January 1, 2009 and September 1, 2010 respectively. As at December 31, 2013, the estimated tourism development levy and hotel augmentation levy payable by the Group’s joint venture in Qingdao were Rmb 3,748 (US$612) (2012: Rmb 3,748) and Rmb 9,095 (US$1,486) (2012: Rmb 9,088) respectively. The joint venture, together with other hotel owners in Qingdao is currently negotiating with the Qingdao Municipal Government to waive such levies. The joint venture is of the view that the authority is unlikely to collect such levies. Hence, the above levies have not been provided in the accounts of the joint venture. 

The ability of certain joint ventures of the Group to transfer funds to the Group in the form of cash dividend or to repay advances made by the Group is subject to the approval of the lenders and relevant authorities. 

## 7. Revenue 

<img src='content_image/279245.jpg'>

## 8.1 Depreciation and amortization, shipping and handling expenses 

Depreciation and amortization of property, plant and equipment, prepaid operating leases and investment property are included in the following captions. 

<img src='content_image/279246.jpg'>

